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A Quick Guide To ADU Development

Looking to build an ADU yourself but not sure where to start? Check out this quick guide to ADU development!

Start By Gathering ADU Costs

The first step to developing an ADU, besides figuring out if it is actually possible for you, is to gather your costs. The key to this is to not try to find an exact cost. Instead, look for a good general range that your total costs are likely to fall within.

There are four major factors to ADU cost. They include:

  1. Design and planning
  2. City fees
  3. Construction
  4. Finish materials

How big you want your ADU and your design tastes will greatly affect how much your ADU is going to cost you. It is also important to remember that you need to furnish your ADU as well. So don’t forget to include the price of appliances and furniture when figuring out your costs.

Next, Secure Your ADU Financing

Once you have a ballpark range of how much your ADU is going to cost, it is time to figure out how you are going to pay for it. If you can’t pay out of pocket, your other options include:

  • Home Equity Loans & HELOC
  • Cash-Out Refinancing
  • Construction loans

Take a deep look into each option to figure out which one will work best for you and your specific needs.

Then Plan Your ADU

Now it is time to research zoning requirements and start to plan out your ADU. Your first step should be to do a feasibility study to determine what kind of ADU you can build, how big, and where. This will help you determine the possible challenges that lie ahead of you before you get to them.

You will need to come up with a general idea of how you want your ADU to look and its dimensions of it.

Finally, Consult With ADU Experts

Once you have your plan, it is time to consult with ADU experts to draw up professional architectural designs and plans for the ADU for contractors to follow. You will also need to go through the permitting process, which can be made much easier with the help of an expert.

Once you do though, you can start developing the ADU of your dreams!

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