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We found a house that we fell in love with! It is not too bad but it's not in the greatest condition. We knew going into it (before inspection) that it was gonna need some work but after the inspection we found that within the next 3 years it will need a new oil water heater, a new oil tank (good thing this one is above ground) eventually, and some things done to the roof first. Those are the main things to begin with. Now we have a brother that does roofing so if we purchase materials it would just be that we are paying for & some beers for the brother . Then everything else would be cosmetic things we already knew we wanted to do such as flooring, walls (they currently have pannel), ceiling, and bathrooms.
The price is going for 139k and is not terribly bad but we are wondering if we should get into it with all that needs to be done.
We are thinking of having her put 5k to 9k into an escrow account so we can do the repairs ourselves. Is that a decent counter offer?? Please give us advice!!
We found a house that we fell in love with! It is not too bad but it's not in the greatest condition. We knew going into it (before inspection) that it was gonna need some work but after the inspection we found that within the next 3 years it will need a new oil water heater, a new oil tank (good thing this one is above ground) eventually, and some things done to the roof first. Those are the main things to begin with. Now we have a brother that does roofing so if we purchase materials it would just be that we are paying for & some beers for the brother. Then everything else would be cosmetic things we already knew we wanted to do such as flooring, walls (they currently have pannel), ceiling, and bathrooms.
The price is going for 139k and is not terribly bad but we are wondering if we should get into it with all that needs to be done.
We are thinking of having her put 5k to 9k into an escrow account so we can do the repairs ourselves. Is that a decent counter offer?? Please give us advice!!
You have a brother who does roofing and you just posted this morning asking for roof estimates. Do you not trust your brother? You found a house on Long Island for $139,000? One can not even buy a single wide moble home not including land for $139,000. I suspect with the work this home needs you will not be eligable for that FHA loan unless you go 203K.
Sellers dont put money in escrow for buyers to make repairs. Where's your Realtor? I suggest you look into a 203K which is the very best answer for you and your situation.
We trust our brother but he is in PA and we live in NY so it would be hard for him to come to NY since he is like 4 hrs away in PA. BUT this summer is coming up so who knows. Also, an FHA loan has to be appraised at the actual selling price. All the things are in good condition and it would pass but we are looking to fix it ourselves ASAP since we rather do it soon instead of 3 years from now or having it go kaput. Better safe then sorry. My realtor did suggest to do that as a negotiation (the money in escrow acct) The house passed but the inspector said that heater and oil tank will be in the next 3-5 years along with roof.) To pass FHA it needs to last 3-5 years. Like I said before it is livable but most of the other stuff is cosmetic stuff (like replacing the mint green tub with a newer one.) The house is in Mastic Beach and was going for 187k before- I am sure it wasn't selling because the work needed and the area since ppl say it is a bad area. We love the house and want it for ourselves. But do you think that for 139k and about 30k in stuff we would like to do it is worth it? It is a 5 bedroom 2 bathroom.
At that price and even with the appraiser, I would be VERY suspicious. Plumbing? Electrical? leaks? Structural damage? A lot of things are overlooked by or completely hidden from the appraiser. Failing floor joists, leaks that cause mold growth inside walls, inadequate framing of windows and doors, non-or poorly-insulated walls, previous electrical or other fires that have been hidden with a coat of paint or new cheap carpet, a bat problem in the attic, rodent or insect infestation - the list of what else could be wrong and inspired the need for a quick cheap sale goes on and on.
We bought a house from an agent who was also the owner. Her ex was a "carpenter" as well as a "plumber" and "jack of all trades". Yeah, right. It took us six months of steady rip-out-and-replace to fix what he had done to the place. Of course, DH had years of experience in construction and plumbing work, so we knew what we were getting into. We didn't have to re-roof or put in a new heater - but we kept back $10,000 of our own money to do the repairs we knew needed to be done. But what looks like "cosmetic" repairs to the untrained eye can quickly turn out to be a coverup for more integral damage. If you have a friend who has experience in construction, plumbing, etc, and are set on this house, let him/her/them do a long walk-through first. If there's a fireplace, start a fire there; does the chimney work or are you going to have to wall it in because it is useless? Structural repairs can cost a LOT more once you rip off a facade - especially one that was put there to hide those structural deficiencies. Also, there may be local ordinances that prohibit repairs and upgrades without jumping through many many legal hoops; permits and such - each jump costing you money. You may not be able to have a relative do your roofing at all... And speaking from personal experience, any idiot that papers over a plaster wall and then paints it deserves to be shot - or at least to have his body wrapped in kitchen contact paper and then painted. Oh, yeah, and before you buy, make DA**ed sure you know what EVERY light switch goes to.
If you have the cash to fix it up it might make sense as long as you realise its work;takes time and there is always the unexpected. If you don't ahve the money then it can be hard gettinf a loan and it will be at gihher rates as the risk is high on such a loan.Never let "falling in love" interfer with reality.
