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joslin99

deciding to add on or not

joslin99
9 years ago

We cannot decide if we want to add onto our 1600sqft home due to it's weird layout. It needs a new kitchen and expanded first floor plan (add mudroom, bump out for bigger kitchen, etc.). BUT putting any money into this house forces us to confront the issue that it is actually a 2 bedroom + nursery house and not a 3 bedroom house. So throwing money into the first floor does not address the problem of the tiny 3rd bedroom.

We feel like we would have to address both issues with a 2 floor remodel just to preserve the investment on the first floor. This makes it a bigger monetary investment than we really want to make, since we are just a 3 person family and don't really need a bigger 3rd bedroom; we just want more living space not more sleeping space.

Our budget, neighborhood and lot WOULD allow for this big deal 2 floor remodel but I just don't want to spend that kind of money. To acquire a different bigger house in our town on a comparable street would cost $400k more than our house did so the market also supports remodel over move.

Comments (5)

  • PRO
    Joseph Corlett, LLC
    9 years ago

    "... so the market also supports remodel over move."

    You just answered your own question.

  • klem1
    9 years ago

    Well I've heard talking about problems will make one feel better. Do you feel better now?

  • Fori
    9 years ago

    If you want a bigger place to live, you're just going to have to pay for it one way or another. Move or remodel!

    Sounds like you want to add on to the living area but not the bedrooms without affecting future resale or improvements. Makes sense to me. A meeting with a good architect might be useful. Perhaps a small addition that doesn't affect future upstairs work is feasible. Or maybe that downstairs addition will require upstairs space that can serve as a bonus room or something you'd use more than a "bedroom" but can be tagged a bedroom for resale.

  • ginagordon_gw
    9 years ago

    joslin -

    Maybe another way to look at the situation is to ask, Will the end product of the existing house plus the amount saved versus moving be enough of an improvement?
    For example, could you do all the work described, spend 200k - 300k and get 90%-100% of what you would want or does it only get you to 75%?
    In terms of not needing the extra bedroom, it is important to consider resale, even if this is your forever home. Especially if you think the remodel will put the house into the next price bracket. You'll want to have comparable statistics to those houses.

  • joslin99
    Original Author
    9 years ago

    Thanks for all of the replies. Making this home an updated 4/2.5 2200sq ft. would price it at about $525k, assuming an 80% LTV a bank might lend me an additional $180 toward the improvements. I can't get near a 4/2.5 on my side of town as they just aren't there to be bought. A developer keeps coming in and adding on to and flipping the small $200k houses on my side of town, a 4/2.5 on the other side of town (literally 4 houses away, south of a certain street) will sell for $650. These flipped houses are selling like hotcakes since there's a huge price/sqftg gap in the market between $200/1200sqft fixer and $650/2600sqft updated with just nothing to buy. People want more space and this side of town has always been kept down in value due to the small houses, not due to its lack of charm or anything bad about it.

    We will meet with an architect but I can't imagine $180k will get me to 4/2.5 with a master suite and new kitchen. But I know nothing about remodels.