Great Q! For a sb9 lot split, the homeowner legally must intend to stay in place on one of the lots for 3 years—we haven't seen a measurable price hike for SB9 eligible lots. We've built a lot of ADUs and they rent about 40% above market, so combined with our better pricing and more efficient & automated processes, we'll definitely create more value for the homeowners than if they did it on their own. If they do elect to do it on their own—it's a full time job—they'd have to price in that labor in a cost-benefit analysis.
I'll be interested to know if "SB9 eligible" becomes a popular detail to include in NMLS property descriptions. If so, I bet it's not long before SB9 eligibility gets priced into properties, causing even more price hikes (at least in the short term).
Would you pay 20% more up front for an SB9 eligible lot if you're guaranteed 20% overall profit from living in the residence for 3 years while doing a lot split and sale of the second property?
