Anyone demo their home and build a new one?

[Dr. Nole]

House built in 1974 in SW Florida.

We bought it 21 yrs. ago, remodeled it and have lived there since. 2 kids, both about to be off at college.

The lot the house is on is what makes it special to us…on the water with access to the gulf and inland water, great views. We love boating.

We are discussing doing renovations however to do some of the things we are thinking of…raising the ceilings (currently are 8 feet), replacing all windows with impact windows, redoing kitchen and baths, flooring are going to be expensive. Also the home is at the minimum “allowable” elevation as far as flood level is concerned.

The question is to renovate it or demo it and build a new house?

There are tax questions as if demo it and build a new house, taxes are assessed on the value of the new house (which will be more) , however the amount of work to renovate the current structure may be so much that it may make the above a moot point?

Anyone wrestle with this issue before?

 

[Squirrel J.]

I know somebody who recently did a reno at the coast because if they did a demo the new building codes would have made it so much more expensive it wouldn't have been worth it. Not sure if that's an issue for you, but something to think about.

 

[DFSNOLE]

Remember, in Florida, if the value of your renovation exceeds 51% of the assessed value of your house, the entire thing must be brought up to current code. That alone could add tens of thousands to the project.

 

[Dr. Nole]

Remember, in Florida, if the value of your renovation exceeds 51% of the assessed value of your house, the entire thing must be brought up to current code. That alone could add tens of thousands to the project.

That is a big issue in our case. The "value" of the house is pretty low compared to the value of the lot.
Someone told me that that 50% issue has something to do with the elevation of the lot? Like if you are at/above the minimum then that 50% issue doesn't apply?

 

[DFSNOLE]

That is a big issue in our case. The "value" of the house is pretty low compared to the value of the lot.
Someone told me that that 50% issue has something to do with the elevation of the lot? Like if you are at/above the minimum then that 50% issue doesn't apply?

I've never heard that. Not saying the rules haven't changed but that would be news to me.

 

[Dr. Nole]

I've never heard that. Not saying the rules haven't changed but that would be news to me.

I agree...I don't know if it is true or not.

 

[DFSNOLE]

I agree...I don't know if it is true or not.

Call your local building official. He/she will have the answer.

 

[funksouljon]

Good luck. I think I want to have my next house built, but my wife is convinced this place is the best option in the whole city. So I get to change things here to make it perfect for her.

 

[squiffynole]

Property on the water with boat access - that must be amazing!

Presumably you are on central sewer if not you could have an ancient septic system that does not meet current standards.

Mostly though with sea level rise, intense storms and insurance issues you might considering selling while prices are good and move to higher ground. Defuniak Springs is very nice!

 

[DFSNOLE]

Property on the water with boat access - that must be amazing!

Presumably you are on central sewer if not you could have an ancient septic system that does not meet current standards.

Mostly though with sea level rise, intense storms and insurance issues you might considering selling while prices are good and move to higher ground. Defuniak Springs is very nice!

 

[littleitch1]

What your talking about is the “Fema” rule

If you renovate at a cost of more than 50% of the dwelling appraised value you may have to elevate the home, have breakaway walls etc

Not sure if this applies but when you mention 50% it makes me think fema

I had a property on biscayne bay that pretty much handcuffed the owners plans for a major remodel

 

[DFSNOLE]

What your talking about is the “Fema” rule

If you renovate at a cost of more than 50% of the dwelling appraised value you may have to elevate the home, have breakaway walls etc

Not sure if this applies but when you mention 50% it makes me think fema

I had a property on biscayne bay that pretty much handcuffed the owners plans for a major remodel

Thanks Itch. That may even double the added expense for the OP depending on his flood zone.

 

[littleitch1]

Gets hairy for sure!

Op let me know if you want free LR advice on this ok

 

[Dr. Nole]

Property on the water with boat access - that must be amazing!

Presumably you are on central sewer if not you could have an ancient septic system that does not meet current standards.

Mostly though with sea level rise, intense storms and insurance issues you might considering selling while prices are good and move to higher ground. Defuniak Springs is very nice!

That's why we keep this in the yard for emergencies.

 

[DFSNOLE]

I did an interior build-out of an 18 unit condo building in 2012 that had been abandoned in 2008 when the economy tanked. The original permit and plans followed the 2000 building code. My permit and plans had to be compliant with the 2010 code. Major PIA.

 

[Dr. Nole]

If we do demo it we'd add fill to the highest level they would allow. Can't build on stilts in the neighborhood.

 

[DFSNOLE]

If we do demo it we'd add fill to the highest level they would allow. Can't build on stilts in the neighborhood.

You would then have to file for a letter of map amendment to officially take your lot out of the flood zone assuming you could fill to that elevation.

 

[littleitch1]

Remember Fema rules in these situations

Whether you remodel or build new

 

[Dr. Nole]

So what I'm gathering is there are going to be some "fees" associated with whatever we decide to do.

