Adding a 2nd story loft over precious vaulted ceilings for resale

ps99472

ps99472

New member
Recently a house in my neighborhood went for over $300k the normal sale price for the area.  Looked into it more and noticed the sq ft was quite a bit higher than the other homes in the same tract.  Clicked thru the photos and realized they did a 2nd story loft addition over the vaulted ceilings.  Added about 700 sq ft.  At say $450/sq ft, that's a $315,000 value.  Gonna look into getting quotes for this type of addition, found 3 thru google:
http://www.loftcrafters.com/http://truadditions.com/http://www.theloftworks.com/

Off these only loftcrafters got yelps:http://www.yelp.com/biz/the-loftcrafters-inc-irvine-2

I'm estimating $100-125 per sq ft and that leaves a nice profit at resale.  I would only pull the trigger if I know for sure I'm selling as I'm a lover of high ceilings.  Where else can I practice my street fighter moves?  ;D

Anyone added this much room in a loft before?  Experience?  Permits I assume?  If you add this much room and don't sell, will it trigger a reassessment by county?

 
look at question #4 and yes, you will need permits. i looked into this when i was looking at resale in Serrano Heights/Anaheim Hills where there were a lot of vaulted ceilings.
https://www.boe.ca.gov/proptaxes/faqs/newconstruction.html#4

4. What happens to the assessed value of my property when there is new construction?

Reassessment of a property is required any time new construction occurs (section 71). Thus, new construction, when not considered normal maintenance or repair, is assessable if it adds value to the property. The market value (not necessarily the cost) of the addition or other "new construction" is determined by the assessor and added to the existing property assessment. The value of the existing property is not affected.

New construction that adds value to the property represents the incremental value added to the existing property and will generate a supplemental assessment. The existing property, however, is not reappraised; its assessed value will not change except for the annual inflation adjustment of up to two percent.
 
Heh... I'm opposite. I would add the loft if I was staying because I want to use it.

Quotes from Loftcrafters range from $15-20k... elsewhere (like contractors) are much higher (we had a friend who got quotes late last year and we asked them about it. I'll ask them if they tried the other 2 you mentioned.

But it is the an economical way to add square footage without external construction.
 
I wonder if flippers do this as well, seems easy to get a quick 3x return on just adding the loft alone.  If you can narrow down the floor plan, streamline the loft addition process, pulling permits, roof/foundation/load bearing support architect consult...  Only work in $400+ sq ft areas. 

 
I added 150sqf through Loftcrafters.  Yes, I had to get HOA approval, even though we didn't alter the exterior of our house.  I'd go with Loftcrafters again - they pulled all the permits and did a professional job.
 
eyephone said:
Also, don't you need HOA approval?
Click to expand...

Good point, will look into that as well.  Will need to move exterior windows/doors for the loft addition.  Though I don't believe HOA will have any issues, mines pretty lax and nothing in the front is being changed.  Remember they told me in the past anything in the back of the house they don't care.
 
qwerty said:
look at question #4 and yes, you will need permits. i looked into this when i was looking at resale in Serrano Heights/Anaheim Hills where there were a lot of vaulted ceilings.
https://www.boe.ca.gov/proptaxes/faqs/newconstruction.html#4

4. What happens to the assessed value of my property when there is new construction?

Reassessment of a property is required any time new construction occurs (section 71). Thus, new construction, when not considered normal maintenance or repair, is assessable if it adds value to the property. The market value (not necessarily the cost) of the addition or other "new construction" is determined by the assessor and added to the existing property assessment. The value of the existing property is not affected.

New construction that adds value to the property represents the incremental value added to the existing property and will generate a supplemental assessment. The existing property, however, is not reappraised; its assessed value will not change except for the annual inflation adjustment of up to two percent.
Click to expand...

This was going to be my next question. Thanks !

Sorry for necro but alot of good information in here.
 
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