Hello everyone,
I joined this forum because I am concerned about overbuilding on to our house and need some advice...(I didn't want what happened to the other guy that added an addition and now his property isn't worth what he thought it would be.)
My question, what is the best way to protect myself against adding to our house without getting hurt when refinancing? Our neighborhood is solid and established in Pinellas Cty, Fl. We have renovated our 1950's ranch by gutting kitchen, updating bathrooms, added the 3rd bedroom, 400 sq ft deck, new windows, new A/C, and new water heater. We used to have a lot of equity, but not now with the market. We now want to add on a Master Bed/Bath with adjoining office/workout rm/baby room which will bring us up to 2010 Sq Ft. and a pool...
We have an equity line already in place, but my concern is that with the market, we may not have enough equity to refinance after we are done with the new upgrades, or enough to not have to carry P.M.I.
I have talked with 2 mortgage people, and they said that until we build, they wouldn't be able to predict what things will be like. I am willing to get a "real" appraisal if this would help in advance. I am hoping they can appraise the house and then give us an idea of what the house would appraise for once we have completed the addition.
How does an appraisal when using comps from area sales, know how updated that home is? Things like bathrooms and kitchens are not permitted items so I don't see how an appraiser would know when they are comparing homes if they are comparing apples to apples.
This is what I do know regarding our property and our neighbors. Our neighbor has redone his house and it is really nice. He is in construction and has an awesome pool and deck, all pavers in back and driveway.
I don't know if I am rambling at this point or if I am making sense..but the million dollar question is:
Is there anyway for me to know in advance by using an appraisal, or ANYTHING to know that I will have enough equity to refinance...and if so, what can/should I do to help not to over build???
Thank you all for your help in advance! We are planning on being in the house for a fairly long time, I just want to do everything I can to make sure that whatever enhancements we do, I will be able to do a refi when all is completed. I am listing for you the basic information regarding our house and the neighbors in case it helps in anyway for you to understand my situation. :new_newbie:
My Property:
3/2/2 1512 Sq Ft.
2005-2006 Comparable Sales $206,000
Market Value $177,300
Need to Refinance for $280,000 when completed which would need to be appraised value at around $360,000 to not have PMI
(Estimating 100k in costs for 680 sq ft. addition, driveway done in pavers, new sod, pool, roof over 400 sq ft deck, new fencing. NEW Sq Ft will total 2010 sq ft)
House presently has updated Kitchen and bathrooms, new flooring, new A/C, and new windows.
House 2 doors down:
2/2/2 1378 Sq Ft
2005-2006 Comparable Sales $281,600
Market Value $239,200
New A/C, Windows, updated kitchen/baths, Pool and Pavers in back, Pavers in front driveway.
I joined this forum because I am concerned about overbuilding on to our house and need some advice...(I didn't want what happened to the other guy that added an addition and now his property isn't worth what he thought it would be.)
My question, what is the best way to protect myself against adding to our house without getting hurt when refinancing? Our neighborhood is solid and established in Pinellas Cty, Fl. We have renovated our 1950's ranch by gutting kitchen, updating bathrooms, added the 3rd bedroom, 400 sq ft deck, new windows, new A/C, and new water heater. We used to have a lot of equity, but not now with the market. We now want to add on a Master Bed/Bath with adjoining office/workout rm/baby room which will bring us up to 2010 Sq Ft. and a pool...
We have an equity line already in place, but my concern is that with the market, we may not have enough equity to refinance after we are done with the new upgrades, or enough to not have to carry P.M.I.
I have talked with 2 mortgage people, and they said that until we build, they wouldn't be able to predict what things will be like. I am willing to get a "real" appraisal if this would help in advance. I am hoping they can appraise the house and then give us an idea of what the house would appraise for once we have completed the addition.
How does an appraisal when using comps from area sales, know how updated that home is? Things like bathrooms and kitchens are not permitted items so I don't see how an appraiser would know when they are comparing homes if they are comparing apples to apples.
This is what I do know regarding our property and our neighbors. Our neighbor has redone his house and it is really nice. He is in construction and has an awesome pool and deck, all pavers in back and driveway.
I don't know if I am rambling at this point or if I am making sense..but the million dollar question is:
Is there anyway for me to know in advance by using an appraisal, or ANYTHING to know that I will have enough equity to refinance...and if so, what can/should I do to help not to over build???
Thank you all for your help in advance! We are planning on being in the house for a fairly long time, I just want to do everything I can to make sure that whatever enhancements we do, I will be able to do a refi when all is completed. I am listing for you the basic information regarding our house and the neighbors in case it helps in anyway for you to understand my situation. :new_newbie:
My Property:
3/2/2 1512 Sq Ft.
2005-2006 Comparable Sales $206,000
Market Value $177,300
Need to Refinance for $280,000 when completed which would need to be appraised value at around $360,000 to not have PMI
(Estimating 100k in costs for 680 sq ft. addition, driveway done in pavers, new sod, pool, roof over 400 sq ft deck, new fencing. NEW Sq Ft will total 2010 sq ft)
House presently has updated Kitchen and bathrooms, new flooring, new A/C, and new windows.
House 2 doors down:
2/2/2 1378 Sq Ft
2005-2006 Comparable Sales $281,600
Market Value $239,200
New A/C, Windows, updated kitchen/baths, Pool and Pavers in back, Pavers in front driveway.