Plus, there are some special considerations for buying a property with an ADU.
But these experts also have much to say about ensuring your ADU real estate addition complies with local ordinances.
She specializes in guides on building, renovating, or purchasing small, affordable homes.
Credit: Robert Cardillo
Dalas Doddis the founder and CEO ofDalas Dodd Designand the former Manager atSundaea marketplace for selling homes off-market.
What Is an ADU?
“A lot of people confuse small homes or ADUs withtiny houses,” Koones says.
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On the other hand, ADU is an official term indicating the units meet local standards.
In your area, that might mean any standalone structure with plumbing and electricity.
Understanding these differentand sometimes overlappingdefinitions is key if you’re looking for ADU real estate.
Once approved, your property taxes will likely then be reevaluated.
“Let’s say you add an addition to your home of 500 square feet,” Peterson says.
So that would increase your property taxes."
In other words, as with any other significant improvement, an ADU will likely increase your taxes.
“Find an agent with experience with ADUs,” Koones says.
Peterson’s site, Accessory Dwellings, alsohas a database of ADU laws and ordinances by state.
For one, you’ll want to have the ADU insured.
Even in those situations, you won’t have to demolish your ADU to meet codes.
Instead, Peterson says, you’ll have to modify how you use the property.
But, Koones notes, ADUs can benefit the broader community, too.
“Having an ADU is a win-win for society because there’s a housing shortage.”
They can be attached or detached but must have a separate entrance (in most cases).
Costs for building a new ADU vary wildly depending on region, design, materials, and your property.
Typically, the cheapest way to build an ADU is by converting an attached basement or garage.
Plus, depending on your circumstances, permits could run you an additional $1,000 to $10,000.
