When homeowners are considering a remodeling project, the question “What will it be worth?” is one of the foremost for many. The idea that the work is in many ways a real “investment” has served as great comfort to folks as they write the check for Draw#1. Things have changed though, at least for now.

While I know that the prevailing sentiment is that things have certainly changed for the worse in all things real estate related, I prefer to look at the bright side. I don’t say so easily either, I’m certainly among those who would be considered “severely” impacted by the market shift. But that’s another story.

Before getting into the bright side, let me explain a little bit about how people have gone about determining value in years past.

Cost vs. Value Report

Remodeling Magazine publishes an annual report called the “Cost Vs. Value Report“. The report goes to great lengths to help determine what the resale value of a project is in different markets nationwide.

They do this by providing specs for a typical project, such as a Bathroom Addition, to remodeling contractors in each featured market for the given year. The remodeling contractors provide cost estimates, based on the prescribed specifications.

The researchers also provide the same specs to a selection of local real estate professionals, including appraisers and real estate agents. It’s up to this group to review the project and give an estimate, based on their own experience, as to what the project will be worth.

A Great Sales Tool

This Cost vs. Value report is widely used as a sales tool, or at least it was when values were a little stronger. A home improvement seller such as a general contractor, a window replacement firm, or a siding company, would show the prospect in black and white what they could expect to get for the work if they sold the day it was finished.

Siding has always been strong for example. So the siding contractor shows you a report published by a national magazine, an apparent expert on the market, which clearly shows that you will recoup 90% of your investment. I know that any decent salesman would add the line “and that’s if you sell today! Clearly it will be higher in a year from now as the house overall appreciates.”

I know, because I’ve said those exact words, though I never used the report.

Average Cost Per Square Foot

This is the resale value method I always used when a client asked me “What will it be worth?” My answer was fairly boiler-plate and it went like this:

“Well, it seems that the houses in the area are all going for about the same price per square foot. I’m no expert on value, but It stands to reason that if we make your house 500sf larger, then you can just multiply out that number to get a decent estimate of the value.”

This worked fine for me because I was selling room additions for the most part, and reading it now, it makes perfect sense. In a predictable world that did what it was supposed to do, it would still make sense. But it doesn’t; not today. Not for now.

The Mental Cost Reduction

The purpose behind all of this is what I think needs to change. I think way too many people, on the professional side, and on the consumer side, were focusing much to strongly on the investment value of a home improvement project.

The homeowner sees an estimate, say it’s $100,000.00. That’s a whole lot of money! “Maybe I don’t want to spend $100,000.00″ they think. But they want that space, there must be a way to make that make sense. And this is where resale value of remodeling comes into play.

What if the client believes that they will have $100,000.00 in value from day one. Then how much are they spending? Zero, right? It’s no longer an expenditure, now it’s a transfer of funds from one place to another. Why not put it in the house where we can enjoy it?

The same would apply if the report shows them that the value will be $75,000.00. “Well, at least this is only costing me $25K, the rest is real value.” Makes perfect sense, right? Not today. Not for now.

Borrow, Borrow, Borrow

This actually could make some sense, even today, for those buyers paying cash. I’m among the majority who still hold out hope that real estate values will, eventually, bounce back and return to being an asset that appreciates, rather than one that drops in value, like a rock.

But the idea of borrowing based on these estimates of resale value seems very misguided to me at this time. Which brings me to the good news.

The Bright Side

Remember me saying that I wanted to look at the bright side? I bet you were starting to forget there was one! I know I was. My own writing was depressing me! I wonder if that means I should do some editing?

But the good news is really good news.

If we all wake up from this hypnotic trance where our homes are our “biggest single investment” and consider them as HOMES, not investments, I think we’ll start making much better choices. Much better!

I received the following question in an email and I thought the answer might be useful to others, so rather than just respond in email, I’ve posted it here .

I’ve spoken to many hundreds of excited owners over the years who want to add a second floor on the house and Natalie asked the typical questions.

Question:

We need to add on to our house at least one bedroom, and a guest room would be nice as well. The way our house is situated, the most aesthetically pleasing way to do it would be to add a couple of rooms on a second floor.

