Not steep enough for a legal half storey. you'd need to remove the roof and add a second floor to get 7' finished height. IF the foundation and framing could support that.

Cheaper to move to a house with the space that you want.

These are the one and a half existing rooms.

The stairs and the lack of privacy that are the biggest issues.

Can you not put up a wall to create a sort of hallway between the rooms?

Yes, we could put up a wall but that would make the funky little angled step even worse I think.

I think that could be redone, too. The room sizes seem decent looking at your pics.

Does anyone think we could bump out a dormer and put a better landing/stair in there?

That does not appear to be a legal habitable space. It looks like a storage space that someone illegally converted. A legal habitable space requires insulation to the required level for your climate, 7' finished ceiling height after the insulation, and egress windows. That stair wouldn't pass modern rise and run requirements either. You touch it, and it will need to eat into your downstairs space in order to make it less steep, with larger treads.

It's probably true that it's not a legal habitable space. Both rooms do have egress windows but the stairs certainly don't qualify. We looked into having an actual second story added but the quote was $180,000 which is more than we can afford. That why we were trying to come up with other options. Housing prices are so high in Seattle right now and we love the neighbors and the neighborhood and really don't want to move.

I'd be surprised if it were that cheap in Seattle. That is a high COL area. I'd expect at least 50% more if you want a bath up there.

As long as you do nothing, what is here is grandfathered. Once you start a renovation project, it's gotta be brought to legal habitable space requirements. That is adding that second floor, and reworking the stairs, taking space from downstairs.

Consider a consultation with a design build firm. Their first hand knowledge of the space would be much more beneficial than arm's length conversation here on Houzz. Prior to even thinking about developing the space, it's critical to know your Zoning rules. In addition, they will know the in's and out's of building codes for your area and know how to navigate the building approval process. Sometimes existing stairs can remain with minor adjustments relative to safety but require the approval of the State Building Official rather than your town official. If you demolish more than a certain percentage of your existing home, you may have to meet code requirements throughout your entire home. There's a lot to consider but a professional will be able to quickly measure up the situation and offer a proposed plan that addresses your questions while taking into account other potential issues that you may not be aware of.

Thank you Scott Design. That's helpful advice. The bid we got was from a very well respected design build firm here in Seattle, Carlisle Classic Homes. We were very impressed with Dave who came to the house. If we win the lottery they get the job.

Did you mention the dormer approach to Dave? Will they provide a plan and specs for a fee which would allow you to get bids from other contractors as well?

We are going to have him come back again and discuss cheaper options. I'm not sure about the plans and specs but will be sure to ask about that. Thanks again.

Why not build out on ground level?

Building out on the ground level isn't really an option since the available yard is on the opposite side of the garage.

What about converting your garage space?

Good idea but one car stall has already been turned into the family room.

So just keep going and add new garage on the end.