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Hello. I am currently in a debate with my family regarding the creation of more usable space in my home and I could use some professional advice. I own a 2 bed 1.5 bath cape that is approximately 1500 sq feet. I have two children who are sharing a bedroom but I know that this can only be temporary and they will eventually want their own space. My father is recommending that I invest on building a third bedroom off the back of my house where I currently have a litte sun porch. He is recommending bumping that out and building out the half bath to a full bath, this addition would be on the first floor off the living room. I am estimating that the cost of this addition would be around $80k.
However I have a different opinion on what I should do. I am thinking I should finish off half my basement which I can afford to do for $6k this spring (I have a carpenter friend who quoted me this). The finished basement could at least be used as additional play area for my kids especially if they want to play separately. Then when it gets to the point where they no longer want to share a bedroom, I sell my home and purchase a bigger home.
I think in terms of resale finishing the basement would be the best bang for my buck. What are your opinions? I don't want to overbuild the neighborhood. My house is estimated right now at around $220k, if I invest $80k in the addition I would expect to get around $300k for my house when I go to sell and in the area of town I live in that's much higher than most of the homes around me. I feel that I would maybe get $250k.
In general is it good to finish a basement off? Can I expect to get back most of my money?
You'll get your $$ back on the basement or most of it. Just make sure you pull permits and build it to code otherwise it may not fly at sale time. Depending how long you live in the house after/if you do the addition and if the property values go up and depending on if you take a loan out for the addition who knows. Its a toss up. If the property values start going crazy then you'll make money or break even. If they drop then you lose. Way too many unknown factors.
I would do the basement and if you need more space unless you just GOTTA be in that house sell and buy bigger. When you're ready to move the house prices may be so high doing a addition will make more sense.
Not really enough info but before I would spend ANY money expanding a two bedroom home I would get as much information as I could about what homes that are nearby have recently sold for -- I really doubt that you would find it wise to sink $80k into a home worth only $220K. Further I doubt that you would be happy pouring $6k into a "finished basement" as my experience is that even the NICEST finished basements with things like fireplaces and quiet sitting areas rarely add ANY value to a home ESPECIALLY when the home has ONLY two bedrooms and just a bath and half...
Now I understand where your dad is coming from, he wants his grandkids to have a house that he feels is appropriate, and I understand where you are coming from, you don't want to spend a ton of money on expanding your house AND loose your sunroom too!
My suggestion is to spend NEARLY NOTHING getting your home ready to sell, clean it up, get it all de-cluttered, get all the little worn edges touched up, think of how you can pretty up the flower beds upfront, get some hipper bath towels, bed sheets and throw pillows. Ask a local realtor what is a fair asking price. Then go shopping for a house that has three bedrooms and needs some work and MAYBE is not $80K more than your house will sell for and IDEALLY just about what your house will sell for AND needing about $6K for updating...
But are we talking her moving imminently or 4 years down the road. I read it as eventually as in years down the road. Kids will want their own room. If she is looking at moving in 3 months I agree with Chet clean it and list it.
Hi both thank you for the feedback! I just bought this house 1 year ago so I'm not planning on moving for at least another 3 years. My children are 6 and 4 so I'm thinking they can probably share the bedroom for another couple of years. The bedroom is very large with 2 closets so they aren't too cramp but I have a boy and a girl so I know they are going to eventually want privacy. Regarding the finished basement I am looking for this as a more immediate soluation for some additional space for toys and a play area for the kids. I also will be able to cash flow the basement pretty easily. If I went the route of adding the addition I would need to get an equity loan which at this point only being in the home for 1 year I don't have too much equity.
Also regarding if it makes sense to finish the basement my neighbor behind me who has the almost the same exact house as mine has a partially finished basement, when they bought it was finished. They paid 10k more than I did a year before I bought my house and I think it's because the finished basement added value. I think in general where I live a finish basement is definitely desirable since a lot of homes are older and don't offer much sq footage upstairs and small lots which makes it difficult to build additions.
2 bed 1.5 bath cape 1500 sq feet.
My father is recommending that I invest on building a third bedroom off the back of my house
I am estimating that the cost of this addition would be around $80k.
1) How large is the lot? Can it fit?
2) YOUR estimate means diddly. Get a real pro number.
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I am thinking I should finish off half my basement...
To create a rec room for play and such? Meh
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I think in terms of resale...
If you're thinking in terms of resale at all... then don't do any remodeling work at all.
Sell now (or soon) as is... and then buy the house that actually suits.
