ADU’s also known as Accessory Dwelling Units: The Hottest Craze in LA!

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Real Estate Agent with Berkshire Hathaway HomeServices 01238708
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ADU’s also known as Accessory Dwelling Units: The Hottest Craze in Los Angeles!

POSTED ON JUN 21, 2019 BY  IN ADVICE TO HOMEOWNERSENDRE BARATHNEIGHBORHOODRELOCATION TO LOS ANGELESSELLINGWESTCHESTER HOMES | 

ADU’s  also known as Accessory Dwelling Units. They are indeed the hottest craze in Los Angeles. In my observation, there are a few key pitfalls that you should avoid, when it comes to building an ADU’s.

ADU’s are truly awesome:

  •    As a Los Angeles Realtor, I am all for adding ADU’s to your home.
  •    Someone who lives in Westchester, CA. 90045,  I see the benefit of the additional space.
  •    If you live in a modest home ADU’s can add a huge benefit. When it comes to living square feet,  to be able to add additional living square feet to your home is clearly a plus.

There are some key points to consider before you jump on the bandwagon.

First and foremost, please build the ADU with permits.  Second, have your Architect or Contractor design it, by having interior access to the main house. These two points are critical, because when the time comes to sell your home you do not want to be surprised.

In my opinion, should you decide to build the ADU without permits, for all practical purposes, you might as well not have it. Appraisers and Insurance Carriers do not  consider the square feet as part of the original living square feet if it was not built by permits.

Keep in mind, if you do not have direct access from the main house to the ADU (Accessory Dwelling Unit), then you can not include the living square feet to the total size of the house. This could be a huge surprise when you are ready to sell your home.

Just as an example, most ADU’s are about four to five hundred square feet additions. Let us use an example: If your neighborhood is selling around $700-$800 a square foot that in simple mathematics could be a $280,000 -$400,000 price difference, when it comes to accessing your homes value.

Alternatively, should you decide to only take half my advice think again. By building the ADU  with permits and not creating a direct access to the main house, it will cost you. The ADU’s  value would be comparable to a fancy “shed”,even if it was just newly built. In my market, that is Westchester, CA 90045, that would be around $10,000-$25,000.

without permits

ADU’s with permits can have kitchens

Another drawback, by to not having the ADU’s done with permits could be a problem during the sale of your home. Clearly you cannot have a stove or a toilet in the addition if it is un-permitted. Therefore,  when it comes time to sell you need to hide it from the Appraisers. Let’s face it there is a stigma with doing things without permits. The perception is that it was a chewing gum addition rather than done by professional craftsmen up to current code. This in turn would make your home harder to sell.

 

Accessory Dwelling UnitsLooking for a knowledgeable, focused and goal-oriented Realtor in the Beverly Hills area who will help you achieve your Real Estate goals? Please reach out to me directly!

If you are looking for a pet friendly Beverly Hills Realtor who can handle and sell the most difficult properties that no one else could, please reach out to me directly!! If you are considering buying or selling a home, a luxury home, luxury investment real estate, luxury vacation homes, or luxury beach properties in Southern California, Los Angeles, Century City, Westwood, West Hollywood, Beverly Hills, Marina Del Rey, Venice or Malibu, feel free to contact me at 310.486.1002 (m) or homes@endrebarath.com or visit one of my websites at https://www.endrebarath.com  I contribute a portion of my commission to local animal rescue organizations

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Rainmaker
3,195,972
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Carol Williams  you are so right I agree with you 100% Endre

Jun 22, 2019 10:26 PM #26
Rainmaker
3,195,972
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Michael Jacobs  I see it is becoming very popular in places like Westchester, West Los Angeles to name a few, Endre

Jun 22, 2019 10:28 PM #27
Rainmaker
3,195,972
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Ron and Alexandra Seigel  I was not familiar with John DL Arendsen  thank you for the introduction, Endre

Jun 22, 2019 10:38 PM #28
Rainmaker
3,195,972
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Anna Banana Kruchten CRB, CRS 602-380-4886  I see it here too, especially with these ADU's where they do not connect it to their home...the home owners need to familiarize themselves with the requirements and not just rely on their architects. Not all are created equal, Endre

Jun 22, 2019 10:40 PM #29
Rainmaker
3,195,972
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

John DL Arendsen  glad we connected thanks to Ron and Alexandra Seigel  glad you concur with my post, Endre

Jun 22, 2019 10:45 PM #30
Rainmaker
3,195,972
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

