Good morning New Jersey!
Just another wonderful snowy weather day at the shore! For the record I hate snow, as do most people over 12 years old. The good thing is that this Sunday morning starts Daylight Savings Time!! Woohoo! If you have nothing better to do read this article about it…http://www.masslive.com/news/index.ssf/2013/03/as_daylight_saving_time_approa.html
Anyway, back to the 5-10 year rebuilding effort we are embarking upon at the Jersey Shore…which seems to get more difficult by the hour.
Yesterday we outlined 5 main lines of thought about rebuilding and received a few comments and questions, which mostly dealt with the need for greater detail. Before we begin, here’s a decent article from http://www.NJ.com which offers a good outline for your review. http://www.nj.com/news/index.ssf/2013/02/what_sandy_victims_need_to_kno.html
So, are you a bit crazy rebuilding your home, instead of going for a new home? Quite possibly.
Removing the emotion from the decision (which can be quite difficult, since it is your home), brings us to some dollars and sense considerations.
We will use the example of a 1250 square foot ranch, which is an average size home located on the barrier islands, or mainland side of the Barnegat or Great Egg Bay. This house was built between 40 & 60 years ago, and is sitting there stripped to the studs, at least 4 feet up the walls. After the furious frenzy to remove soaked debris, sheetrock and insulation to avoid mold, the poor homeowner has been buffetted about by all the rhetoric and nonsense from FEMA, state and local government, and numerous contractors who are completely out of their depth when giving said confused homeowner advice on how to move forward.
Confusion is reining supreme – should I rebuild? Demolish and go new? Do I need helical pilings (extremely expensive) or can I go with regular wood pilings? How much more will a new house cost? Why did this happen to me? (Oops – sorry – subject of another blog post!)
Let’s start with some general costs. Assuming you need to raise your house 6′-10′, install a regular piling foundation, and renovate the interior, rebuilding can cost you anywhere from $85 – $110 per square foot. A lot depends on the complexity of the move, how far the home is being moved, how extensive the damage was to the interior, and so on.
To demolish and build new in the same scenario, whether stick frame or modular, will generally run between $115 – $135 per square foot. The difference between the average costs for the 1250 square foot home are about $34,000.
A few key considerations are whether you have room on your lot to move your home while pilings are being installed. If you do not have room and you have to install helical pilings underneath your home, it is almost never worth the expense.
That being said, if you can move your home 40′-50′, the savings you are looking at may not be worth it. $34,000 over 30 years at 5% is $183 a month, or $2196 a year. You will save that in lower maintenance costs and much higher energy efficiency alone.
Whoops – the Editor just reminded me that I’m not writing a book here, and I’m supposed to keep it quick and to the point and consistently write every day, so that’s all for today.
As always, any questions, call me and I’ll try and help.
Another link to a seminar held by Little Egg Harbor attorney, Rich Kitrick, at which I spoke. Rich is a great contact for any of your legal needs, and extremely knowledgeable about Storm Sandy, FEMA, insurance regulations and requirements. Call him at 609 294 2227 for anything you need in those areas.
Tune in tomorrow for more rebuilding fun, New Jersey…
732 300 5619