Maximize Your Home's Value with an ADU
California, Truckee and Placer County have all addressed the housing shortage by loosening restrictions on building accessory dwelling units (ADUs,) This includes adding a unit above your garage, building a guest house or creating a rentable unit within your existing property.
Additionally, you can get access to pre-approved plans and even obtain financial assistance to build an ADU. In Truckee, there are currently no lot size requirements to build an ADU.
Not only will adding an additional unit to your property at Lake Tahoe increase its value, it can offer a place to stay if you wanted to turn the main house into a rental.
It is estimated that building an ADU in Truckee will cost about $500 per square foot. A 300 square foot studio can be built for around $150,000. To build a larger 750 square foot unit, you will pay around $375,000.
When you consider that homes in Truckee sell for around $700 per square foot, the ADU could increase the home’s value beyond the cost of building an ADU.
In addition to adding equity to your property, using the guest unit and renting the main home out can also be a money maker for you. The additional income can help offset any construction loan costs to build the ADU.
Over time, you would not only have a positive cash flow, but you would gain quite a bit in equity when you sell. Since these incentives are being pushed by government programs, the ease on restrictions may not be available at a later time.
Even HOA’s have to allow for the creation of ADUs within the set guidelines that they can establish. For more information on Truckee’s ADU program click here.
An ADU can be built with home equity loans or construction loans. The state of California offers a grant program and the Town of Truckee offers mini loans and grants.
In order for a lot to be eligible for an ADU in Truckee, it must be on either a sewer line or have the additional space for an additional septic tank. You can contact the Truckee Planning Department to inquire about a free feasibility study.
The town of Truckee is also making it easier to permit an ADU that may have been built without a permit. They will want to know that the septic or sewer meet the requirements for an ADU. You can click here for more information on getting an existing ADU permitted.
There are many homes for sale that you might consider buying and adding an ADU. Contact me today for more information about available homes for sale in Truckee and North Lake Tahoe.