 

[DFSNOLE]

So what I'm gathering is there are going to be some "fees" associated with whatever we decide to do.

That's a good assumption.

 

[littleitch1]

Oh yeah


You can email me if you want some guidance like the first few steps

DFS has my info

 

[seminole97]

If we do demo it we'd add fill to the highest level they would allow. Can't build on stilts in the neighborhood.

So the long term plan is for the neighborhood to be temporary.
Nice.

 

[gwgwi]

My home in Bay county sounds like Dr. Noles, even built the same year. It got some water during the '95 hurricane but I doubt similar repairs would amount to 50 percent of value. I think about 'that storm' but I've stopped worrying about it.

 

[Dr. Nole]

So the long term plan is for the neighborhood to be temporary.
Nice.

?

 

[Formerly Rockymtnole]

With all that hassle, I'd just enjoy the house as is and save the money for retirement or spend it on traveling or a new boat.

 

[seminole97]

?

 

[littleitch1]

Dr Nole

Don’t give up on doing your project just yet

There’s always bumps in these type projects

How much is your home assessed for?

50% May be more than adequate to get her done

Things like architect and engineering costs do not go against you here, nor does permit fees

Only things from the envelope of the home inward calculate and weigh against that 50% mark

 

[JohnnieHolmesNole]

Go big. You are part of the LR, so money is not an issue. Tear it down and do it right!!!

 

[RangerNole]

I know a number of McMansion builders and this is a common thing in HHI. Usually the lot is where the value is and while you can build really high end house; at the end of the day the lot is what really makes the property valuable. There are a ton of code issues in reno vs. build new and the property taxes can change your life drastically. The guys I know that do this essentially build 6-10 bedroom homes for rental income. The pull 10-15 k per week, so it makes sense for them. IMO the questions are do you just want to add things to improve the home and your enjoyment of it, are you looking to build a s upper home and then sell it in a few years, how much longer do you plan to stay there, would you look at staying there for portions of the year and travel or have a 2nd home somewhere? Personally a what your age sounds like going through a complete rebuild for 10-20 years of enjoyment doesn't sound like fun, not to mention what happens if you rebuild and the market crashes again, then you are stuck.

We are in a little of the same boat. 1 kid in college the other leaving in 2 years. We have 3000 sq. feet with water/sunset views on our front deck. We think about down sizing and getting a smaller home here and a home in the mountains. We could also rent our house for roughly 3-4 k per month and stay in the mountains half the year. My biggest issue is getting rid of a house that in 20 years will be worth more than 1 million and paid for at a cost much less than that. There is no more land where I am, so I hate to get rid of an asset that may help improve my retirement or help my kids as they get older. Of course there is the up keep on a house we really will only need 1/2 of in less than 5 years.

 

[Dr. Nole]

Thanks for the above info...just met with a contractor/builder last night to get some preliminary #'s on a remodel. Basically high $200's to do the minimum things we'd want done if keep the current structure.

He estimates a new house on the site would be up to the $600's.

On a side note, checked our tax info on the county's property appraisal site...does anyone know what the following terms mean (in English) ?

Just
Assessed
Portability Applied
Cap assessed
Taxable
Cap difference

 

[RangerNole]

Thanks for the above info...just met with a contractor/builder last night to get some preliminary #'s on a remodel. Basically high $200's to do the minimum things we'd want done if keep the current structure.

He estimates a new house on the site would be up to the $600's.

On a side note, checked our tax info on the county's property appraisal site...does anyone know what the following terms mean (in English) ?

Just
Assessed
Portability Applied
Cap assessed
Taxable
Cap difference

No problem. Can't help with those terms. In HHI they use a milage rate based on the value of your home and if you own a 2nd home they hit you much harder. Essentially they finance the school district with 2nd home owners. Kind of sucks, but they can't vote unless they change their residence so I get the thought process. The property taxes killed us year 1 since we bought the house as a foreclosure when the home was valued at 650k; we paid close to half of that and we still hadn't sold our previous home. Glad that is all over and now we are valued at the market crash prices, but they will start reassessing soon and I am sure we will up in taxes.

 

[littleitch1]

Dr. Nole

I’m sorry,i misspoke

It’s the appraised value of the dwelling, not assessed

 

[Dr. Nole]

Dr. Nole

I’m sorry,i misspoke

It’s the appraised value of the dwelling, not assessed

No problem...thank you.
The current structure was last appraised about ten yrs ago at $218k

 

[littleitch1]

Spread out your improvements

Each year you can do 50% of the appraised value if that fema rule applies

 

[Dr. Nole]

Spread out your improvements

Each year you can do 50% of the appraised value if that fema rule applies

hmmmm....

 

[littleitch1]

Remember engineering, permitting cost are not included in the cost against the appraised value

Just labor and material for the improvement