Before Buying a Tiny Home on Amazon, Make Sure You Know the ABCs of ADUs

Did you know that along with clothing, housewares, electronics, and books, you can now purchase an actual tiny home or accessory dwelling unit (ADU) on Amazon? It’s true.

For anywhere from $8,500-$55,000, you can just order up a house and have it shipped to you (often with free delivery). But before you hit “add to cart,” it’s imperative that you learn the ABCs of ADUs.

To begin with, ADUs are additional small housing structures built on a property that already has a main home or main structure. Tiny homes are usually freestanding, compact units typically under 400 square feet—sometimes on foundations or other times on wheels like an RV.

But in both cases, the structures are economical and effective ways to achieve additional living space.

A tiny home available on Amazon.(Amazon)

“As urban populations swell and sustainability becomes a central focus, the ability to build smaller, energy-efficient homes with reduced environmental impact will be key,” says Paul Dashevsky, co-CEO of Maxable, a leader in ADU planning, building, and development.

But while tiny homes and ADUs may indeed be poised to make a positive impact toward solving the housing crisis, potential buyers need to know that you can’t just plop one anywhere you please. Not to mention, tiny homes ordered online will probably also require hiring a contractor to help with assembly (adding to the overall cost).

With all that in mind, let’s dig in to the details you must know prior to purchasing any ADU or tiny home. Because the last thing you want is to find yourself trying to return an entire house to sender.

Understand what you are buying

While it can be exciting to imagine buying a “house” for $10,000 online, it’s very important to not just look at the photos and think that’s what will arrive. Read the fine print and all the reviews.

“Are you buying a complete tiny house that comes fully built, transported and rolled/craned into your backyard—or are you buying a bunch of parts that need to be assembled?” asks Dashevsy. “If assembly is required, make sure you first speak to a local contractor and determine the price of assembly.”

Though some of the advertisements—like this two-story foldable container home—say they only require five people to assemble it in 30-minutes, are you really going to feel confident asking a couple friends over—with the promise of pizza and beer afterward—to get the job done?

The reality is that most people—unless they’re cool with an adult-sized Lego project—will need a skilled contractor to assist with a tiny home or ADU build. Dashevsky suggests looking for a licensed general contractor with ADU experience. “You can find them through referrals or on sites like GreatBuildz, Angi, or Yelp,” says Dashevsky.

As for the cost, it varies according to the type of tiny home or ADU.

“A brand new ADU built on your site will greatly depend on your region and the size of the ADU, but a good range is $80,000 to $400,000,” says Dashevsky, though assembling a prefab ADU may run less predicated on its complexity.

Speak with your city/county zoning and building departments

Before you buy a prefab ADU or tiny home, you must make sure that the city or county you live in allows for such dwellings on your property.

You can start by doing an Internet search for this information. Look for your city’s planning or building department. Most will have a website, and you can probably glean some information there.

However, if you’re seriously in the ready-to-buy stage, it’s probably wise to visit one of these offices in person for a consultation. Make sure they allow the kind of tiny home or ADU you’re considering on your property. Also confirm where you’re allowed to install it. And ask about any necessary permits, building codes, and occupancy requirements in your area.

“Essentially, you want to know every single guideline they have for this structure,” says Dashevsky. “The last thing you want is a tiny home you have to sell or return because your city wont allow it.”

Alternatively, you can hire a local architect who is experienced in ADUs—they should know all the city/county requirements for your location.

Research the necessary utilities

Unless you want to live in the dark with no water, you’re going to need electrical and plumbing hookups for your tiny home or ADU. But some people who purchase a dwelling online neglect to consider those details in advance.

“A tiny home won’t do you much good if it isn’t connected to electrical power, water, and sewer at the very least,” notes Dashevsky.

Speak with your local building department or utility providers to understand the process and costs to tie your tiny house in to municipal services. Or, if you have your own water well and septic tank, ask a contractor how much it will run to connect to these facilities.

For those who don’t fully understand what this entails, connecting utilities to a tiny house or ADU is very similar to that for a normal house.

“You dig a trench from the location of the existing utilities—water, sewer, electrical gas—and run new pipes to the location of the new unit,” says Dashevsky. “A general contractor can do this for you—this is not a DIY project— and it will probably cost around $10,000 to $20,000.”

Make sure the unit is weather-proofed

If your region is prone to weather events or natural disasters, you’ll want to ensure that your tiny house has been tested to withstand extreme conditions.

“Is it rated to withstand snow, sleet, winds, earthquakes, hurricanes?” says Dashevsky. “There is no point spending a lot of money that gets wiped out in the first rainy season.”

What exactly are you looking for when you’re assessing a tiny home or ADU for purchase? Check to see if it says it’s made of fire-resistant materials or has a fire rating (the best is a Class A or 1). Also see if it lists a wind rating—the Beaufort Wind Scale is most commonly used with levels ranging from 1 (light air) to 12 (hurricane winds). Finally, look for an earthquake resistance rating (0-9, like the Richter scale) or a Seismic Building Code. All of these will help give you an idea of the quality of the unit you’re considering.

If you’re having the ADU or tiny home built from scratch, it’s a slightly different story as your contractor will be required to make sure it’s up to code.

“ADUs are built under the same guiding building code—International Residential Code (IRC)—as principal houses and don’t have any less requirements for seismic/hurricane/snow or structural bracing,” says Jeremy Tetreault, of Four Brothers Design + Build in Washington, D.C. “They are treated with the same level of scrutiny and energy ratings, too, so you should have nothing to worry about from a standpoint of being less equipped to withstand natural events.”

Look into insurance options for your dwelling

Getting insurance for your ADU or tiny home can sometimes be a hassle, so this is something to consider before buying an accessory unit.

Tiny homes—especially of the DIY or prefab variety—typically don’t qualify for homeowners insurance policies. However, they may qualify for RV or mobile home insurance—especially if it’s a tiny home on wheels (THOW)—as long as they meet building codes. The good news with this, however, is that you can often save 50% or more over regular homeowners insurance with a tiny home.

For people who have a tiny home on their property along with another home, or who build an ADU onto an existing home, it may be possible to insure the unit under the “other structures” portion of an existing homeowners policy.

The bottom line is you should speak with an insurance broker about what it will take to insure your ADU or tiny home since that will be an additional expense.

Don’t underestimate your total costs

It’s easy to get sucked into the idea that an ADU or a tiny home you can purchase online is a great deal! But it’s important to be realistic about all the additional costs. We already mentioned the possibility of needing to hire a contractor to help with construction—and maybe a plumber and an electrician to hook up the utilities. But there are some other hidden costs of which potential buyers should also be aware.

To begin with, do you need to lay a foundation for your tiny home? If it’s on wheels, then you can probably get away without one. But for people looking for a more permanent smaller housing situation, turning it into a tiny home on foundation (THOF) will give the structure more stability.

“Unless your tiny home is on wheels, it should sit on a concrete pad or foundation made of cement,” says Dashevsky. “A general contractor can do this for you but expect a ballpark cost of about $5,000 to $15,000.”

Also, if you purchase a home prebuilt but don’t have room to roll it into the space where you plan to put it, you may need to pay for extra equipment. For example, if you have to “crane it in” then you need to factor in the price of hiring that service as well.

“The bottom line is that you really need to know all the costs involved, which are very likely to end up being close to double the Amazon ‘price,'” says Dashevsky.

However, as long as you know what to expect, ordering up a tiny home or ADU can be a prime way to create an affordable housing solution.