Adding value to old house.

5 years ago

This is my first post here, I'm hoping I can get some information from you guys. I have a 1923 house that needs some repairs and a little restoration. It is two bedroom one bath. There is a third room that could be a bedroom but has no closet. Without changing the footprint or the exterior, I can add another full bath and a closet to the third bedroom. I also have 2 two-car garages. I am going to convert one to a studio apartment with a full bath and laundry facilities and a small kitchen. I am allowed to under our zoning . The house is on a corner oversized a lot with mature trees. A lot of the houses around here that were old were bought as teardowns so I got it cheap but of course I would never tear it down. Can anybody help me find out an estimate of how much value that will add to my house? I would like to know so that I can be more informed when I make my budget. Just so everybody knows, I hope to stay here the rest of my life but I still want to know about the value. Thank you!

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Comments (8)

kempek01
5 years ago
You will need to consult a local expert to find out the answers to your questions. A real estate agent should be able to assist you.
elunia
5 years ago
There was a recent Houzz discussion on remodeling ROI, but I can’t seem to find it. i think this was one of the links provided...

https://www.remodeling.hw.net/cost-vs-value/2020/
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maifleur03
5 years ago
If by value you mean resale value you will not recoup your investment. If by value you mean making it more usable and increasing the taxes the answer is yes. There is a reason those houses were teardowns and it probably had little to do with what was inside.
User
5 years ago
last modified: 5 years ago
Agree with consulting a local real estate agent for a start, but wanted to add I like your plans. Is the garage conversion intended for a rental?
Deidre Clark
Original Author
5 years ago
Not in the immediate future but perhaps someday. I have 3 young adult children and occasionally they need a place to land for longer than a visit, I'm going to put a sofa bed in there for now. And for right now, I'm going to put a pool table in what would be the main room.
Deidre Clark
Original Author
5 years ago
Not in the immediate future but perhaps someday. I have 3 young adult children and occasionally they need a place to land for longer than a visit, I'm going to put a sofa bed in there for now. And for right now, I'm going to put a pool table in what would be the main room.
kudzu9
5 years ago
Whatever improvements you do may make your house more livable and marketable, but are unlikely to give you a full return on your investment.
outpaientzero
5 years ago
Adding another full bath to a house with only one bath and three bedrooms will increase the value of the house about 15% or so they say, so if your house is worth 200K now the new value would be about 230K. Unfortunately the value is determined by the market and what other similar houses sold for in the area so a little research is required.

I suggest going to Zillow, bring up your area and check the box for homes sold. It will show all homes sold in the past with the date and the actual sale price, then compare homes similar to yours with one bath and then two bathrooms and see what the difference in value will be, this will be your present market value increase in price.

I really don't think you would recoup any value you put into a garage apartment as increased value, and only rental income but it could actually be a liability if you rented it out and then sold your house. You could lose some of your federal tax exemption on the capital gain of you home and suggest reviewing IRS publication 523. An exception would be given if the space rented out was within the living area but I don't know if the garage qualifies as an exception. Just something to think about.