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Alazar Wubet
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Floor addition plus dig out comparison

Alazar Wubet
Posted May 23 2023, 14:56

I'm flipping this house in Washington D.C and needed an extra bedroom. The two options were digging out the basement and adding a bedroom there or adding an additional floor and putting the bedroom there and leaving the basement as a living space. 

from bids i received i realised it'll cost almost equal for both but i can't find an answer if the permitting process would be lengthy for the addition. 

which way do you recommend i go?

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Aaron Schrader
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Aaron Schrader
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Replied May 24 2023, 08:29

I think a question I have right away is does adding a bedroom add this much value to justify the time and expense?

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Alazar Wubet
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Alazar Wubet
Replied May 24 2023, 09:57
Quote from @Aaron Schrader:

I think a question I have right away is does adding a bedroom add this much value to justify the time and expense?

Yes, 3 bedroom homes just don't sell in the area 
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Bill Brandt#2 Creative Real Estate Financing Contributor
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Bill Brandt#2 Creative Real Estate Financing Contributor
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Replied May 24 2023, 10:17

Another question. Does below grade living space count in your market? Some markets you aren’t allowed to count below grade living space.

Here’s a lot of dc info including needing a new coe when you buy

https://realestateinthedistric...

But here’s a page just what I thought…

https://dc.urbanturf.com/articles/blog/the_square_footage_game/1526#:~:text=In%20short%2C%20the%20square%20footage,%2C%20dining%20room%2C%20etc.)

In short, the square footage for a property in DC consists of the above-grade finished living area. According to the DC Property Tax Division, that is “comprised of the finished areas of the main floor (kitchen, living room, dining room, etc.) and any finished areas above the main floor.” The basement is not usually included in the calculation.

You might get extra value for finishing the basement but you can’t advertise the finished space. I was thinking if you built out then you have the more valuable addition that you could always build under later. They’re more likely to prevent future above grade building than below. 

Ps. I did just notice the article is 10 years old, so you might want to ask a realtor.

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Jack Seiden
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Jack Seiden
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Replied May 24 2023, 10:55
Quote from @Alazar Wubet:

I'm flipping this house in Washington D.C and needed an extra bedroom. The two options were digging out the basement and adding a bedroom there or adding an additional floor and putting the bedroom there and leaving the basement as a living space. 

from bids i received i realised it'll cost almost equal for both but i can't find an answer if the permitting process would be lengthy for the addition. 

which way do you recommend i go?


 W/o knowing the details of your deal, dealing with dcra and spending well over 6 figures to add a bedroom hardly seems worth it, if you made a mistake you may have to eat a loss, but don’t compound your issues, I only stick to projects that don’t invoke architectural permits in dc but I’ve heard it can easily run 9 month even more if your in an historic district just to get permits.

  • Real Estate Agent Virginia (#0225260957), District of Columbia (#Sp40001090), and Maryland (#667710)

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Alazar Wubet
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Alazar Wubet
Replied May 24 2023, 10:59
Quote from @Jack Seiden:
Quote from @Alazar Wubet:

I'm flipping this house in Washington D.C and needed an extra bedroom. The two options were digging out the basement and adding a bedroom there or adding an additional floor and putting the bedroom there and leaving the basement as a living space. 

from bids i received i realised it'll cost almost equal for both but i can't find an answer if the permitting process would be lengthy for the addition. 

which way do you recommend i go?


 W/o knowing the details of your deal, dealing with dcra and spending well over 6 figures to add a bedroom hardly seems worth it, if you made a mistake you may have to eat a loss, but don’t compound your issues, I only stick to projects that don’t invoke architectural permits in dc but I’ve heard it can easily run 9 month even more if your in an historic district just to get permits.

Thank you! Do you mean 9 months for permitting? 

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Michael Diossa
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Michael Diossa
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Replied May 24 2023, 11:07

As mention above.....Permits.

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Alazar Wubet
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Alazar Wubet
Replied May 24 2023, 11:09
Quote from @Michael Diossa:

As mention above.....Permits.


 Care to explain?

