1 Bedroom addition

How does adding square footage to a house affect the value?   If I build a 500 square foot addition to my 1200 square foot house, and I live in a neighborhood that averages $400/square foot, then will I incrase my home value by $200,000?   I'm hoping simple square footage is the real driver...
  • March 01 2010 - Redwood City
  • 0
    0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

 
 

Answers (3)

Square footage drives appraisals, but the home must be within the "norms" of the neighborhood. Building the biggest house on the block will not yield equivalent square footage values (Principle of Regression), however, if you can find other homes in your neighborhood which are of the size of the home you plan to build, you can check those associated values, then do an estimate of whether values are rising or falling over your period of time for construction to estimate your home's future completed value.

How you are paying for this addition must be considered in your thinking - using some temporary financing that you hope to pay back with a future refinance is NOT advised, as the lending rules may change over time. Set your financing in advance for the project that will be the permanent financing for the project, or at least a liveable long term solution. If conditions warrant you can refinance in the future. Too many horror stories about using business funds to finance a home project and then those monies never come back to the business, etc...

Finally, contact a local realtor to help you look "all the way around the problem" - that is to say that you should at least consider the option of simply selling yours, and buying a bigger house - avoid the headaches possibly - if you however really love the idea of building something special for just yourself - go for it! Email me if you want specifics on anything at all.
  • March 01 2010
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for nwhome.us
The Remodeling Magazine's Cost vs Value Report is a good resource for this type of question.
  • March 01 2010
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Kevin,
Give me a call when you are ready to proceed with this project.
We do additions all day long !

A one bedroom addition with a bathroom in Saratoga, 270 square feet, estimated cost is $76,000.

So you are not really increasing the value of your home $200K .
Only $124,000 after expenses.

  • March 03 2010
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.