Home Addition-Yay or Nay?
Home Addition-Yay or Nay?
We live in a 3 bed, 3.5 bath 2200 SF ranch with a full finished basement. The house and location are perfect, with the exception of the bedroom space, with very low property taxes (compared to other houses in the same school district) since we're in an unincorporated sliver. What would make the house ideal is a master suite that is away from the other 3 bedrooms. We’re thinking of possibly doing a partial 2nd floor addition and putting the master bed/bath upstairs and this would give us some separation from the kids bedrooms, which are all very close together and very small. We are in the largest of them that has a small bathroom, our boys share a small room, and then our daughter is in the smallest of the 3 rooms.
I’ve been looking on the MLS for the last year for houses that would meet this need without having to go through a construction project, but really nothing has come up. We paid $500K for our house and the only really comparable house (with an extra bedroom) that would meet this need sold for $622K. This was a house that had comparable finishes, yard space, same school district, and finished basement. It is possible to get a fixer-upper with 4 bed/3 bath for less, but I think it would end up being about the same money once the finishes were complete. Ditto with a tear-down to just start from scratch, I think we’d be in the same boat as far as cost goes.
I’ve gotten some ballpark estimates that are putting the cost at doing a partial 2nd story at around $75K and, with a 20% buffer built in, we’d be looking at $90K. We’re 37 and plan on being in this house into retirement since our families are close, our jobs are close, and it’s centrally located. I do go back and forth on whether or not it’s a smart idea though. Part of me says to just deal with it and, before you know it, the kids will be off to college. The other part of me says that you might as well make the house what you want, as long as the market can support the money you’ve sunk in.
Here’s how our finances look:
Debt
Mortgage: $380K
Retirement
Tax Deferred Accounts--$332K
ROTH Accounts--$75K
Wife has 13 years into a State Pension
College Savings
529 Account $65K
Liquid
$170K in savings
I’ve been looking on the MLS for the last year for houses that would meet this need without having to go through a construction project, but really nothing has come up. We paid $500K for our house and the only really comparable house (with an extra bedroom) that would meet this need sold for $622K. This was a house that had comparable finishes, yard space, same school district, and finished basement. It is possible to get a fixer-upper with 4 bed/3 bath for less, but I think it would end up being about the same money once the finishes were complete. Ditto with a tear-down to just start from scratch, I think we’d be in the same boat as far as cost goes.
I’ve gotten some ballpark estimates that are putting the cost at doing a partial 2nd story at around $75K and, with a 20% buffer built in, we’d be looking at $90K. We’re 37 and plan on being in this house into retirement since our families are close, our jobs are close, and it’s centrally located. I do go back and forth on whether or not it’s a smart idea though. Part of me says to just deal with it and, before you know it, the kids will be off to college. The other part of me says that you might as well make the house what you want, as long as the market can support the money you’ve sunk in.
Here’s how our finances look:
Debt
Mortgage: $380K
Retirement
Tax Deferred Accounts--$332K
ROTH Accounts--$75K
Wife has 13 years into a State Pension
College Savings
529 Account $65K
Liquid
$170K in savings
Last edited by davebo on Wed Aug 12, 2015 2:18 pm, edited 1 time in total.
Re: Home Addition-Yay or Nay?
I should mention also that I probably wouldn't do this for another couple years so I can save up a bit more money. Our day jobs cover the bills, maxing out my retirement, and my wife's pension. We have a side-business that I've been running for about 10 years that has been doing very well the last 2 years. From that, we save around $35K for in a solo 401k for my wife plus around $60-80K per year.
If it continues like this for another couple years, we'd have quite a bit more saved up by the time we pull the trigger...or things would've slowed in that business and we'd reevaluate.
If it continues like this for another couple years, we'd have quite a bit more saved up by the time we pull the trigger...or things would've slowed in that business and we'd reevaluate.
Re: Home Addition-Yay or Nay?
Spend a little of your savings exploring ideas with an architect. Look at addition vs. pop top from cost and practicalities (i.e. where you family will be living and how during construction). Might be easier to extend a gable roof for master than pop top. Get a concept drawing and test it for planning level pricing.
I own the next hot stock- VTSAX
Re: Home Addition-Yay or Nay?
I am nearing completion on our new addition that will bring us a ton of more useable lounging space and privacy from the rest of the house when people are about. I cannot stress enough however, do no cheap out on the construction company who you hire and get lots of references along with their MHIC License #. This is the most important thing that you can do. Hire a true professional. Set a short time line on getting it built so your life and family are not constantly interrupted. I say stay and Yay!
