Home Buying in 60098>Question Details

Beth, Home Buyer in Crystal Lake, IL

How do I know if a home is worth construction costs?

Asked by Beth, Crystal Lake, IL Tue May 27, 2008

I have a home that I saw over the weekend. I liked the house, but in order to make it what I want it would require a lot of changing. What's the best way to find out what constructions costs would be for what I want to do? And, if the home and neighborhood would support the amount of money it would take? Basically, how much to make the changes and if I would re-coup it. How do you even go about deciding that BEFORE you put an offer on a house?

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Beth-

It looks like you are looking in Woodstock. There are many different areas/types of homes there. Is it in one of the newer subdivisions, closer to downtown or out near Bull Valley? I would have your agent pull up the recent solds. This will give you an idea of price range. Are there any homes with some of the same amenities you were thinking about putting in this home that have recently sold? If there are, that will give you a better idea of market values once construction is completed. There are some areas where you more than likely will price yourself out of the market. Also, have your agent give you an idea of the percentage of the construction you will get back....like a kitchen remodel will give you a certain percentage back of what you spent.

If you are seriously thinking about this home, you can bring a contractor with you before you write a contract so you will have a better idea of costs. Once you obtain this information you will be better able to make a decision on whether or not the construction costs will be worth it.

Good Luck!
0 votes Thank Flag Link Tue May 27, 2008
Are the changes you want to make structural or cosmetic? You would have to find a reputable contractor (I'm sure your agent can refer one) to go out to the house with you and give you a bid or estimate on the project. Depending on what changes are being made, your realtor should be able to give you an estimate of the value of the home after completion. Chances are, you will not recoup most of the money you invest in the changes. If your needs are very specific have you ever thought of building a home?
0 votes Thank Flag Link Tue May 27, 2008
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