unfinished basement and refinance appraisal

[janaad]

Here's the story: Irene destroyed my finished basement. It is down to concrete and the sheet rock has been removed half way down. So there is nothing down there (except the working bits of the house). I am trying to refinance and have been told I need to pay off a certain amount of debt before I can accomplish that. So is it really worth my while to refinish for the appraisal or or I better off paying down some credit cards? How much will the "unfinished" affect my appraisal?

 

[residentialguy]

All depends on your market. For example, if houses are selling for 25k more with a finished basement, than that's about how much more your house will be worth if you finish it. Then subtract the cost to refinish. I would contact a trusted Realtor (oxymoron?) and have him show you what houses like your are selling for with and without basement finishing. There is no way for any of us to know what your market is doing. It could be that you will still owe more than your Mtg, regardless of what you do to the lower level.

As far as your credit goes, I would talk to your Loan Officer and find out if and how quickly it will affect your situation by paying off some debt.

Good luck

 

[sail143]

You will almost surely spend more to finish the basement than that cost will contribute to your home value. It's likely better to pay down debt. Talk to your loan officer.

 

[residentialguy]

You will almost surely spend more to finish the basement than that cost will contribute to your home value.

Depends on who you know. I tried selling my house without a bed/bath and couldn't sell it. I finished a bed and bath in my basement for about $10K and gained 20k selling it immediately.

 

[janaad]

I know what my realtor says: to finish it before I sell it. I am not trying to sell it just want it reappraised for refinance. The loan agent has not been real helpful. But, I can see that I will get a split decision on this most likely as nobody knows the circumstance or the area that I am in. I guess that I am leaning toward paying off the bills as I can't get a new loan with them but I am afraid the "unfinished" will affect my appraisal value and I still won't get approved.

 

[JTip]

Irene destroyed your basement? No insurance coverage?

Pay your credit card bills, no question about it.

 

[Natalie117]

I guess that I am leaning toward paying off the bills as I can't get a new loan with them

Looks like the decision is pretty clear...

Best of luck

 

[Fritz in NY]

A totally below grade basement that is finished as we used to say "finish is equal or better than other living areas" Is still big time discounted from real GLA. I've never seen myself giving more than $ 4,000. for a great basement in a $ 175,000. dwelling with say 2,000 GLA. If the buyer dose not need the add'l SF at the time of purchase, what is the worth to that buyer $0.

 

[Terrel L. Shields]

Which is highest? The interest rate on the credit card? The interest rate on the house? I know which I would pick.

 

[residentialguy]

A totally below grade basement that is finished as we used to say "finish is equal or better than other living areas" Is still big time discounted from real GLA. I've never seen myself giving more than $ 4,000. for a great basement in a $ 175,000. dwelling with say 2,000 GLA. If the buyer dose not need the add'l SF at the time of purchase, what is the worth to that buyer $0.

Come on, the buyers will only pay $4,000 (2%) for double the finishing? I'm having a real hard time believing that they'll only pay 50 cents a sq foot to have a nice finished family rm, bath, bed, etc.

A finished basement here on a 2,000 sf foundation commands $25,000 easy...another $7,500 if it's a walkout.