Would you buy this home?

Question

We are thinking about buying this beautiful Victorian home. We can pay for it outright but it needs some work. It has a new roof but needs a new paint job which is mucho work. The mechanicals are updated but the interior is ugly. Wallpaper needs to be torn off, carpet removed, floors refinished, ect.... The "bones" of the house seem in good shape. It just needs some good old fashioned elbow grease. The sellers are asking 135,000 for the house which I think is very reasonable, even with the work that needs to be done. I have always admired this home when I walked by it. What do you think?
http://i238.photobucket.com/albums/ff36/...

http://i238.photobucket.com/albums/ff36/chrissygiese/WaupunVictorian.jpg

Answer 1

If you can fiance it and you like the house, go for it! I'd love to own a Victorian myself. The interior you can work on over time, just make sure the exterior and things like the electric and plumbing should be top priority.

Oh yes, I was also told to take the money and time you think you need to fix up the place...and double it. Good luck!

Answer 2

It depends. On the bare bones this is a good type of property to buy as well as a good time to buy. The questions are how good is price and what would you do with it?

The major one is what would you do with it. Is it to live in? Then if that is what you want, then the other questions are less important. Buy it, put the time and sweat into it.

If it is for an investment or rental, then you should look harder. If you haven't done it before, renovating property generally takes much more time and costs, much more than people give it consideration for. Bring in a couple of good contractors to give you estimates of how much they would charge to renovate. They are likely to point out items that need to be done that you didn't consider. Get a couple of quotes for this.

Then check comparable properties that were in decent shape, what are they worth? Develop an idea of what the true value of this property would be if in good shape.

Then subtract the costs of repairs from the reasonable value. This should give you a maximum amount you should be willing to pay for. Sure, you say, you plan on doing a lot of the work yourself and save money over a contractor, but your time is worth money too, and your sweat should translate into equity, don't you think?

If your calculations still show that $135,000 is a good price, then I'd go for it. If not, offer what seems a good deal for you.

Good luck

Answer 3

Questions to ask
How and what type of heating? will you have to replace
Windows are old style single pane the will have to be replaced or you heating cooling bills will be astronomical.
Yard need work
Has the electric been updated recently not 30 years ago?
Has the plumbing?
Is it insulated?
Do you have the time and skills to do allot of the work?
Is it a depreciating neighborhood, or are homes holding their value?
What is the appraisal?
How long has it been on the market, might get a better price.
if it has been there long.
Get estimates as to how much refurbishing would cost so you know where you stand cost wise.

Answer 4

If everything is alright structurally and you have the money to buy it - GO FOR IT (definitely get an inspection though)!! If you don't mind living in a war zone for a few months, it'll be worth the investment. You'll be able to put quality finishes in the house and increase the home's value tremendously if it's updated. It's a great way to make a lot of money and to get the perfect house! Seems like a win-win situation to me!

Answer 5

It depends on what form the asbestos is in. If it's just pressed asbestos tiles, like the siding on my house, it poses no risk. If it's fibrous insulation, then there is a serious potential for severe health problems. Hire a home inspector, and get his opinion. If it is dangerous, it might be cost-prohibitive to fix it. Good luck!

Answer 6

You said that you can buy it out right. I might suggest though, that with the ammount of work that will be needed that you finance a portion of the home, say $50k.

Why?

Because unless you have the funds to pump into the home to repair it, you'll likely get e better rate off of a home loan than your credit cards.

Also, the loan can be beneficial for your credit score.

If you love the home and can afford it, go for it!

Answer 7

Sure,, if you really want it. I would pay for a home inspection first however. About $400 but it could save you a lot of grief in the future.

A home inspection can let you know about problems that could be very expensive to fix but are hidden, or it could put your mind at ease knowing you have a great house.

Answer 8

I think most homes for that price are worth it. From what you described, you seem to be getting a good deal, but you never know until you open up the walls where you can discover old pipes, HVAC, electrical, mold, asbestos, water damage etc.

Answer 9

You seem to be answering your own question. If the "BONES" are good and all that is required is cosmetic work, and if the price is right ......go for it.

BUT, I would still want a whole-house inspection done, just to verify that the bones are as good as you believe.

Answer 10

Sounds like you already made up your mind. You obviously love the place and know it needs some work...but the price is good. I would go for it.