what do you think?

Question

I was looking at house yesterday, and it's got lot's of potential. However it needs some major renovations, particularly the kitchen and the bathroom. In some of the rooms, the floor isn't level, which leads me to believe that there could be a problem with the foundation.
Another thing that makes me suspicious is the fact that this house has been on the market for six months and hasn't sold.

My wife and I love the potential the house has, but aren't sure if we want to put that much work into our first house. I want to get the home inspected too, because of the age and hope to use some information from the inspection in the negotiating. It's listed at 75,700, but the owner is desparate to sell. Do you think we can get the owner to sell for about 55-60,000.

Answer 1

renovatiotion arent as easy as you think.I wouldnt go for it

Answer 2

Investigate the comps -- that is, look at what similar houses in the area have sold for. Adjust for how much work would have to be done to this house to bring it up to the quality of those sold earlier. That's where a good inspection will help you a lot.

If you suspect the foundation might be faulty, consider having it looked at by someone who specializes in foundation work. Since the owners are eager to sell, they probably wouldn't object to your coming by with a general contractor to look at the kitchen and bath. Don't feel awkward about inconveniencing the owners -- they aren't in a position where they'd object.

Also, ask a real estate agent to find out why a house isn't selling. Bad floor plan? Not enough bedrooms? Steep stairway? Renovations would be extremely costly? The listing agent will know the reason, because she or he has been hearing about it for six months. My sister used to be an agent; she would routinely ask other agents why a house was turning buyers off. You need to know, because some day in the future you may want to sell it.

Also, don't be afraid to make a low offer. If they don't like it, the worst that can happen is they won't respond. Some people say, "I don't want to insult them," but that's silly in this situation. Don't badmouth the house: when you make your offer, have your agent say that you really like X Y Z aspects of the house, and that you know it would be a great place to live IF you get the necessary work done. Their agent will work to persuade them.

The bottom line is that houses sit on the market for one reason: the price is too high. You need to find out what it is about this house that makes it less desirable. Then bid accordingly.

Answer 3

Congratulations on making that step, I just did that in December. Anyway, we chose a condo that was also listed as "has potential" with bad paint, carpet, bad windows, bad carpet, and really outdated bathroom/kitchen stuff. It had been on the market for over 6 months as well, and listed at $89k. We were told by our realtor that we could put in a lower offer since there was so much we had to do (we also had to replace the furnace and all appliances) but he only suggested that we bid at $85k. That turned out to be the lowest the bank would ever go because that week they lowered the price to $87k. My personal advice is to underbid, but not by $20k. Have the inspection report with you and go with what you can reasonably afford. We're now saving monthly to put towards the remodeling. Good luck!

Answer 4

You could get him to knock the $$ but you need to get an inspector of your own. The mortage company might require it. Me and my husband just bought our first house 3 yrs and it's a fixer uper also. i am very handy, I work on the plumbing, help remodel more than any other woman I know. and while it's gratifying once I'm done, I regret buying it because of that. So do you have the time and $$ to do all this? Would it be more worth it to buy something better that you won't have to work on right away.