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In my experience - whatever you think your budget is, double it, and make that worst case scenario. Because more often than not, you will go over budget due to so many unknowns in such a problem-type of a house, better to set worst case expectations now.
@ chet: the house is being sold in the low 200's, some houses in this neighborhood have sold @ 300K a few years ago, but most recent sales have been in the mid 200's trending down. The big problem for home sales in this area being very high taxes going upwards.
If you can find a finished house for 250k, get that. Right now, you're looking at low 200k and then putting more than 50k into it. Are those houses for 250k and 300k in the same condition as the house you're buying?
Sounds like the "discount" is just not big enough and frankly with the agent not being 100% on top of a "short sale" potential means it probably will NEVER get lender approval...
2) 3 fireplaces, the biggest fireplace chimney is made with stone masonry, our inspector said that it is settling away from house, showed us the crack along the chimney- wall joint, showed us that the hearth stone is cracked on the inside. He can't say whether the settling is over or is ongoing, refers us to a structural engineer.
YOU JUST NEED A GOOD CONTRACTOR IN ALL LIKLIHOOD.> GET A PRICE BEFORE YOU BUY. IT MAY BE A LOW COST REPAIR. COULD BE MUDJACKING. COULD BE A COMPLETE REBUILD AND NEW FOOTINGS. A CONTRACTOR WILL GIVE YOU MORE PRACTICAL SUGGESTIONS THAN AN STRUCTURAL ENGINEER. THEY WILL OVERKILL TO PROTECT THEMSELVES FROM LIABILITY. THE SE DOES NOT CARE WHAT IT COSTS YOU, THEY DO NOT CARE WHETHER OR NOT YOU HAVE THE WORK DONE, THEY WANT TO AVOID GETTING SUED.
IF IT IS MINOR OR CAUSED BE AN ISOLATED EVENT, YOU MAY GET AWAY WITH JUST FLASHING AND CAULKING IT. YOU NEED TO FIND OUT WHY IT IS SETTLING. IF IT HAS NOT FALLEN OVR OR EVEN OPEND UP A GAP IN 50 YEARS OR MROE, IT IS NOT A DRAMATIC PROBLEM UNLESS SOMETHING CHANGED THAT CAUSED IT TO START SETTLING RECENTLY.
Other fireplaces have been converted to gas, but have rusty dampers etc, one fireplace has a missing hearth and a damper that is sealed shut due to corrosion. Another one has a gas log insert which might be a non-venting type but is being vented through the chimney.
CONVERT BACK TO WOOD> YOU CAN FIND REPLACEMENT HEARTHS AT SALVAGE STORES, BUT IT CAN TAKE A WHILE TO FIND THE RIGHT ONE AND RIGHT SIZE. IT IS FUN TO HUNT FO RTHINGS LIKE THIS. A CHIMNEY REPAIR COMAPNY CAN RESOLVE THE DAMPER ISSUES. OR YOU CNA DO THIS LATER.
3) Basement has had moisture on the inside, inspector says it is not a structural issue, will have to be regraded. My question is: how long has the sill plate, rim joist etc been soaking water? Could they be rotten already? There are signs of old termite damage, seem to be treated and no signs of active infestation.
GENERALLY EASY TO REPLACE GET A QUOTE. REGARDING CAN BE EXPENSIVE. YOU MAY ULTIMATELY NEED DRAINS INSTALLED IF YOU DO NTO HAVE THEM. INSPECTORS DO NTO KNOW ALL (MANY DO NTO KNOW MUCH THAT IS WHY THEY ARE INSPECTORS INSTEAD OF CONTRACTORS - BUT SOME ARE QUITE GOOD). REMEMEBR THE INSPECTOR HAS ALMSOT NO LIABILITY FOR ANYTHING THEY TELL YOU. GET IT VERIFIED.
4) Part of the stone foundation has never been pointed, will need to be taken care of.
NEVER POINTED? THERE IS NO MORTAR AT ALL? IF IT JUST NEEDS REPOINTING IT IS AN EASY DIY. IF NEVER POINTED, SOMETHING ODD IS GOING ON THERE. ARE THE STONE JSUT STACKED ON TOP OF EACH OTHER WITH NO MORTAR?
5) Exterior is brick, several lintels are rusty, bricks have developed cracks.
PROBABLY NO BIG DEAL. HAVE THE FOUDNATION GUY LOOK AT IT.
6) Exterior window sills are rotten, will need replacement.
THIS IS A PIA, BUT NOT A HUGE DEAL.
7) One shower stall is leaking, the water poured into the basement from the second floor, when the inspector did a standing water test; are the subfloor and floor joists likely to be rotten?
