The lot size of my house is 6200 sqft but it has only 1100 sq ft. Will the house worth more if I rebuild a bigger home in the same lot?

Asked by DarthBL, Dublin, CA Thu Jul 25, 2013

This question was asked from http://www.trulia.com/homes/California/Temple_City/sold/4534…

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carlos parra…, Other Pro, Monrovia, CA
Thu Jul 25, 2013
Yes it will. The real question is will it be worth more than what it is worth now plus the amount of money you spent? This is tougher to answer.
Call me, I work with many clients just like you. I am a architect/builder/broker. I have direct access to all the costs and values and can do this analysis for you.
Generally speaking, tearing down what you have and building new will NOT likely result in you being able to immediately recoup your money for its current value plus the construction cost plus the cost to live elsewhere for about a year.
0 votes
Thanks Carlos. Just wondering for now--will let you know if we decide to proceed
Flag Thu Jul 25, 2013
Alan Kurpiew…, , California
Thu Jul 25, 2013
Hello,
The short answer is YES. Your home will almost assuredly be worth more, if you improve the size of the home. In fact, just updated certain features will also increase the home's value. Since homes in a particular area sell for a certain range of $price/sq. ft., increasing the size will bring up the value, all other things staying the same.

HOWEVER...

You have to consider the cost of the upgrade, and how much that will increase the value of your home. A complete rebuild will have different expenses than just upgrading on the existing property. Ultimately, you need to determine how much you planning on spending for the remodel/rebuild, and what your expected home value will be upon completion.

Example - if your home is worth $600K now, and you put in $200K worth of upgrades, you would hope to increase the value to at least $800K, to make back your investment. Otherwise, while the dollar value does increase, the net equity you have in the home will not.

Hope this helps!
Alan Kurpiewski, Realtor®
CA BRE 01912043
(619) 35-HOUSE
(619) 354-6873
http://www.homes4schools.com
homes4schools@gmail.com
Web Reference:  http://www.homes4schools.com
0 votes
suziekoo, Agent, Temple City, CA
Thu Jul 25, 2013
Yes. Is your house located in Temple City with Temple City School District.
0 votes
Yes it is.
Flag Thu Jul 25, 2013
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