Re: Home Addition-Yay or Nay?
Interesting, a "pop top" addition? I don't think I've ever heard that expression, but it looks like probably what we'd like. Our ceilings in the attic are very low (maybe 6' in the center) so I assume this would solve that problem?WhyNotUs wrote:Spend a little of your savings exploring ideas with an architect. Look at addition vs. pop top from cost and practicalities (i.e. where you family will be living and how during construction). Might be easier to extend a gable roof for master than pop top. Get a concept drawing and test it for planning level pricing.
Re: Home Addition-Yay or Nay?
Thanks for the advice on that. We are in an older town with homes built in the late 1800's to early 1900's so there are tons of renovations going at any given time. I'll have to start gathering names.Riverstwo wrote:I am nearing completion on our new addition that will bring us a ton of more useable lounging space and privacy from the rest of the house when people are about. I cannot stress enough however, do no cheap out on the construction company who you hire and get lots of references along with their MHIC License #. This is the most important thing that you can do. Hire a true professional. Set a short time line on getting it built so your life and family are not constantly interrupted. I say stay and Yay!
How is your estimated final cost compare to your budget? How much of that was unexpected vs. cosmetic upgrades along the way?
- bertie wooster
- Posts: 764
- Joined: Mon Jun 25, 2007 5:14 pm
Re: Home Addition-Yay or Nay?
I think (as you alluded to in your 2nd post) your savings are a bit light so if you can get those higher in a few years then you should go for it (if you still want to).
Sounds like you've got the location you want, once you have the money go for it.
Sounds like you've got the location you want, once you have the money go for it.
Re: Home Addition-Yay or Nay?
Stay and remodel. You like your current location.
Most of the world live in a lot less space than us. Live below your means. Don't buy things that you do not need to clutter up the house, especially the basement. Extra space would only encourage the pack rat syndrome. Friends of ours were amaze how clean and organize our basement is vs. theirs (they are downsizing and moving to a smaller house but found it a pain to get rid of 30 years of stuff), and our main living area is also fairly spartan. Your kids would eventually move on once they go to college, as you said. Wait till your kids see how small their dorm rooms are.
Good luck in finding a professional in your area.
Most of the world live in a lot less space than us. Live below your means. Don't buy things that you do not need to clutter up the house, especially the basement. Extra space would only encourage the pack rat syndrome. Friends of ours were amaze how clean and organize our basement is vs. theirs (they are downsizing and moving to a smaller house but found it a pain to get rid of 30 years of stuff), and our main living area is also fairly spartan. Your kids would eventually move on once they go to college, as you said. Wait till your kids see how small their dorm rooms are.
Good luck in finding a professional in your area.
Re: Home Addition-Yay or Nay?
Yeah, in a couple years it will either be a no-brainer or off the table completely. If I did it, I'd want to be excited and not completely stressed about money.bertie wooster wrote:I think (as you alluded to in your 2nd post) your savings are a bit light so if you can get those higher in a few years then you should go for it (if you still want to).
Sounds like you've got the location you want, once you have the money go for it.
-
- Posts: 2985
- Joined: Tue Apr 01, 2014 11:41 am
Re: Home Addition-Yay or Nay?
When I was living in LA I saw a strange remodeling technique.
The contractor cut the single story house loose from the foundation, jacked it up about 15 feet, and then built a new first floor underneath. The original house was then lowered back down and tied in to the new first floor.
A good thing that we did not have a normal earthquake while the house was up on jacks.
Ralph
The contractor cut the single story house loose from the foundation, jacked it up about 15 feet, and then built a new first floor underneath. The original house was then lowered back down and tied in to the new first floor.
A good thing that we did not have a normal earthquake while the house was up on jacks.
Ralph
Re: Home Addition-Yay or Nay?
If the basement can accomodate legal egress windows, you could put the kids down there and turn one of the upstairs bedrooms into a master bath. Alternatively, and this is the least stressful way, build a new wing and connect it with a hallway or closets to the rest of the house.
One issue you will have is mission bloat. "As long as we're miserable anyway, let's repaint! The subs trucks tore up the landscaping, so let's fix it up and build a new deck!"
Don't underestimate the stress factor-- it's a miserable experience. Honestly, it's easier to move.
One issue you will have is mission bloat. "As long as we're miserable anyway, let's repaint! The subs trucks tore up the landscaping, so let's fix it up and build a new deck!"
Don't underestimate the stress factor-- it's a miserable experience. Honestly, it's easier to move.
"My bond allocation is the amount of money that I cannot afford to lose." -- Taylor Larimore