[derbyshire]

We just had our low offer accepted on a house built in the late 30's. The kitchen is small and needs updating so we were thinking about adding on to the back of the house. Since we are built into a small hill, we were thinking about putting the addition on stilts over building a foundation. Does anyone have any thoughts on that?

We had the idea of building the addition up to the second floor and expanding the bedroom to make a master suite which the house lacks. DH is worried about getting a return on it because many of the other houses in the neighborhood are smaller and outdated.

We are trying to do everything with resale in mind, thanks!!

[kidyankee764]

I would think that any addition should be built on whatever the rest of the house is. The house and addition will move differently which can create cracks, leaks, etc. Also, if you're planning on building up to the second floor, I would think that it would be a little heavy for stilts.

It will be more expensive, but go with the foundation.

[derbyshire]

If we did put in a foundation, wouldn't our taxes jump?

[Cambium]

Well...lots of details to go over here....

1. Stilts are used in beach front properties so weight is not an issue if using the proper material.

2. Foundation or not you have to get an inspector in there and that opens up a can of worms with the town...you'll have to file it and in turn yes, taxes will go up.

3. You will want it filed because when you go to resell, buyer gets the town hall records to see the square footage and if everything is legal...if it doesn't show up in the files than they will question why the kitchen and master is bigger and will need an inspector come out anyway. Fine will be addressed.

4. My taxes went up just for building a deck that was never there. 2 feet above the ground.

5. Depending on size of addition you may not get hit big on the tax increase. BUT any updating they will see and mark down for a further increase.

6. My taxes were $5500 in 2007. House was a mess. In June 2007 I gutted it out, replaced ALL windows, insulation, sheetrock, roof, siding, porch, added central air/heat, new kitchen, baths, ect...Finished October 2007. 2008 taxes were $6300. now they are $7200. I shoulda just lived with the mold and mildew.

7. You can install all granite in a property in the slumest of areas, it won't mean that property is worth a lot more...be careful what you do for resale.

[willow wind]

Never over improve a property. You want your home to be modern and up to date but you do not want to be the largest and most expensive home by far in a neighborhood. Example, A 2500 square floor house in an area of 1200 square foot homes will never get the same value as it would if were in an area of other 2500 square foot homes. The lowest common denominator will drag your home value down. That means granite counter tops and stainless steel appliances are OK but hold off on the Viking range, wine cooler type things and over the top tiling unless they are common and customary in the neighborhood. The return on the investment is just not there in that type of situation. Stay away from a pier foundation- it cheapens the look of the house. If you don't want a full concrete basement then do a concrete crawl space. Before you draw up any plans for additions, go down to the building/zoning department and check your building square size. This is the size of the footprint the home can have on the lot. Also check lot setback requirements, the distance from the each side of the lot. And yes, you do have to take out a building permit, file plans, etc. And yes, at some point the town or city assessor will show up and adjust your taxes. To try to build without permits is fruitless. The neighbors will be watching. If some one thinks you are too close to their property line you can be sure you will turned in. You also don't want to be in a situation where you go to sell your expanded home and the appraiser looks at the house and compares it to what the city assessor has on field and realizes that you've got an extra 400 square feet or whatever with no building permit on file. At the point you've got to have the building inspector come out and give approval which may or may not happen if anything is not to code or compliance.

[Rich Lee]

Originally Posted by willow wind

Never over improve a property. You want your home to be modern and up to date but you do not want to be the largest and most expensive home by far in a neighborhood.

This scenario is known as price regression - when a street or area of lower or medium-priced properties pulls down the price of the lone (or few) high-end properties.

[toddb]

Moving past all of the ROI advice, if as of now you plan on being there for a long time, then beyond the crystal ball gazer's expectation of where your financial reward will be, you will get all those years of enjoyment of your home. Only in the last 10 or so years have people become so hard up to equate your home as a financial investment. People used to hope that they wouldn't lose money on their home (and maybe make a few bucks), but they were more focused on it being a home, not an investment vehicle. They assumed they would make their payments for 30 years, then not worry about a mortgage, then either leave it to the kids or sell it for whatever it was worth and move to Florida.

You don't get to live in a stock or have memories with family and friends in a bond fund (well, I hope you don't ), so if you can afford it then go for it. If in 20 or 30 years you get 72% return instead of 84%, well, stuff happens. You got 20-30 years of enjoyment, which is probably well worth the little amount of money in today's dollars. And who knows - people might see you making some improvements and follow suit. Or, the next owner of their house will. I'm sure Rich has a proper term for 1 nice house bringing the others up to snuff.

[Rich Lee]

Originally Posted by toddb

You don't get to live in a stock or have memories with family and friends in a bond fund (well, I hope you don't ), so if you can afford it then go for it. If in 20 or 30 years you get 72% return instead of 84%, well, stuff happens. You got 20-30 years of enjoyment, which is probably well worth the little amount of money in today's dollars. And who knows - people might see you making some improvements and follow suit. Or, the next owner of their house will.

If only this happened. Most homeowners who are cautioned about overdoing improvements forget that advice and refuse to believe, when it's time to sell, that their property can't be compared to the comps in the town located on upscale streets/in upscale neighborhoods.

Originally Posted by toddb

I'm sure Rich has a proper term for 1 nice house bringing the others up to snuff.

Unfortunately, I don't as this situation really doesn't exist per se. The closest scenario is when purchasers buy houses on a street, tear them down, and then build Mc Mansions. (The lone holdout then benefits from price progression.)

[JayCT]

Originally Posted by Rich Lee

If only this happened. Most homeowners who are cautioned about overdoing improvements forget that advice and refuse to believe, when it's time to sell, that their property can't be compared to the comps in the town located on upscale streets/in upscale neighborhoods.


Unfortunately, I don't as this situation really doesn't exist per se. The closest scenario is when purchasers buy houses on a street, tear them down, and then build Mc Mansions. (The lone holdout then benefits from price progression.)

I have seen people put $50,000 into their kitchen which is in a neighborhood of modest homes. They could not understand why their home was not worth $50,000 more than a neighbors home when they went to sell a few years later.

Another peeve of mine are additions that look like additions. I remember when we were looking at homes, we saw several that had poor quality addtions and I immediately said no without even going inside. It is not quite as bad if the addition is off the back of the house but these were right in front and looked horrible. Jay

[Cambium]

Originally Posted by JayCT

I have seen people put $50,000 into their kitchen which is in a neighborhood of modest homes. They could not understand why their home was not worth $50,000 more than a neighbors home when they went to sell a few years later.

Another peeve of mine are additions that look like additions. I remember when we were looking at homes, we saw several that had poor quality addtions and I immediately said no without even going inside. It is not quite as bad if the addition is off the back of the house but these were right in front and looked horrible. Jay

Exactly. Everyone wants a bigger room but they dont realize making it square ruins the actually layout and design of the house especially if its horrible from the outside. We live in a box as it is, lets not make it an eye sore.

I was told by an appraiser which I use to this day.... You can add granite, Marble, Viking Stove, and the works in Harlem but it doesnt mean your home will be worth double the price.... Your home is worth what it compares to in the area and if nothing compares to your home dont expect a giant increase.