Is the cost of an extension recouped when selling?

[DaveD]

We're thinking of building an extension and were wondering what amount of the building cost would one reasonably expect to recoup when selling.

Say a house worth €600k adds an extension costing €60k, what would be reasonable to expect the revised selling price to be. I know house prices in general can go up and down but lets assume they stay static and the extension is an added living room (350sqft) to the rear of a 3 bed-semi (1200sqft) in dublin.

Anyone any experience or care to offer an opinion?

 

[Toby]

don't know the answer but keep in mind the emotional cost of building, if you're not planning on living in the house afterwads to enjoy the extension I'd have to ask whether its worth going through the hassle which can be significant esp if you're living there through it and if anything goes wrong

 

[ClubMan]

Maybe check the going rate for similar houses with and without extensions in your area to get a feel for what the figures might be?

 

[DaveD]

don't know the answer but keep in mind the emotional cost of building, if you're not planning on living in the house afterwads to enjoy the extension I'd have to ask whether its worth going through the hassle which can be significant esp if you're living there through it and if anything goes wrong

We do plan to live in the house afterwards but maybe only 5 years or so. I know we get the benefit of the extension for those years and should be allowed for. Most similar houses with extensions haven't come up for sale yet so difficult to gauge prices, most people seem to remain for a few years after tolerating the builders for a summer.

 

[ClubMan]

OK - maybe ask a few EAs what they think an extension might add in value? Not ideal but might give you some idea.

 

[Cashstrapped]

I know in the estate we are currently in there was an option to buy the house with an additional piece of kitchen circa 200sq ft (made the kitchen shape L Shaped) instead of the other alternative the basic square kitchen. This option was €25k extra and I know that the resale price on these houses verus the one without the little extension bit is about €10k more so anyone who paid the €25k is losing about €15k. Personally I wouldn't consider pumping any money into a house I didn't plan on staying in for the forseeable future it just wouldn't make any sense.

 

[DaveD]

Thanks for that Cashstrapped, our houses had the same option only it was about £7000 10 years ago, the larger kitchen versions sell for about €25 more, so it appears to have been a good option then.

 

[Staples]

Personally I wouldn't consider pumping any money into a house I didn't plan on staying in for the forseeable future it just wouldn't make any sense.

There's a difference between "pumping money in" and carrying out certain works that'll add value to your home.

If you are building with the primary intention of adding value (rather than increasing your own utility), you need to consider what most potential buyers would attach value to. For example, an extra bathroom, improved/increased kitchen areas, etc are likely to make a house more appealing to buyers.

However, I've viewed some second-hand houses where the extensions have been poorly-thought out and don't seem to add anything to either the functionality or character of a property. A properly designed extension should integrate comfortably with a house without looking like it was almost stapled on to the existing structure.