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Same street. Same primary house. One has a permitted ADU out back generating twenty thousand dollars a year in rental income. The other has a similar-sized converted garage with no permits. Same square footage. One adds ten to twenty percent to the property value. The other is a discount risk. Los Angeles County issued over 23,000 ADU permits in 2023 — up from 1,200 in 2016. If you are pricing homes in Pasadena, Glendale, Monrovia, or anywhere in the San Gabriel Valley, the backyard unit is the most common source of appraisal uncertainty in suburban residential transactions. TIMESTAMPS: 0:00 - The ADU boom in Los Angeles County 1:30 - Permitted vs. unpermitted: why it changes everything 3:00 - The Monrovia garage conversion 4:30 - Income potential vs. income reality in Pasadena 6:00 - How to price a home with an ADU 7:00 - Close Key stats: • Permitted ADUs add 10-20% to property value in suburban LA markets • Freddie Mac research: premium reaches 25-35% in high-demand California markets • ~40% of LA County ADUs remain unpermitted (LA Dept of Building and Safety) • Zillow Research: California listings mentioning ADUs sell for an average of 18% more • New ADU construction costs: $120,000-$180,000; garage conversions: $60,000-$100,000 Permit status is the threshold question. Permitted units add a premium. Unpermitted units are liabilities until remediated. The CMA must present both a residential baseline and an income perspective. CMAflow's confidence assessment communicates why the estimate range is wider than a standard single-family valuation — and the seller receives an honest document instead of a number that collapses under appraisal scrutiny. Read the full article: https://cmaflow.ai/blog/adu-question-calif... Generate a CMA Report: https://cmaflow.ai/signup The Independent Agent: https://open.spotify.com/episode/6TgpmpQS6... Linkedin: https://linkedin.com/company/cmaflow #RealEstate #ADU #AccessoryDwellingUnit #LosAngeles #Pasadena #Glendale #Monrovia #CaliforniaRealEstate #HomeValuation #IndependentAgent #SanGabrielValley