As people look to increase the value of their homes in every possible way, one opportunity that is certainly worth considering is adding an accessory dwelling unit – or ADU – to your property.
An ADU is a great option for those who are looking to add some extra living, or working, space to their land. If you’re thinking about adding a New ADU in Kirkland, WA, chances are good you are wondering what the potential value is that they would bring to your home’s resale value.
Due to the fact that ADU’s are still somewhat new concepts, there is not loads of data on how much value that can add to an already existing property. That being said, the Appraisal Journal titled Understanding and Appraising Properties with Accessory Dwelling Units took a look at 14 ADU-enhanced properties in nearby Portland, Oregon. What the study found was quite promising.
In fact, it concluded that accessory dwelling units typically contributed about 25 percent to 35 percent of each property’s assessed value. Beyond that, adding an ADU leads to an average increase of 51 percent in resale value.
That’s a lot of increased value and can certainly ease your concerns about the potential of building an ADU and then not reaping the resale benefits of it if you should decide to sell your home in the future.
Is building an accessory dwelling unit worth it?
Now that you know the approximate value that an accessory unit brings to your home, you may have a better idea of the answer to this question. Still, building a custom ADU on your property is a major decision for you and your family to make. For that reason, you want to be especially confident in its value.
One misconception that many homeowners have about building ADUs is that they would need their neighbors’ permission to do so. Another common misunderstanding is that they need a large plot of land to do so as well. The truth is that neither is the case. There are many different ways to build an ADU on many different types and sizes of plots.
According to state laws, almost every homeowner has the right to build an ADU. One important thing to keep in mind is that ADUs can be defined as many different things and come in many different shapes and sizes. An ADU can be as small as a 250-foot studio. It can also be as large as a 700-foot two-bedroom complex. Building an ADU to fit your need, and the perceived needs of any future buyers, is the best way to make sure that you are making the most out of your decision to build.
There’s no doubt that building an ADU is a big investment. That being said, you are not only creating added living space for you and your family, you are also adding value to your overall home.
If you’re thinking about adding an ADU, it’s time to start talking to builders you know and trust to see how you and your family could make the most of the land you have.