As we know, currently, by law, Accessory Dwelling Units (ADUs) in San Diego cannot be sold as independent properties or as new ones. However, a new law will allow homeowners to offer them for sale starting in 2024.
The bill approved by the Senate Government and Finance Committee aims to help California residents secure flexible and accessible housing, making ADUs a more feasible option for families’ economies. The proposal emerged as a measure to aid the state in economic recovery following the crisis caused by the coronavirus pandemic.
Allowing homeowners to sell their ADUs benefits the owner rather than corporations selling houses. Additionally, the housing supply has been decreasing in recent months, making it challenging for the lower-middle class to purchase new property. In this case, SB 1120 legislation will allow the creation of more duplex-type housing and subdividing properties to create an Accessory Dwelling Unit. In San Diego alone, 5,120 permits were issued for ADU construction between 2020 and 2022. Meanwhile, Bill 1033 will allow the sale of Accessory Dwelling Units that are on the property of the main residence.
However, if you plan to sell your ADU, there are some important considerations to take into account for a successful sale. Therefore, if you want to know the guidelines, continue reading this article to understand the measures that will be in effect with the new law. Also, you can consult with our specialists at San Diego Casitas for guidance on ADUs in San Diego, as we are experts in the field.
New Guidelines:
The following points will help you understand what the new law entails and how it will affect the homeowner.
Can I sell now?
The first thing to consider is that, although the law was approved by the Senate, it will not take effect until January 2024. Therefore, you cannot carry out any transactions with your ADU yet. However, you can start preparing the property for sale in January. In this case, you can seek the support of our team of contractors to inspect your Accessory Dwelling Unit and check if anything needs repair.
Also, you can begin market research to determine the average value of your ADU.
Can I offer an ADU as a mini-condominium?
Since senators are still reviewing the guidelines after approving the bill, the term “mini-condominium” cannot be used to advertise an ADU in this way. Additionally, it was agreed that each city will create its own regulations for the purchase and sale of Accessory Dwelling Units.
In the case of San Diego, you will have to wait for the County Council to present the new rules and permits for selling an Accessory Dwelling Unit in the city.
Do I have to live and share areas of the main house with the new owner?
If you are wondering whether you will have to live with the new owner or lend them elements of your house because they are on the same property as the Accessory Dwelling Unit, it will depend on the type of sale and the preferences involved.
After the opportunity to sell ADUs in California was confirmed, real estate experts emphasized the importance of having a good subdivision and complying with restrictions before offering the property. They also noted that owners and future owners will need to sign a ‘Conditions and Restrictions Agreement.’ In it, they must establish the areas to be shared and the areas of the main house the buyer can access. Additionally, the parking and yard areas that belong to the ADU must be defined if the main property has these elements.
Advantages of Selling an ADU:
The primary and enticing factor in selling an Accessory Dwelling Unit (ADU) in San Diego revolves around financial gains. ADUs, similar to houses, demand ongoing maintenance, which can become financially burdensome for many property owners. Some choose to alleviate this burden by renting out the ADU to generate extra income.
Considering these factors, selling the ADU emerges as a viable option for achieving economic stability. Moreover, under the new law, property owners can explore the opportunity to construct additional ADUs on their land, provided there is sufficient space and adherence to necessary regulations.
Another advantage of selling an ADU in San Diego is finding a more affordable property to live in. Due to the shortage of properties in California, most homes for sale are above market prices. Also, being a small property, maintenance will be less expensive compared to a large house.
At the moment, we have to wait for the new law to take effect to understand the true impact of authorizing the sale of Accessory Dwelling Units in California. In the meantime, you can consult with our specialists at San Diego Casitas to learn about ADU construction permits and the requirements for it to be considered an accessory dwelling.