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Old 09-27-2012, 03:52 PM   #26
Bill Bumface
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Quote:
Originally Posted by darklord700 View Post
$75K-$100K for 270 sq ft of space seems expensive. Wouldn't moving be a better option?
Here's the factors I consider in my own situation:

-Selling/buying/moving with realty/moving/lawyer fees would be about a $25,000 transaction.

-So if we take the $75,000 estimate, that now knocks it down to $50,000 for 270 sq ft.

-The house rang in at $472/sq. ft (lot was a big portion of the price), but even if we got $100/sq ft in resale on the addition that is $27,000, leaving it a $13,000 disadvantage to moving

-work we've done to the house itself and to the yard to get it where we like it is easily in the $5000-$7000 range, mostly sunk costs we wouldn't get selling.

-Now I consider the fact that if we move it's likely we go a touch over our budget seeing the "right" house, or end up financing the money we would have spent on the addition via a mortgage which would lead to way higher interest costs.

It took a lot of looking to find the right house in the right location, so I put a price on the ability to stay put as well. If we added onto the place we could stay there the rest of our lives, no problem.
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