George Souto  you being a Lender can relate to what an appraiser would count or not count as living square feet, Endre

Jun 22, 2019 10:47 PM #31
Rainmaker
3,195,972
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Rebecca Gaujot, Realtor®  here in Los Angeles there are only a handful of Inspectors, but they always find out who is doing things without permits.... it is usually the neighbor who reports it to the Building Department, Endre

Jun 22, 2019 10:48 PM #32
Rainmaker
1,477,898
Georgie Hunter R(S) 58089
Hawai'i Life Real Estate Brokers - Haiku, HI
Maui Real Estate sales and lifestyle info

Did they recently change zoning laws to allow more of these ADUs?  They did that on Maui but it's a little more complicated than they realized.

Jun 23, 2019 02:06 PM #33
Rainmaker
2,758,842
John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Endre Barath, Jr. many homeowners want to add an Accessory Dwelling Unit. Very popular among property owners. Great post.

Jun 23, 2019 06:15 PM #34
Rainmaker
3,195,972
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Georgie Hunter R(S) 58089  yes they loosened up the approval process and a bit ironic the mayor of Los Angeles was pushing for it because he thought this would solve the homeless crisis ..... he thought he would collect more money from home owners via taxes as well as that home owners would take in the homeless.....Endre

Jun 23, 2019 07:15 PM #35
Rainmaker
3,195,972
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

John Pusa  thank you for supporting the post and indeed it is a hot topic and activity, Endre

Jun 23, 2019 07:17 PM #36
Ambassador
3,282,892
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

We are seeing a lot of these in the Charlotte Metro area over the past 3 to 4 years. In fact, I think I just shared a post about that last week - it's been 'the craze' for multifamily living and some of these ADUs are quite nice. We are seeing them primarily in the luxury market though.

Always permitted though - they're too expensive not to permit!

Jun 23, 2019 10:03 PM #37
Ambassador
3,282,892
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

Here is the link - these are just a few of the listings for multi-generational families I have sold, Endre. All are not ADUs - one was a fully finished 'apartment' basement.

Jun 23, 2019 10:06 PM #38
Rainmaker
3,195,972
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Debe Maxwell, CRS  we had them around for a while, as well.  Since the current Mayor of Los Angeles thought this would solve the "homeless problem" you can get ADU's fast tracked in the permit process as well as you can convert attached garages to ADU's. Needless to say it is not a solution to the Homeless Problem, but it helps home owners....Endre

Jun 23, 2019 11:17 PM #39
Rainmaker
743,327
Jane Chaulklin-Schott
TEAMCONNECT REALTY - (407) 394-9766 - Orlando, FL
TeamConnect Luxury Homes - Orlando, Florida, 32836

Excellent article, Endre Barath, Jr. -   great/important advice and information.  Who needs a a 'chewing gum value addition' when selling when the cost was
much higher and the value not collected on without the ADU permit and main house interior access.  Great post, my dear friend!!

Jun 25, 2019 07:51 AM #40
Rainmaker
1,010,712
Gloria Todor
Century 21 Absolute Realty - Springfield, PA
& Doug Durren (484) 431-3686 in SE PA

Hi Endre, I have to admit ADU is a new term for me, not used in our MLS yet. 

Permits are so important and each municipality is different in their requirements. We know of one situation where permits were not pulled on a major renovation and the township found out of changes prior to closing and made the homeowner tear down most of the sheet rock throughout the house to look at the new electrical work.  

Jun 29, 2019 08:07 AM #41
Rainmaker
2,521,296
Myrl Jeffcoat
GreatWest Realty - Sacramento, CA
Greater Sacramento Real Estate Agent

With rising California home prices, and an aging population, I think ADUs are going to be increasingly popular.  That being said, you make excellent suggestions to those considering adding or building one.

Jul 01, 2019 06:00 PM #42
Rainmaker
3,195,972
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Jane Chaulklin-Schott  thank you for your kind words and just hope you will have a relaxing 4th of July, Endre

Jul 03, 2019 10:52 PM #43
Rainmaker
3,195,972
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Gloria Todor  would you believe it, we live next to LAX as in Los Angeles International Airport and I saw an ADU being listed for lease for $2800 a month....Endre

Jul 03, 2019 10:53 PM #44
Rainmaker
3,195,972
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Myrl Jeffcoat  in my neighborhood the most simple and cost effective ADU's are the ones who convert their attached garage and pick up 500-600 sq ft of living space, Endre

Jul 03, 2019 10:55 PM #45
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