First time home buying journey so far..

[dragonballz]

This is an update to my "Cost to add 2nd floor" thread.
http://www.garagejournal.com/forum/showthread.php?t=340622

House is located in Boston suburbs, which would probably only be affected slightly by a bubble pop.

- Seller accepted my offer of $400k contingent on home inspection

- I had a home inspection. Found predictable things wrong with a ranch from the 1950s, nothing surprising. Inspection report should be arriving soon.

- I had a contractor give me a ballpark estimate for 2nd floor addition. About $250k JUST for the addition, not including reno the 1st floor. So that is off of my list.

- I was worried about resale value if I DID NOT add a 2nd floor but the contractor told me I could prep the 1st floor for the future addition of a 2nd floor. Install plumbing and wiring, etc. They told me that the prep would increase resale value. Thoughts on that? Thank you

 

[matt_i]

Whats your intent again? Flip it, rent it, or live there?

 

[pmiranda]

I suspect that there is more preparation in the framing department required for a second floor than in electrical or plumbing.
I bet the walls have to be opened to beef up framing for a second floor anyway, so trying to prewire/plumb without doing the framing work seems like a waste, and you don't necessarily know where the plumbing or wiring needs to go until 2nd floor construction starts.
Having said that... if you have to replace the drain stack, water heater, manifolds, or the main electrical panel anyway... then it's worth a small incremental price to allow for a larger household. You know you want a beefier panel to allow for EV charging, a welder, or other goodies

 

[steveo1o9]

Stubbing in for a possible future additional will only add value if the potential buyer has plans to put on an addition. Good luck convincing someone of the added value who has no intentions of adding on. I am not sure how common it is in Boston for 2nd story additions but it is not very common elsewhere to expand up. If it is very common then it may be worth something to a buyer.

Although if you are even remotely considering to add the addition in the future then you should have the stubs added while the other work is being done so you won't have to pay to have the work done twice.

 

[dragonballz]

Whats your intent again? Flip it, rent it, or live there?

Live there

 

[dragonballz]

Federal Reserve Bank of Boston reported that houses in the Dorchester neighborhood decreased in value by 40 percent from 2005 to 2007, which was twice as much as Boston's average decrease in property values during that same period.*@#$

Your contractor is wrong.
Your incredibly specific buyer would need the 200k+ to build that second story, for no reason other than they absolutely had to live on your exact lot.


These people in Dorchester also thought they wouldn't catch a bubble.
Notice the reference to the 20 percent drop all across the town.
If you have to bail out, do you have 20 percent in the bank just to throw away?
20 percent average can mean as many lost 30 percent as those lost only 10 percent.
The walk away law is up for renewal soon.
It will be hard to renew it and say how good the economy is in the same breath.
They are mutually exclusive.

It's a chance this coming bubble.



Sorry so harsh.
This is not a situation for someone to be mambypambys about their advice.

Dont apologize. I want all the advice I can get.

What your report doesnt tell you is that Dorchester is a bad neighborhood with high crime rate (inner city). Within these past 10 years, Dorchester is becoming gentrified. I dont know what this info means but just thought I'd throw it out there.

 

[dragonballz]

Although if you are even remotely considering to add the addition in the future then you should have the stubs added while the other work is being done so you won't have to pay to have the work done twice.

This is my dilemma. As of now, I am single with no kids.

This town is about 20 min drive to Boston. Other ranches in this neighborhood are either being torn down or just renovated as-is or with some additions. I havent seen or heard of any build a 2nd floor.

 

[dragonballz]

Two story houses were not allowed in two of my neighborhoods.
Just saying this may be why you're not seeing any.

Sorry I mis-worded. Ranches are NOT having 2nd floor additions built on top. They are being torn down and colonials (two-story) built. Either that, or ranches are just being renovated as single floors.

 

[reader2580]

Do you have a current or future need for the space? If not, why spend the money? I have a feeling you'll be lucky not to lose money on the addition.

It was common in my area back in the 60s and 70s to add bedrooms by creating a second story only on the back half of the house. These houses had very steep roofs with tall ridges.

 

[dragonballz]

Do you have a current or future need for the space? If not, why spend the money? I have a feeling you'll be lucky not to lose money on the addition.

It was common in my area back in the 60s and 70s to add bedrooms by creating a second story only on the back half of the house. These houses had very steep roofs with tall ridges.

The current space is fine for me as I am single. I am worried about POSSIBLE future resale and the future of my non-existent family.

 

[pcmeiners]

" I had a home inspection. "
Sure hope the real estate agent did not supply/recommend. In NYC, most do not have enough knowledge to sell lemonade. Better off getting a contractor to inspect. On a plus side, in the 50's , houses were generally build well, probably the best period of building in a long time.

" but the contractor told me I could prep the 1st floor for the future addition of a 2nd floor"
A Contractor told you....like asking a fox to add an addition to a hen house. Unlikely to recoup anything when sold, but would make the contractor wealthier.

Very few modifications to a home increase it's monetary value, especially with contracting costs so high in metro areas.

 

[pmiranda]

Kitchen remodels of older homes or addition of square footage will actually add value. Anything else, I'd do only for yourself unless it's obviously sub-par.

