
This is a complex problem that developers often face. But what if you’re not a developer? Everyone wants their house to appreciate over time but buying a house with the direct intent to add to it, or renovate it can be a risky venture. There are no hard and fast rules about which properties are best for adding on to or renovating in order to increase it’s value. The general rule says buy the cheapest house in the best neighborhood. But there is often much more to it than this simple rule. For instance what is the median home price for that neighborhood? How much can the property be purchased for? The bigger the gap between the two, the better.
Then there are many zoning issues that must be researched.
What are the setback requirements? Setbacks are areas on the property where building is not permitted. These are usually described as a certain distance from the property lines. Each town has their own setback requirements and they can be deal breakers.
What is the height restriction? Most districts also have a height restriction meaning a structure can’t be taller than a certain height. This is usually not an issue with single family homes but can become a problem in multifamily residential which may benefit from a taller building.
What is the maximum lot coverage allowed? Each town also has rules regarding how much of a property can be covered by building. This is usually represented as a percentage.
The bottom line is, if your unsure about whether buying a property in order to add square footage to it and eventually resell it, then it might be time to call an architect and have them go over the project with you. They can help you understand all of the above restrictions and even go look at the home with you in order to determine if it’s a good candidate to remodel or add on to, before you buy it.
We’ve done exactly that in the past. Go to Lineal Inc. to contact us.