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I know almost nothing about real estate so I apologize if I sound like an idiot
My child might be buying an older home soon. Built in the 1980s or so.
The home is in a prestigious town, and on a nice flat piece of land.
It is selling for possibly 30% below market value because while it is hospitable it is in pretty bad shape, and I guess the aged owner wants to get rid of it fast?
He wants to buy it, and maybe slowly renovate. Not all at once but over the long run (maybe next 5 years).
What would he need to do to bring the home up to 2021 standards?
He is willing to spend $1M on renovating the home which is around 6,000 square feet first/2nd floor.
I'm assuming the first step is to find a design consultant who can visualize exactly what to do, and after that would be to find contractors right?
Where is the home located? What problems did the inspection show? Has there been any reasonable estimate on how much it would cost to fix whatever defects are shown in the inspection?
There's a huge difference between old 80s finishes that need to be updated and a bad roof, failing foundation, and/or termite damage.
If the home is selling for so much less there must be a reason, and I'm betting it's beyond brass fixtures and oak cabinets.
If it's worth 30% less than comparable houses due to its condition, it's not selling for 30% below market value--that is the market value.
The value of any house, in whatever condition, is very much dependent upon its location and the local market. No one can say whether the purchase, or investing $1 million in renovations, is a good investment without knowing further information.
I certainly wouldn't pay that much regardless...but who really needs a 6,000 square foot home?
If he buys, then first step is to hire an architect. Older home, 1980s, LOL.
Yes, an architect is the appropriate professional for a project like this. They have the training and expertise to coordinate engineering and design, bringing in the appropriate engineers if they are needed.
Agreed, 1980s is not an older home.
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Originally Posted by astrocytoma
It is selling for possibly 30% below market value because while it is hospitable it is in pretty bad shape, and I guess the aged owner wants to get rid of it fast?
He wants to buy it, and maybe slowly renovate. Not all at once but over the long run (maybe next 5 years).
What do you mean by pretty bad shape?
A 5 year renovation would actually be a series of projects. It will be cheaper to combine them all in one big project, but if cash flow requires them to be spread out, that is reasonable. The architect will be able to advices on the best sequencing.
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What would he need to do to bring the home up to 2021 standards?
What do you mean by this? If you mean cosmetic finishes, casework, colors, that is all a matter of taste and requires an interior designer or somebody with an affinity for it. If you mean building code, that isn't technically necessary. The house is grandfathered into the code applicable for the date of construction, and unless you are redoing substantial portions, there is no need to bring to 2021 code.
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I'm assuming the first step is to find a design consultant who can visualize exactly what to do, and after that would be to find contractors right?
Yes, this is the architect, and then you find a contractor. You can also find architects working in collaboration with a general contractor as a team. There are benefits to this if you get a good team.
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Is $1M far too less for a 6,000 square foot home?
Thank you
Impossible to tell based upon the lack of specific info in your post, but that equates to a remodel cost of $166/square foot. That would typically be a pretty reasonable budget, but so much depends on the details.
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