In 2020 a new set of laws came into effect allowing for accessory dwelling units (ADUs) in California. We are still in the early stages to see how many people are actually taking up this opportunity and unlocking their property’s value by building an ADU. Simply adding an ADU such as an extra room, suite, or a separate home on your property will increase the value of your home. We found one thing for sure, building an ADU builds instant equity and this is an area you can’t go wrong on. An ADU Contractor adds huge value to your construction project, especially if the ADU Contractor you higher has years of experience.

The cost of building an ADU is a fraction of what the end result in value comes out to be, so now even those who were previously hesitant are taking this opportunity to build. Southern California real estate investors have been telling DREC how building these small homes pays dividends in terms of cash flow and appreciation for years to come!

“This really isn’t just about making some extra income on your property; this is about increasing your home value and growing your equity.”

The Cost to Add Value!

To summarize, building an ADU is a great way to add value and increase your home’s marketability. The all-in costs for design-build services can be as low as $225-$400 per square foot (with many projects seeing prices around $310). This means that adding one extra room could make you 50% more money on top of what it would cost for the new construction! That doesn’t mean this will automatically happen in every case. However, if we’re going by early trends from California alone then this seems quite possible. When considering investing in something with such a high ROI potential there is often a huge risk, this is not the case with building an ADU.

Ready to unlock your property’s potential with an ADU? Click here for free consultation and estimate!

Like much of Southern California, Orange County has seen home values continue to skyrocket in 2021. The average sale price across all homes was $1.1 million dollars. This means that selling your existing home with an ADU is only going to increase your value significantly.

Garage Conversions

The garage conversion ADU is a smart investment for homeowners, who can immediately see the value in their home increase with this simple and stylish design. By converting an existing two-car space into one that has ample room to store all your belongings while still being able to park outside at any time you choose without worrying about blocking access lanes or neighboring properties; it’s clear why more people are turning towards building detached garages.

By converting a garage into an accessory dwelling unit, you can get an increase in cash for your property. A simple case of a recent Orange County sale where the buyer paid $200k more than usual because they were able to use the garage conversion as living quarters. It makes sense today why homeowners might want to build ADUs on their properties, especially if their homes do not have any additional spare rooms left.

ADU Contractor

A standard garage ADU or Junior ADU as they are called demonstrates how a garage can be transformed into an ADU that offers the comforts of a home, such as indoor plumbing and electricity.

A two-car detached garage may seem like just another dusty box on your property until you consider its potential for living space. We have succeeded in turning smaller-sized buildings into something more expansive by adding to them. This creates an outdoor paradise at any time during the summer months

Listing agents say that a detached ADU is a rare find, yet a hugely desirable one. Having an ADU on your property will generate high property values. An example is a three-bedroom home that could have plenty of space for friends or family to stay when they visit but having their own private entrance adds enormous value.

Orange County Housing Crunch

The housing crunch in the Orange County Area continues to drive up prices and makes it difficult for many people who want a home to actually purchase one. A new ADU can be an excellent solution- not only will you have more space, but your property value goes way up as well!

A state whose population is growing rapidly needs all sorts of solutions like these; they’re great sources of revenue if done correctly.

Orange County and the City of Los Angeles have a program that will allow homeowners to build an ADU with pre-approval plans. This means you don’t have to wait months and countless hours before getting started on your project! If this sounds like something interesting, contact us today for more information about studios, and 1-bedroom or 2-bedroom pre-approved standard plans.

Homeowners who can afford to build and have a backyard or a convertible space should consider building an ADU. The DREC team has made achieving this goal simple with their A-to Z process for eligibility, design, permits & construction which includes our top-notch professionals. DREC provides peace of mind knowing your custom stick build will be done right!