My question to you is, what are the limitations with adding on a second story to a house that is currently only a single story? Can it be done, or will it be prohibitively expensive. Any experience you have to share would be appreciated! – Natalie

Answer:

Hi Natalie,

I appreciate your question and I do have some experience I can share. My company has designed and built a few dozen second floor additions over the years.

Let me break down your question into segments.

Can it be done?

Yes. There is no such thing as a house that cannot receive a second floor addition one way or another; or at least not one I’ve seen yet…somebody will probably send me a picture of a house under a concrete overpass or something.

Years ago, after struggling with engineer after engineer on job after job trying to determine if the existing first floor foundation would hold up a second floor, I decided to skip the first floor footings altogether.

The truth is that most newer one story homes have almost zero “extra” strength built into them. As such, most one-story homes have insufficient foundations for the added loads of a two-story. Each state has it’s own set of building codes and Florida is among the most stringent, so a local professional will be able to help you better in that particular area. The lengths I’m accustomed to going to might not be required everywhere.

In the event that the existing foundation is insufficient, there are two options. First, you can augment the existing foundation with additional concrete and steel. The other option, the one I went to on all second story additions, is to build new footings for the second floor itself.

We did this by essentially building a “stilt house” within the existing home. Structurally speaking, these were like two independent structures. You could remove the first floor from under the addition, and it would remain intact.

This is done by placing adequate foundations directly under posts (we often used 6×6 posts) which supported the framing for the second floor. I would design the additions so that these posts can be placed inside existing or new first floor walls, or otherwise integrated into the first floor design with new features. The point being that these posts are “invisible” after the work is done.

So, this is a very long way of explaining that yes, it can be done in almost any house.

Is it prohibitively expensive?

Second floor additions are more costly than first floor additions, but I wouldn’t say prohibitively so. In my experience, the cost for a second floor job is about 20%-30% more than the same square footage built on the ground level. The majority of this extra cost has to do with the requisite remodel of the area under the addition and the cost of the stairs and stairwell.

The cost of an addition can be quite a bargain in times like this when the money you might effectively “lose” by selling in a depressed market is substantial. If you feel an addition of any type would be a good investment, I wouldn’t let the cost of a second floor addition scare you off.

Other Considerations:

Design

A good design is always an absolute imperative on a room addition. I would advise you to not compromise on this. Work until you have a design that meets your needs and you feel will be aesthetically pleasing.

Second floor design work is much more challenging, so you want to be certain that you’re working with someone who has experience in second story additions. If someone says “I haven’t really done many, but it’s no big deal.”, don’t believe them. It is a big deal and the design is the key.

Living During Construction

First floor additions have the great advantage of being able to be completed to a 95% level before breaking into your living space. Even if you’re remodeling adjacent space, the construction area can be effectively sealed off from your home.

Not so with a second floor addition. If the area where you plan to add-on is over an important living area, it could present a real problem. You really need to be able to move-out of the area directly under the addition for the duration of the project.

I’ve had a few clients move to a rental during construction and for a major project that can be a good idea. For most folks, it’s not an option. So plan on “camping-out” in your own home for awhile and be ready for some major inconvenience.

Over the Garage

For a number of reasons, building a second floor over the garage is a great move. The garage has a pretty impressive list of advantages:

• The cost to fix-it after construction is much lower since there is no floor covering, basic walls, little trim if any, etc.
• The ability of most families to live without the garage for a couple of months is much greater, as compared to the kitchen for example.
• The garage floor is often lower than the adjacent house. This is a huge advantage if the skies open and the rain pours down right after they tear the roof trusses off your house. The water will run out of the garage and down the driveway, instead of into your living room.

So, if it works in your plan, consider building over the garage.

I think that covers the basics…I hope it is helpful.

Are you afraid of getting shocked?

You’re not alone! Electricity is the number one “fear” I’ve seen in the homeowners I’ve worked with over the years. With good reason! Electricity can cause some pain, and in certain circumstances it can do worse than that!

