I'd look into a design/build firm, but I think your numbers are way off. 1600sf at even a modest estimate of $500/sf would be $800K, and that probably wouldn't account for any contingencies or potential issues you might run into down the road.

Thank you - I am really out of my element, trying to get some idea of what I coudl do... but that is good to know. I woudl be fin building something smaller - just to have the 2 homes, but I have no idea where to get ideas about numbers...

Start with an architect to work out something you like within your budget or get a fancy pre-fab house (check out this list if the latter interests you: https://www.procore.com/jobsite/23-best-modular-homes/ ).

Your granny flat is adorable and would also take restyling if needed. Good luck with what looks like a fabulous canvas!

I also think your numbers are way low, but it's worth asking around to see. We are in Alameda County and there is certainly a markup for work in the inner Bay Area, but we got quotes in that range just to add a very straightforward 1BR/1BA addition to an existing home. We dialed down to just adding a bathroom within the existing footprint and even for that, we had to shop and shop to find anyone to work within our budget--most quotes were $100-$200K. Solano should be cheaper, but it's not far enough away that contractors won't make the trek to work on higher-paying projects closer in.

If you are content with the granny flat for now (which I agree is super cute!) another option is to start planning, but wait to build until the economy really starts to dip. We did a kitchen remodel in the depths of the housing bust and contractors were hungry for work, so it cost a fraction of what it would have a few years earlier or later. But for that to work, you have to have cash or secure access to financing.

You should be thinking in terms of $800- $1,000 per square foot. Costs have risen tremendously in the last two years. Skilled labor is at a premium and I know you must be aware of inflation that is the highest in decades. Good luck with your project.

Eleven years ago we paid around $450K to build a 1600 sq.ft guest house in Los Angeles. And that was during the bottom of the market when we had no problem getting bids from 3 very good builders. My guess would be that any bids will come in above $1 Mill.

Can you live in the Granny flat until the market recovers? The cost of materials is so high now, that investing in a new build doesn't make sense, financially.

Thanks all for the insight. I am currently living in the granny flat, not an issue. I have secrure access to financing, but am in no hurry so may wait. I am not confident there will be a big downturn from here, but no need to rush either.

Wait it out in that nice flat! If things don't change, you have a great little place to live.