So how much is a renovation really going to cost?

[Robyn55]

Originally Posted by SeaNile31

I hear you guys but this home is a fantastic deal given the lot, average, school district and taxes. I'm about 6 miles from this home and know the area and market pretty well. I've been looking at and for a different home for 3.5 years. The home I'd like would be about $1mil with taxes of 20K+. New construction homes built within the last 15 years (which now owners are renovating) are 640-700K with 12k/yr in taxes.

If I can get this home for 500K and put 150 in it it won't be out of place. All the neighboring homes are beginning renovations including pools, bump outs and additions and larger kitchens.

I had written a totally different message and was going to post it. Then I read what you wrote about this house in another thread (and wrote a whole new message - this one):

Although this home is for sale via word of mouth so far, their asking price is completely unrealistic so far. Comps, I'm guessing, will show 490ish (one home in development sold from bank for 440) and mortgage appraisal will probably be 520-550. They are asking 600 but if they don't have to list with realtor then they will "take" 570.

Also in that thread you mentioned that your current house isn't even on the market yet.

In light of this - I think what you're proposing doesn't make any (dollars and) sense.

I understand from reading (between the lines) that you got in over your head with the current house. Is this correct? Is it just tight - or truly not affordable? What do you think you could get for your current house?

If you want to/have to get rid of the current house for financial reasons - I would sell that house first. Put the money in your pocket - and rent for a while while you're looking for a new place. Get some financial security under your belt and some breathing room for your budget. Don't buy an overpriced old house you honestly don't like (and - based on what you've said - you 100% do not like it as is) - and expect to turn it into anything resembling your dream house given a limited budget. Also keep in mind that sh** happens with construction - and one should have a fair amount of money on hand before embarking on a big project. IMO - if you bought this house - especially if you bought or signed a contract at a fixed price before you sold your current house (who knows what you'll get for your current house???? - housing is appreciating in certain areas but mortgage rates are going up too) - you'd be going from a financial frying pan into a potential financial fire.

Don't do it. You don't need the aggravation. It's not like there aren't lots of old houses that need work everywhere. And perhaps if you get a really good price for your current house - you can afford to buy a house as nice as your current house - just smaller - keeping in mind what your needs might be perhaps 5 years down the road (for example - if you have kids going off to college - even 3100 sf might be too much). I like you - enjoy having "nice stuff" - and I honestly think the move you're talking about isn't the right one for you.

FWIW - I know a lot more about financial management than construction. And the move you're considering isn't wise IMO. Robyn

[katy07]

I agree 100% with everything Robyn has said... We have seen personal friends go through renovation projects.. there is ALWAYS something that goes wrong and costs money making it impractical to finish the project exactly as planned... for instance not enough for the grand kitchen because something in the bathroom went wrong and took 15K out of your budget. So now instead of granite counters or nicer cabinets and floors you're searching through materials you really don't like in the first place and have to compromise.

keep looking for a house that suits you better and you don't have to basically re-do the whole thing
it will def be way more money than you're expecting! look for a house with one or two small things to change but that you can still live with if it doesn't work out... instead of a ton of HUGE things that have to be done or it's a kill deal for you.

[Aggiebuttercup]

I bought a house built in 1978 with the intention of immediately redoing the master bathroom and closet (it badly needed it). I brought my contractor with me before I put in an offer to make sure that what I was envisioning was feasible, and to get an idea of the costs involved. His estimates plus the purchase price equaled the budget I had in mind, so I bought the house.

Then we found out the electrical system wasn't up to code, so I got a totally new outside electrical panel/breaker box ($2k). The plumbing turned out to be the original cast-iron and was leaking due to tree roots ($9k for new pipes; $1k to remove trees that were too close to the house).

Older homes can be a money pit. Renovations usually require a large contingency fund, because you don't really know what you'll find once you start tearing stuff out. You need a professional to tell you what your ideas will really cost, and if you can do them, and then make sure there's a huge buffer.

Personally, I'd never add an addition to a 3100 sq foot house. A 2000 sq foot house, yes, but not anything significantly bigger than that.

[SeaNile31]

I'm well aware of the pitfalls of buying an older home and trying to make it look like a 2013 model. Really trying to see what will work best for us as I have had enough of this mortgage, taxes and expenses associated with this 5600sq/ft Toll Bro home. Getting into this older home for 500K and putting 150K into major renovations would still reduce my debt by over 200K. Not that putting 150K into the home is the goal, just using round numbers.

[davebarnes]

So how much is a renovation really going to cost?

All your money + another 20%.

[SeaNile31]

Originally Posted by davebarnes

So how much is a renovation really going to cost?

All your money + another 20%.

Now that I believe!!

[remodelingdan]

Adding the family room and bedroom and other space can be as low as $100 or even less a square foot BUT that number is really up to you, what materials you choose and who does the work. As far as the kitchen and bathroom goes..the cost per square foot will be much much higher again it is up to you and the materials you choose, the design and who does the work. The remodeling cost calculators at Remodel Cost Calculators Remodeling Costs | RemodelOrMove.com | remodelmove can give you an instant estimate.

Over improving for the neighborhood is always a concern is the home your are buying big for the neighborhood? the 70s' kitchen makes it sound like it certainly isnt the nicest! it maybe cheaper better easier to keep looking to find a home you can buy with all the goodies..especially if home prices where you are looking havent started increasing yet.