THIS IS BAD. IF IT HAS BEEN LEAKING LONG, YOU MAY HAVE ROT EVEN INTO THE WALLS. WE HAD THIS, WHEN ALL THE ROT WAS REMOVED, WE HAVE A GIANT HOLE. NO WALLS, NO FLOORS, NO FLOOR JOISTS, NOTHING. EXPENSIVE. WE DID NTO REPLACE THE BATHROOM, JUST ELIMINATED IT AND EXPANDED THE ROOM IT WAS BUILT INTO.
8) Insulation batts have been stacked against the rafters, our inspector says that the attic has no functional ventilation because of blocked gable vents and sealed windows. What effect might there be on the underlayer of the roof?
NOT ALL ROOFS NEED VENTILATION. WITH FOAM INSUALTION YOU DO NTO VENTILATE. SOME ROOFS HAVE SO LITTLE SPACE INSULATION FILLS EVERY INCH. THERE ARE DIFFERNET TYPES OF ROOF. HAVE IT LOOKED AT BY SOMEONE WHO UNDERSTANDS MORE THAN JUST THE MOST COMMON PRACTICES. IT SOUNDS LIKE YOU COULD CUT A HOLE AND PUT IN A FAN AND SOLVE THE PROBLEM, BUT I AM NTO SURE WHAT YOU ARE DESCRIBING.
9) Attic electricals are a mess and a safety hazard.
SO RE-WIRE IT. TWO WEEKENDS, PLUS MAYBE A WEEKEND READING A BOOK.
10) Water heater and HVAC both might need to be replaced soon, they are more than 12 years old and have some back draft problems.
THAT SHOULD PROBABLY BE EXPECTED. DISCOUNT THE PURCHASE PRICE TO COVER THIS. LOOK AT TANKLESS IF YOU CAN AFFORD IT.
11) Other minor issues (no GFIs in kitchen, sunken front steps etc)
GFIS ARE VERY VERY EASY. YOU CAN ALSO INSTAL A GFI BREAKER IN YOUR BOX INSTEAD OF INDICVIDAUL GFIS, BUT I PREFER INDIVIDUAL GFIS.
12) We also need to remodel the bedrooms because current owner made very personal changes to the original plan, without the remodel this house will likely have a very limited market. The remodel involves putting up some internal walls and closets, outlets etc. We got an estimate of ~ 15K for it.
OOPS. I THOUGHT YOU WERE BUYING THE HOUSE TO LIVE IN. IF YOU ARE BUYING IT TO SELL IT, RUN. THIS IS NOT AN INVESTMENT HOUSE. THIS IS A HOUSE TO LOVE. IF YOU WANT IN INVESTMENT HOUSE, BUY THAT TOWN HOUSE AND RENT IT OUT UNTIL YOU CAN RESELL IT.
We have budgeted 50K for everything and are hoping we can restore this house to its original state? We have no experience with contractors at all, have been living in apartments all our lives. After spending 50 K we will have paid close to what these houses sell for, in a good market. Not sure we could get that amount if we had to sell in a year or two. But we plan to stay for a long time (more than 10 yrs); barring unforeseen events.
HIRE A GENERAL CONTRACTOR LET HIM FIND AND MANAGE THE SUBS. ANYTHING ELSE WILL BE A DISASTER GUARNTEED. WORK OUT A SCOPE OF WORK THAT IS $30,000 TO $35,000. YOU WILL HAVE OVERRUNS AND CHANGE ORDERS TO EAT UP THE REST.
IF YOU BUY THE HOME, RESTORE ONE ROOM 100% MAKE IT PERFECT, EXACTLY HOW YOU WANT IT, FURNISH IT APPRORIATELY. EVERY TIME YOU START TO GET BURNED OUT, GO SIT IN THAT ROOM. WORKS LIEK A CHARM TO RE-MOTIVATE YOU.
In my experience - whatever you think your budget is, double it, and make that worst case scenario. Because more often than not, you will go over budget due to so many unknowns in such a problem-type of a house, better to set worst case expectations now.
^^^Exactly.
You'll need deep pockets and a lot of patience because you don't know what's hidden behind the tear downs until they are tore down. We ran into that into one of our re-dos years ago. Cost about doubled What we estimated when it was over.
If you're in it for the long haul over 10 years then you'll probably make out real well and be proud of and happy with the project
I have found it is better to discount the price for these items. The owner will do all repairs int eh cheapest possible way, shortcutting everything and with no concern as to whether the repair will last beyond the closing.
The one factor that concerns me most is that this is your first home purchase. Very few people would be ready to address all of these issues and the long time it will take to get everything in reasonable shape. It will be very discouraging to you at some point. Usually there is enough that needs to be done on almost any new purchase to keep you busy. And with two of you, we don't want anyone sniping at the other when the going gets tough. Be patient, there will be something else that comes along that will make you happy.
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