About Remodeling 2017-05-18T21:51:05+00:00

BUYING VS. REMODELING WORKSHEET

conceived and compiled by Gary E. Naugle Sr. copyright 1988

Sell Existing Home and Purchase Another Example Your Home
1 Current Value 75,000
2 Less: Existing Loan 44,700
3 Current Equity (line 1 minus line 2) 30,300
4 Less: Real Estate Commission on Existing Home

Usually 6% of Selling Price

4,500
5 Less: Closing Costs on Existing Home

Usually 1% of Sell Price

800
6 Less: Personal Property Moving Costs

Usually 2,000 to 2,500

2,000
7 Less: Misc. Costs – Drapes, Phone Install, Furniture

to Fit, Upgraded Items, ect.

3,000
8 Less: Closing Costs on New Home

Usually 1.5% of New Home

2,000
9 Net Equity Available for Down Payment

(Line 3 minus lines 4, 5, 6, 7, 8)

18,000
10 Cost of New Home 100,000
11 Less: Down Payment (line 9) 18,000
12 New Mortgage Loan Amount (line 10 minus line 11) 82,000
13 New Monthly Payment For 30 Years at 7%

PI – (6.65 per 1000) + TI – (cost of new home x .0013)

675
14 Total Equity in New Home 18,000
15 Less: Additional Considerations 0
16 Misc Lost or Replacement Values – fences, built-ins,

interior or exterior features, garden, landscaping, ect.

3,500
17 Perceived Values – neighbors, mature trees, unique

neighborhood, schools, ect.

1,500
18 Reasonable Equity (line 14 minus lines 16 & 17) 13,000 _

BUYING VS. REMODELING

Remodel Existing Home Example Your Home
1 Current Value 75,000
2 Plus: Adjusted Value of Remodeling

Remodeling Costs x % (see below)

16,750
3 Remodeled Value of Existing Home 91,750
4  

Less: Loans (existing and remodel cost)

69,700
5  

Total Equity in Remodeled Home

22,050
6 Plus or Minus Additional Consideration 0
7 Reasonable Equity 22,050
8 Monthly Payment on Remodeling Loan

9% for 15 years PI – (10.15 per 1000)

255
9  

Monthly payment on Existing Loan

465
10 Monthly Payment on Refinancing Home

w/Remodeling Costs

7% for 30 years (existing loan & remodel costs) PI – (6.65 per 1000) + (New value x .0013)

585
11 Closing Costs on Refinancing 1.5% of new loan 1,050

SUMMARY COMPARISON

Sell Existing and Purchase Another Remodel With Equity Loan Remodel With Refinancing
Example Home
Reasonable Equity  

13,000

22,050  21,000
monthly Payment 675 720  585
Years to Payoff 30 15/15  30
Your Home
Reasonable Equity
Monthly Payment
Years to Payoff

REMODELING VALUE ADJUSTMENT (%)

Average Value of Remodeling in West North Central Region of the United States in 2007 according to Remodeling Magazines 2007 Cost vs Value Report.

 Attic Bedroom Remodel 65.8% Master Suite Addition 57.9%
Back-up Power Generator 50.7% Minor Kitchen Remodel  74.2%
Basement Remodel 65.1% Roofing Replacement  56.2%
Bathroom Addition 56.4% Siding Replacement  77.1%
Bathroom Remodel 68.6% Sunroom Addition 54.3%
Deck Addtion 75.2% Two-Story Addition 65.3%
Family Room Addition 57.3% Window Replacement (vinyl) 73.3%
Garage Addition 57.9% Window Replacement (Wood) 71.0%
Home Office Remodel 48.1%
Major Kitchen Remodel 69.5%