ADU Or Adding to exsisting home???(appraisal value wise)

[Steven Macdonald]

I currently have a 3 bedroom, 1 bathroom home I am looking to add the addition of an ADU separate from the house. Would it increase my home equity value to have it attached or separate, according to the appraisal? Does an ADU account for total square footage of a house when being appraised if it is not attached?

[Kevin Chen]

Hey Stephen - on both the attached and detached ADU, your home will have a more liveable square footage so it should increase your home value. We've also seen some value attached to the rental income stream as well. The increase in value should be different based on your neighborhood too so comps are a good approach there.