Posted by Innovator on January 09, 2006 at 23:03:28:
You’re right! What you plan to do with the property does make a difference. Because we do land trusts with triple net lease occupany agreements we don’t have the landlord problems you’re discribing (it’s similar to flipping). We also buy fairly new houses (usually we don’t buy anything older than 1995).
How Much is a BASEMENT worth?? - Posted by jeff
Posted by jeff on January 08, 2006 at 19:27:23:
How much does a having a basement vs. not having one affect value?
I’m in a very very slow RE Market and found a home on the MLS it looks like a deal to me. Most all the other sold homes had basements this is on a crawl.
Ask - 115000 no basement
Comps with basement-- 140 - 150 range. I haven’t looked at the house.
Would it hurt to put in an offer of 105 cash with a 7 day inspection contingency?
Re: How Much is a BASEMENT worth?? - Posted by Don Dion
Posted by Don Dion on January 08, 2006 at 23:29:55:
Have your real estate agent run comps on the same number of bedrooms/baths and total sq ft within a 1 mile radius. In one collume put the one’s with basements and in a second collume put the one’s without. Choose one from each collume that seem to match closest in age, size, xtra’s exterior ect. Subtract one from the other an this will give you the value for the basement in that market.
Note the two homes you pick dont have to match the subject just each other.
Yes, but. . . . - Posted by craig (IL)
Posted by craig (IL) on January 08, 2006 at 21:10:52:
Innovator and Krulac have good respones. But another question is what do you plan to do with the property. If you’re planning on fliping, then their suggestions are what you need.
Remember, though, that basements come with additional problems, maybe addtional fix up costs (flooding, structural problems, cracks in cement, etc.). A lot of basement have do-it-yourself" bathrooms and other jury-rigged ideas that are often more trouble than they are worth. Fix up on a place without a basement or celler is usually easier and faster.
Your question takes on a whole new dimension for investors looking for rentals. For me, houses with crawl space or on a slab are preferable as rentals in that all the problems basements present are not there.
Re: How Much is a BASEMENT worth?? - Posted by Innovator
Posted by Innovator on January 08, 2006 at 20:35:18:
Run a MLS comp without the basement finished (3br 2 ba) then run a MLS comp on same house with the basement finished (5br, 3 ba, fam rm) and answer your own question.
As an investor buy a house with basement unfinished, put about $10,000 into finishing the basement (use home depot’s 6mo plan and no out of pocket costs) have your lender get a new apprasial and finance you with a 90% loan. Pay back HD, your 10% plus closing costs and you should have an almost wash. Lease or flip the house and put $$$ in hip national bank (you tie up about $15,000 for about 60 days and make about $30,000 profit on your 60-90 day investment). If you don’t have the $15,000 find a money partner and split the profits. Yes, doing basements works!
Re: How Much is a BASEMENT worth?? - Posted by David Krulac
Posted by David Krulac on January 08, 2006 at 20:15:22:
It really depends. You say that most all the houses in your area have basements, therefore that is the norm. People expect basement and not having a basement is of lesser value.
On the other hand in certain areas like Florida, it is most common NOT to have a basement, that is the norm and that is what people expect.
To determine what the value of a basement is in your area, and it does vary from area to area, you need to comp similar size and located houses WITH basements, as well as WITHOUT basements that all have sold in the last 6 months. You can get this information from either your courthouse or your local friendly real estate professional.
$105,000 may or may not be a good price, and from the limited info provided nobody could answer your question accurately.