ADUs (accessory dwelling units), sometimes also known as guest houses, backyard apartments, or in-law suites, have been popping up all over Atlanta. These small units are becoming popular in neighborhoods all across the city.
If you're thinking about selling your Atlanta home with an ADU, you might have more flexibility than you realize. A second unit can boost your property value and attract more buyers. But it can also come with a few issues you’ll need to think about before you list your property.
What should you know before you try to sell a house with an accessory dwelling unit?
What exactly is an ADU?
An ADU is a smaller, self-contained secondary dwelling unit built on the same lot as the primary home. It can take many forms, including:
- A garage conversion ADU
- A detached ADU, like a small cottage in the backyard
- An attached ADU, such as an extension on the house
- An internal ADU, like a basement apartment with a private entrance
- A modular ADU that was prebuilt and added later
Does having an ADU increase property value?
A legal and well-maintained additional dwelling unit can increase the value of your house. That’s because it adds usable square footage, which can help families that need flexible space for multi-generational living or want to use it for potential rental income. According to the National Association of Realtors® (NAR), an ADU can increase your property value by an average of 35%. ADU housing, like a finished basement or garage conversion, can make your property more attractive to buyers as well.
What to watch out for when selling a house with an ADU
Not every accessory dwelling unit is ready for the market. If yours wasn’t built to code or lacks the proper permits, you could run into challenges. Unpermitted construction might not pass a building inspection, and there may be issues during a property inspection. You’ll need to make sure it meets safety standards, and that the unit shows up in tax records.
Local zoning rules in Atlanta also determine whether an ADU is legally compliant. Compliance can impact how easy it is to sell your house, as well as how much it’s worth.
These problems can make it harder to sell your house to traditional buyers, especially if they’re using financing. But even if your accessory dwelling isn’t up to code, you still have options.
Your options for selling a house with an ADU in Atlanta
If you have a house with an ADU, there are a few ways to sell it. You could:
- List your house with an agent: This works well if your ADU is in good shape and has all the proper permits. Agents can help you find buyers and get a good price, but if the ADU needs repairs or isn’t up to code, the process might take longer.
- Sell FSBO (for sale by owner): This means you handle everything like advertising, showing the property, and negotiating. It can save you money on agent fees but might be harder if you’re not familiar with selling houses.
- Sell to an off-market home buyer: These are individuals or companies who buy all different types of properties, including those with ADUs, even if the unit needs repairs or doesn’t have permits. With this option, you don’t have to fix anything or wait for inspections.
Sell your house with an ADU in Atlanta the simple way.
A well-designed ADU can add value to your property, but it doesn't have to add stress.
That’s where HomeVestors® comes in. Our easy 3-step home-buying process lets you go from consultation to closing fast, sometimes in as little as 3 weeks. We buy directly, so you don’t have to worry about inspections or code compliance. With us, you can sell your house “as is,” even if your unit isn’t in perfect condition. We pay typical closing costs with no commissions or hidden fees.†
Looking to sell your Atlanta house with an ADU quickly and without repairs? Contact HomeVestors in Atlanta today and see how simple selling your house can really be.
This blog is for informational purposes only and should not be considered legal advice.
