Should we spend 500k on a renovation?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

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Anonymous wrote:

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Anonymous wrote:

Anonymous wrote:If you want to look at this from a mathematical point of view, which I do because I’m an appraiser, here is my take.

Lets assume you live in McLean 22101

Let’s assume we are looking at the average house size of a home UNDER 2M (price per square foot goes DOWN the lager the home, a big home has diminishing returns)

This fictional home based on current listings is 2051 sqft and goes for $535/sq ft. I’m speaking of homes under 3500sq feet, because any larger the price per sqft starts to plunge.

You will see an uplift from the AVERAGE for a well updated home of 10%, this means your home potentially could be worth $588/sqft if you do a very nice quality renovation

Lets say your current home is REALLY beat up and is worth only $486/sqft

If being a prudent investor is your goal and you live in the beat up home, I think you could sp[twitter]end $210,227 and if you do a bang up job, at least break even before realtor fees. I would be leary of adding square footage as you start now working with diminishing returns.

Thank you. That's very interesting. So how about those ramblers and split levels? If count only the above grade area, their sqft will be almost halved... Is it a new appraisal rule?

I'm very interested in your estimate because I have a 3900 sqft above ground 1980s colonial in 22102 (there is another 1100 sqft of finished basement area). It's 8 foot ceiling on a half acre lot. I'm curious about how much $$ of renovation shall I put into this house that will make sense? I'm thinking about renovating the bathrooms, expanding deck, and landscaping etc.




If you tell me your zip code and FINISHED above ground square foot I can give you your exact formula.

Hello Appraiser PP, May I ask if your 3500sqft threshold is for above finished area only? Does ceiling height affect home price too? Thank you!

Yes...above grade only is counted. Cieling height does impact value, but that's blended into the price per sq ft. Of course that above analysis has one house in McLean that is throwing the ppsqft artificially high because there's a small tear down on a large subdividable lot in there. I'd need to also pull lot size to get a more accurate estimate. Also that analysis includes pimmit hills which also, believe it or not has a high ppsqft. Those homes are more "valuable than the larger homes.

The larger the home the worse off you are.

Thank you. That's very interesting. So how about those ramblers and split levels? If count only the above grade area, their sqft will be almost halved... Is it a new appraisal rule?

I'm very interested in your estimate because I have a 3900 sqft above ground 1980s colonial in 22102 (there is another 1100 sqft of finished basement area). It's 8 foot ceiling on a half acre lot. I'm curious about how much $$ of renovation shall I put into this house that will make sense? I'm thinking about renovating the bathrooms, expanding deck, and landscaping etc.

With that criteria, the average is $285sqft where you live. Obviously much impacts this…what kind of street you are on, the condition of the lot, the schools, upgrades, or major cosmetic or repair issues…ect.


Assuming your home is in the average (not low end), I would think with a nice renovation you could get $313sqft and would not spend over $110K

When we appraise we give “bonus” for stuff like a finished basement and such. The PPSQ starts out at a basic level and the 20K might be given for a screened in porch, 30K for a basement, 40K for a spectacular kitchen….ect. It works its way up from there.

Why is 22102 so much cheaper than 22101 given they are both in McLean? To be honest my purchase price is already higher than your estimated improved price/sqft. 22102 is in an even better school pyramid (Langley), just curious why the price/sqft is only half of 22101? Thanks!

I did a very rough estimate the sis not pull out the places on large lots for the first estimate. You gave me specifics so I pulled everything sold in the last 3 months with your lot size and in a similar sqft range and pulled the average.

Thank you PP. I guess when calculating ppsqft, some use above only, some use both? Anyway, I think your hindsight of the 110k threshold of renovation makes a lot of sense.

Below ground is never used for appraisal values. Only person who uses below ground is the tax man, lol!

Again, value is assigned to below ground space the same as value would be added for a screened in porch, or a remarkable kitchen, but is not added into square footage.

Yet another reason that appraisals are stupid. If you have two houses with equal square footage and otherwise equivalent, but one has double the amount of basement space, the one with more basement will sell for more.

[Anonymous]

A contractor came to my house today and said he thinks things are slowing down.

I have nothing else to go by except his comment but I'd just wait anyway. The amounts they are charging are crazy right now.

