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Friday, November 30, 2012

Go-To Source for ADUs

Here is your local, Go-to Source for ADUs. 
A one-stop source about ADU's, granny flats, backyard cottages, in-law units, accessory dwelling units…

(So...what's an ADU? An Accessory Dwelling Unit.) I also like: Alternative Dwelling Unit.

But, especially good is Martin John Brown's article: Appraisal Journal on ADUs, making the point that appraisals of ADUs have lagged far behind the touted trend, continuing to depend on property comparisons rather than income-based assessments. Income-based appraisals spell out what a good return rate on investment ADUs make.

Now, why do people in the industry think ADUs are a headache: too hard to deal with, or even illegal?
Besides those folks in the industry repeating things they have heard but not proven, and those wanting to make transactions easy as possible...(laziness, in other words, or, to be more generous: lack of structures to deal with the unusual) it also originates from those sellers who end up disappointed when their hand-built basement flat fails to enhance their selling price.

Jeff's house at Tiny House Design
Well Done. Lovely ADU.
There are a million and one ways to build against code, and real estate brokers and appraisers have seen them all. But one of the most common is attempting to build a space that can be "legally" separately occupied. Let's say a homeowner has built in the hot water heater closet within a bedroom (this was true of the first house I bought), creating a potential explosion hazard. Who knew it has to have a separate entrance? The weekend builder didn't know, but a professional would have.

Despite good intentions, jerry-rigged spaces can end up having no closets in the bedrooms, no separate, lockable entry, a multitude of seemingly "it'll be good enough" problems that end up deflating the value  and livability of an ADU. Mostly because the space is not clearly thought out as to its potential long range uses, and because it ends up as an irritating (or nightmarish) code violation when the property changes hands. It's not that ADUs are a bad idea; it's badly executed ADUs that are the problem.

Countless properties have pulled off an ADU successfully. But what sticks in the memory of experience of appraisers and brokers are those that became a drag to negotiate during a sale. And it is street-level prejudice, like stereotypes, that can take the longest time to dissolve.

ADUs have been making the rounds in cutting edge living magazines for decades as the "latest new idea," but they still haven't made it to the grown-ups table at Thanksgiving. I predict this is about to change, and gain momentum with speed. There is a perfect storm of several components making ADUs necessary now:

  • general hip coolness of living super small among "Millenials" - it's trendy but it shouldn't be underestimated how powerful this movement is and how its influence will grow
  • current recession and economic tightness, school loan debt of same
  • aging population, and greater numbers of the Woodstock Generation without own homes
  • lack of affordable housing within metropolitan areas
  • for those with smaller family size and larger property: an interest in maximizing income generation with one's own assets
  • a recognition that maximal spaces require maximal resources, time, and effort to maintain/a desire for smaller, compact living that emphasizes experience over acquisition

In a way, the single worst thing to happen to stymie ADUs as an everyday solution (imagine they are an alternative that we take for granted, whose support is a given among the industry, and the strategies for making them happen with ease are already in place) would be for the economy to dramatically recover and begin booming, and soon. Because whenever that has occurred, society has forgotten the reasons that made ADUs attractive in the first place, when space becomes cheap and "living large" cycles back into trend.

The economy is probably not going to switch direction overnight, which means ADUs are on track to make the transition from intriguing trend to common alternative. Gradually, the botched jobs will get fixed, and the real estate industry will become well practiced in appraising, listing, and selling ADUs.







Thursday, November 22, 2012

Portland Neighborhood Life has its own Soundtrack

Typhoon makes some beautiful music. And their videos give you a good idea of what it's like living east of the river. So that's why I keep sharing them on a real estate blog.



Monday, November 19, 2012

Summer Home by Typhoon

New state Program Helps Homeowners

Help for Homeowners Facing Foreclosure

Interested residents can call 855-412-8828 toll-free to learn more about the program.

"Intake specialists will screen callers for income eligibility and refer qualified households to an attorney. The phone lines are staffed from 9 a.m. to noon and from 1 p.m. to 4:30 p.m. Monday through Friday. Assistance can be provided in English and Spanish, with additional translation services available if necessary...Program provides eligible households with a free one-hour consultation with an attorney."

Saturday, November 17, 2012

Be Kind to Your Neighbors


"Be Kind to all of your neighbors
because they are just like you
and you are nothing special
unless they are too."



Typhoon: The Honest Truth

Saturday, November 3, 2012

Accessory Dwelling Units : Popular in Portland

Have a look around in magazines (like Dwell) and trendy image collection sites (like Pinterest) and you'll find that Tiny Houses are in style. Downsizing takes on a whole depth of meaning when pre-retirees and twenty/thirty somethings take on the challenge of living in a 150- to 600- square foot home. 

Known as ADUs (Accessory Dwelling Units) or Granny Flats or Mother-in-Law apartments, these alternative dwellings have also become a desirable addition to the flip of a regular house within Portland metro neighborhoods. Having a an extra dwelling built into the attic or basement of a home makes it attractive for those still living with adult children, or those looking forward to caring for aging parents.

"Regardless of their size, ADUs are generally more environmentally friendly than a new home built in a traditional subdivision. They require no new land, less building materials and energy usage. They help Portland and the metro area meet population growth needs without developing farm land. Putting those residents in existing neighborhoods reduces sprawl and vehicle miles traveled, easing road congestion."

Here the Portland Tribune's Steve Law describes how a fee waiver for ADU construction (set to potentially expire next summer) has encouraged building of these small homes.