New 2/2.5 house downtown...what would U do to add property value?

Question

Here are the specs of the new built house my wife and I purchased near downtown ☀️ Austin, TX :

Builder split lot into two sub units:

Unit A:

Price: $650,000

Size: 1,800 sq. ft.

Bedroom: 3

Bathroom: 2.5

Has garage

Unit B (we bought this one):

Price: $479,000

Size: 1,100 sq. ft.

Bedroom: 2

Bathroom: 2.5

Has garage

My wife and I would love to add the maximum amount of value with $15-30k as we are already putting down 20% to get rid of that nasty PMI. We would love a 🏊🏼 but not sure, maybe add a 3rd bedroom but not sure, maybe convert the garage, again no idea. Since it’s a new build and doesn’t need any “rehab” how would you add value in this case?

Shuang W. · Answer

Account Closed mentioned, you may want to wait for the new land development code to be proved is possible, and then see if you can add extra sf depending on your lot size and some other factors. (It might be finalized around March next year.) Personally, I would not add a pool since there's a limit to how much a pool can add to your home. The ROI is less than some other improvements, like upgrading the landscape or a kitchen, etc. Also, the insurance may also cost more with a pool. Just my 2 cents :)

Will Barnard · Answer

Nothing. Trying to add value to a new construction purchase is very unlikely and at best, very small upside. Adding pools is often more costly than the benefit. Typically, value add plays will come from old homes and not a brand new build.

Trey Farmer · Answer

No, if you can make a pool work in the space, with you HOA agreement and financially then go for it :)  Also keep an eye on your impervious cover.  Pools do not contribute to impervious cover but uncovered decks and stairs that have room for drainage through them (a typical wood deck, for example) count 1/2 the sf.  The coping and any paving around the pool count fully as would a pad for the pool equipment.

Trey Farmer · Answer

You won’t be legally allowed to add any sf (which includes converting the garage) since the ADU is already at 1100 sf (which is the max allowed).  You could wait a few months and see how the new code shakes out, there’s a chance your entitlements may increase.

Can you add a bedroom within the existing floor plan easily?  If you bought it new, you paid for all the new, so doing work on it likely won’t get you much more value.  Maybe upgrading the appliance package or adding some curb appeal or create an outdoor entertaining space?

Account Closed · Answer

@Fred Cannon

Never thought of that crown molding. Excellent idea especially for a smaller home! My wife and I did a road trip through Florida and we are jealous you live in St. Augustine. What a historic town! I’m sure REI there must be quite expensive.

Account Closed · Answer

@Shuang Wang

Thank you Shuang! I totally agree with you on the ROI and do think doing a great landscaping job will go a long way.

Merry Christmas!

Account Closed · Answer

@Trey Farmer

Interesting I have no idea of impervious cover restrictions. Invaluable intel, I’ll definitely research what my HOA and city limits allow. Thanks again Trey!

Account Closed · Answer

@Trey Farmer

Thank you Trey! Extremely helpful. It looks like the easiest way will be to create a cozy outdoor entertaining space. Do you think building a pool would be out of the question as well given the rules you mentioned?

Fred Cannon · Answer

Yes in St Augustine property values are high but my niche is 1 bedroom condos.  If you can find a good HOA with low fees then you can get 8-10 percent return plus mortgage pay down plus appreciation. ( and not worry about evicting Mom’s with little kids ) SFH and MFH are priced to high for the rents you can get unless you want  class C- D neighborhood.   I am a finicky landlord when it comes to ownership and stay away from those.  However I am always looking.   Merry Christmas to you and your family.

Fred Cannon · Answer

@Josh Twaddle I would do want makes your life better. Outdoor entertaining is great. A pool will become a money pit especially if you turn this into a rental.  ( speaking from experience ). Upgrading the landscape is always a good bang for the buck especially if you do it yourself.  Maybe a security system.  Crown molding if you don’t have it adds value.

New 2/2.5 house downtown...what would U do to add property value?

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