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Rehabbing & House Flipping

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Nancy Roth
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Value of adding deck in homeowner neighborhood

Nancy Roth
  • Investor
  • Washington, Washington D.C.
Posted Feb 1 2015, 09:22

Hello, everyone.

We could add a deck to the colonial I'm considering acquiring for my first rehab (not including numerous personal home rehabs). It would be challenging, though, because of a poorly designed bumpout done in kitchen long ago. In the modern reconfigured kitchen that must go in, it would not be easy to provide access to deck at back of house without adding a modest addition to the bumpout. This would add a lot of cost to project.

I've no doubt that a deck appeals to many buyers, but I'm unclear whether buyers are actually willing to pay more for it. And I don't know whether appraisers add value for a deck. I can't have the cost exceed the benefit.

The house is in a handsome homeowner neighborhood in Baltimore City, popular with first-time homebuyers. Many successful rehabs have occurred in this area, including on the same block as this house, and the zip code, 21214, is highly favored by rehabbers. Many neighboring houses have decks. If the access were not such a problem I wouldn't hesitate. 

Guidance gladly received, especially from the many on this list who work in and near Baltimore, a rather unique RE market.

Thanks,

Nancy Roth

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Bill Gulley#3 Guru, Book, & Course Reviews Contributor
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Bill Gulley#3 Guru, Book, & Course Reviews Contributor
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Replied Feb 1 2015, 09:43

The market will command the amenities required at your price expectation. Decks have a poor ROI, but, while a $5,000 deck may not add that much, it will keep the adjustment of deducting 5K or more to comps bringing your property in line.

Might consider another room to exit and use a deck walkway to the main deck area, a pass through serving window might be handy. Bumpouts are usually limited by code before you'll need a foundation, I'd rather use a deck walk to another area than get into a foundation and roof.

A picture of the back would be worth a thousand words. :)

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Aaron Montague
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Aaron Montague
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Replied Feb 1 2015, 10:01

@Nancy Roth 

Check out sites like US News's 5 best/5 worst home owner improvements.  Various articles on this topic seem to be consistent within the same year.

Plus you are best judge of what you need in your neighborhood.  If buyers in your neighborhood are expecting 4/3 victorians that costs 500-600k, then make sure you fit that profile.  If they all have decks out back, you'll probably need one.  You might want to look at making a small, unique change to the deck.  Add a pergola, install a grill, etc.

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Nancy Roth
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Nancy Roth
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  • Washington, Washington D.C.
Replied Feb 1 2015, 10:10

@Bill G. Oh yeah. Duh. Below is a pic of inside of kitchen and two of the bumpout, left side (beside door) and right side (beside AC unit). 

Look at that third picture closely. My contractor doesn't understand why the bumpout didn't extend all the way to the corner on the right. That shortfall takes a big chunk of usable space out of the kitchen, separating sink (to the left) from the stove (to far right outside of picture). It is challenging already to put together a sensible work triangle inside. We think it would have to extend all the way across the bumpout, leaving no access to deck. Thoughts? Thanks for your time and input. Nancy Roth

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Nancy Roth
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Nancy Roth
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Replied Feb 1 2015, 10:23

@Aaron Montague

Thanks for your consideration. Actually I did check the US News list, but that seems to be written for owner-occupants. The governing advice is, you might put it in if you think you'll enjoy it, but here is what to expect when you are ready to sell. I don't find that particularly helpful for a rehabber. 

And yes, absolutely I would add it, as I previously mentioned, if it weren't so tricky and potentially expensive. There just has to be a dollar value benefit in the expense to justify it. This house does otherwise conform to the norms of the neighborhood. Plus it has a garage, a very nice advantage in the city.

Nancy Roth

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Ned Carey
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Ned Carey
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ModeratorReplied Feb 1 2015, 15:50

Why not just put a door in the bump our? As you look at the back. put a door going out the right side of the bump out, over top of the AC compressor.  Then wrap the deck around the back of the bump out. 

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Nancy Roth
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Nancy Roth
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Replied Feb 1 2015, 16:18

Hi @Ned Carey !  How ya doing?

Yes I suggested that. Contractor was dubious. I guess the pix don't convey how awkward that layout is. If the interior of the bumpout becomes work and counter space, which are sorely lacking, wouldn't it be awkward and accident prone to open the door right next to someone standing at the counter? That was his concern, I think.

But I was really asking about whether a deck would be enough of a draw to buyers to raise house sale price and justify the cost and effort. What do you think, Ned, knowing Baltimore as you do?

Thanks for contributing! 

Nancy

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Dell Schlabach
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Dell Schlabach
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Replied Feb 1 2015, 16:35

@Nancy Roth 

 We had a awkward one recently, where adding a door to the deck from the kitchen seemed essential. Had a similar issue with banging the door against people sitting at the bar.  To to solve it, we used an outswing door. That may solve one aspect of the dilemma. . 

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Nancy Roth
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Nancy Roth
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Replied Feb 1 2015, 17:34

@Dell Schlabach Good idea. Why not? There would just have to be a half-light in the door so you can see you aren't hitting someone on the way out! Great!

So do you add a deck to all your rehabs? Does it make a difference in sales price? It's adding more living space to the house, really.

Thanks,

Nancy

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Dell Schlabach
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Dell Schlabach
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Replied Feb 1 2015, 17:54

@Nancy Roth 

We add decks or patios to all the rehabs that lend themselves to such. We do a lot of split level home rehabs. In the dining room just off the kitchen I would say half of them have a slider to a patio, the ones that dont, we will remove the window in the dining room, cut a bigger hole in the wall and install a slider to the new deck we build. 

I dont have a way of knowing if it adds significant value. My take is if half of the homes in the neighborhood have them, I don't want to be the one without. I like decks, well prefer patios, but decks are much cheaper to build for me. Todays lifestyles with outdoor living spaces being being all the rage, I consider them important in most cases. 

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Kyle Gregg
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Kyle Gregg
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Replied Feb 1 2015, 18:30

@Nancy Roth @Ned Carey 

you need a minimum of 60" clearance above an AC condensing unit. 

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Ned Carey
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Ned Carey
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ModeratorReplied Feb 1 2015, 20:55
Originally posted by @Nancy Roth:

Hi @Ned Carey !  How ya doing?

But I was really asking about whether a deck would be enough of a draw to buyers to raise house sale price and justify the cost and effort. What do you think, Ned, knowing Baltimore as you do?

Thanks for contributing! 

Nancy

 Nancy I haven't a clue. It really comes down to knowing the specific market. What does the competition have. If I thought it was an important question i would call some listing agents that have sold in the area and ask. 

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Kyle Gregg
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Kyle Gregg
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Replied Feb 2 2015, 06:24

@Nancy Roth 

could you provide a simple existing layout sketch? i'd like to take a swing at it.