My neighbors were planning to put their 1975 sq. foot home on the market as it has become a bit tight for their family of five. With two teens in the house, space is at a premium and everyone wants and needs their personal living area.

These days, my neighbors are no longer looking to move, choosing to upgrade their current home by adding a family room. Although the project will cost them just over $30,000, they’ll save on moving, closing, and new financing costs, expenditures they would have had to contend with even if they had moved across town.

Tens of thousands of people will be adding on to their homes this Spring and Summer, choosing to stay put rather than putting up with the hassle of a move and having to familiarize themselves all over again with a new house, different neighborhood, perhaps even a completely different school system.

Most of the cost of adding on to a home can be recouped when you sell it. Over a long period of time that new family room can increase the value of your home significantly, paying you a nice dividend when you choose to downsize.

Before you begin your family room project, there are some things for you to consider:

• Is the property level where the room will be placed. If not, you may have to pay significantly extra to regrade the area where the room will built. Something to think about: If located on a slope, you could gain some valuable storage space underneath via the exposed room.

• Will adding a family room mean that changes will have to done to the adjoining part of the house? Some family rooms are designed to be virtually self contained, while others are more of an extension of the current home.

• How large of a room will you need? Will your new room be in proportion to the rest of the house or will it be a significant add-on?

• Will the roofing materials, exterior siding, interior walls, doors and windows match the rest of the house?

• Can solar panels or skylights be added? This can be a good time to create a highly energy efficient room, particularly helpful in light of today’s high energy costs.

The Construction Process

Will you be hiring a general contractor or overseeing construction yourself? Whether you are doing the work yourself, outsourcing it completely or doing a combination of the two, you will need to find people who can:

• Provide demolition services.

• Grade the property, if needed.

• Pour the foundation.

• Put up the framing, roofing, and walls.

• Install windows and doors.

• Run electricity, plumbing, and heating/air-conditioning.

• Install the ceiling.

• Build shelves, a fireplace, install flooring.

• Install light fixtures.

• Paint or wallpaper the room.

Familiarizing yourself with your town’s building code as getting all of the necessary permits is important. Making sure that your contractors are licensed and insured is also critical.

Finally, consider hiring an interior designer who can help you create a room that maximizes its livability and is enjoyable. Use the designer before construction begins to include ideas which should become part of the final blueprint. Have this person return when construction is done to help you lay out furniture, hang pictures, and add those personal touches to maximize the benefit of your new space.

A family room project can be completed within 2-3 months time, from developing the plans to move in. Pick the time of the year when disruption can be minimized and be prepared to enjoy your expanded quarters when the project is done!

Resources

Planning Your Home Expansion Project

All About Spec Planning

Home Equity Lending

Review House Plans

Tags: family room, home addition, home building, Home Construction, home loan

Many homes are built with unfinished basements as this is the one area of the home least used by homeowners throughout the course of the day. Even the lowly garage, if not used to house vehicles, is often the place where stuff is stored. Basements are rarely considered to be an area where homeowners plan to spend much of their time.

Basements do have a purpose that some people fail to consider — if finished off, this room can add value to a home perhaps far more value than it would have had it remained unfinished. A finished basement can be used as a recreation room, as a play room for children, even used as a den. What a finished basement does do is add equity to a home.

Most home improvement projects can be get quite complicated, even expensive, but with a basement finishing project, the amount of work that needs to be done isn’t always that involved. Certainly, if you desire walls or partitioned areas then that will add to the cost of the project. Some basements aren’t tall enough to put in dropped ceilings, but for those which have the room, this isn’t an expensive job.

If your basement has some problems with water, you’ll want to coat the walls with water resistant paint. While you’re at it, head to the outside to make sure that the soil slopes away from the house and that the drainage is good. You may have to add in drain pipe extenders to help move water away from the house.

Heading back inside, consider using tiling for the flooring. Most kitchen style tiles will do, but if you elect to go with a raised floor, you’ll pay quite a bit more money. Add in wall to wall carpeting and your small project has mushroomed into a full-fledged home improvement job.

Likely, all of your electrical and plumbing hook ups are already in place, but be prepared to run some lines or piping in the event you need to heat, cool, or light a certain area. You want the room to remain as dry as possible so consider having a dehumidifier on stand by, ready to kick in as needed.

Once you have your plans established, you can tackle this job over several weekends or take a week off from work to get everything done. When completed you’ll have a room that everyone will love and that finished basement will add to the value of your home.

Resources

Home Equity Lending

Managing Bank Equity

Tags: cellar, finished basement, Home Improvement, play room, recreation room, renovate home, storage room

In some areas of the country, the condominium market has crashed as a huge surplus of defaulted or unsold homes has wreaked havoc on the market. One market that comes to mind is Miami.

On the other hand, some cities are experiencing a building boom as empty nesters, retirees, and investors look for good values in real estate. In my area — Raleigh, NC — several all-new construction projects are in progress, providing state-of-the-art housing adjacent to everything: government offices, museums, businesses, shopping, and more.

If you are desiring all-new construction or conversion housing, the time to start, build, and complete the project can span several years. This means that you must do your homework before deciding whether a particular condominium is right for you. Let’s take a look at some things you should consider when buying pre-construction.

Why would someone buy something before it is built. For several reasons:

• Oftentimes, early buyers receive a discount as builders want confidence that their project is in demand. By offering a price slightly lower than the market rate, you could find a nice deal.

• Buying now and paying for it later could mean that your property has appreciated during the time it took to be completed. For example, if that two bedroom garden high-rise was contracted for $440,000, it could have gone up in price since. You’ll pay financing on its original value or if you are looking for a way to make some money, you could sell your unit and pocket the money.

When buying pre-construction keep in mind the following:

• What will your financial situation be when the project is complete and you’re ready to move in? Will you need a mortgage and, if so, will you qualify for one?

• Will interest rates be stable or are they trending higher or lower?

• If you are investing in the property will you live in it or rent it out? What are the rental rates for comparable units?

• When the project is completed, what will the neighborhood be like? Will there be other projects under development and what sort of local amenities will be found nearby?

Of course, when you buy pre-construction, your chances of getting what you want are greater if you act sooner rather than wait. Specifically, you’ll be able to choose the floor, floor plan, and unit location (will it face an office building or will you have an unobstructed view of the river?) if you act quickly.

Consider also your down payment monies, possible taxes (property taxes will come later), fees, and the like when buying pre-construction. Theoretically, your cash outlay should be small at first.

The end result of new or repurposed housing is that your home is brand new. You bought it at yesterday’s prices and, if you did all your research, you now possess a home that has appreciated significantly in value.

Resources

Arrange Home Financing

Home Buying Checklist

Repairing Your Credit

Understanding Escrow

Tags: condo, condominium, housing, mortgage, prec-construction