Would you do it?

[mossey2000]

We got our appraisal back today and apparently we have lost 10k in three years. However, some of the things he mentioned in the report are easily remedied(a missing interior door, trim etc). Anyway, would you continue on and try to add on to the house even though on paper you have "lost" money. Our long range goal is to add on 1k sq feet.The house is 1312-1450(they wont count our room b/c we don't have a closet persay). We like the area. But it would be a bigger house than most others in the neighborhood.

My long term plan is to rent this out and buy 10 acres and build. It would be so nice to have a daycare room thats not in my house though(off the kitchen).

So what would you do?

[mossey2000]

[NDNatlGuardGF]

One thing that could be hurting you is the current housing market. When things like this happen, the value of homes goes down. If you honestly like the area and plan to stay there for a while or keep it to rent out, I don't think its a bad idea. But if you think you'll be trying to sell it soon, say withing the next 5 years, it may not be worth it.

[Victoria]

Originally Posted by mossey2000 We got our appraisal back today and apparently we have lost 10k in three years. However, some of the things he mentioned in the report are easily remedied(a missing interior door, trim etc). Anyway, would you continue on and try to add on to the house even though on paper you have "lost" money. Our long range goal is to add on 1k sq feet.The house is 1312-1450(they wont count our room b/c we don't have a closet persay). We like the area. But it would be a bigger house than most others in the neighborhood. My long term plan is to rent this out and buy 10 acres and build. It would be so nice to have a daycare room thats not in my house though(off the kitchen). So what would you do?

How much longer do you plan to own the home?

You also need to keep lot size in mind. Just because one has a bigger home, doesn't mean it will have a better appraisal compared to another home that has more land.

There are so many other things that can raise the value of a home, besides enlarging it.

How much would it cost to create a closet in your room, to consider it a bedroom?


Personally, I wouldn't enlarge a home that is going to become a rental home in a few years.

[mossey2000]

He has orders for another 3 years and we're trying to homestead here. Ideally it wouldn't be a rental until retirement in 10+ years. We're not selling because we got an awesome deal and the area is growing. We think the appraisal was a bit faulty b/c the house around the corner in a little worse condition is going for 20k more than our appraisal. I told J once he got home it would appraise for more when he could finish the little stuff.

500 for a closet I think. We have the shelves up, just didnt put the walls up.

Our lot is 90x180 and we own 1.9 acres directly behind us.

[polkadotted]

usually you get your house appraised because you want to increase your current loan or get a new loan all together. You might benifit from talking to local realtors to see what they thing would work in your situation, or even contact your old realtor and ask them what they think. If your home is going to be a lot larger than other homes in the area, there is always the risk that you may not get your money's worth for the addition.

You may want to consider fixing the issues listed by the appraiser and invest in a permanent floor-to-ceiling built-in closet so that you can gain the value of call your bedroom an actually bedroom. Staging your house can ironically improve your appraisement. Once that's done maybe you can get it reappraised if you intended on using the appraisal for finacial reasons.

[mossey2000]

Originally Posted by polkadotted usually you get your house appraised because you want to increase your current loan or get a new loan all together. You might benifit from talking to local realtors to see what they thing would work in your situation, or even contact your old realtor and ask them what they think. If your home is going to be a lot larger than other homes in the area, there is always the risk that you may not get your money's worth for the addition. You may want to consider fixing the issues listed by the appraiser and invest in a permanent floor-to-ceiling built-in closet so that you can gain the value of call your bedroom an actually bedroom. Staging your house can ironically improve your appraisement. Once that's done maybe you can get it reappraised if you intended on using the appraisal for finacial reasons.

That's what we were trying to do, get a 203k loan to add on to the house. The small things will be done in the spring after deployment. We ran out of time before he left. The appraisal was listed as for refinance because we wanted both numbers to see what we were facing. We've looked at houses that would meet our criteria(If I'm moving I'm getting 10 acres and 4 bedrooms). That would be 250k. Our house redone would be 150k. We would have 4 bedrooms, 2 baths, a rec/daycare room, larger living room and my dining room would be a dining room again. We have "3" bedrooms(ours doesnt have the enclosed closet) and 1 bath, dining room and kitchen. It's getting tight esp since we will be ttc next year.

The windows, wiring, 90% of sheetrock, and hvac has been replaced in the last 3 years.

Technically we have gained almost 30k since 2005 but we had it appraised for 15k more 3 years ago. It fluctuates. 3 bedrooms are going for 20k more. Insane what a wall will do for you.

[polkadotted]

Originally Posted by mossey2000 That's what we were trying to do, get a 203k loan to add on to the house. The small things will be done in the spring after deployment. We ran out of time before he left. The appraisal was listed as for refinance because we wanted both numbers to see what we were facing. We've looked at houses that would meet our criteria(If I'm moving I'm getting 10 acres and 4 bedrooms). That would be 250k. Our house redone would be 150k. We would have 4 bedrooms, 2 baths, a rec/daycare room, larger living room and my dining room would be a dining room again. We have "3" bedrooms(ours doesnt have the enclosed closet) and 1 bath, dining room and kitchen. It's getting tight esp since we will be ttc next year. The windows, wiring, 90% of sheetrock, and hvac has been replaced in the last 3 years. Technically we have gained almost 30k since 2005 but we had it appraised for 15k more 3 years ago. It fluctuates. 3 bedrooms are going for 20k more. Insane what a wall will do for you.

really sounds like moving might be your best bet, it costs a lot more to add bathrooms and additional rooms. Everyone loves having extra bathrooms especially with more babies Maybe you can go to open houses in your neighborhood and see what the comps look like. It'll give you an idea of how much work you've got to do with your house. If you choose to go for it and fix up those little things, get a closet in so it's considered a "real" bedroom, and start thinking about staging.

[mossey2000]

thanks for your help