From The ValuVault: ADUs — What Adds Value
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From The ValuVault: ADUs — What Adds Value
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Charlie Johnson explains how accessory dwelling units (ADUs) actually translate into value.
– ADU = a permitted, self-contained living unit on the same lot (sleeping, cooking, sanitation, and independent access)
– Market demand matters: some areas pay a strong premium; others, only modest lift
– Permits & conformity: code-compliant (and where required, separately metered) units typically contribute; unpermitted or non-conforming spaces can be ignored—or treated as a risk
– How appraisers handle ADUs: look for closed sales with comparable ADUs; adjust for size, quality, privacy, and functionality
– Documentation wins: permits, plans, utility setup, photos, and (when applicable) rental history help support value
📌 Appraisers: Verify permits and zoning; note legal vs. non-conforming status; use ADU comps and explain the adjustments.
📌 Agents/Owners: Pull permits, confirm utilities, and provide ADU comp sales in your packet—don’t overstate unpermitted spaces.
Bottom line: A permitted, well-executed ADU can boost price and appeal. Make sure the paperwork is as solid as the structure.
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