Of course, if handled properly, the electrical work in your home isn’t beyond the grasp of anyone willing to learn how to do it right. But it is one of the the areas that I often suggest a pro. That brings up a shocking revelation!

You Don’t Have to Be a Jack (or Jill) of All Trades!

You can have the rewards and cost savings of doing your own remodeling, while at the same time having the peace of mind that the “hard parts” are done properly.

Take a look at this incredible porch!

I’m sure I’ll write more about this porch in the future! I could stare at this for a long time soaking up little details. I particularly love the furnishings shown here! I enjoy building custom tables and I like the size of this one. But I digress. Before I move on, I’ll show you another view:

Let’s say you want to build a porch like this as an addition to your home. The commonly accepted practice is to hire a contractor to handle it all for you. I support that method wholeheartedly! But it’s not the only way.

What if you hire a contractor or an experienced carpenter to build the structure only? Then hire an electrician to run all the wiring and a plumber to run any plumbing. Roofing could go either way, but most people would hire a roofer as well.

So then you have a partially completed structure. It’s sealed to the weather and you’re free to finish the interior as you like, at your leisure. It’s well within the grasp of most DIY Crews to install the ceiling, the siding, the windows and doors, and the trim.

It might not be perfect, but that’s okay. A look like this one isn’t meant to be perfect anyway!

I realize as I write this, that the realities of what I’m telling you are much more in depth. There are plenty of issues I haven’t discussed here, such as:

• Finding a willing contractor (not always easy)
• Dealing with building department and permit issues (important!)
• Knowing exactly which parts of the work to take on
• The obvious downside to this idea (time, aggravation, etc)

I want to go through each of these in-depth, and I will, but it’s too much for a regular post! I’ll cover some of this type of thing in the monthly email newsletter and I’ll figure out a way to get the rest out there before long!

The bottom line is that you can make huge cost cuts in your projects if you want to do even part of the work yourself. Just look at what you want to do and ask yourself which parts you feel comfortable with. Find professionals willing to do the rest!

There is a real sense of satisfaction in getting your hands dirty and improving your home! I encourage you to try! You can do it.

Pictures: Coastal Living

Room additions have always been popular. The idea of making the house a little more spacious and giving everyone a little more room to spread out has almost universal appeal. The obvious goal:

More Space

On of my all-time favorite projects!! (after)

As families grow, the need for space increases. When my wife, Kim, and I were fist married, we lived in an apartment that was about 400 square feet. Even with just two of us, we wanted more space pretty quickly!

Bring kids, friends, dogs, and twenty years of collected ‘stuff’ into the mix and most people start to feel like they are bursting at the seams. In a recent post on making best use of small spaces I talked about how to maximize the space you already have.

Some of you probably react to that something like this “Look, Remodeling Guy, yeah, yeah, yeah…I understand the whole efficient use of space concept; but you don’t understand, I need a room for guests to sleep in, a room for kids to play in, and a room to do my work in…I can’t do these things under my bed, no matter how creative I get!”

Point taken. Many folks are in a situation just like this. They usually have two options: buy a new house, or build a home addition.

Just after “Before” (does that make sense?)

The Economy of Additions

The current gloomy state of the housing market is having a major impact on these decisions. The option of buying new is fading away for many people. This is happening for a number of reasons:

• Existing house value has depreciated
• Outlook for an acceptable and quick sale is weak
• Access to credit is squeezed

Of course, at the same time, if some of these issues aren’t a concern for you, now might be the absolute best time to buy a home. There are some great deals to be had.

The result of all of this is that more people are considering additions.

The Real Reason for an Addition

Economy is one thing, but it’s not the biggest reason people add-on. I know from experience (I’ve built hundreds of additions) that the main reason people add-on is this: “I love the neighborhood!”

The real reason for an addition isn’t negative at all. It’s 100% positive. People love where they live, so when life circumstances change and they need more space, they start making room addition plans.

My honest opinion is that the challenges of the economy will actually force many people into doing what they really wanted to do anyway. I’ve seen people move out of a neighborhood they love simply because they were afraid of the process of building a room addition.

