Remodel & Renovate in 94087>Question Details

Kstp, Home Owner in 94087

I am planning to add living room (400sqft) to my home (94087) (1300sqft right now). Will the home appraise by atleast remodel expense? Please advise.

Asked by Kstp, 94087 Sun Nov 14, 2010

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7
yes only if it permitted and recorded in county records.
0 votes Thank Flag Link Mon Nov 29, 2010
Hi Kstp

Definitely. Here is why , there are several good builders out there who will build with
All permits for about $150 per square foot. Once completed you will be be selling at about
$350 a square foot minimum a solid return.

Let me know if you are looking for names of some good builders.

Best regards
Perry
Web Reference: http://www.ruthandperry.com
0 votes Thank Flag Link Thu Nov 18, 2010
Hello Kstp and thanks for your question.

To be frank, the ROI or return on investment of any home modification is almost never 100%. The reason, of course, is that by the time you sell your home, the items will be used and no longer new. Only if you were never planning to live in the home again would there be a chance that the home modifications would recoup close to the 90 percent mark.

More importantly, however, remodels and renovations are highly "personal" and indigenous to the needs of a specific homeowner. Many times, fulfilling a homeowner's specific needs do not necessarily "translate" into renovations that appeal to a large majority of home buyers. To really maximize any modifications, homeowners should avail themselves of professional architects, structural engineers, interior designers and construction contractors to create a modification that blends well with the existing home and adds to the value of the property.

Finally, as Monica noted below, to know approximately what your home will be worth, you'll need to look at the sales prices of other 1700 square feet homes in the area. Depending on where your home is located, if there are not any 1700 square foot homes located nearby, it might even be ill-advised to expand the home to this size in the area where the average home may be much smaller. Again, working with professionals will help you avoid the pitfalls of overbuilding or creating an additional that fails to enhance the home's value.

Good luck!

Sincerely,
Grace Morioka
Area Pro Realty
0 votes Thank Flag Link Mon Nov 15, 2010
Hello home owner,

First thing to do is to compare the current value for a 1700sqft home in your neighborhood to the cost of your home, (including the cost of addition).
-While comparing compare the number of Bedrooms and no. of Baths, because that is a big factor.
Typically your return will be appx. 75% on the new construction cost, however also factor in the time of usage.
ie. how many years are you planning to live in this house? Several years down the road the propery might appreciate substantially. Plus you get the benefit of being in good school district.
As mentioned below not a bad idea to bring in a Realtor to give you some ideas.

Best of luck!

Monica Goyal
DRE #01781926
0 votes Thank Flag Link Sun Nov 14, 2010
Per Realtor.org 2009/2010 the addition of a family room averages 73.5% of the cost of the job for resale. Keep in mind as the other agents have mentioned, it depends on many factors. Even if you are not considering selling today, there is no harm in bringing an agent in to assist you with determining what the current demand and value buyers are placing on neighboring homes. Also, the agent can make some recommendations specific to your home which you have not thought about. Windows, doors, type of finishes, placement within the house and connecting to the original home.

If you plan on staying in the home for a while, you will incorporate the remodel for your own enjoyment but taking into account some trusted advice from the professionals in time well invested.
Web Reference: http://terrivellios.com
0 votes Thank Flag Link Sun Nov 14, 2010
How much is the remodel going to cost? Once that is determined then you can see if it is more or less than the price per square foot that appriasers are giving to homes in your neighborhood. If the cost is $200 a square foot you should be fine. If it is $400 a square foot you probably will not get your money back.
Marcy Moyer
DRE 01191194
Web Reference: http://www.marcmoyer.com
0 votes Thank Flag Link Sun Nov 14, 2010
Remodeling costs vs. value is highly dependent upon the current market. What you need to look at is what other homes are selling for in your immediate neighborhood that are 1700sf (comparable sales=closed escrows). If you already have a family room and are adding an additional room (living room) the value may be a little more than the comps. It also depends on how many bedrooms and baths you already have along with whether or not other parts of your home have been updated recently. Most important are kitchens and baths. If you would like me to email you comparable sales for your neighborhood, please feel free to contact me through my Trulia profile. Kind regards.
0 votes Thank Flag Link Sun Nov 14, 2010
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