Decoding the Dollars and Design: A Comprehensive Guide to ADU Costs and Types
Mortgage Broker
Scott Gereaux Mortgage Broker
Published on August 28, 2023

Decoding the Dollars and Design: A Comprehensive Guide to ADU Costs and Types

Intro: Unlocking the ADU Opportunity

Have you heard about Accessory Dwelling Units (ADUs) and wondered how to build one without breaking the bank? You’re not alone. ADUs are a hot topic, offering an extra source of income, a solution for multi-generational living, or a cozy, private space for guests. However, the question that looms large is: What are the costs involved and what types of ADUs can you actually build? Let’s dig in!

Understanding ADUs: More Than Just A Space

Before diving into costs and types, it’s essential to understand what an ADU is. Simply put, an ADU is a secondary dwelling unit on your property. This can be anything from a basement conversion to a new build in your backyard.

Types of ADUs: Choices Aplenty

Different types of ADUs come with different costs. Here’s a breakdown:

1. Detached ADUs

  • Stand-alone units separate from the main house.
  • Cost: $100,000 – $250,000 (depending on size and amenities).

2. Attached ADUs

  • Added to your existing home structure.
  • Cost: $50,000 – $150,000 (also size-dependent).

3. Interior ADUs

  • Converting a part of your home (like a basement or attic).
  • Cost: $25,000 – $75,000.

4. Garage Conversion

  • Transforming your garage into a living space.
  • Cost: $20,000 – $50,000.

Hidden Costs: What to Look Out For

  • Permit Fees: Required for any construction; varies by location.
  • Utility Connection: Additional costs for connecting utilities.
  • Landscaping: Outdoor projects may require landscape adjustments.

Financial Planning: Financing Your ADU

Here’s the lowdown on financing options:

  • Home Equity Loan or Line of Credit: Utilizes your home’s existing equity.
  • Cash-Out Refinance: Allows you to get a new mortgage and cash for your ADU.
  • Private Loans: A variety of options depending on your financial profile.

Insider Tip: I can help you explore these options to maximize ROI and minimize costs.

Why the Fuss About Costs and Types?

Knowing your options and the associated costs helps you make an informed decision. And let’s face it, no one likes financial surprises, especially when it comes to property.

Let’s Chat: Your Path to ADU Success

Whether you’re sure of your ADU vision or just starting to explore, I’m here to help:

Understanding the costs and types of ADUs empowers you to make the right choice. Let’s turn your ADU dream into a well-planned reality!

Mortgage Broker
Scott Gereaux Mortgage Broker
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(720) 775-7675