Profile picture for crowfeet

Like to remodel the kitchen and add a sunroom. Is that wise in this market??

The appraisal came back lower than what dollars were already spent on the house, including the price paid and past remodels, for this area. Does it make sense to go with any current remodels, like the kitchen and sunroom? 
What ever opinions / options are out there on this matter would be great.
Thank you,
B.
  • August 23 2012 - Geneva
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Answers (6)

Since basically all you are doing is a cosmetic upgrade, you're not adding square footage, it should not have much effect on your sales price 6-12 years down the road. 

It's just a matter of how you're going to pay for it.  Cash or mortgage.  A mortgage will decrease your net on sale but you'll save your current cash reserves for the future.

It's your choice in the end just be comfortable with your decision at the end of the day.

Personally, I'd do the remodel and enjoy it.  Who know what the future holds for us or real estate.
  • August 23 2012
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Profile picture for crowfeet
Thanks for all your replies.  

We are not planning to sell now, perhaps in 6-12 yrs. The kitchen and sunroom are intended for our own comfort and functionality of the house. Lived here for years with a low mortgage remaining.

The estimates on the remodel is well above what we owe on the mortgage. Also, the appraised value came in higher than what we owe with the remaining mortgage.  

With the remodel could it price us, the house, to high down the road?



Thank you,

B. 
 
  • August 23 2012
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Crowfeet,

Are you planning on selling in the near future or is this for your own use and enjoyment?

If it's just for you, then I'd say yes.  The intangible benefits you receive will outweigh the monetary costs.

If your planning on selling in the next 5 years, I wouldn't do anything major, just some minor upgrades.


Everyone else,  where does he state in his original question he wants to sell?  How do you know he's underwater?  Don't make assumptions, they sometimes bite you in the rear.

All he's saying is Purchase Price + Past Remodels < Current Appraised Value.  He wants to know if he should remodel today.  But depending on why he wants to remodel is the question that needs exploring to answer the query accurately.
  • August 23 2012
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Profile picture for nwhome.us
I'll second the vote for the kitchen and nix the sunroom.
Look here for Remodeling Magazine's Cost vs Value Report.
  • August 23 2012
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If you owe more on your property than what it's worth I would advise you to only make minimal improvements that are required because it may not pass an inspection. Some cities inspect homes or if your buyer has a FHA mortgage certain standards will need to be met.

Do not touch the sun room, and I would only touch the kitchen if you can do a lot of the work yourself.

Otherwise you are better off staging the home nicely, deep cleaning, cleansing the carpets of odor/stains and "neatening" up the landscaping.

Good luck!
  • August 23 2012
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Sound like you are under water......value is less than the mortgage or if not, at least the property has wiped out your equity.
I see no point in spending more money even if you want to sell. It does not seem you can sell without taking the short sale route and if so, then do not spend a penny more.
  • August 23 2012
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