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Accessory Dwelling Units, ADU, Post Pandemic Real Estate Trends, Pricing your home right, Real estate, Real Estate agent, Real estate and home ownership, Remodeling, Running and real estate, Sacramento buyers, Sacramento real estate, Sacramento sellers, Sacramento spring real estate market, Seller's market, Selling Your Home

Sacramento’s HOt real estate market – Five reasons to build an ADU (accessory Dwelling Unit)

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Carmen Micsa, Broker/CEO with Dynamic Real estate touring the anchored tiny homes, an event organized by our Sacramento Association of Realtors with Sacramento City and County officials explaining the requirements and approval process for homeowners looking to build an ADU (Accessory dwelling unit) on their property.

Two years ago I sold a home to a runner friend, and the house had more than six offers, even though it needed work. When my buyer asked me why was the house so attractive, I responded that the bigger lot and the large detached garage meant that someone could build a mother-in-law unit, or guest home in the back, which automatically increased the value of the house. During my 21 years in the business, finding two homes on one lot was almost like looking for the needle in the haystack, as the permit process was not conducive to allowing homeowners to build another in-law unit up to 1,000 square feet on their property.

However, more than a year into the pandemic, the City of Sacramento and the County of Sacramento have a much easier permit process, as they want to alleviate the housing crisis and increase affordability in our super hot Sacramento real estate market. For instance, the City of Sacramento is working on waiving any set-back requirements for the ADUs by the end of summer 2021, while Sacramento County will still require them, and you will need to do all the necessary research and go through the building permit process, which can take up to three months. Additionally, if looking to build a second unit for rental purposes, know that there are strict rules about that, and there is a difference between short term rentals, or vacation rentals, and year-round rentals.

Five Reasons to Build an ADU:

  1. An ADU, or a granny unit, can increase affordability without requiring new infrastructure for the neighborhood/community.
  2. Building an ADU in one’s backyard can help out family members, such as college students, older parents, or disabled relatives.
  3. Building an ADU can increase the income of the property owner, who can potentially rent out the back house, provided that they applied to obtain a rental permit and are following the city and county rules on rentals. In Sacramento County, ADUs might not be allowed as long-term rentals, but check on all the pertinent information before building.
  4. Building an ADU can increase the property value of the original house by more than $100,000 depending on the square footage of the ADU and the quality of construction.
  5. Building an ADU can provide extra housing opportunities in a real estate market where supply is much tighter than demand.

With so much flexibility in how an ADU can be added to an existing home, such as turning a basement into living quarters, turning a big shed into a small office, or artist studio, or building a brand new structure in the backyard, this might be the best time to start building your own ADU that can increase your family well-being and keep expenses under control for your college kids, aging parents, and so on.

For more inspiration on how to let “AIR,” which stands for adaptation, inspiration, and resilience guide and uplift you during these uncertain and crazy times, please consider buying my print edition or e-book The PR- The Poetics of Running, A Book of Poetry in Motion on Amazon, or buy it straight from my blog by clicking on my books link, which will take you to Amazon. A portion of the proceeds from the sale of the book is going to Girls on the Run Sacramento chapter organization.

For more info on running and real estate, whether buying or selling, please e-mail me at carmenmicsa@yahoo.com, or call me at 916-342-2446. Also mention this blog and receive a great offer whether buying (credit for closing costs), or selling (commission discount). Running for real estate with joy!

Buying and selling a home, Buying or selling, Condos and townhomes, Contract negotiating when buying or selling a home, Fixer upper, Home Improvements, Home inspections, Home maintenance, Makingyourhomeyourown, Moving, Pricing your home right, Real estate, Real Estate agent, Real estate and home ownership, Real estate market outlook, Remodeling, Running and real estate, Sacramento buyers, Sacramento real estate, Sacramento sellers, Seller's market, Selling Your Home, Selling your Home Faster with Staging, Selling your home in the winter, Staging Your Home for More Money, Uncategorized

THREE key questions to ask before buying your first rental property

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By Katie Conroy, the creator of Advice Mine. She enjoys writing about lifestyle topics and created the website to share advice she has learned through experience, education, and research.

Photo Credit: Pixabay

With so many people investing in real estate these days, you may be thinking about taking the leap into being a landlord. It’s a move that can bring a lot of perks and profits if you plan carefully. So before you start looking for a residential or vacation rental, be sure to connect with an experienced agent from Carmen Micsa and go through these essential questions to help you make the right decisions.

What Costs Should I Be Concerned About?

If you are looking to buy an investment property, you already know that you will need to prepare for the initial cost of that home. Coming up with a reasonable price range is one of the most important financial considerations you can take when preparing to purchase a rental property, so think carefully about what your desired price range should look like. Depending on market trends in your preferred location, you could end up picking homes that are slightly above your target price and offer less, but you should research real estate trends carefully before doing so to see if a buyer’s or seller’s market exists. Keep in mind that Sacramento homes have been selling at a median price of $395,000 over the last month.

Aside from the cost of buying your first investment property, you should also be prepared for other expenses associated with owning a rental. If you are buying a vacation property, hiring a management company should be included in your budget, since an experienced property manager can provide 24/7 customer service, on-demand professional cleanings, and easy-to-understand info about bookings. By ensuring you and your guests have access to these perks, you can net more bookings and more glowing reviews.

What Upgrades Should I Be Focused On?

Chances are, you will need to make some repairs and improvements to your investment property before you list it as a vacation or residential rental. There are some pros and cons to marketing your home either as a long-term or short-term rental, so also be sure to think about these as you make your initial upgrades and repairs.

For both vacation and residential rental properties, investing in new paint for the exterior of the home can be an effective way to boost curb appeal, although this sort of improvement project can be a big job that necessitates detailed planning, thorough preparation and appropriate tools. The size of your home and materials needed will determine how much you’ll spend to freshen up your property’s exterior.

Wondering what color to use for your home’s exterior? If you want to add curb appeal to your investment property, most experts recommend shying away from bright hues and using pops of color in your landscaping or even for the front door. Speaking of landscaping, if you’re concerned about keeping your investment property secure, you can also consider using protective plants in the front yard.

What Other Steps Should I Take to Ensure Profits?

Creating a plan for your finances and home improvements can ensure some ROI for your rental property. If you want to maximize that ROI, there are some other measures you can use to attract potential renters and protect yourself from potential losses. You can start by making sure that your rental rates are not too high or low for your property and area. While you don’t want to miss out on potential profits by setting rental rates too low, you also don’t want to lose potential tenants because similar properties have much lower rental rates.

To boost profits and keep your own stress levels low, you may also want to consider using a manager to help out with your first investment property. While using a property manager means paying additional fees, the expertise and guidance you will receive in return can be well worth the added expense. Plus, you may be able to deduct management fees from your taxes as a rental property owner.

Owning an investment property can be worthwhile. You just need to take the right steps from the start. Take stock of overall expenses, necessary upgrades and get a read on what you can expect when it comes to making a profit. With a smart approach, you will see profits roll in much faster, and ensure ROI on your rental.

Whether you’re a first-time buyer, or seasoned investor, Carmen Micsa will provide you with outstanding and dedicated real estate service! Call (916) 342-2446 or email carmenmicsa@yahoo.com to schedule a meeting!