All Forum Posts by: John Cusick

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!

@Rafael Hoefel Pozas - how do I reach you?

I own an about 3,000 s.f. house in a gated SFH community in Huntington Beach, CA, and am considering building an ADU of about 900 s.f. on the same lot. Based on my preliminary research, it appears as though I should not have any problem getting an ADU approved by the HOA and the City. However, since this is the first time I am looking into this issue, I'd appreciate any advice as to what problems I may run into getting the project approved. Also, 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 pitfalls I should consider?

Also, what should I budget for this project for the architect/engineer/permits?  What should I budget per SF for construction?

Thank you!

Thank you, Jessica, for the thorough response!  We certainly intend to retain legal counsel after we negotiate the term sheet for this deal.  Currently, we are negotiating the due diligence period and the EM deposit.  I have offered $100K and Seller is OK with that, but they are not willing to give me a long enough diligence period.  The offer only 60 days and I want at least 90 days.  I just offered that we agree to that I'll have an option to extend the diligence period by 30 days, for which I would pay a non-refundable $30K toward the purchase price.  They are OK with that, but they also want the initial $100K to go hard (i.e. also become non-refundable) at the end of the initial 60-day diligence period if I do not cancel and exercise that 30-day option to extend.  Is it common that the initial EM deposit goes hard after the initial diligence period if I pay a non-refundable chunk to extend that period?  Thanks again!

In a commercial land purchase transaction in Northern California with the value of under $10M, what is customary for the terms below?

- earnest money deposit - is 3%, 5%, 7% or higher customary?

- duration of the non-financing contingencies period?

- duration of the financing contingency period?

- if Buyer wants to extend the contingencies period, what should Buyer pay for a 30-day or 45-day extension?

Many thanks for all substative input!

In a commercial land purchase transaction in Northern California with the value of under $10M, what is customary for the terms below?

- earnest money deposit - is 3%, 5%, 7% or higher customary?

- duration of the non-financing contingencies period?

- duration of the financing contingency period?

- if Buyer wants to extend the contingencies period, what is customary for Buyer to pay for a 30-day or 45-day extension?

Many thanks for all substative input!