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  #1  
Old 07-12-2006, 01:51 PM
tightwadmomof5 tightwadmomof5 is offline
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Default Remodeling vs. buying bigger?

Okay, I just read the whole thread about selling your house and thought I might post my current dilemma on here to see what advice I can get.
We bought a brand-new home 7 years and two children ago and are feeling rather cozy in it. We have paid down our mortgage tremendously to where it would be paid for in a couple of years, but feel like we could afford a bigger house or could afford to remodel the one we have to fit our needs.
We found a lot to build on nearby so our kids wouldn't have to change schools, wards, etc., but prices of lots have just skyrocketed around here!
The lot we are looking to buy will sell to someone else at the end of the week if we don't buy it, so we are trying to decide quickly. But, being the tightwad that I am, I want to do the most economical thing I can. If anyone has any advice or experiences with is that they could share, I'd appreciate it! TIA
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  #2  
Old 07-12-2006, 02:56 PM
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LazyBear LazyBear is offline
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Did you get an Appraisal on the home you are living in? They cost $250-$400
In 7 years the housing market has skyrocketed to an all time high.
Your house is probably worth about 25-50% more than what you paid for it back then.

6 months ago-
A house that was worth $120,000 is now worth $144,500.
Just to give you an example.

Maybe that lot really isn't that expensive after all.
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Old 07-12-2006, 03:15 PM
tightwadmomof5 tightwadmomof5 is offline
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We haven't gotten an appraisal, but have a pretty good idea what it is worth because of other homes that have sold in our neighborhood. We could probably pay for the lot plus a little bit more by selling our house, then it would just be however much it would cost to build a new one....
I don't know..what's more stressful? Remodeling or building?
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Old 07-12-2006, 04:43 PM
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Remodeling is, trust me. The Contractors double the price of everything because they would rather be working on New Construction. The hastle of getting what you want and having your new ideas fit into the Old home design is a pain believe me.

Buy a Newer house and your resale value will pay for itself if you decide to sell in the future.
Once you have an Older home, that is exactly what it will stay. OLD!!!!
Just like an Old car with a new paint job. It's still OLD!
You can't recover the loss you pay out for remodeling OLD houses. You get ripped off.

Build New and keep moving up until you get the house you want.
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Old 07-12-2006, 05:08 PM
kale kale is offline
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We're building with a builder in Pleasant Grove and have found that our house has appreciated decently and they just put down the tile. By the time it's built we're seriously considering selling and moving closer to Salt Lake. The houses there are more expensive but we'll be able to use our equity from this house. Lindon/PG area is growing tons, it might be worth it!
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Old 07-12-2006, 06:09 PM
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Quote:
Originally Posted by kale
We're building with a builder in Pleasant Grove and have found that our house has appreciated decently and they just put down the tile. By the time it's built we're seriously considering selling and moving closer to Salt Lake. The houses there are more expensive but we'll be able to use our equity from this house. Lindon/PG area is growing tons, it might be worth it!
Did you lock your price in when you started or will it lock when you close? My neighbor is a real estate agent and sells only new homes. She said the builder she sells with is making people lock when they close because of the appreciation in the market. The sad thing is people are paying. The PG area is going up about 2% per month.
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Old 07-12-2006, 07:00 PM
tightwadmomof5 tightwadmomof5 is offline
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Quote:
Originally Posted by LazyBear
Remodeling is, trust me. The Contractors double the price of everything because they would rather be working on New Construction. The hastle of getting what you want and having your new ideas fit into the Old home design is a pain believe me.

By Newer and your resale value will pay for itself if you decide to sell in the future.
Once you have an Older home, that is exactly what it will stay. OLD!!!!
Just like an Old car with a new paint job. It's still OLD!
You can't recover the loss you pay out for remodeling OLD houses. You get ripped off.

Build New and keep moving up until you get the house you want.
See, this is what I was wondering. Thanks so much for your advice! I helps so much to hear what other people have gone through or know about it!
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Old 07-12-2006, 08:03 PM
kale kale is offline
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Quote:
Originally Posted by engravingmom
Did you lock your price in when you started or will it lock when you close? My neighbor is a real estate agent and sells only new homes. She said the builder she sells with is making people lock when they close because of the appreciation in the market. The sad thing is people are paying. The PG area is going up about 2% per month.
We locked before! That would stink if we did after cause you wouldn't know how much it would cost for months down the road! I'm already stressing about how mcuh it's going to be but not knowing would be worse!
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Old 07-12-2006, 10:23 PM
paisley paisley is offline
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My DH is an engineer and he says that remodels are more expensive in the long run and a pain in the butt for everyone involved.
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  #10  
Old 07-13-2006, 06:44 AM
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Quote:
Originally Posted by kale
We're building with a builder in Pleasant Grove and have found that our house has appreciated decently and they just put down the tile. By the time it's built we're seriously considering selling and moving closer to Salt Lake. The houses there are more expensive but we'll be able to use our equity from this house. Lindon/PG area is growing tons, it might be worth it!
I wonder if there are certain Tax Laws that may penalize you if you don't own your New house more than a certain amount of years. You might want to check that out with a CPA before you try and sell. It would be a shame if you lost all of your equity, just to pay Uncle Sam. Carroll here on PYP is a CPA.

The Banks also have certain guide lines in their loan applications that say the same thing. Read the fine print or ask your loan officer if there are restrictions like that on your loan. My son has a loan that says he needs to live in his home for 12 months before he can sell.
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