I agree that is makes some differences as to WHAT TIMEFRAME for a move might happen, but honestly without knowing a lot more details I would not recommend finishing the basement. Some of the details that would help to factor in the potential for the finished basement "paying off" include some knowledge of what the OP has into the house in terms of downpayment, years of mortgage payment / initial price. Then there is the question of what is the standard for houses that might be comparables -- do other homes with just two bedrooms and a bath and half in her town mostly have finished basements? Were the basements mostly finished off a long time ago when wood-look paneling was cheap and self-stick flooring was the norm? Do folks worry about seepage? What about flooring choices over concrete below grade? What about the age of the home -- are their going to be issues with undersized electrical service? Are there any old galvanized water pipes and fragile bronze valves? How about laundry equipment, is that going to require building out some utility space and lockable cabinets so there no issues with cleaning supplies? What about the furnace -- it the system is hydronic are there any provisions for zones? If it is forced air can the basement be isolated in any way? Is there central air? Even things like a domestic hot water heater might be nearing the end of its useful life, if that fails it could ruin any basement finishing. How about fuel? Nobody likes to have an oil tank in the basement these days and New England still has lots of old houses with 'em, can be expensive to remediate. Is muncipal natural gas availble? It probably makes sense to get hooked up, but if the town has high charges for this and you need to convert furnance/ water heater it leaves little money for a nice finished space. Even things like area lighting are in flux these days -- just as you can no longer use an incadescent bulb in many new builds does it make sense to use fixtures for ugly CFLs with GU10 bases or spend a lot more for modern LEDs?
Fact is I don't have a crystal ball and don't know what things will really be "in style" in 4 years (or 6 months or a decade) but I do know that buyers will instantly know that what renovations were done were NOT original to the house AND ALMOST CERTAINLY not in line with the most current trends (whatever that may be) in 2017 or 2023 or even the summer of 2014. Thus potential buyers are very likely to DISCOUNT the value of whatever is done AND "mentally mark-up" whatever things they would like to "freshen up" whether that is carpet or other flooring, window treatments, built-in lights, doors / trim / hardware, etc...
My sense is that the OP, like most homeowners, understands that spending money on certain kinds of things often does make one's home much more appealing / sellable -- a shiny new fridge/range/dishwasher and maybe new countertops will say "buy me" in the kitchen of most any house. So too does a nice "spa like" masterbath send potential buyers reaching for their "offer sheet". I would even go so far to say that MOST buyers are in fact favorably impressed by things like a well staged home with a nice comfy sofa appropriately situated across from a flat TV and a stately dining room set with lovely china EVEN IF THEY INTELLECTUALLY know that the home seller is not leaving any of that stuff behind behind BECAUSE it is the kind of emotionally appelling "stuff" that folks shopping for a home associate with the "life of a home owner" -- having friends over to watch "the big game" or gather at the holidays. Most home buyers, especially for SMALLER homes that are typically STARTERS that compete with condos frankly have no real "context" to understand the "value" of a finished basement...
If you think you could use the extra space, then by all means finish the basement. In the scheme of things, 6K is not that much. Think of it as 2K per year for 3 yrs, or $150 a month. If having the extra space is worth that to you, then you do not really need to recoup the cost of the basement remodel when you sell. If it helps the sale, so much the better. At least if you finish it now you will get the use of it for 3 yrs.
question for which home improvements that you will definitely get your investment money back? (when you sell it later or to add value to the house when you get it appraised for equity)
things like change out blinds and put shutters in? put all glass enclosures in showers instead of curtains? make shower room all tiles instead of fiberglass? instead of sand and rocks in backyard you put concrete and add a basketball and trampoline? and pool? marble floor in the house? anymore?
I am interested in the shutter now but they are expensive, I wonder how much money I can get it back later.
now if the future buyer doesn't like pool, or shutter, or they like shower curtains better instead of shower glass enclosure, they can't really talk the price down right? that's depending on the appraiser? I just got a house and I got a lot of plans, but also worried about my return when I invest the money and time into. maybe you guys can list the best investment return for home improvements...thanks!
question for which home improvements that you will definitely get your investment money back? (when you sell it later or to add value to the house when you get it appraised for equity)
things like change out blinds and put shutters in? put all glass enclosures in showers instead of curtains? make shower room all tiles instead of fiberglass? instead of sand and rocks in backyard you put concrete and add a basketball and trampoline? and pool? marble floor in the house? anymore?
I am interested in the shutter now but they are expensive, I wonder how much money I can get it back later.
now if the future buyer doesn't like pool, or shutter, or they like shower curtains better instead of shower glass enclosure, they can't really talk the price down right? that's depending on the appraiser? I just got a house and I got a lot of plans, but also worried about my return when I invest the money and time into. maybe you guys can list the best investment return for home improvements...thanks!
You will not get a single dime back on shutters. They may make your home easier to sell, but they will not add value. I would say that there is not a single home improvement one can make that will definitely allow one to get the investment money back. At best, one might get a percentage of the investment back. This typically applies to kitchens and baths. Other improvements such as landscaping make homes easier to sell.
Do the improvements for your own enjoyment and don't over improve for your neighborhood. BTW--I don't know where you're located but I would rather have sand and rocks over concrete. I can't imagine using a trampoline on a concrete pad. Google home improvements and return on investment. There are thousands of recommendations out there.
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