Are fixer-uppers worth it?

Question

There's a house and barn on 15 acres for $75,000. The property is fenced and has two ponds. From what I've seen in the real estate world, this is a good price. There has to be a catch...and there is. The home is only 780 square feet. That'd be fine if it was just my husband and me, but we have three kids and hope to be blessed with more. Of course, we could always do an addition later. There is another catch...the house needs "repair and updating". It was built in 1940 and has the original carpet, linoleum, windows, etc. The electric has been updated. The biggest "problem" is that the original foundation was stone or something and the floor is starting to sag. The Realtor said that she bought a house a few years back that was having a similar problem and that they hired a contractor to go in and correct it. It cost her about $500. I would imagine it'd cost a little more than that now. Anyway, are fixer-uppers worth it?

Answer 1

1) Sounds like the property is being sold for the value of the land only. 15 acres for $75,000 is $5,000/acre which is incredibly inexpensive in many parts of the country.

2) Are fixer-uppers worth it? To me, absolutely; however, this is what my husband and I do for a living. If you have the funds or are handy and can do many of the repairs yourself, it could definitely be worth it. Depending on the zoning, you could have alot of different possibilities with this property, ie: a) buy a used mobile/manufactured home to live in while you repair the old house to your liking, then move into the old one and rent the mobile, b) build new and rent out the old one, c) build new and demo the old one, d) live in the old one and repair it while you live in it.

3) The biggest problem I see is the size of the house. That's an incredibly small house for 5 people, especially when you're trying to fix it up.

4) The repairs. The house probably has pier foundation. It's not necessarily a difficult fix but it can be costly as the house will need to be jacked up while the contractor is under it resetting the broken piers and adding new ones as necessary. In rural Florida, it's a minimum of $4,000 to do a repair like this. The windows will likely also be a costly repair. Most older houses have 'odd' sized windows and those will be a special order item if you choose to keep the same size. The plumbing will also have to be updated, another costly repair. The well and septic should be checked, and if you choose to add-on in the future, the existing septic may not be large enough to handle another bathroom so you'd have to put in a larger septic. Other big considerations are AC and heat, roof, any structural that broken piers may have caused in the load-bearing walls, and termite or wood-boring organism damage if it's a frame house and you live in a warm area. You'll also want to look out for mold. Everything else is pretty much cosmetic.

5) If you really think this is a house you want to get in to, you may want to put the property under contract with an as-is clause that gives you an inspection period. Do your homework during this time period and hire a home inspector, well & septic inspector, contractor, and pest inspector. Make sure you know exactly what repairs will be needed and how much they will cost before your inspection period runs out. In Florida, the as-is contract gives the buyer an "out" through the inspection period and a max amount for repairs. If estimated repairs are more than what's on the contract, you can cancel the contract. Hire a reputable buyer's agent who will work for you and can guide towards reputable inspectors and contractors, negotiate for you, and make sure all of the inspections are performed in the given time period.

Answer 2

First thing to do is, if you have a serious interest in the property, is get a building inspection (Architect inspection) done. This may cost a few hundred, but considering the investment, its worth it. You should then receive a written report, to the condition of the house and any work/maintenance that needs to be done. That will give you a realistic idea of what you may be up against. If the Reality Agent says no to an inspection - RUN.

Whether fixer-uppers are worth the hassle depends on a few factors.
1/ How much work needs to be done, and can you AFFORD the extra it will cost? Get quotes, using the building inspection as a guide.
2/ Are you prepared to live with the mess/inconvenience while the work is being carried out? Can you live there at all while the work is being done? Some things may require the house to be vacated. Can you/ have you somewhere else to stay nearby, if you can't? You want to stay close so you can supervise.
3/ Can you cut some costs by doing some of the works yourself? Be realistic about what you can and can't do. And don't underestimate the time it will take to get things done.
4/ Are you willing to stay in the period style of the house? Otherwise there are major changes to Kitchen, bathroom, and laundry fittings which will add hugely to the overall cost.
5/ If you want to extend get an estimate as to how much that would cost, for what you want, and factor that in.
But if you are willing to put the time and effort in, are willing to live with the mess, can afford the renovations, and are willing to put in a lot of elbow grease, you can have yourself a real beauty at a bargain price.

