How to Plan and Remodel Attics and Basements: Practical Considerations

One of the first questions you need to answer is whether any type of conversion is legally permissible. Certain home improvements may be subject to regulations laid down by your local building department, planning commission, or neighbor hood association. Your property deed may also contain restrictions.

Because attic and basement con versions involve existing space, they are seldom totally prohibited. But there may be limitations on the way they are used. For example, a separate apartment may not be allowed. There may also be restrictions placed on changes to the exterior, and the installation of a new dormer window may not be allowed.

The quickest way to find out if you will run into any problems is to phone or visit your local planning commission or building department. Explain that you are considering an attic or basement conversion and need to know if special restrictions apply.

If you live in a subdivision or an area with a neighborhood association, check to see if any type of conversion is subject to CCRs (Conditions, Covenants, and Restrictions), design review, or similar regulations. Finally, make sure that the deed to your property includes any clauses pertinent to remodeling.

These preliminary inquiries may save you valuable planning time should you discover any serious prohibitions. You can also find out what is involved in obtaining a variance if you feel your project merits a special exception to any regulations.

Budget

“How much will it cost?” is the question most people ask first, but more important is the question, “How much can I afford?”

To answer this question you need more than a quick look at your bank- account balance. For a realistic answer, you need to know:

-Your total net worth.

- Anticipated new expenses (a baby, a car, college expenses).

- Your expected cash flow during the design and construction phases (and afterwards if you obtain a loan).

- Your borrowing power: You will not know your actual borrowing power until you apply and qualify for a loan, but your balance sheet will give you a pretty good idea. As well as a financial balance sheet, the lender will want your credit history and the assessed value of your home, if it will be used as security.

Once you determine your net worth and borrowing power, you can ask the question, “How much money am I willing to commit to either an attic or basement conversion?” The answer depends largely on what such a conversion is really worth. The value of your home won’t necessarily increase by the amount of money spent on improvements. The value is largely determined by the area in which you live. Consult with a local real-estate agent to determine the value of homes in your neighbor hood and how much your home might be worth after the conversion project. For a more precise estimate, arrange for a professional appraisal (which will be required, anyway, if you apply for a home loan).

By comparing the current value of your home with its potential value, you will have a good idea of how much money to devote to improvements. If you love your home and neighborhood and plan to stay, spend whatever it takes—even though you might not recover your costs should you have to sell. If you aren't so attached, it might be better to invest your resources in a larger home rather than adding new living space to your present one.

Practical needs

Budget isn't the only factor that sets the limits of a project. Equally important are your needs and expectations. One of the most important questions of any remodeling project is one that's asked all too seldom: Why are we doing this?

Clarify your priorities. A successful conversion is designed for specific needs. Begin by thinking about your home as it's now. Imagine all the ways it could be improved, all the ways you could use extra space, and all the ways your existing space could be enhanced. Create a wish list—all the things you would like to have. Then prioritize your wishes.

You may discover that an attic or basement conversion does not even address the most important issues and isn't as urgent a project as you had thought. Your list may also suggest other ways to use your attic or basement than you had originally planned. Most importantly, when you work with design professionals, these lists will enable them to provide better assistance.

Establish your level of commitment. How important is this project to you and to your family? How much time, money, and effort do you want to spend (number of hours per week)? When you answer, consider the activities that you are willing to give up for a while and the type of life-style you are willing to endure while your project is being designed and built.

Decide on the scope. Even before you begin a design you can make some important decisions about your project. Are you just finishing some walls and ceilings in the basement or are you getting involved in a major restructuring of the house? Do you want something really special, or just adequate? Do you have other options, such as converting the garage or building an addition? The answers will affect how much professional help will be necessary and what work you must do yourself.

Before getting too deeply immersed in your remodeling plans, do some careful thinking. Be sure that what you want coincides with the amount of time and money that you are willing to invest.