Comments on: House Panic

Question: House Panic

fucker — Tue, 03 Oct 2006 16:31:25 -0800

HomebuyerFilter: Should I buy a major fixer-upper? I need to know if I'd ultimately be getting a good deal; what do I need to know to figure this out? For instance, what's the cheapest way to get a full repair cost estimate on this house before making the purchasing decision?

By: jerseygirl

jerseygirl — Tue, 03 Oct 2006 16:39:24 -0800

For instance, what's the cheapest way to get a full repair cost estimate on this house before making the purchasing decision?

Schedule a viewing of the house with a contractor, plumber and electrician. You may also want to include a structural engineer, as well, if you feel there's going to be issues in that area.

By: jamaro

jamaro — Tue, 03 Oct 2006 16:57:55 -0800

The above as well as checking with your city/county regulations regarding extensive remodeling and the property's status: anything which might get in between what you want and what you have.

examples of things to check:

Is the structure considered historical (if yes, "major can of inedible worms" warning) or otherwise a protected site?

Are there any environmental impact issues with the site? (natural water, toxins in the ground or on the house, etc.)

What are the local restrictions on extensive remodeling? (Lots of municipalities are enacting 'monster house' limits which often impact more than just the stereotypical McMansion)

IMO, the best deals that come out of buying a major fixer-upper is when the purchaser has the skill to do much of the work themselves. Additionally, I've found asking contractors for estimates is only fruitful when I'm able to communicate a clear goal vs. a vague "So, what do you think?"

By: matty

matty — Tue, 03 Oct 2006 17:04:00 -0800

A home inspection would be a GREAT place to start.

Ditto on the local ordinances, as well as a copy of the Home Owners Association's rules (for example, in my county home construction can not result in a roofline over 35 feet high).

By: jadepearl

jadepearl — Tue, 03 Oct 2006 17:04:57 -0800

Also, is this house for resell or is it going to be your main home? Remodelling an older home has a host of problems including any historical preservation issues or unforseen damages.

How much remodelling are you planning on doing? Are you willing to get down to the actual studs? How old is this house?

In addition to having all those contractors you might consider getting the most effecient and dependable housing inspector possible who has had a WEALTH of experience dealing with older homes and will give you a very honest assessment of your choices and options. Remember that any quote or range of costs you get will have to be multiplied by several factors to be sure to budget correctly.

Good luck.

By: LarryC

LarryC — Tue, 03 Oct 2006 17:15:07 -0800

What do you mean by major? Just from walking through, what can you tell that it needs?

By: Lyn Never

Lyn Never — Tue, 03 Oct 2006 17:20:34 -0800

If you're facing a potential Money Pit, this would be the phase where you do not want to cheap out. If you can't afford all the consultants recommended above just to come and give you an honest opinion, you're starting off in a bad position.

But definitely first off get a good, seasoned, highly-recommended house inspector before you pay anyone else. Or two. It's money well spent, and even if you don't buy this house, you will learn things from them that will come in handy going forward in your search.

By: stefnet

stefnet — Tue, 03 Oct 2006 17:39:43 -0800

- Is the structure considered historical (if yes, "major can of inedible worms" warning) or otherwise a protected site?

- Remodelling an older home has a host of problems including any historical preservation issues or unforseen damages.

I just want to point out that houses in historic districts and preservation issues in general should not automatically be categorized as "problems" and in need of dire warnings.

The trick is to get in touch with your state and local preservation offices and talk with them. You may find that, to your surprise, you'll be eligible for all manner of tax breaks, grants, etc. The key is to communicate so that you aren't unaware of any ordinances or guidelines the community may have in place.

By: Joh

Joh — Tue, 03 Oct 2006 17:56:21 -0800

Another consideration - will remodeling affect your property tax? If you increase the square footage or convert rooms into bedrooms etc then your property tax can go up, depending where you are and what local laws are.

Assuming you are thinking of having this house as your primary residence, then you are going to want to have a good contractor you trust, come over and have a look. maybe an architect too, depending whether you want to make changes or just modernise. Ask for recommendations from friends/co-workers. And the house inspector goes without saying too :) Good luck!

By: stefnet

stefnet — Tue, 03 Oct 2006 17:58:51 -0800

To the OP: I just looked at your Latitude/Longitude in your profile. If you are actually located near Ithaca, I probably have some contacts that would be helpful.

By: croutonsupafreak

croutonsupafreak — Tue, 03 Oct 2006 18:29:38 -0800

Don't do it.

By: craven_morhead

craven_morhead — Tue, 03 Oct 2006 18:31:02 -0800

Likely, no, unless you've got a lot of money, time, and know-how. Older homes tend to be giant, gaping money pits, especially if you can't re-plumb, re-wire, and essentially re-build the whole thing from the ground up.

My suggestion, especially if you're gunning for a good deal, is to find a place that's in structurally good condition but lousy cosmetic condition. Think old rental properties. I'm currently living in a place I bought for a song and, in the course of a week, 3 people put in enough work to bring the house up to par with houses costing $25k more. Improvements included a rolled rubber roof for part of the house, fresh paint, a heavy carpet cleaning, and some basement work, a touch of plumbing, and a good cleaning of everything.

Whatever you doo, good luck.

By: lilboo

lilboo — Tue, 03 Oct 2006 19:19:24 -0800

If you are going to do this, you might be interested in HUDs 203k loan.

By: paulsc

paulsc — Tue, 03 Oct 2006 19:21:09 -0800

The problem most people have with finding a fixer-upper is that they get too wrapped up in remodeling, and forget the basics of real estate, which is location and value. Unless you are buying the house you plan to die in, you're buying what you hope will become someone else's dream house one day. So, if you are trying to buy for eventual profit, you need to buy first for location, and then for remodeling possibilities. And unless you find an unusual home that was built with major floor plan problems, you are better off to stick with houses that need only external fixes like roof work, or cosmetic improvement, like paint, tile, carpeting and landscaping, if you hope to be able to control costs, or turn an eventual profit.

By: Mr. Gunn

Mr. Gunn — Tue, 03 Oct 2006 20:12:35 -0800

No, you shouldn't. Not unless you have a significant amount of technical ability yourself, in which case you probably wouldn't be asking this question. How will you know if the contractors you'll have to hire are ripping you off?

By: ilsa

ilsa — Tue, 03 Oct 2006 21:16:38 -0800

If you are sufficiently un-handy that you are asking here, you are not yet ready. Maybe 5 years from now such a project will not scare you. But right now, unless sweat-equity is one of your priorities, you are not ready.

By: john m

john m — Wed, 04 Oct 2006 03:42:15 -0800

I'd like to 2nd what stefnet said and add:

My wife and I are living in and performing a long-term major house renovation. It has cost more than we thought and has taken *much* longer than we thought, but it has turned out to be one of the 2 or 3 most meaningful things that I have ever been a part of. To do this, you have to commit. It will take most of your time and money and sometimes you will hate the house, but then again really wonderful things happen.

I had no technical ability when we started, but I've learned what I can do and I have a few friends in the business that have been good about keeping me on the right track.

For some great stories, check out houseblogs.net. There is also a forum where you can ask questions of people doing this type of thing.

By: DenOfSizer

DenOfSizer — Wed, 04 Oct 2006 09:14:03 -0800

The fact that you put the word "panic" in your title is sorta telling. Regardless of what we, the Hive Mind, consider a "major remodelling", if you're panicked about what you perceive to be a major remodelling - and are already looking at the cheapest way of determing value - it's probably not for you. Best to go into these things fully confident. Besides, the market's softening.