Any Realtors ????

[fishbjc]

DH and I bought a house last year.  It's a bungalow with a semi-finished upstairs and unfinished basement.  I'm wondering if it makes more sense to:

A)  Finish the upstairs as a huge master, 800 sq ft.  We would put in a full bath, update all lighting, refinish hardwoods and new trim.  There is now a walk-in closet and tons of storage.  I don't care how the walls are finished, so drywall would need to be partially redone.  Cost about $6,000

or

B)  Finish the basement, laundry room, bar/lounge area, small sauna, heated floors, 2 pc bathroom.  Cost about $10,000

Which would make more sense for resale?   Right now there are two bedrooms and one bath on main floor.   We have plenty of wiggle room for resale as we got a great price on the house.

[llecs]

While the post doesn't have to do anything with Mortgage Loans, I figured you might have more eyeballs from those who dealt with resell issues [and moved it here].

[JM-AM]

What are the homes around it like?

Are they all mostly 2 bedroom homes with 1 bath? or Are they 3+ bedrooms and 2+ baths?

Do they have finished basements?

So many comparables you have to decide. If you do the upgrades, are you doing them to increase your resale value and make a bigger profit? or Are you looking to do upgrades just to help you sell the home faster for same listing price of comparables in the area?

I am no real estate person by any means, but from my reselling of my own homes experience if you are upgrading to increase your resale value and make bigger profits, just make sure you do not over upgrade. If other homes in the area are selling for 100K and since you have upgrades you want to sell for 150K you may find it very hard to sell the home as an example. This was a hard learned experience on my part and actually I was lucky enough to break even at the time.

[fishbjc]

Most are 3 bedroom, 1 bath.  Some have 1/2 bath added in the basement and a few on the 1st floor.  The homes were mostly built int he 1920's...english tudor style.

There is a loan program for 1.75% interest on these improvements, so we would like to take advantage of it.  Just not certain I want to bite the bullet and jump.  Our close friend is a contractor and has offered us 50% on his labor IF we allow him to do the work when he's slow.  His work is amazing and I'd love to help us both out.  My dh would do the painting, etc.

We would quality June/2013, it's really a great deal.  We plan on staying here for about 10 years or so.

[JM-AM]

Seems like you need to decide what you would like and prefer.

Would you like the bigger bedroom upstairs for yourself?

or

Would you prefer the finished basement?

Either situations will still add value, but nothing is more valuable then what would make you happy for your own needs while you are still living there.

[StartingOver10]

^^^I agree with the above. Just make sure that your contractor friend pulls a permit on the construction or none of it will be "counted" toward value when you go to sell the property in ten years.  I am a Realtor and some of the biggest issues we face are improvements that have been done without proper permits. Check the requirements with your local building and planning department. You might be surprised at how many permits you need, especially if you are putting in plumbing, electrical, structural or what have you. It would be a real shame to put in all the work and money and then when it comes time to sell it you actually have to take away value because it wasn't properly permitted and inspected.  I don't know your area, I only know my area so it is best to check directly with the right departments so you get accurate info. Good luck! It sounds like you are going to have fun designing and building what is right for you and your family.

[fishbjc]

Our contractor is 100% by the books, and I wouldnt have it any other way.   I realy don't want my bedroom upstairs, but I wanted this house b/c my mother may need to stay with us if she injures herself.  I would then, move upstairs. 

I guess I will toss a coin, lol. 

[JM-AM]

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@fishbjc wrote:

Our contractor is 100% by the books, and I wouldnt have it any other way.   I realy don't want my bedroom upstairs, but I wanted this house b/c my mother may need to stay with us if she injures herself.  I would then, move upstairs. 

I guess I will toss a coin, lol. 

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I hope the coin is in your favor  lol

[Uborrow-Upay]

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@fishbjc wrote:

Our contractor is 100% by the books, and I wouldnt have it any other way.   I realy don't want my bedroom upstairs, but I wanted this house b/c my mother may need to stay with us if she injures herself.  I would then, move upstairs. 

I guess I will toss a coin, lol. 

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Upstairs first, basement last.   Always.

This opinion is from years of experience buying/selling properties as a professional.

If you choose otherwise, please keep in mind that your money was spent  for your enjoyment only, and is not to improving for resale value.

(Came back from the "dead posters" list to comment, 'cause you've always been one of my favorites, and I wanted to help!   ) 

[kimmiller112]

From a resale standpoint, I would think that more people would be interested in having the 3rd bedroom and extra full bath instead of a bar, sauna and heated floors in a basement, especially if the other houses in your area typically have 3 bedrooms.