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How does one figure out....

How does one figure out....

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  • 3Princes 09-27-10 | 09:07 PM
  • (I apologize in advance because I've talked about this before)

    I am still beside myself trying to figure out whether it's better financially to move or to add on to our current home. We have some maternity leave debt to pay off, so we have a little bit of time do decide.

    See, I decided I was done doing fertility treatments, and we put a bunch of money into this house, which only has 3 small bedrooms. Then, I got myself knocked up again and gave birth to pure joy.... but "pure joy" has noplace to sleep!

    Our room is ok in size, but the other 2 bedrooms are 8x10 and 10x12, and the 10x12 has a tiny closet, so physically, I don't even know if a twin bed will fit in that 3rd bedroom along with a dresser. This house is too small for us the way it is. As it is right now, I don't think we've "overimproved" our house. I think we're about at the max for what we could get back out of it. However, for the remodel we'd plan, which would just be an extra room and bathroom over the garage, I really think we would be over the top improved compared with the other houses in our neighborhood, even with just regular finishes.

    We could buy a kinda newer, bigger house for less than what we would have "into" this house. I'm not talking about a castle or a new construction-- just a regular house like ours but with the space we need. I'm thinking about 20-30k less. But, moving is a PITA. Then there are realtor fees, etc.

    So how do i figure this out???
  • Oreo Oreo's Avatar 09-27-10 | 09:34 PM
  • I think you just need to get two or three contracting estimates (then add 20%) and get two or three house sale proposals as well as the neighborhood comps for your house and the houses like yours with the addition and then do the math.

    BTW -- I hate math, so if you can get someone to do this all for you.....
     
  • 3Princes 09-27-10 | 09:43 PM
  • See there would be no comp for our house with the addition. There are more beautiful homes in the neighborhood but none that would be as new inside.
  • rudolphia rudolphia's Avatar 09-27-10 | 09:54 PM
  • I think you really have to pay attention to the size and appraised values of the houses in the neighborhood. It's always better to have the least improved house in the neighborhood, as the more improved houses will bring up the value of your place. The more improved houses get pulled down by the other houses, since there isn't something comparable around. For example, when they appraise your house for sale, they get three comps, and then add money for additional bedrooms/bathrooms, better condition, etc. But the compensatory amounts don't cover the cost of adding those improvements. They might add $5-10k for another bedroom, but it'd cost you more than that to build it. Of course, if the improvement will make the house livable for you for many, many years, it won't matter. If you think you'll move in less than 10 years anyway, it'd be better to move now, even with the hassle.

    It really sounds like, given the room sizes, closet space, lack of another bathroom, etc., that it'd be hard to make this house suffice for your family. As the boys get bigger, the tiny rooms and lack of closet space will really start to hurt, even if you add the fourth bedroom.

    Last edited by rudolphia; 09-27-10 at 09:56 PM..
  • 2babygirls 2babygirls's Avatar 09-28-10 | 01:28 PM
  • Whenever my realtor friend was talking about home prices she'd tell me what the $ per sq foot was.

    I would do as Oreo said, get constructin quotes and then talk to a realtor about the value before/after the add-on. Even if there are no comparable homes you could probably get an idea of the value.

    Could you make the small bedrooms larger as well as adding on another one?