Here are the major steps:

The major steps of an addition follow the same sequence as any other project, just in a bigger way. Regular Remodeling Guy Crew know that these consist of four categories: Dream, Design, Build, Live.

Dream

The first step in building an addition is to develop the vision you have for the project. Know what you want it to be. Know what you need to accomplish. Know your limitations, but don’t place false limits on the project.

Let me tell you something: The Dream phase is the true “foundation” of the project, well before the first concrete is poured. Don’t rush through it, don’t take it for granted, and don’t let someone else do it for you.

Design

This is where the dreams are put on paper. The design phase looks with a creative eye at how to make those dreams come true. During design, all of the home addition costs are considered. Building permit considerations are dealt with. Real working drawings are developed.

Build

A work in progress!

When it comes time to finally build something, people get very excited! The day has come, the end is near. But of course the build process has to start with a long list of decisions such as “should I hire a contractor?”, “should I contract this myself, or DO this myself?”.

People consider contract related questions and insurance related concerns. The list goes on, and on, and on. This is the part that many people don’t get past. The fear of the unknown can paralyze homeowners who have a great vision and a design in hand!

It can be done. There is no real need to be paralyzed and if approached in the proper manner, this needn’t be so tough.

Live

For those who make it past the first few stages, the ultimate enjoyment arrives eventually! One of my favorite compliments at the end of an addition is “I just wish we had done this sooner! The extra space makes a huge difference!”

Consider the following list of a few addition types:

• Garage Addition
• Second Story Addition
• Family Room Addition
• Bedroom Addition
• Bathroom Addition
• Sunroom Addition
• Bonus Room Addition

These are just a few types of space that can be added if you want to add room to your home. The list is as long as your imagination!

Need Help?

I can help you with this. This is one of the areas where I have unique experience and due to the amazing relationship building of blogs, I can get to know you and help you with your project.

Just stay in touch through the email Newsletter, and the regular subscriptions to the blog itself.  You can also email me with your questions and I’ll do my best to answer.

Want to see the inside?

Interested in a couple of pictures of the inside of the job shown at the top? Here ya go:

This is a two sided fireplace!

You’re seeing two sides in the pictures!

The roof-top deck is a great place to hang out! Just step out of the Master bedroom French Doors.

Add-On your thoughts!

How about some additions to this post?  Let me know your addition thoughts or questions right in the comments!

That’s a funny post title, because pretty much everything is new at Remodeling Guy! The whole blog is only a couple of weeks old!

However! Some things are newer than others and I have a couple of announcements:

Remodeling News

I’ve added a new feature to the blog today.

On a regular basis, I’m going to search the earth, leaving no stone unturned, in seek of the latest and most interesting news about the world of remodeling, design, and home improvement!

And to think I always hated the “current events” assignments…

I will warn you…this section will be totally and completely biased. If it goes over there, I gotta think there’s something worth reading in it. Though you may have no idea what it is!

I hardly ever do “bad news”. Somehow the thing about Home Depot “Expo” closing is making the cut because I’m seeing clearance sales!

In Really Big News

I’m excited to announce the first RemodelingGuy.net featured project!A reader from Connecticut contacted me looking for some assistance.

The House

The Family

This beautiful home is occupied by a family of six! I’ll get more of the details to you in a future post, but here’s the short story:

Dale and Jennifer bought this house in 2003. At the time, they had two young children with plans to have more. Since then they have added two more members to the family and may not be done yet! The house is about 1200sf; 3br/1ba. If they don’t need space, then they need some ingenious space saving solutions! I don’t think I’m that smart…I think they need space!

The money the couple had saved with plans to remodel a few years ago went into some unexpected work. The basement flooded, the bathroom had some “issues”, and the oil tank on the heater had to be replaced. So much for the remodel for the time being.

As the kids grow, the need for space does too! And wouldn’t another bathroom be a nice thing!

I’ll get more into the details after we get some preliminary designs worked out! But I wanted you all to know about the project so you could be on the lookout for updates.

Dale is the Pastor of a local church. Can I make a prayer request? Creativity and Ingenuity…that’s what I need to help get this done! Oh, did I mention…there is a budget too! There is always a budget! Stay tuned!