MIGHTY BUILDINGS BLOG

Frequently Asked Questions about ADUs

Mighty studio

Accessory dwelling units (known as ADUs) are a modern spin on the idea of tiny backyard houses. Only with more advantages and amenities.

ADUs are rapidly growing in popularity because of the benefits associated with them. They serve as extra space, but are also known to appreciate the value of your property. That’s because ADUs are built with fine materials and the process of building them is generally pretty quick. Companies that build ADUs handle everything on the project management side while you sit back and wait for your modern backyard home to be completed. 

Below, we’ll cover frequently asked questions about ADU’s to see if this is right for you.

How is the Payment of an ADU Structured?
While every ADU company may have a different structure for how you finance, we’ll show you our process. Payment is done by a schedule based on the building process of your ADU. 

First you pay a $15,000 project management retainer. This means you essentially prepay for a certain amount of work over a longer period of time. Once your planning and zoning plan is ready for submission, this equals 5% of your Agreed Purchase Price (APP). Submission of your building plans is another 10% of your APP. The rest of your payment structure will look something like this: 

  • Building Plan Approval - 40% APP
  • Foundation Completion - 30% APP
  • Installation Completion - 10% APP
  • Bill of Sale and Final Completion - Remaining Balance is Paid 

Why Build an ADU? 

ADUs have a bunch of benefits especially in the long-term. They boost the overall value of your property between 20% and 30% compared to a traditional full home remodel. You add extra space to your property that could serve as a guest home, investment, or just some extra privacy. It’s totally up to you. Aging parents could live with their children nearby or you could rent out either your main home or ADU. 

ADUs also recently saw more relaxed legislation that makes it easier to build in certain states. The process has never been easier to get started. 

How Long Does it Take to Build an ADU? 

The entire process of building an ADU takes anywhere between 4 to 6 months. Some factors such as your local legislation may vary, but the time it takes to get permits is included in your timeline. 

You’ll have to meet with a planner who maps out your budget and determines if your property is good for an ADU. The applications for permits and other documents have to get signed as planning takes place. Finally the construction of your ADU is about a month to complete (including electrical, foundation, sewer connection, etc.) and you sign your Bill of Sale along with the final inspection. 

How Could I Use My ADU?

You can use your ADU for just about anything you can think of. A rental property is a popular choice for people who want to invest. It’s a great way of maintaining your privacy while creating an additional income stream. You can also market your ADU as a vacation home if you live in a desirable vacation area. 

ADUs also have a bunch of personal uses as well. Use it as a home gym away from your main home or you can create a home office. It gives you more than enough living space to operate while you get additional privacy when you concentrate. Other home-owners use their ADU as a guest home for visitors or as a pool house for easy access. 

Do ADUs Come with a Warranty? 

Yes, all of the ADUs built by Mighty Buildings come with a warranty. There is a 10 year warranty on all of the structural systems. Additionally, there is a 1 year warranty on the interior finishes. If you ever had concerns, simply call your manufacturer and ask about the warranty what can be done. 

What are ADUs Made out of?

Mighty Buildings use high quality materials to build your ADU. Light Stone Material and steel components are used from patented 3D printed panels. One panel used to build these ADUs easily replace 8 layers of panels used to build traditional homes. The materials are pretty affordable and make building much quicker than a traditional approach. 

How Much Do ADUs Cost?

The cost of ADUs vary because they are customized to your own needs. However, there are lots of kits to choose from along with different sizes. If you want something smaller such as a 1 bedroom 1 bathroom unit around 400 square feet, it costs around $140,000 with Mighty Buildings. A larger unit such as a 3 bedroom, 2 bathroom, 1,440 square foot space, costs around $285,000. These costs are before you get your estimated budget expenses which cover planning, permits, labor, management, and installation. 

Does Building an ADU Harm the Environment?

ADUs built with Mighty Buildings’ systems are sustainable and energy-efficient. Traditional home construction wastes between 3 to 5 pounds of materials per square foot. Close to zero-waste technology saves 2.3 tons of CO2 emission per ADU built. This also helps lower your insurance rate because your home was built with non-combustible items.

How Durable are ADUs?

The Mighty Homes are resilient for many years. Environmental factors such as earthquakes, fires, bad winds, and moisture shouldn’t concern you. The reinforced stone and steel materials ADUs are built with are very durable. They are meant to withstand any forces of nature despite the small size. 
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