Selling a Property with an ADU or DADU

Benefits of Selling With ADU/DADU

Selling a property with an ADU or DADU is more complex than selling a single-family residence…or at least it should be. Don’t leave money on the table! I highly recommend working with an ADU / DADU property specialist who has the expertise to value your property and sell for the highest return possible.

Below is my seven-pronged approach to selling a home with one or more ADU / DADUs:


Property Valuation

Valuing a standard single-family residence is difficult enough, but add in one or more income-producing units and the value becomes even more-difficult to ascertain. There is a different set of buyers who may be looking for a property with an ADU, but it is a different pool of buyers. There may be buyers looking for a multi-generational home, a buyer who wants to rent out a space for someone like a visiting nurse, or maybe even a mom-and-pop investor who wants to add to their portfolio. Knowing our potential buyer pool and the loan possibilities for a future buyer will help the pricing determination. I also put the power of my 10-Point Pricing Strategy Report to work!


Making it as easy as possible for potential buyers to understand value

Many sellers of rentals or other income-producing property will only release information on income and expenses when a buyer actually makes an offer. Although this decision is ultimately up to the seller, from what I have seen, buyers are much more trusting of the situation and are more likely to make a property a contender when they have the numbers in front of them. That is why I recommend allowing me to put together an ADU / DADU Info Packet that includes information on income and expenses. This can also be provided to the appraiser in the event income you have received or expect to receive can be factored into the appraised amount


Widening the buyer pool by making landlords out of buyers

The buyer for your property may have never considered being a landlord. When I create the ADU / DADU Info Packet that will be included in the listing documents, I will include information on operation of the ADU / DADU – everything from the rent schedule to how utility billing currently works, general information on any current lease agreements, and even provide resources on landlord-tenant resources and property management. Although the buyer’s agent will represent the buyer, I want the information I provide to be a good resource.


Selling with tenants in place?

Great question! In both cases, you will likely lose out on at least some buyers if you sell with tenants in place versus selling vacant. On the one hand, some buyers may want the opportunity to vet their own tenants or they may want to use the space for themselves. On the other hand, especially in areas that allow for an ADU / DADU without an owner occupancy requirement, the next owner may have the intention of renting anyway and likes the idea of tenants already in place. Instead of going into the sale feeling one way or another, let’s look at the circumstances when you are getting ready to list. But keep in mind that tenants need to be given plenty of notice if you want them to vacate before a sale and whether you can do so will depend on the terms of your lease agreement and local and state rules and ordinances.


Photography, 3D Tour and Floorplan

Especially if one or more of the ADU units is occupied during the listing period, making it difficult to show to potential buyers, it will be important to provide the potential buyers with a lot of visual information about your property. I will take ample photos, create a 3D Tour, and create a floorplan so potential buyers can see how your property flows.


Single-Property Website

I will buy a domain name for your property which will used on marketing, the for sale sign in your yard, on social media marketing, email marketing, and anywhere else possible, making it easy for buyers to remember your web address, bookmark it, and refer back to it.


Database of Buyers Searching for Income-Producing Properties

I will market your listing directly to those looking for income-producing properties by way of social media, messaging, email marketing, and print marketing.