We're looking to buy a house but it needs a lot of work. I'm trying to get a ballpark figure of how much it'll cost us to renovate and if it's worth it to buy.
The house is 1300sq ft, needs new flooring (wood laminate), a new kitchen with cabinets, counters, appliances, 2 new bathrooms including all fixtures except the toilets, new paint including ceiling, baseboards and doors for closets.
The landscaping needs to be done, and the exterior trim needs paint.
It's $235K, market for a house in that neigborhood, same style is $265-280.
Should we buy?
2007-07-06 07:36:38 · 10 answers · asked by Jilli Bean 5 in Business & Finance ➔ Renting & Real Estate
That's alot of work for one house. How is the outside? If the outside needs work like a new roof or something, I would say don't buy it. I was looking at a house that needed work and in all reality the house just needed to be completely rebuilt. If your not skilled in doing all this work your self and need to hire people, the price is going to get HIGH, and after getting a loan for the house it's very unlikely you could get another loan for the amount of work. I'd keep looking around for one in better condition.
2007-07-06 07:45:40 · answer #1 · answered by aprillb2004 2 · 0⤊ 0⤋
With the little that you have given it sounds like a good thuing to pass up. You are talking at least 30-40K worth of renovations, without problems. If you are serious you should get a contractor to give you a written estimate for the fixes. It might cost a $100 to get the estimate but that is a lot better than 30 years of paying for a misteke. It would be a good idea to have a professional contractor to make sure there isn't more that is wrong with the house. This is a normal house inspection that should be done anyways.pp
2007-07-06 07:47:24 · answer #2 · answered by ttpawpaw 7 · 0⤊ 0⤋
You can go to one of the home improvement places for estimates for do-it-yourself stuff, and some will actually break down jobs they have contractors for into how much for labor and how much for materiels. For comparison, I would contact a reputable contractor to look at the work and give you an estimate. Be aware that you will probably have to pay for the estimates in some cases, but they will usually discount the job by that amount if you end up choosing them to do the work. Personally, I think you are looking at more money than it's worth. If you expect to pay the difference between this house and comparable ones like you mentioned, that only allows you 30-45 thousand for renovation; you could spend that in one room alone, especially where wiring or plumbing is involved. In the end though, it comes down to whether you love the house enough to go through the pain.
2007-07-06 08:22:45 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Offer $180K, You may have a problem getting a loan.
OR find a house that is in top condition for $260K.
Many areas it's a buyer's market. Don't be pushed into making an offer by a real estate agent.
Many homes will be worth less in 6 months, and maybe less than that next year.
Get your credit score up and save up for a down payment.
Don't even consider buying a money pit unless you REALLY understand what you are getting into, and have done similar work before.
2007-07-06 07:59:23 · answer #4 · answered by CommonCents 4 · 0⤊ 0⤋
Depends on what you want to do with it in the end. You didn't say whether you are planning on living in it or selling it for profit. It also depends on if you anticipate home values in that particular neighborhood to increase over the time you will be keeping the home. It would probably cost you $20-30k to update the home if you did most of the work yourself. You will need to add capital gains tax, real estate fees, and carrying costs if you decide to just "flip" it. If you hold onto it for a couple years, rent it out and can cover your mortgage, it may be a good deal.
2007-07-06 07:48:07 · answer #5 · answered by Candace 1 · 0⤊ 0⤋
No way. I think this market is so depressed that the values are going to continue to fall. Also, you will have to put a ton of money into that house perhaps just to get it to that same style market value. If it's in as bad of shape as you say, I'd be starting my offer closer to the 185-195 thousand range. Remember, it's going to cost a lot to fix all those other things.
2007-07-06 07:43:57 · answer #6 · answered by Rckets 7 · 0⤊ 0⤋
It sounds like what you need to do is probably going to cost in the vicinity of $30-50K depending on the costs of the upgrades. Did you try to offer a lower price on the house since it sounds like a fixer-upper anyway? Perhaps offer $210 or $220k instead.
If you did all of this yourself, I'd guess it would cost you about half of that for material and paints.
2007-07-06 07:47:26 · answer #7 · answered by vgordon_90 5 · 0⤊ 0⤋
It all depends on the cost to do the upgrades. I estimate the work you want to do to cost about $35k (unless you do it yourself).
2007-07-06 07:43:01 · answer #8 · answered by Anonymous · 0⤊ 0⤋
Unless you are capable of doing all the work yourself, I'd say no.
2007-07-06 07:40:59 · answer #9 · answered by Anonymous · 0⤊ 0⤋
yes
2007-07-06 07:44:45 · answer #10 · answered by Alterfemego 7 · 0⤊ 1⤋