Remodeling or building a new house.

8 years ago

We live in South Park and our land is very valuable (.8 acres). Our house was built in the 60s and we remodeled about 18 years ago. However now we have situations like roof damage, plumbing and air duct, heating issues, and space that doesnt work for us.

We are committed to staying on our land and not sure whether an intense remodel is more cost effective than knocking the house down and building a new one. However we live in about 2400 sq ft now and do not want a larger house. In our neighborhood houses like ours are being knocked down with new 4000 sq ft homes going up and selling at a high price point.

The choice we have to make to make is:

1. Do a total remodel/ renovation that will be costly but probably half as much as a new house. Since we are empty nesters and at retirement age we might sell in 10 years. Probably means that all of our renovation investment goes down the drain because the buyer will knock down the house.

2. Do we spend twice as much on a new but small and relatively modest house and if we sell in 10 years will the value of that house also go out the window. or will the buyer be interested in a smaller house that can be extended/ added on to.

Thoughts?

Thanks so much

Featured Answer

PRO

Kristin Petro Interiors, Inc.

8 years ago

You will likely not make money on a new construction. But a well-designed remodel might. Do you have a ranch? If so, maybe consider a topper. We took an 1100 sq ft ranch and added a top, reconfiguring the entire layout also on the first floor. It’s only 2200 sqft now but values much higher than the cost of the remodel and original purchase price. We have a first floor suite so we could just use the first floor if we wanted. Before and after below.

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Comments (7)

functionthenlook
8 years ago
Would you want to be displaced for quite a while for the time it takes a new build? Now your neighborhood is desirable , will it still be as desirable in 10 years? The economy is always changing. Is your area housing market been relatively stable in the past? Sorry, but I have seen too many housing booms go bust. Are you financially able to build new and still keep a nice nest egg for your retirement? If you remodel your current home will it provide all your wants and needs? Don't worry about what a future buyer might want to do with the house, so what if they knock it down. Apparently the land is the value now, not the home that is sitting on it. Most of all what does your heart tell you to do.
PRO
Context
8 years ago
As an interior designer, my first thought is you should have someone look at it with you: an architect, an interior architect, designer...not a decorator, not a contractor...and see what a professional thinks about a remodel. A typical 60's house has some qualities that are lacking in new homes and quite often can be "gutted" and rebuilt like new. So my answer is it might be possible to do something between tearing it down and just fixing up the problems. While many choose to live "large," I find that most families use 1/4 of these homes and are faced with exorbitant prices to furnish and never complete these cavernous spaces. They are cheaply made and expensive to fix. If you want to provide some photos, perhaps some of us can help steer you in a direction. I personally just bought a little 70's house after living in a 100 yr. old sprawling farmhouse for almost 20 years and I am loving my modern split level. I may eventually add a small addition but I am making it Scandinavian in feel and super energy efficient so that I can design and enjoy every square inch.
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Ronnie Coates
8 years ago
Thanks for your thoughtful input. We really appreciate it.

We have a builder in mind but would love recommendations on remodel expert to consult during this time.
PRO
Context
7 years ago
Almost done
User
7 years ago
Sell as a tear down now. If you’ve neglected the home enough that it’s in the shape it’s in, that’s what will happen with any remodel or new home. There goes any future resale value as a home, and you’re back to just land value again. But you’ve gone through a big expenditure and a big inconvenience.

Sell it now. Buy smaller somewhere the COL is lower. And take some classes on home maintenance.
summersrhythm_z6a
7 years ago
8 acres sounds wonderful! A beautiful place to live to retire. remodel it, much less than building a new house. I like Kristin’s photos.