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Jack Seiden
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Jack Seiden
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Replied May 24 2023, 13:49
Quote from @Alazar Wubet:
Quote from @Jack Seiden:
Quote from @Alazar Wubet:

I'm flipping this house in Washington D.C and needed an extra bedroom. The two options were digging out the basement and adding a bedroom there or adding an additional floor and putting the bedroom there and leaving the basement as a living space. 

from bids i received i realised it'll cost almost equal for both but i can't find an answer if the permitting process would be lengthy for the addition. 

which way do you recommend i go?


 W/o knowing the details of your deal, dealing with dcra and spending well over 6 figures to add a bedroom hardly seems worth it, if you made a mistake you may have to eat a loss, but don’t compound your issues, I only stick to projects that don’t invoke architectural permits in dc but I’ve heard it can easily run 9 month even more if your in an historic district just to get permits.

Thank you! Do you mean 9 months for permitting? 


 I can’t speak for you specific project, but I certainly know people who have waited that long for architectural review. 

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Alazar Wubet
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Alazar Wubet
Replied May 24 2023, 19:53
Quote from @Bill Brandt:

Another question. Does below grade living space count in your market? Some markets you aren’t allowed to count below grade living space.

Here’s a lot of dc info including needing a new coe when you buy

https://realestateinthedistric...

But here’s a page just what I thought…

https://dc.urbanturf.com/articles/blog/the_square_footage_game/1526#:~:text=In%20short%2C%20the%20square%20footage,%2C%20dining%20room%2C%20etc.)

In short, the square footage for a property in DC consists of the above-grade finished living area. According to the DC Property Tax Division, that is “comprised of the finished areas of the main floor (kitchen, living room, dining room, etc.) and any finished areas above the main floor.” The basement is not usually included in the calculation.

You might get extra value for finishing the basement but you can’t advertise the finished space. I was thinking if you built out then you have the more valuable addition that you could always build under later. They’re more likely to prevent future above grade building than below. 

Ps. I did just notice the article is 10 years old, so you might want to ask a realtor.


 If you're asking if i can call a bedroom below grade a bedroom and sell it as such, yes i can do that. But i understand that having one above grade has more value when selling

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Alazar Wubet
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Alazar Wubet
Replied May 24 2023, 19:55
Quote from @Jack Seiden:
Quote from @Alazar Wubet:
Quote from @Jack Seiden:
Quote from @Alazar Wubet:

I'm flipping this house in Washington D.C and needed an extra bedroom. The two options were digging out the basement and adding a bedroom there or adding an additional floor and putting the bedroom there and leaving the basement as a living space. 

from bids i received i realised it'll cost almost equal for both but i can't find an answer if the permitting process would be lengthy for the addition. 

which way do you recommend i go?


 W/o knowing the details of your deal, dealing with dcra and spending well over 6 figures to add a bedroom hardly seems worth it, if you made a mistake you may have to eat a loss, but don’t compound your issues, I only stick to projects that don’t invoke architectural permits in dc but I’ve heard it can easily run 9 month even more if your in an historic district just to get permits.

Thank you! Do you mean 9 months for permitting? 


 I can’t speak for you specific project, but I certainly know people who have waited that long for architectural review. 


 Thank you. I'm working with my architect to just change the layout and add the bedroom in the original structure because the last thing i want is sitting on this house for long

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Aaron Schrader
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Aaron Schrader
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Replied May 26 2023, 14:03

Keep in mind I don't know you, your market or this house, but if someone in my area were looking at an expenditure like this and said "3 bed houses don't sell in the area", the first thing I'd want to see is proof, which would be just pulling the sold listings off the MLS in the area and looking at days on market. I guess I just question big statements like that only because they often can be formed off of what people hear, and not what is true. But if you know this answer definitively and know it will bring the value then go for it! Best wishes for your project.

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Alazar Wubet
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Alazar Wubet
Replied May 27 2023, 10:17
Quote from @Aaron Schrader:

Keep in mind I don't know you, your market or this house, but if someone in my area were looking at an expenditure like this and said "3 bed houses don't sell in the area", the first thing I'd want to see is proof, which would be just pulling the sold listings off the MLS in the area and looking at days on market. I guess I just question big statements like that only because they often can be formed off of what people hear, and not what is true. But if you know this answer definitively and know it will bring the value then go for it! Best wishes for your project.


Thank you so much! Been looking at the MLS and i may have found a workaround for this

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Aaron Schrader
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Aaron Schrader
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Replied Jun 5 2023, 10:17

That's great!  Glad to hear that.