Accessory Dwellings

A one-stop source about accessory dwelling units, multigenerational homes, laneway houses, ADUs, granny flats, in-law units…

The Second Coming of Detached ADUs in Portland

Readers of this series may have noticed a positive tone change in the dire title of the series. That’s because yesterday, the Oregon Department of Revenue issued a draft rule that steers Multnomah County away from the misguided interpretation that they’d used this year–the interpretation that had caused detached ADUs to trigger a property reassessment– the interpretation which has caused a dramatic ADU development chilling effect in Portland in the last 6 months.

April 27, 2016 · 11 Comments

The Death of Detached ADUs in Portland and What To Do About (Part II)

(This is Part II of The Death of Detached ADUs in Portland and What To Do About It. Part I, Part III, Part IV, and Part V are also available.) Action Items … Continue reading

November 2, 2015 · 45 Comments

Lay Explanation of Conventional ADU Financing Options

Financing is, by far, the biggest barrier for most homeowners seeking to build an ADU on their property. Recently, I was trying to gain some clarification about three conventional loan products that can be used to help fund the construction of an ADU: First Mortgage Cash Out Refinance- taking out extra money when refinancing your ‘first mortgage’ .

June 27, 2015 · 5 Comments

Guide to financing an accessory dwelling unit

Here is nicely formatted summary to the ways ADUs are being financed in Portland today. Even if you don’t live in the area, it should provide some ideas and precedents you can use. Enjoy!

November 3, 2014 · 4 Comments

ADUs and Condos: Separating Ownership

Q. How is it that the accessory dwelling unit pictured below is being sold separately from the primary home on the same lot? A. It’s legally structured as a condominium. … Continue reading

October 7, 2014 · 14 Comments

Value it Green Tour Features ADUs

  Join other REALTORs, appraisers and lenders visiting green homes and ADUs across Portland. Have fun with your peers while you’re escorted by experts on buses to and from the … Continue reading

September 3, 2014 · Leave a comment

How do ADUs contribute to the local economy? (Or, will building an ADU raise my property taxes?)

Will building an ADU raise your property taxes? Very likely yes. Is that a good thing for the community?

July 30, 2014 · 6 Comments

How do ADUs affect property values?

Opponents of ADUs frequently charge they will bring down property values for the whole neighborhood. What is the evidence?

July 2, 2014 · 9 Comments

How much do ADUs cost to build?

Some survey results about ADU costs… and some thoughts about why ADU developers aren’t usually real estate “pros.”

June 25, 2014 · 8 Comments

A Practitioner’s Guide to Appraising ADUs

Appraisals for ADUs have always been tricky. Here is a new guide to help appraisers, real estate agents, and finance professionals understand current “best practices” for appraising ADUs.

June 16, 2014 · 2 Comments

Stradivarius violins and cigar box guitars (Making sense of ADU construction costs)

An experienced developer explains why ADUs have such a wide range of costs, and how to estimate costs for your own project.

May 1, 2014 · 8 Comments

Renovation loan: a new way to finance ADU construction

Financing your ADU has become easier. I am sure that when someone mentions financing, or budgeting, or anything to do with numbers for a project there is a slight shudder … Continue reading

November 15, 2013 · Leave a comment

Breaking Bad is over. It’s Time to Break Even.

Cooking meth is apparently one way to make money fast. But, for many of us, this option is far less appealing now that we’ve finished watching Breaking Bad. After the … Continue reading

October 21, 2013 · 2 Comments

Finally, A Loan Product That Works for Constructing ADUs

In most markets, financing the construction of ADU’s is notoriously difficult. When constructing an ADU, you need to have all the cash upfront to pay a contractor for the cost … Continue reading

January 28, 2013 · 3 Comments

Portland extends waiver of SDCs on Accessory Dwelling Units

(Editors note- for the most recent SDC waiver information, read this post. 4/2016)  Great News! This afternoon, Portland’s City Council voted unanimously to extend the waiver of Systems Development Charges … Continue reading

December 5, 2012 · 24 Comments

Appraisal Journal on ADUs: they could be worth more than you think

Today the Appraisal Journal publishes a research paper about residential properties with accessory dwelling units (ADUs).  The paper describes an income-based method for appraising properties with ADUs, and concludes that … Continue reading

November 20, 2012 · 10 Comments

The many and confusing synonyms for ADUs

A quick note about language here.  One reason people get so confused, and perhaps heated, about accessory dwellings is that language about them is  confused.  The different names conjure up … Continue reading

June 4, 2012 · 19 Comments

Refinancing an ADU – a mortgage broker’s perspective

As a mortgage broker in the Portland area for almost 8 years, I’ve learned “the harder I work, the luckier I get” is really true. In this instance hard work … Continue reading

March 13, 2012 · 1 Comment

A research and action agenda for Accessory Dwelling Units and their advocates

I spent a lot of 2011 learning about Accessory Dwelling Units (also known as in-law units, granny flats, backyard cottages, etc).  Beat that in terms of geekiness!  (Okay, I bow … Continue reading

January 10, 2012 · 8 Comments

New Energy Performance Incentive Available for New ADUs

In a post on my personal ADU blog, I described an awesome building incentive that was made available for my ADU from the Energy Trust of Oregon (ETO). My ADU … Continue reading

January 4, 2012 · 4 Comments

Appraising properties with accessory dwelling units: a preview of new methods and findings

[update Nov. 2012: the paper, including updated results, is out in Appraisal Journal… click here] This year I’ve been working with appraiser Taylor Watkins of problem of appraising properties with … Continue reading

December 21, 2011 · 15 Comments

Notes from a presentation on appraising ADUs

[Kol Peterson attended Martin Brown and Taylor Watkin’s presentation on appraising ADUs and came away with these notes about how appraisal issues affect homeowners. For Martin’s summary of the event, … Continue reading

December 17, 2011 · 1 Comment

How appraisals and “GSEs” make financing an ADU challenging

(Update January 2013: please note that the research on which the following piece was based has now been published in Appraisal Journal.   Please read the full text of that article … Continue reading

November 21, 2011 · 11 Comments
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