Profile picture for siloxane

Major remodel - appraisal value on construction

We have a 1950  home in a high-end area of Denver (Hilltop).  The neighborhood is very ecclectic and has a hugely wide range of comps.  I would like to bring my very worn house back to life with a 300k remodel (which will not add square footage, but will essentially result in a brand new interior, roof, and windows).  How can I know what my remodel target budget is when I have no clue where the appraisal will come in?  (We are applying for a construction loan which will need a .8 LTV for final appraisal)
  • August 22 2012 - Denver
  • 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)

Profile picture for David Widlund
Just wanted to second what Clay said. You may order an appraisal based on the after repair value. And like he said, your improved value will not likely be as much as the money you have spent.
  • August 22 2012
  • 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.

The bank that you will be getting the loan from should be able to give you guidance on the $/sq.ft. value after your remodel. If they don't, you can check the values of existing homes in close proximity, that are similar in characteristics to yours; or, you can order the appraisal as mentioned by another poster.
All the best...

p.s. there is No Guarantee that the Value you get Pre-ReModel will be the value that your lender will be getting on a new appraisal which will be done, post-ReModel. (sorry, but it can be a problem)
  • August 22 2012
  • 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.

If you don't mind spending $350 you can order a "Subject To" appraisal, it will give you the appraised value subject to your plans and specs. There is no guarantee the lender's appraiser will have a similar value though. If you know a realtor they can also give you comps of other homes with major renovations. Since you are not adding GLA you may not get the return you expect. 
  • August 22 2012
  • 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.