ADU'S Sold Separately

[George Hatch]

This brings up a potential HBU question for existing SFRs.

At whatever point adding ADUs becomes a preference in the market that could affect the usage and values for existing SFRs. You could have 2 SFRs located next door to each other, both with similar SFR and lot sizes but with different values because in its existing configuration one property has room to fit in an ADU without violating setbacks and the other doesn't. And an AVM might not be able to "see" that variable.

 

[Fernando]

Did the detached ADU add $300-$500k to the market value?

Technically as an investor, it's the ideal two unit building being detached with more income than a SFR.
It still has flexibility for buyer to use it as a SFR and far away detached ADU in the yard and plenty of parking near park.

 

[Joe Flacco]

Im seeing like $175k for a 240 sf detached garage with 200 sf finished above. Detached ADU's expensive.

 

[George Hatch]

Did the detached ADU add $300-$500k to the market value?

What's the difference in pricing between an SFR and a 2-unit?

I appraised a 7-unit subdivision last year where the developer intended to build 2 detached units on each parcel, a 4bd unit and a smaller 3bd unit as an ADU. Nomenclature aside, my comps were all 2-unit properties. The project was feasible, in part due to the manner in which the structures were oriented on these parcels.

 

[Joe Flacco]

What's the difference in pricing between an SFR and a 2-unit?

I appraised a 7-unit subdivision last year where the developer intended to build 2 detached units on each parcel, a 4bd unit and a smaller 3bd unit as an ADU. Nomenclature aside, my comps were all 2-unit properties. The project was feasible, in part due to the manner in which the structures were oriented on these parcels.

The pricing difference depends a lot of factors.

Not much difference for a basement unit vs finished basement to full coat for new construction with very small detached adu. A lot of other factors in between.

Did that seven lot subdivision sell out successfully? I haven't seen anything like that here. I would like to build like a 1000 sf detached adu for my parents but it costs too much and probably wouldn't get it back.

 

[George Hatch]

I haven't seen anything like that here, either. They're still under construction so nothing has been sold yet. But these ARE the type of properties that a rental-investor like Blackrock might buy. They can buy the rents that go with 2 new detached SFRs for a bit less than the cost of buying 2 (new) individual SFRs.

San Fernando Valley area of Los Angeles, so they're close to employment.