[Anonymous]

A contractor came to my house today and said he thinks things are slowing down.

I have nothing else to go by except his comment but I'd just wait anyway. The amounts they are charging are crazy right now.

[Anonymous]

We bought at the bottom a decade ago and our house has doubled in value without us doing anything. We have a lot of equity. We are basically to the dollar flat any direction we turn so we’re about to move forward with a $500k renovation. Updating everything and adding 500 sq ft of bigger kitchen office mudroom and master bath. I’m happy not to move, there’s a million unknowns and I will still want an office, mudroom and beautiful kitchen wherever we go. FWIW on Love it or List it they always Love It!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:If you want to look at this from a mathematical point of view, which I do because I’m an appraiser, here is my take.

Lets assume you live in McLean 22101

Let’s assume we are looking at the average house size of a home UNDER 2M (price per square foot goes DOWN the lager the home, a big home has diminishing returns)

This fictional home based on current listings is 2051 sqft and goes for $535/sq ft. I’m speaking of homes under 3500sq feet, because any larger the price per sqft starts to plunge.

You will see an uplift from the AVERAGE for a well updated home of 10%, this means your home potentially could be worth $588/sqft if you do a very nice quality renovation

Lets say your current home is REALLY beat up and is worth only $486/sqft

If being a prudent investor is your goal and you live in the beat up home, I think you could sp[twitter]end $210,227 and if you do a bang up job, at least break even before realtor fees. I would be leary of adding square footage as you start now working with diminishing returns.

Thank you. That's very interesting. So how about those ramblers and split levels? If count only the above grade area, their sqft will be almost halved... Is it a new appraisal rule?

I'm very interested in your estimate because I have a 3900 sqft above ground 1980s colonial in 22102 (there is another 1100 sqft of finished basement area). It's 8 foot ceiling on a half acre lot. I'm curious about how much $$ of renovation shall I put into this house that will make sense? I'm thinking about renovating the bathrooms, expanding deck, and landscaping etc.




If you tell me your zip code and FINISHED above ground square foot I can give you your exact formula.

Hello Appraiser PP, May I ask if your 3500sqft threshold is for above finished area only? Does ceiling height affect home price too? Thank you!

Yes...above grade only is counted. Cieling height does impact value, but that's blended into the price per sq ft. Of course that above analysis has one house in McLean that is throwing the ppsqft artificially high because there's a small tear down on a large subdividable lot in there. I'd need to also pull lot size to get a more accurate estimate. Also that analysis includes pimmit hills which also, believe it or not has a high ppsqft. Those homes are more "valuable than the larger homes.

The larger the home the worse off you are.

Thank you. That's very interesting. So how about those ramblers and split levels? If count only the above grade area, their sqft will be almost halved... Is it a new appraisal rule?

I'm very interested in your estimate because I have a 3900 sqft above ground 1980s colonial in 22102 (there is another 1100 sqft of finished basement area). It's 8 foot ceiling on a half acre lot. I'm curious about how much $$ of renovation shall I put into this house that will make sense? I'm thinking about renovating the bathrooms, expanding deck, and landscaping etc.

With that criteria, the average is $285sqft where you live. Obviously much impacts this…what kind of street you are on, the condition of the lot, the schools, upgrades, or major cosmetic or repair issues…ect.


Assuming your home is in the average (not low end), I would think with a nice renovation you could get $313sqft and would not spend over $110K

When we appraise we give “bonus” for stuff like a finished basement and such. The PPSQ starts out at a basic level and the 20K might be given for a screened in porch, 30K for a basement, 40K for a spectacular kitchen….ect. It works its way up from there.

Why is 22102 so much cheaper than 22101 given they are both in McLean? To be honest my purchase price is already higher than your estimated improved price/sqft. 22102 is in an even better school pyramid (Langley), just curious why the price/sqft is only half of 22101? Thanks!

I did a very rough estimate the sis not pull out the places on large lots for the first estimate. You gave me specifics so I pulled everything sold in the last 3 months with your lot size and in a similar sqft range and pulled the average.

Thank you PP. I guess when calculating ppsqft, some use above only, some use both? Anyway, I think your hindsight of the 110k threshold of renovation makes a lot of sense.

Below ground is never used for appraisal values. Only person who uses below ground is the tax man, lol!