 

[Muzzy]

Live there for a year and decide what you want to do addition wise.
You'll have some time to think on what would really make sense to add or remodel. Being single, you will have more freedom to tackle some of the bigger projects on a longer timeline than would be reasonable if you had a family that needed to use the space.

Worrying about resale value right away when you plan on living there a few years can only add stress to your life.

 

[dragonballz]

" I had a home inspection. "
Sure hope the real estate agent did not supply/recommend. In NYC, most do not have enough knowledge to sell lemonade. Better off getting a contractor to inspect. On a plus side, in the 50's , houses were generally build well, probably the best period of building in a long time.

" but the contractor told me I could prep the 1st floor for the future addition of a 2nd floor"
A Contractor told you....like asking a fox to add an addition to a hen house. Unlikely to recoup anything when sold, but would make the contractor wealthier.

Very few modifications to a home increase it's monetary value, especially with contracting costs so high in metro areas.

The home inspector was somebody a family member used for their inspection. The contractor is somebody my agent recommended.

But i do see your point.. Conflict of interest.

 

[dragonballz]

Live there for a year and decide what you want to do addition wise.

You'll have some time to think on what would really make sense to add or remodel. Being single, you will have more freedom to tackle some of the bigger projects on a longer timeline than would be reasonable if you had a family that needed to use the space.



Worrying about resale value right away when you plan on living there a few years can only add stress to your life.

Thanks

 

[wake74]

I would vote no, on doing any doing any prep for a future second floor. We have bought and sold 8 houses to date, and I just doing see this as a wise investment. Focus on the important stuff, updating kitchens and baths. I've never added an entire second story, but have converted a classic cottage into more of a salt box, by adding 8 feet to the rear elevation, and converting the attic into a master bedroom suite. That's a pretty big DIY project to do alone. Like you, I was single at the time, so no wife / kids to spend time with in the evenings / weekends.

Any work you would do for a second floor explanation, would likely not be used by the future renovator anyway. The odds of you putting in plumbing, electrical, etc. in the correct places for them. Their appraiser for their future mortgage would give them zero.

But I'm convinced you have to buy it right to sell it right.

 

[dragonballz]

I would vote no, on doing any doing any prep for a future second floor. We have bought and sold 8 houses to date, and I just doing see this as a wise investment. Focus on the important stuff, updating kitchens and baths. I've never added an entire second story, but have converted a classic cottage into more of a salt box, by adding 8 feet to the rear elevation, and converting the attic into a master bedroom suite. That's a pretty big DIY project to do alone. Like you, I was single at the time, so no wife / kids to spend time with in the evenings / weekends.

Any work you would do for a second floor explanation, would likely not be used by the future renovator anyway. The odds of you putting in plumbing, electrical, etc. in the correct places for them. Their appraiser for their future mortgage would give them zero.

But I'm convinced you have to buy it right to sell it right.

Thanks. I think the contractor mentioned it also because the walls on the 1st floor are already coming out so he saying, "might as well." But of course, i'm going to get multiple quotes and opinions from different contractors.

 

[wake74]

Thanks. I think the contractor mentioned it also because the walls on the 1st floor are already coming out so he saying, "might as well." But of course, i'm going to get multiple quotes and opinions from different contractors.

I would not be getting home value advice from contractors. They are in the business of selling construction, not in pricing real estate. A good realtor can help walk you through the likely value add's for your particular neighborhood. Finding a good realtor can certainly be a challenge.

 

[truckman5000]

I live in your area.
Houses get blown apart to add second floors all the time.
General demo, frame, roof, sheet rock depending on the home and the existing foundation, size...I see 100k. Plumbing 20k, same with electrical,engineering/ septic adds cost.
You could drive 1/2hr away from boston, build a nice home for the $ your talking. Like said above, do what you need/ can do, just make sure you dont over build your home for the neighborhood!!

 

[justanengineer]

JMO but if a seller or agent said they'd prep'ed for a vertical expansion I'd probably think they were nuts. If its got a basement 99.9% of folks will expand down first, then horizontally and likely give up before going vertically. The only folks I've known to go vertical were contractors and serious DIY'ers.

 

[dragonballz]

JMO but if a seller or agent said they'd prep'ed for a vertical expansion I'd probably think they were nuts. If its got a basement 99.9% of folks will expand down first, then horizontally and likely give up before going vertically. The only folks I've known to go vertical were contractors and serious DIY'ers.

Thanks. I do plan on having a finished basement to make about 1400 finished sqft

 

[jps4jeep]

Update?

 

[dragonballz]

Update?

I lowered my offer after inspection based on needing all new HVAC, water heater, boiler, (end of life) etc. The seller declined. I backed out.

On to the next house. Housing prices keep on going up. I can afford the same thing now as i could 4 years ago even after saving for 4 years.

 

[Tonellin]

Must be frustrating but I think you made the right decision to back away even though it must have been tough after putting in some much time and effort.

I'm in Medford and houses stay on market for 6-7 days, regularly going way above asking and massive cash (or all cash) offers. It's insane

Good luck man

 

[dragonballz]

Must be frustrating but I think you made the right decision to back away even though it must have been tough after putting in some much time and effort.

I'm in Medford and houses stay on market for 6-7 days, regularly going way above asking and massive cash (or all cash) offers. It's insane

Good luck man

Thanks. Many people have told me I made the right choice to back out. I would have been in over my head.