Isbef, I agree with the $100-$250 sq ft range for improvements on your addition. The ultimate number depends on your materials, budget or extravagent.
Recently, I am getting inquires for clients that have smaller homes, bought when the market was robust(2008) and now have minimal or no equity. Additionally, their families have grown. Frankly, the construction/remodel scenario comes up because they cannot afford to sell and they need the space because of the growing family. You want to find out if you can qualify for a construction/ remodel loan before you go further. See if the construction makes economic sense. Can you afford this addition? Will you have instant equity after competion or will you be getting less than 100% on your construction project?
Truthfully, if you can find a home that is acceptable, my personal opinion is to sell/rent and purchase. I have credit approved borrowers for construction loans and afterwards, they scrapped the project and they ended up buying an existing home. Also, I have done the other scenario where they love the area so much but need the space so they add on.
Most of the time, based on my funded construction projects and future value appraisals, the subject property is worth more than the acquisition costs + improvements. We use the guidelines of acquisition costs + improvements OR appraisal whichever is lower. Obviously, you would have to have enough information(loan amout) to give to your lender to see if you could qualify for the loan. See if the project you are considering is even feaseable.
Good luck and contact me if you have any questions. (email@example.com)-NMLSR#636343... more
Hello Hancy, Did your GMAC/Fannie Mae title issue get resolved? Do you know what caused the delay? I am currently in the same situation with a client and cannot get anyone to give me a firm answer. We are now 32 days past closing!! Thank you... more
You should wait until it comes on the market, which could be this week or in a year or 2. If you would like me to keep track of it, contact me directly & let me know & I will be happy to research it for you.
The authorized signator of a property listing sets the terms of the agreement. The property owner can alter those terms when they see fit - usually with advice from their professional. These changes are arranged through your listing agent. Contact them and explain your concerns. The changes must be in writing, signed & dated. If your agent isn't cooperating go straight to the managing broker. They will take it from there.... more
They didn't extend on the agent bonus due to their own delays. Hope you get the closing costs especially if they affect your ability to close. It certainly would be in their best interest to deliver on the offer.... more
If you are looking for an approximate answer to this, contact me at 425-533-7854 and I would be happy to set an appointment with you to do a free comparative market analysis to get you an approximation of what it may be worth in this market.... more