Accessory Dwelling Unit (ADU) after completion value

[Amber Mena]

We are currently looking into construction loans and that are requesting the the estimated value of the property. This is my first project and I don't know how to calculate this. Can anyone help me figure it out?

[James Villarreal]

It will depend on what the market says. That is a very large adu and almost certainly will not return value on cost of construction. I am an appraiser in Houston and most areas a typical 400-500 sf quarters adds ~25k to most neighborhoods and the really nice ones in higher price point neighborhoods add somewhere between $40k-$75k.

at the end of the day, the appraiser will likely do their best to bracket the adu as an additional amenity with another similar comps with an adu or find another with similar amenities. For the size of your proposed adu, highest and best may be as a duplex (if zoning allows) and the appraiser may appraise as a multi fam.