Again, value is assigned to below ground space the same as value would be added for a screened in porch, or a remarkable kitchen, but is not added into square footage.

Actually appraisal counts below ground at a lower rate assessments do too

In DC if the ground floor is less than 4 feet above grade it doesn't even count for appraisal purposes. I've got a 1000 feet of space with 8'6" ceilings that does not get factored into my property tax. And I like it!

[Anonymous]

OP here. Just wanted to give an update. We are moving forward with adding a bathroom to our basement, and that's it. No $500k renovation. After reading all the comments, its does seem to me that the prices are really high right now.

[Anonymous]

Anonymous wrote:OP here. Just wanted to give an update. We are moving forward with adding a bathroom to our basement, and that's it. No $500k renovation. After reading all the comments, its does seem to me that the prices are really high right now.

Smart call. Wait a few years, that 500k renovation may come down in price and become reasonable.

[Anonymous]

Interested about the contractor who said things are slowing down — inside the beltway? What was the scope of your project?

[Anonymous]

If it will make you feel more comfortable in your house and five hundred thousand dollars for a renovation is not such a big financial problem for you, I think it is worth it. For example, I have an office room in my house, and I was always the renovation in that room. During the quarantine, I decided that it was the right time, so I spent fifty thousand dollars on the renovation, making it a room full of smart devices. Most of all, I like the new colour changing light bulbs I have installed, which makes the office room more comfortable.
______________
https://www.vont.com/product/vont-bulb-color-smart-light-bulbs-smart-bulbs/

[Anonymous]

Anonymous wrote:For those saying to sell and buy a new house, keep in mind all of the costs involved in that - realtor fees, getting the house ready to sell, moving costs, starting over with a mortgage, etc. that can get expensive quickly, well over $100k.

If you are smart you can keep realtor fees to 2.5 buyer and 2k flat fee to seller

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:If you want to look at this from a mathematical point of view, which I do because I’m an appraiser, here is my take.

Lets assume you live in McLean 22101

Let’s assume we are looking at the average house size of a home UNDER 2M (price per square foot goes DOWN the lager the home, a big home has diminishing returns)

This fictional home based on current listings is 2051 sqft and goes for $535/sq ft. I’m speaking of homes under 3500sq feet, because any larger the price per sqft starts to plunge.

You will see an uplift from the AVERAGE for a well updated home of 10%, this means your home potentially could be worth $588/sqft if you do a very nice quality renovation

Lets say your current home is REALLY beat up and is worth only $486/sqft

If being a prudent investor is your goal and you live in the beat up home, I think you could sp[twitter]end $210,227 and if you do a bang up job, at least break even before realtor fees. I would be leary of adding square footage as you start now working with diminishing returns.

Thank you. That's very interesting. So how about those ramblers and split levels? If count only the above grade area, their sqft will be almost halved... Is it a new appraisal rule?

I'm very interested in your estimate because I have a 3900 sqft above ground 1980s colonial in 22102 (there is another 1100 sqft of finished basement area). It's 8 foot ceiling on a half acre lot. I'm curious about how much $$ of renovation shall I put into this house that will make sense? I'm thinking about renovating the bathrooms, expanding deck, and landscaping etc.




If you tell me your zip code and FINISHED above ground square foot I can give you your exact formula.

Hello Appraiser PP, May I ask if your 3500sqft threshold is for above finished area only? Does ceiling height affect home price too? Thank you!

Yes...above grade only is counted. Cieling height does impact value, but that's blended into the price per sq ft. Of course that above analysis has one house in McLean that is throwing the ppsqft artificially high because there's a small tear down on a large subdividable lot in there. I'd need to also pull lot size to get a more accurate estimate. Also that analysis includes pimmit hills which also, believe it or not has a high ppsqft. Those homes are more "valuable than the larger homes.

The larger the home the worse off you are.

Thank you. That's very interesting. So how about those ramblers and split levels? If count only the above grade area, their sqft will be almost halved... Is it a new appraisal rule?

I'm very interested in your estimate because I have a 3900 sqft above ground 1980s colonial in 22102 (there is another 1100 sqft of finished basement area). It's 8 foot ceiling on a half acre lot. I'm curious about how much $$ of renovation shall I put into this house that will make sense? I'm thinking about renovating the bathrooms, expanding deck, and landscaping etc.