At that price and even with the appraiser, I would be VERY suspicious. Plumbing? Electrical? leaks? Structural damage? A lot of things are overlooked by or completely hidden from the appraiser. Failing floor joists, leaks that cause mold growth inside walls, inadequate framing of windows and doors, non-or poorly-insulated walls, previous electrical or other fires that have been hidden with a coat of paint or new cheap carpet, a bat problem in the attic, rodent or insect infestation - the list of what else could be wrong and inspired the need for a quick cheap sale goes on and on.
We bought a house from an agent who was also the owner. Her ex was a "carpenter" as well as a "plumber" and "jack of all trades". Yeah, right. It took us six months of steady rip-out-and-replace to fix what he had done to the place. Of course, DH had years of experience in construction and plumbing work, so we knew what we were getting into. We didn't have to re-roof or put in a new heater - but we kept back $10,000 of our own money to do the repairs we knew needed to be done. But what looks like "cosmetic" repairs to the untrained eye can quickly turn out to be a coverup for more integral damage. If you have a friend who has experience in construction, plumbing, etc, and are set on this house, let him/her/them do a long walk-through first. If there's a fireplace, start a fire there; does the chimney work or are you going to have to wall it in because it is useless? Structural repairs can cost a LOT more once you rip off a facade - especially one that was put there to hide those structural deficiencies. Also, there may be local ordinances that prohibit repairs and upgrades without jumping through many many legal hoops; permits and such - each jump costing you money. You may not be able to have a relative do your roofing at all... And speaking from personal experience, any idiot that papers over a plaster wall and then paints it deserves to be shot - or at least to have his body wrapped in kitchen contact paper and then painted. Oh, yeah, and before you buy, make DA**ed sure you know what EVERY light switch goes to.
Yep, you may have a super bargain, you very well may not. The devil is in the details. For damn sure, DO NOT trust them inspectors or real estate agents. That is super good advice, get somebody very experienced in construction to actually look at it. Hopefully a friend who has a ton of remodel experience.
Every house is different and even very experienced construction folks sometimes will not be able to tell the exact conditions with out a good rip into the structure but they will usually have the good instincts to suspect it is not what it appears. They will also find the big ticket items and know what to look for based on age, type construction, condition, local situations, etc. You want solid judgement about what should also be replaced even if it is sort of serviceable today.
Especially in electrical, plumbing, heating, insulation, energy efficiency, etc. You want to be able to do your own estimate what is required to put it into top notch condition and either judge is the selling price fair based on the going market or does some additional money need to be subtracted for this particular deal. NEVER, NEVER, NEVER, trust them real estate gurus and all their cronies to give you a honest answer. You need completely independent competent folks in your corner who really know the construction / remodelling side of housing. Not only knowing what is wrong but how much each defect is worth in the deal.
Plus you also need to know the local rules and what might be involved in fixing the "Super Deal of the Century". Again NEVER, NEVER trust anything one of them real estate guru's sezs. They only deal from their own interest point of view.
It can be subjective in a way, things like windows, doors, etc. They might actually be Ok, but you really want a house in a more pristine condition and that reflects back into the price and what is REALLY the super good bargain of the year. A lot of judgement is required to determine exactly how much value your money is buying. The gurus never are on your side.
One guide I always use to determine if I am really getting a bargain, is to ask the question, "What is really in the deal for me". Can I fix this puppy for reasonable money myself and resell it and make a profit? If not, I probably did not get the super deal. Remember the real estate game as played today has so much fat, overhead, excess costs, pork, carrying costs, this cost, that cost and plain good olde gouging build into every deal, the sucker makes nothing if they ever have to resell it. Only the gurus, agents, inspectors and all the rest that feed off the industry actually make any money.
There should be the type of deals where a knowledgeable fellow could buy that "Bargain", that "Diamond in the Rough" and make out like a bandit but the newbie is usually going to get hosed big time. Any real bargain is probably going to be snapped up by the same folks telling you what a deal you are getting. Beware and get the best advice possible, always remember, nobody in that nasty industry is really on your side. In the end you are really left to your own judgement. Some things can be objective but the final decision also is sort of subjective. It is how you attempt to tie it all to money and judge total risk.
I always also attempt to buy cash and totally cut all the gurus and all the other totally worthless peeps completely out of the deal. Especially all the real estate commissions and any cost that does not involve buying the sticks and bricks themselves. The more you can adopt that type attitude and bring very experienced judgement into the decision, the better you will alway be in getting a SUPER GOOD DEAL. Learn to cut their throats just like they want to cut yours. Very difficult to play the game their way, with their lil outhouse rules and make money as in a real profit in your own lil pocket today. This economy may also not "Recover" as being brayed about, that is the wild card in any house buying decision.
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. Then everything else would be cosmetic things we already knew we wanted to do such as flooring, walls (they currently have pannel), ceiling, and bathrooms. 
Listen too the Granny
