HT Value question

Discussion in 'Home Theater Projects' started by ShelbyB, Apr 12, 2006.

  1. ShelbyB

    ShelbyB Stunt Coordinator

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    Does anyone here, or someone that you know of, like to share what the addition of a dedicated HT room as done to the value of your house?

    I recently bought a house, but none of the rooms really are ideal, or near ideal for a HT. Just wondering if anyone can say that the benefit to the resale value of the addition outweighed the cost of building the room. This is not to account for the cost of speakers and electronics.

    Just thinking about it, way down the road. However, if such a project were a financially wise one, it could happen sooner than later.
     
  2. Jim Mcc

    Jim Mcc Producer

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    It may or may not add value to your house. Some people would not want one in their house(believe it or not). If you want a HT build it, and don't worry about resale value.
     
  3. ShelbyB

    ShelbyB Stunt Coordinator

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    Well, for a several thousand dollar project, it is only fair to consider the resale value of it. Anyways, like I said, it will happen a ways down the road.

    I can see some people not wanting it, especially if its a smaller house and the HT dominates too much of it.
     
  4. Bill Lucas

    Bill Lucas Supporting Actor

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    Honestly, it's not likely to add one cent of value to your home. What it can add is increased saleability when it's time to market the home.

    Of course, you can always pull the theater out, do the appropriate drywall patching and painting to turn it back into a regular room and re-install the theater in your new home.

    Now if you are talking about building an addition to the house then there would certainly be significant added value to the house. You should be able to do a search of homes with the added square footage in your area to get a guage. I would recommend that the addition is built so that it can be easily converted to another use for future owner(s) of the house. Adding a bathroom, closet and window (which can easily be treated for darkness when necessary) can make the space that much more saleable and valuable when it's time to sell.

    Hope this helped.
     
  5. ShelbyB

    ShelbyB Stunt Coordinator

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    Right, I am talking about adding a room. Well, in this home, I am thinking about making one room bigger, thus adding square footage. I would say that your comparison suggestion is a valid one, but not for me. Its a brand new home, with no comparable homes, and it was underpriced to begin with, and the market in my area is just too dymamic (in a good way) right now to do a fair comparison.
     
  6. Jay Mitchosky

    Jay Mitchosky Producer

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    Agreed with the comments above. Depending on how dedicated the space is you may actually limit the market. For example, I have a 23x17 dedicated room. If a home theater buff came to see the house they'd be on it like ugly on an ape. But someone not so inclined merely sees a room where significant remodelling will be required (at significant $$$) to turn it into a useable space. Plus it really dictates a basement layout that is less than optimal.
     
  7. Brian Osborne

    Brian Osborne Stunt Coordinator

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    Agreed. the right buyer would salivate and another buyer would back away.
    But, you are not building it for the next person to use. Build it for yourself and enjoy it.
     
  8. mylan

    mylan Screenwriter

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    It really all depends on what type of house it is and, more importantly, where. In some higher-end houses, wine cellars and theaters are almost always highly sought after amenities.
    I have, unfortunately, a different story. My wife and I had a custom house built in summer of 2004 in a nice neighborhood of homes in a range of $260's to mid $300's. Since we have no children, we built a ranch, with two bedrooms up and one down as well as a common area for a pool table with wet bar that opens into a theater area. We had about $9,000 in upgrades: cat5, whole house audio wired, dual RG6, etc. and had it appraised for the purpose of refinancing a home equity loan. Well, it came back $40,000 LESS than what we paid one and a half years ago, due to the fact that other homes (comps) had one more bedroom or a few more sq.ft.
    Even if a H.T. buff wanted to buy, he would get it appraised and find the same thing we found out. Yes, we enjoy it, but I wish we hadn't bought one of the most expensive houses in the neighborhood, sorry, i'm ranting, but this thread just jumped out at me while trying to forget...
     
  9. Mike LS

    Mike LS Supporting Actor

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    Having a dedicated or semi-dedicated HT isn't going to affect an appraisal in most areas. Any added or detracted value will be in the eye of a potential buyer.

    That's one thing I thought about before remodeling. It wasn't very difficult to build a dedicated area that can fairly easily be converted into general use space.
     
  10. drobbins

    drobbins Screenwriter

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    I built a theater, then my house flooded. I rebuilt it again and did some upgrades to it and the rest of the house. Now my brother is going to buy my house and I am building on the lot next door. He barely watches TV and will have no use for the theater. When we had the house appraised, they appraised it as a finished basement only, not the theater. We will take the seating and equipment with us though. After I move out I will patch the holes in the walls where the speakers mount, put cover plates over the wires, remove the riser and relocate the baseboard. I can't do much about all the speaker & video wire in the walls. Had I known at the time that he was buying the house, I don't know if I would have rebuilt the theater.
    I guess theaters are kind of like pools, if the buyer wants it it can add some value. But if the buyer does not, it can detract if there is some cost & work to remove it.

    Oh-yea, we have a pool & deck that he doesn't want also
    Dave
     
  11. JeffCar

    JeffCar Agent

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    Mylan,
    The first three rules of house buying are location, location, location.

    Unfortunately what you speak of is one of the top ten rules for house buying....Don't buy the most expensive place in the neighborhood, as you are then faced only with others pulling you down, not up. It doesn't have much to do with the HT room.

    That being said, the other advice is very pertinent... go enjoy your theater! I have been working for two years building mine in my limited spare time, and I am expecting to FULLY enjoy the result.

    Jeff
     
  12. TommyHawk

    TommyHawk Extra

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    Right. Appraisers/realtors will look at the square footage and comps in the area. Your HT will certainly rate a "theater room" or "high tech cabling" mention on the flyers, but the intrinsic value will be mostly lost, dollarwise. If you leave all the equipment and the HT ready to use, realtors can probably add some of the direct cost of that stuff (just like if you had put $20k in an upgraded kitchen), but it might push your listing out of whack with the comps for your square footage. In most situations it would be tough to put a "premium" on your HT.

    Of course, should a HT buff find your place and love your theater, that person would almost certainly want and NEED to make changes of their own!
     
  13. mylan

    mylan Screenwriter

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    I agree with you both, location wise, it is in a desirable part of the county but we did go somewhat over the median price with a few upgades. The house itself looks like any other house in the subdivision, its' not a McMansion among mere homes.
    I did speak with my realtor who said that because the appraisal was for a Federal Credit Union that their guidelines were more strict, and she had done a comp herself and figures actual selling price would be higher, more in line with our area.
    I do love the theater though!
     
  14. Todd L.

    Todd L. Auditioning

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    Jeff, I know what you mean. I've been working on mine for three years now and I am finally seeing the "light" at the end of the tunnel. My wife pointed out to me that there were names and numbers on the 2x4's across the walls. My name, my oldest son's name and our ages. She made fun of me becuase my age changed from 28, to 29, to 30 and would have changed to 31 before I was done had I not just finished the drywall! But it will be nice once it is all finished. (Hopefully by the end of the summer). I'm just gonna enjoy it, I don't care about the possible $$$ ramifications in the future.
     

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