Reply to Should we spend 500k on a renovation?

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[quote=Anonymous][quote=Anonymous]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.[/quote]

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![/quote]

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