(And I doubt that she got away with $500 for foundation repair work, unless it was extremely minor.)

Answer 3

Sounds Like Realtor Wants To Make Sale Make A List Of Needed Repairs Have A Contractor Give You Some Estimates Before Closing

Answer 4

The realtor is shining you. No contractor would repair the gutters and caulk the windows for much under $500.

Here's the risk/reward tradeoff on the property.

Does it have a well or city water? If it has a well, it's going to have problems and you have to add that into the cost of the house "just in case".

Does it have a septic or sewers? If it has a septic, have it checked out before you even get into a contract. They're not cheap to clean out...and even more expensive if the field is in bad shape.

15 acres is a great piece of property for that price. Realistically, that house will kill you in less than a year. It's just dismally small...and that's long before you get into the costs of repairs. Would you be in the position of building a new house on the property and tearing down the old one in the next few years? If you could do that, buy it for the land and just figure it's $10,000 to get rid of the old one...unless you get the local fire department to burn it down for you as a training exercise.

Otherwise, if you can't afford a new house on that property, you're buying a money pit.

Answer 5

$500 for repairs seems cheap. I think the woman is pulling your leg. Also 750 Square feet for You, Your Husband, and Your Three Kids? That seems like you are crowded.

For that kind of money, I would think you could buy some nice land, and build a nicer house than you could fix. It may be more expensive, but at least you know what you are getting.

Fixing that foundation isn't no simple matter. Especially if its sagging. There could be alot of damage to the underbelly of the house, and that would cost more to fix it, than it's worth.

A realtor is the same thing as a car salesman. They will lie just to make a few dollars.

I wouldn't do it.

Answer 6

Some times they are, but I would hire an inspector. It is well worth the money. Also, is the realtor the buyer's agent or the seller's agent? If she is the seller's agent, don't believe a word of it. She is looking out for her client, and that is not you! Almost bought a house a year ago. Discovered that even tho I had hired a buyer's agent, she was more interested in her commission than in looking out for our interests. Eventually wrote her boss a letter indicating the law, the realtor's code of ethics, what she was doing and not doing, and fired the agency. They really didn't want us going to the authorities. Found a real, ethical buyers' agent who worked hard and found us the house we bought. We're very happy with it.Good luck. BTW- stone basements are wonderful, but if the floor is beginning to sag you may have serious structural problems that could go all the way to the roof. That is not a $500 repair. You might want to hire a structural engineer rather than a simple inspector. Some of them don't do their jobs very well.

Answer 7

they are IF you do the math and the figures work out, are you and your husband handy with a hammer? if not then you need a contractor to do all the work, at 60 to 100 per hr it adds up fast. Also do you have the funds to purchase materials and labor,if you do an addition? Don't listen to realtors that are trying to sell you a house, get a estimate from a reputible contractor for the sagging floors

Answer 8

OMG foundation is probably the most expensive thing to fix! That is going to cost way more than $500! However, I live in CA, and if there was a spot for 75k on 15 acres, I would buy it up in a heartbeat. But I am guessing this is not in CA.

Answer 9

Only if you have the financial means and know how to fix it up. It can be costly in todays world to do major repairs. I mean its definately worth it, watch HGTV they always have shows on about flipping houses. You can get an idea of what you will be taking on...

Answer 10

If you're willing to put the time, money and attention into redecorating and fixing up a place then it is ABSOLUTLY worth it.

What you should do is think, 'Is the intial price of this home worth what I'm going to be emotionally and physcially putting into it'?

If it were me, I would most definitly take it. but that's just me. It's all dependent upon whether or not you're willing to put in the extra time and effort for it.