Choosing to add a backyard cottage is an important long term decision. A good first question to ask when making that decision is, how will I establish a budget for a cottage? While it may be hard to put a value to how a well designed home makes you feel or the value of having a family member living nearby, some qualities are easier to asses. If that family member is an aging parent who would otherwise be living in an assisted living facility it is relatively easy to look at the costs of local facilities. For others building a new cottage may be less expensive than remodeling their existing house to more closely meet their needs. For example, new cottages can incorporate universal design components to assist those with mobility impairments. Many people plan to use their cottages to generate rental income. In this case, a careful consideration of the rents in your area and anticipated costs can help you establish a budget range. Having established a realistic budget based on your needs and values will guide the many decisions that make up design process.
Read read more
Real estate appraisers struggle with how to value backyard cottages and other ADU's primarily because there simply enough comparable sales to serve as a guide. This informative article by Martin John Brown and Taylor Watkins explains how traditional appraisals are done and some alternate methods that might be used for ADU's.
No comments:
Post a Comment
have a question