ADU - Does it Make Sense & How Much Should it Cost?

Question

I own an about 3,000 s.f. house in a gated SFH community in coastal Southern California, and am considering building an ADU of about 900 s.f. Since I am doing it the first time, I'd appreciate some advice on the following issues:

1)   How would building an ADU affect the value and marketability of the house? I am trying to avoid any unintended consequences . . . for example, may adding an ADU in a fairly upscale gated SFH community decrease the desirability of the house for prospective buyers when I am ready to sell? Any other negative consequences or pitfalls that I should consider?

2)   What should I budget for this project for the architect/engineer/permits?

3)   What should I budget per SqFt for construction?

Thank you!

Colin L. · Answer

I've worked on numerous homes in Coronado, La Jolla, Rancho Santa Fe, and it's very common for high end homes to have a guest house/pool house/casita/granny flat etc. etc. so an ADU is basically just a guest house w/ a full kitchen.  As long as it fits in w/ the original home I'd wager it would increase the value of the property, even if its visible from the street.

Dan H. · Answer

In San Diego ADUs generally add less value via appraisal than the hands off construction cost.

This poses the question, why do you want to add an ADU?   Is it to rent it out?  To have for guests?   There will be maintenance/cap expense costs associated with the ADU.

If you want the ADU then get the ADU, but realize that if you do not rent it out, you will be unlikely to recover all of the costs associated with the ADU without an assist from appreciation.

Good luck

John Cusick · Answer

Maxwell,

Thank you for your input. I assume your response means that I should not worry about adversely affecting the value of my house by adding an ADU in a SFH gated community, where the sizes of most lots do not allow for an ADU construction.

Also, I appreciate your offer to connect me with a team that handles all ADU-related issues. However, I am in Orange County and will try to find someone to work with in OC . . .

One follow-up question . . . You write:  "One important factor will be how "out of sight / out of mind" theADU's location will be. Private entrance/exit (egress). Will it be gated or fenced off? Is that possible?" The ADU that I am envisioning would be built in a "side-yard" of my house, i.e. it would be located next to my house and, thus it would be visible from the street and have a separate entrance from the street.  It would not be fenced off, but it would not have any access points into my backyard. So, in a way, it would be practically like a separate house, but it won't have its own backyard. Of course, I would make sure it fits in architecturally and looks like a natural continuation of my house. But, I guess, it would not be "out of sight/out of mind."  Is that less desirable in your opinion?

Thank again!

John

Maxwell Ventura · Answer

@John Cusick

1) Regarding the neighborhood. Sure it's possible however ADU's are becoming more and more common place here in SD w/ limited inventory. There isn't strong evidence to suggest it's going to get any better anytime soon. The ADU is an incredible value add for many reasons.

Remember the public's perception on solar 10-15 years ago? "How's it going to look on my roof?" and "Will it effect the sale of my home?"

One important factor will be how "out of sight / out of mind" the ADU's location will be. Private entrance/exit (egress). Will it be gated or fenced off? Is that possible?

GENERAL rule of thumb for setbacks is 4ft on sides and rear of property and a detached ADU should be at least 6-10ft away from the existing structure.

2) budgeting for architect / engineer / permits etc.. will vary.

3) PPSF on ADU projects generally vary all the way between $250-$350 per sq ft, depending on what type of ADU, your finishes, and grading. How easy it is to for UTLs & Plumbing.

I have a team I can connect you with that handles everything from Financing, Designing, Permitting, Building, Leasing, to Property Management.

Hope this helps.

Jo-Ann Lapin · Answer

Look up john Andreasen in San Diego county he will be able to answer most of your great questions .

ADU - Does it Make Sense & How Much Should it Cost?

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