Attic Renovation remorse?

Question

So I have what I believe is a very competitive offer on a large two unit. The current owner took very good care of the property. My bid price was based upon the assumption that I'd be able to finish the attic with atleast 700 sft with a full bathroom for $50k and potentially another $15k if I wanted to add a kitchen. I thought the estimate was conservative considering that it doesn't have trusses and has a 15+ ft ceiling peak, three double window dormers and access via two separate stairways. To make a long story short, my mother had her friend (who is a contractor for high end homes) visit the property. He thinks that it's going to cost $100k+ without the kitchen

and I'll get 750sft out of the project. Anyone here have experience finishing an attic? Am I going to have buyers remorse? (I'm fairly confident that the seller will accept my offer)

Mike Wood · Answer

@Matt Tang A agree with @Jim Adrian, barring any crazy issues with structure or utilities, $50-75/ft2 should be in the ballpark.  I think the kitchen would be more than $15k, unless its absolutely tiny, in that range.

Matt Tang · Answer

@Mike Wood

Yes, small kitchen in the mid to low end. Definitely no granite, etc. Where I am, rentals generally aren't very nice, but rents are quite high due to the location. The "high end" rental condos in our area are 50-75% more expensive and aren't even that nice. People are paying for a safe walkable neighborhood with coffee shops, bars, restaurants, farmers markets, parks, public transportation, etc. Nicer stuff is mainly suburban. To tell you the truth 90% of the non-condo rentals don't even have A/C.

Matt Tang · Answer

@Jim Adrian

Yeah, I'll definitely wait a couple of years on the basement if I do end up with the property. I'll need a new staircase and egress windows for the basement. I've heard egress windows are ungodly expensive. ($2.5-5k apiece installed) The second staircase access is actually a huge double wide cellar door so there should be plenty of width and clearance.

The seller was supposed to get back to me either yesterday or today so I've been twiddling my thumbs in anticipation. If I've been patient enough not to bug the dual agent, I think that I'll be patient enough to stick to my guns on price.

Anyway, thank you for your input. Other than when I was a kid, I have never worked or contracted out a major renovation/addition. (When I was a kid I did help my dad fully gut a house, but I was just knocking down walls, hanging drywall, roofing, etc. Costs & planning were all my dad)

Jim Adrian · Answer

@Matt Tang

I have a walkable attic like yours but wrote off the idea of finishing it off due ladder access in the garage.  It makes great storage space!   Your big challenges are how to hook up with the existing utility systems which may cause additional work in the finished lower level.  Your big tickets items are hvac, plumbing and electrical but im sure you know this.  Make sure you have window large enough for egress, you need 5.7sf of clear open area.  Create a floor plan sketch for people to bid from and get several quotes.  Also make sure you have a wide enough access up the stairs to get a frig or queen box mattress set into the space.

Matt Tang · Answer

@Jim Adrian

Thanks. You've made me less worried. I've been looking for one of these high ceiling unfinished attic properties for a while so I put in plenty of online research into it...(your numbers are close to my estimates) I'm just scared since I already have an above market bid in if the unfinished attic isn't factored into the equation.

I really do like the property though.....in addition to the attic it also has an awesome basement...8ft ceilings, two exits and plumbing, and it appears dry. I've seen illegal basement apts (one with maybe 6ft ceilings) in the area rent for close to $1/sft/month and vacancies are pretty much non-existent in the neighborhood.

Jim Adrian · Answer

@Matt Tang

Your numbers don't seem out of line.  I think your level of finish will drive the cost.  I could be high with numbers.

Matt Tang · Answer

I already spoke with the city about permits so its definitely doable legally. $35-55k for 650-900 sft  was what i was factoring in. The big costs are obviously the dormer (which I don't need), potential separate hvac system (or I could do electric baseboards/mini-split.) Reinforcing the joists, flooring, insulation, drywall, paint, etc. should all be relatively cheap. I guess that I'll leave my bid where it is (I was thinking I had a couple grand in leeway) and work the contractor bids in the case that the seller accepts my offer.

Jim Adrian · Answer

Remember this a small space so looking at the "cost per sq ft" will be skewed to the high side.   Get other bids but I would guess you should be $50 -75 a sq ft range or may be lower.    Very with the city building dept you can do this.   One big hit to cost will be the separate hvac system for the unit.

Derrick W. · Answer

I agree on getting more bids. NEVER stop at the first one. Two things I have felt with are:

1. An engineer may be needed to confirm that the structure can support a second floor build out.

2. I would for sure contact the city (if inside one) with your plans. I have s similar property that the city will not let me finish out because of a lack of parking spots.

Mike Dymski · Answer

Get two more bids (not from contractors for high end homes, unless this is going to be a high end home).

$140/sqft for reno would be high in my market for flips and rentals.

Hopefully, your bid price only marginally factored in the benefit of the attic as it is usually best to pay based on current/actual rather than proforma performance.

Good luck...looks like a fun project.

Attic Renovation remorse?

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