Remodel Makes Sense for an Older Irvine House

NEW -> Contingent Buyer Assistance Program
I have been asking around for quotes and prices on home addition. The prices are closer to $200 /SF and higher. In addition, it will take time to do the addition. You would need to factor in the mortgage per month while the constructions is being done. The advantage of home addition is that you get what you want, and you don't have to pay property tax and mello roos on the increased value of your home.
 
Due to the slower construction market the sub trades are quite competitive now. As long you are not going directly to a general contractor who marks up 80% of his cost as a middle man. He usually calls his sub trades and negotiates a bottom fee and then mark them up to charge the home owner. You can call these sub trades directly and price them competitively. You will save a lot if you make the phone calls yourself and avoid the middle man.
 
slamdunk73 -- you're wrong about not having to pay property tax on the increased value of your home after improvements. You will have to pay tax on the current value of the improvements (though the unimproved portion of the property will not be reassessed).
 
<p>The proposed addition is often assessed at a much lower value by the county. For example, claim the 950 sf at $75,000 improvement instead of $114,000. When I did my patio cover I spent $3,000 while the property improvement was recorded $600. They will never check your expenditure on the project. </p>

<p>The building inspector will come and check for life and safety issues and sign-off on the occupancy. The assessor clerk rarely show up at your property. The tax saving for a remodel is hugh for doubling your home in size vs buying it at face value. The difference may be $350,000 and that is a saving of $3,500 of property tax.</p>
 
Additions to the house almost always exceed original quote. Less for single story (i.e. adding a bathroom), more for 2nd story (adding a 2nd floor). An exception is attic remodel, which is usually not too costly. As an amateur property investor I'd stay away from adding a 2nd story to single story house. Your opinion/experiences may differ.
 
Check this one out:





<a href="http://www.redfin.com/stingray/do/printable-listing?listing-id=600574">30 OAK TREE LN </a>

<a href="javascript:void(0);/*1181100363931*/"> Irvine, CA 92612</a>
 
<p>^^ That looks very good. But depending on what you want you'd probably spend close to 150k updating the house. I'd push for something in the low 700's and put alot of cash into the deal if they'd accept it.</p>

<p>-bix</p>
 
You must log in or register to reply here.
Back
Top