Second story addition vs. tear down and new construction?
I've been looking into second story additions for my 800 SF Berkeley cottage, and am agahst at the cost. It almost seems cheaper to do a tear-down and a new construction in its place, especially if the house doesn't have any unique historical details. What are your thoughts? Has anyone got cost estimates on either of these options?
Oct 12, 2016
Parent Replies
As a Berkeley Realtor I have an inside perspective on these questions, and, having recently remodeled and expanded my own home (going from 1100 sf to 1600 sf), I have first-hand knowledge of what it all really costs. Most importantly, Berkeley does not allow you to simply demo what you have and start over, regardless of how architecturally significant your home may (or may not) be. So the question is, to buy a larger home or expand what you have? Now, let's do the math. The cost of adding new square footage will range from $250-$400 per square foot. People may give you much lower numbers, but don't believe them. The cost of new, expanded, or reinforced foundation footings, possible required upgrades to electrical, water, or gas service, new windows, kitchen and/or bath appliances, tile and hardwood (materials and craftsmanship) --- all of these things really add up, and are reflected in the range I gave. So, let's say you double your square footage by adding another 800 sf, and let's say you hit the middle of the range at 325x800=$260,000. Is one-half of a 1600 sf house worth $260,000? The answer is a resounding yes. There is no way you can buy a home twice as large as your current home, and pay only an additional increment of $260,000 beyond the value of your current home. And, the amount of value your current home will gain, once you double the size, will also far exceed the cost of the work. Depending on your exact location, the size of your lot, etc, the benefits of expanding can be even greater -- especially in Albany. Feel free to contact me for more advice, at HollyRoseHomes.com.