With that criteria, the average is $285sqft where you live. Obviously much impacts this…what kind of street you are on, the condition of the lot, the schools, upgrades, or major cosmetic or repair issues…ect.


Assuming your home is in the average (not low end), I would think with a nice renovation you could get $313sqft and would not spend over $110K

When we appraise we give “bonus” for stuff like a finished basement and such. The PPSQ starts out at a basic level and the 20K might be given for a screened in porch, 30K for a basement, 40K for a spectacular kitchen….ect. It works its way up from there.

Why is 22102 so much cheaper than 22101 given they are both in McLean? To be honest my purchase price is already higher than your estimated improved price/sqft. 22102 is in an even better school pyramid (Langley), just curious why the price/sqft is only half of 22101? Thanks!

I did a very rough estimate the sis not pull out the places on large lots for the first estimate. You gave me specifics so I pulled everything sold in the last 3 months with your lot size and in a similar sqft range and pulled the average.

Thank you PP. I guess when calculating ppsqft, some use above only, some use both? Anyway, I think your hindsight of the 110k threshold of renovation makes a lot of sense.

Below ground is never used for appraisal values. Only person who uses below ground is the tax man, lol!

Again, value is assigned to below ground space the same as value would be added for a screened in porch, or a remarkable kitchen, but is not added into square footage.

Yet another reason that appraisals are stupid. If you have two houses with equal square footage and otherwise equivalent, but one has double the amount of basement space, the one with more basement will sell for more.

Yes appraisal counts below grade finished at a lower sf and mls listings inc lol use them as total finished sf

[Anonymous]

If it will make you feel more comfortable in your house and five hundred thousand dollars for a renovation is not such a big financial problem for you, I think it is worth it. For example, I have an office room in my house, and I was always the renovation in that room. During the quarantine, I decided that it was the right time, so I spent fifty thousand dollars on the renovation, making it a room full of smart devices. Most of all, I like the new colour changing light bulbs I have installed, which makes the office room more comfortable.
_______________
https://www.vont.com/product/vont-bulb-color-smart-light-bulbs-smart-bulbs/

[Anonymous]

We have a similar HHI and just completed a 100k renovation (paid in cash that we saved on a house we bought for 550k four years ago). We also have 2 kids but double the 529 savings that you post. Spending 500k on a renovation sounds insane to me.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP here. Great advice from most people here. The issue is livability of the kitchen. I think we will need to work within the existing footprint and perhaps hire an interior designer and DIY on paint etc.

Re colleges we had to pay off student loans and had a nanny at the same time, so we will no longer have the nanny in a year or two, and we've completed paying off student loans. Family savings is just that, non retirement family savings in stocks bonds cash etc.

You have a huge spending issue and living above your means.

OP here, think this a gross overgeneralization. We've saved or paid down huge amounts of student loan debt every year as an adult earner, while also managing to save money and have a good quality of life. Please keep your unasked for opinions to yourself.

No, OP. This is what most people on this forum are trying to tell you. Your HHI, college savings, etc. are not enough to justify this renovation. Hoping you’ll inherit money to pay for your kids college to justify this renovation is foolish.

[Anonymous]

Anonymous wrote:If you want to look at this from a mathematical point of view, which I do because I’m an appraiser, here is my take.

Lets assume you live in McLean 22101

Let’s assume we are looking at the average house size of a home UNDER 2M (price per square foot goes DOWN the lager the home, a big home has diminishing returns)

This fictional home based on current listings is 2051 sqft and goes for $535/sq ft. I’m speaking of homes under 3500sq feet, because any larger the price per sqft starts to plunge.

You will see an uplift from the AVERAGE for a well updated home of 10%, this means your home potentially could be worth $588/sqft if you do a very nice quality renovation

Lets say your current home is REALLY beat up and is worth only $486/sqft

If being a prudent investor is your goal and you live in the beat up home, I think you could spend $210,227 and if you do a bang up job, at least break even before realtor fees. I would be leary of adding square footage as you start now working with diminishing returns.

If you tell me your zip code and FINISHED above ground square foot I can give you your exact formula.

Will you do this for me please?
2505sf, 78746