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Get a list of comps from a realtor. The cost of an addition is different than the value added to a house for improvements. What they paid to get the work done is irrelevant.
I'm in one of those screwed up areas that was a total bubble market. There aren't enough comps to make a judgment and what comps there are have already lost value. We've got 40+ months of inventory. Pretty ugly.
We're attempting to figure out the price from the other end-- index it to inflation based on the pre-bubble price and then add in some extra for the improvements. So, just trying to figure out what those improvements cost (realizing that they shouldn't expect to recover 100% of what they paid for the addition).
From reading the title, I thought you were going to purchase Yankee Stadium...!
It's plenty roomy, and would make a good tax write off...! Even comes with hot dogs...!
From reading the title, I thought you were going to purchase Yankee Stadium...!
It's plenty roomy, and would make a good tax write off...! Even comes with hot dogs...!
Open floor plan, soaring foyer, recently remodeled and multiple kitchens. Sounds like the Yankees have a good listing.
I have a totally different answer. As soon as I hear the fearfull scary dreaded words "homeowners remodeled" I would rather face the dead rising from their coffins. I have experienced first hand in my 3 decades in the construction industry what those words "homeowner remodeled" really mean. With the home improvement skills most of these people have I would rather buy a complete dump that has never seen upkeep.
And when the economy was good that is just what I did. I looked at homes that home buyers refused to get out of the car to look at and homes that Realtors were afraid to and refused to show. If a homeowner did his own work I would not even look unless the price was so low I had to look.
I have seen just as much shoddy work by contractors and even new homes by contractors.So in the end it mames little difference IMO as to the quailty of the work.Having worked construction in my early years I see little resemblnace then and now to wormanship. Besides he didn't say who did the remodeling that I read.
What the OP wants to do is play the sucker game. One phase of that is be assured buying a house in today's environment is a wise choice. Of course it does have a few speed bumps. Lots of talking heads claiming the house prices have "bottomed" and you are getting the great deal. Of course the same talking heads tend to be the same Real Estate gurus whose only real purpose is to get another paycheck.
You could guess any amount for those improvements. Maybe something in the $20K - 50K range depending on how they were done, maybe even higher if some contractor was involved. My Standard rule of Thumb, if you did not do the work yourself, you got hosed. Any real profit went to the contractor.
But back to the real game at hand. How to you figure what any house is worth? Basic problem is finding the chump buyer to convince they are getting the rock bottom price, buy now, it will never be cheaper. A slightly flawed process at best. If you can figure out the big economic picture ahead, might be one way of assurance but everything is pointing to a lot more down pressure.
One nice example is an old shack I sold several years back for low $300K's. Bought by a lying house flipper boy who did his thing. The chump who finally wound up with a Beauty Deal of the Century, paid something like $356K and proceeded to pore even more money into it. Probably sitting on something well north of $450K and will sell it to you for a mere $229K. The super great deal that is not even bringing a sniff. By all accounts should be a sweet deal but if I was a betting man will have to go well under $200K to find the next sucker chump. The new sucker will get stuck the same way the old sucker did. Same old inflated game of huge amounts above the sticks and bricks that only profits those who run the game.
The basic core problem is them old guru's want to play the game the old fashioned way. So much "Overhead" in changing house ownership that the new sucker is under water immediately and will probably remain so for a long time in the future in today's environment. You always have to ask what is really in the deal for me and what will happen if I got to dump this puppy in the next few years? How much will I make? Everybody else will make a nice profit except the sucker who bought so low it can not be wrong. Beware of Happy Talk.
Just remember to keep the eye on unemployment. Lots more of that to come, any new jobs are probably not going to be paying that much. Predicting anything is a bit tough these dazes but I would be wary of thinking I got the Deal of the Century on any house. When in doubt offer far less than you think it could be worth, be prepared to walk away, the next super deal is coming next month.
I have the same sort of problem. Bought a new shack to replace the old bargain for $24K, pored $10K into it. Total rehab but 5 years later can I get my money back even if I did it totally completely right? Hey, I should have increased value. Maybe if I completely cut all the talking heads out of the equation but I probably will not get minimum wage for my efforts. The housing game is such a sucker game that is run on grand expectations. In my case the point is a bit moot because my shack is basically free a couple of times over because I got paid the interest on the money out of the old one. All how you attempt to play the game. Never believe the standard pap.
Without knowing any of the details about the OP situation I would be saying figure out what is in the deal for you exactly. I doubt most folks will make any money down the road trying to play the game the "Standard" way. Brokers, real estate gurus, contractors, tax man, government makes money by turning over houses. The chumps are going to be far less likely to do so in the future. Do not be blinded by the deal just to good to pass up, they will get even better further on down this road. Get your head right before signing anything.
Always ask that stupid question, what is in this for me and be prepared to figure it out exactly. Interesting experiment if you do a fine calcuation as to what is required for the average sucker to actually turn a profit. Remember only the net number actually counts.
Naw whatever is involved, I doubt it is cheap enough for the OP yet.
Assuming you want the house, you might just look at a few recent sales in the area, preferably of houses with the same level of finish and construction but not necessarily size, come up with a per-square foot average price, scale this number to fit the house you are looking at. Without seeing the owner-added stuff it's impossible to guess what it adds or even detracts from the house. The half-bath would be a useful and valuable upgrade to a house with only one other bath, or maybe a 2-story job with master bath(s) on the 2nd floor. If the house already had 2 or more main-floor, easy to get at bathrooms, the additional half-bath may not have added much.
Another point is, OP, where is this house? Makes a big difference how much the market is "down" where you are. In heavily hit areas, the house may be worth less than it was in 2002, maybe much less, while around here in the Inland Northwest, it would be up a good bit from 2002.
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Sucker Game......
