This depends on your local market. In our area, zoning does not usually allow additional units.

I know Sandy is seeing this situation in many cases and in fact, she has several buyers specifically looking for homes with the capability for an ADU

Great question, see what answers you get..

adding a prefab sounds like a great idea....

John DL Arendsen - I see few good answers from Lynnea Miller as well as John Pusa.

Oh, absolutely!  Here, they are in high demand - lots of adults moving their parents in with them and prefer separate living quarters for them.

John DL Arendsen The ADU is a hot topic in my local area.

ADUs are the new thing - and are very desirable in our market.  My builder husband is considering making these part of his next spec home due to the demand.

I am not in California but it would enhance value in my area. There aren't very many of them and we get buyers wanting them frequently. Zoning is tricky for them though. Our prices are not nearly that high and $250k for a $50k return sounds risky. Glad it worked out for him.

I think they definitely do. Many parents are moving to their children's residence and an ADU is perfect for them.

   Interesting answers.

That wouldn't work in my market but in California, they make their own rules.

We have to jump through hoops to do any add ons since zoning is so well archaic is the nice word I would use

The house across the street from me built one.  Was permitted as a "Toy shed" but I see indications of people living in it.

Out here there aren't many newer homes that have the land for an ADU.  I sold a house with a real nice ADU shed/workshop/office/kids play room/man cave or as the wifes called it "the dog house for when the husband gets in trouble" in the backyard.  It didn't add any value to the house and took time to explain what it was and what could be done with it.  It had wood floors, walls, A/C, lights, power, a window really could have been used as a room.  Of course, this house had a 180 degree arc view of the city and nothing else really would impact the value much.

Maybe.

get er done

We call them "casitas"!! 

I have no idea... of course, I'm not in California... in our market this would be very hard to do.

That's a tough one!

I don't live there but I would think it would

I do not know.

I hope the added 50k made up for the extra year of carrying costs.

John,

You have answered your question with your example above.  And Yes, is the answer.  A

I am not familiar with the California market.

In my area, for last number of years, you can do nothing to your property and the value continues to go up and up.  We have a very hot market.

Depends on buyer ?

In Palo Alto, CA a r3 zoning 6000 sf, a modest cabin seller is asking $3,280,000.00 for its potential value-$550/sf for its residential value. Holy smoke!

That is a bit crazy to pay 250k for a 300k return, although good money, the average home owner wont be able to do. We have a great request for them, but few homes have them legally, most were just built then the hard work comes in

I wish we knew.