How to get realtor"s advice on whether to sell or build addition, likely selling price?

[Anonymous]

We're trying to decide whether to move or to add on to our current house. Is it possible to ask a real estate agent for advice on what our house might sell for currently vs how much it might sell for with an addition, to help us think through what makes most sense? Will they do that for free or would we have to pay them for a consultation? What would we say to them when we reach out? Should we ask more than one real estate agent to get multiple opinions?

[Anonymous]

We were in a similar position and went forward with the addition/reno based on our own research. But I always thought that there would be a huge market in areas like ours for a service that could give you this kind of an assessment. A realtor can help guide your thinking, but ideally you would need someone to give you a realistic sense of what it could cost to achieve the changes you want via an addition or renovation. Realtors aren't always as savvy about actual construction costs as they might seem. I would have paid for a service like this!

[Anonymous]

You can certainly ask and get an opinion, but I doubt it will actually help you make this decision. Keep in mind the realtors interest is in you selling and buying another house. They also cannot predict the future market. In general, you recoup some but not all of an addition.

[Anonymous]

Anonymous wrote:We were in a similar position and went forward with the addition/reno based on our own research. But I always thought that there would be a huge market in areas like ours for a service that could give you this kind of an assessment. A realtor can help guide your thinking, but ideally you would need someone to give you a realistic sense of what it could cost to achieve the changes you want via an addition or renovation. Realtors aren't always as savvy about actual construction costs as they might seem. I would have paid for a service like this!

Oh we're definitely getting estimates from contractors about the cost of the addition too-- just trying to also understand the other pieces of the equation, especially how much our home might sell for now if we move instead.

[Anonymous]

OP, realtors will tell you to sell this one and buy another one. The best thing is to look at recent sales prices for homes similar to yours with an addition vs. something else you would buy.

[AgentX]

Depends on the agent you call. Some would do it for free, knowing that they are building goodwill with you that you may come back to them if you plan to sell.

They can't really lead you astray on a price here because if they tell you that your house will sell for 2x you think, then when they list it you'll want to know why they aren't getting that price. But again, I've seen all kinds of sketchy things so you just never know. I have clients now who I keep suggesting they add on to the house but they have other hurdles they need to fix and that can't be done with their current home.

Only you would know though if an addition will add value to your current home and life. Don't just look at an addition as the money spent and if it's financially "worth it." Think of it like, how happy would you be to stay in this house and not have to move. That's worth more than the cost of renovations in my opinion.

[Anonymous]

Anonymous wrote:OP, realtors will tell you to sell this one and buy another one. The best thing is to look at recent sales prices for homes similar to yours with an addition vs. something else you would buy.

I am an Arlington real estate and at least one or two times a month an owner asks me to evaluate the current value of their home and the value with an addition. Typically, they have gotten at least one estimate for the cost of an addition, and I generally know how much additions cost because I have seen so many of these estimates. They are trying to decide if it makes sense to do the addition or buy another house. The analysis is simple: Take a $1m house and add an $850K extension. Is it worth staying there or buying another house. About half the people decide to stay and the others to buy another house. Again, the analysis is simple: If they have a good lot in the neighborhood and school district they like, do the addition and stay. If they don't have any of these elements in the current house, they may be better off buying a house on a nice lot in a location they want.

I assure you the last thing I need is another buyer trying to find a house in Arlington. I can sell their existing house morning, noon, and night, but finding them another house is very difficult.

[Anonymous]

you should be on an an episode of love it or list it

[Anonymous]

Anonymous wrote:

Anonymous wrote:OP, realtors will tell you to sell this one and buy another one. The best thing is to look at recent sales prices for homes similar to yours with an addition vs. something else you would buy.

I am an Arlington real estate and at least one or two times a month an owner asks me to evaluate the current value of their home and the value with an addition. Typically, they have gotten at least one estimate for the cost of an addition, and I generally know how much additions cost because I have seen so many of these estimates. They are trying to decide if it makes sense to do the addition or buy another house. The analysis is simple: Take a $1m house and add an $850K extension. Is it worth staying there or buying another house. About half the people decide to stay and the others to buy another house. Again, the analysis is simple: If they have a good lot in the neighborhood and school district they like, do the addition and stay. If they don't have any of these elements in the current house, they may be better off buying a house on a nice lot in a location they want.

I assure you the last thing I need is another buyer trying to find a house in Arlington. I can sell their existing house morning, noon, and night, but finding them another house is very difficult.

Thanks, this is helpful! Do you charge for the evaluation or do you do it for free? Are these former clients or cold contacts? Would it be weird for me to contact someone out of the blue and ask for this... do I need a connection?

[Anonymous]

We did this with our previous agent and the cost benefit for the addition didn’t work out financially. We paid for some plans and got quotes on the work. We also contacted the agent to give us scenarios on our project and what would be the final home sale price after the work. Based on todays labor and materials we couldn’t make it work. So we are looking for another home.