Remodeling is always more expensive than new construction. In the end, it would cost less and probably suit you more to buy a different home that already meets your space requirements including a second bathroom. Bathrooms are expensive spaces to add. They require a lot of electrical and plumbing. All told, it'll be more than 50K by the time you're done (and that's only $166 a square foot, which is cheap for remodel expenses). I'm sure that in Knoxville you could find homes that cost 50K more that had that second bath, and you wouldn't have to go through the dust and stress of remodeling.

Thanks for the responses!

Well, I'm pretty much committed now that I'm closing on the house in 6 days. So bailing out of this deal is pretty much not going to happen.

This house is the smallest and probably least desirable in the neighborhood (I like that!). I would say that the next house "up" in the neighborhood is 80% more expensive with others being between 2 and 3 times the price.

Given this, I am making the guess that this house might be a candidate for expansion. At times, I do think that I should have just looked for a different house... but I wouldn't have been able to afford this neighborhood. It's all a toss I suppose.

I am considering just making do with the house as it is. I suppose I can just add a 1/2 bath and live in it as is without getting involved in a major investment.

Part of my thinking is that by keeping this house affordable (minimizing investments in it), I will have a much larger potential buyer's market when I sell. If I convert this house into a pricier version, then the number people that can afford it will drop.

I'm not a flipper, but I do consider these things.

I'm also considering the hassles that I hear about from others who have done this to their homes.

On the other hand, it could be fun... I do love the location.

Any other thoughts would be appreciated.

Kelton

You can minimize expansion costs by having a rough in expansion done by the contractor. Then do the finish your self and/or using the handy guy. Rough in can be structure, finished roof, electrical/plumbing stub in, and siding -----or include insulation and drywall.

The major gotcha in that kind of situation is local codes/permit time. Sometimes there are time limits on building projects---they have to be done in XX months.

Best way to find out is to get estimates for different builds and check on code/permit restrictions. Then do what you can handle.

Don't know your space needs, (number of people living in the house), but you might consider that a small house is cheaper to maintain and quicker to clean. I was very interested in adding on but now that we decided against it, I'm happy every time I sweep. Also, DIY'ing takes a lot of commitment and patience. The realtors I've talked to have all said live in your house and forget about resale. I was worried we wouldn't be able to sell a 3 bed, 1 bath house but they all convinced me to relax. (Maybe thats part of their schtick.)

Is there room in the 1100 sq ft to add a half bath? That's all I would do. If you have a nice lot in a good location, and the surrounding homes are much larger, it could be that your future buyer will do a teardown. Meanwhile, enjoy your smaller home and your lower taxes!

Aw shucks... well, I suppose it's probably financially safest thing to just live in the house at it's current size.

Perhaps I will just focus on simply improving the overall soundness of the current house. The roofing looks to be long in the tooth, the little insulation seems to be from the 60's, and the plumbing looks like a mish mash of methods.

I have plenty of time to think these things over once I'm all moved in.

Again, I appreciate your input!
Kelton