Thinking about converting the upstairs into an ADU. How do I find out the increase (if any) in property value

Question

I'm wondering if converting the upstairs into an accessory dwelling unit would increase my property value and if so, by how much. Any suggestions on how to find out?

I have a pretty good idea what homes sell for in my neighborhood, but haven't seen any on the market with ADUs.

Answer 1

Leaving out all the potential zoning issues and permit problems, the answer to almost any sort of remodeling project is that you rarely get back all of your costs.

This is the kind of project that you do so that you can provide some privacy to a family member living with you, or so that you can rent the unit to provide some income.

If, as I am presuming, your upstairs is already finished, and you are simply dividing up existing living space, there is a distinct possibility that you will actually lose some property value by making your home less desirable. Not that many folks really want an ADU.

If you are putting this into a currently unfinished attic, then you could gain some value, but expect that it probably will not be as much as your costs, unless you do most of the work yourself.

Get the proper permits for everything, and keep good records of your costs, as this can be used to change the cost basis for the house. (Ask your tax person about this.)

Answer 2

I would shy away from having people comming and going at all hours walking on my celing. What if they accidentally caught the second story on fire? Robbed you while your gone? have enough parking places? Mostly for there 1985 Station Wagon that needs a trans. and won't move the pick up with dumpster finds they sell on e-bay?