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The problem is, the OP wanted a home she could do some work on, and have her dream home.....BUT....she, did not realize how much time and work it would take to get her new home into the shape she dreamed it would be.
She now feels she overpaid for the property, if she had to do all this work. She did not. The appraisal was done based on current condition of the home in comparison to other property actually sold in the neighborhood. It valued her home just above what she paid. She did not get a great bargain, which would give her a big profit if she sells after she does all the work to update the home such as a flipper would have done....IF....and that is a big if, she could have gotten the seller to take a huge price discount.
This is not as easy to do as you think, and the flipper may make man offers for every bargain they buy. That is done by a real estate professional who only will buy a home far below it's value, and is not interested in the home as a home for themselves. I have done this many times when I was in the business, buying property in my own account and worked as a principal on those deals never as an agent getting some commission. Sometimes it was a single family home, and sometimes an irrigated farm, or an apartment house or a 250 space R.V. park. This is done by professionals, that are not interested in buying a permanent home, but buying and selling as an investment.
Home buyers are buying a particular home either in fantastic condition or buying it at current value for the condition, and then spending money on it to personalize and update the home. This is the OP. She bought a home she wanted to make hers, by making changes and updating it. After she found out what is involved to make these changes she feels she took on a lot more than she anticipated in both time, effort, and money. This is a typical problem, when people buy a home they want to update, and then find out how much work, time, and money is going to be involved.
They are under shock, when they find that most of those changes are not going to raise the price, as much as the changes cost to make. They start feeling they paid way too much, and should have found what the cost to upgrade would be, then deduct that from the price they paid for the home. This does not happen very often. She paid the current value, for the current condition as the appraisal shows. She is overwhelmed that the home will not rise in value enough, to cover all the costs for the upgrades she wants to make on the home when she is through, as she thought would happen. She is a very typical buyer, who buys a home she plans on upgrading and finds how much work and money it will cost to do the upgrades.
Buying a home, and putting a lot of upgrades and remodeling, will never get you your money all back when sold if sold in the next 2 or 3 years.
As this is a fact of life, I did not sell homes to homeowners. I only did it 5 times in all the years I was in the business, and that was to help out a personal friend that asked me for help. The rest of the time I worked with investors, and did not have to be involved with the buyers remorse of home buyers.
I believe I still hold the county record for the most homes sold in one day. It was a small 13 home subdivision to be built, and I sold it out in 2 1/2 hours on the telephone. All sold to investors, with one only taking 2 and up to 5 to a buyer.
Here is about as good an article as you can get, which shows what type of return you can get from different upgrades and remodels. Note you can't expect to get all your money back when you sell. The following is from Canada, but it is very much the same here. I chose his one, as it gives probable return on investment per improvement.
In a matter of a month I have fallen into a deep depression
I have been posting in the real estate forums about my situation but now I realize I need to post here. I have gone from a happy, confident person to a severely depressed person. to do normal things each day has taken everything I have. to wash clothes, clean, shower, etc is taking so much to do.
I rushed and bought a huge, expensive, outdated house that now I hate and want out of. I put our life savings down on it and thought I loved it. my husband even asked me when we were singing the papers are u sure, I said yes . we moved in and that day I realized what I had done. I bought a house that I don't like and don't want and rather be in a very small simple one. I let people like my mom influence me to buy bigger for family to visit. I bought out of our price range to be in a safe good neighborhood. I don't know what to do. Now we have to paint every room because of all the nail holes the previous seller left. we have so much work to do just to prepare it to sell and I will lose at least half of our savings but I am desperate to get out of this house. It is a constant reminder of a mistake I have made by rushing. The sellers kept talking to us when we viewed it which distracted us. I can't blame anyone but myself for buying it.
Now I am causing so much stress on my family not intentionally but asking my husband over and over again if we can sell. will we be able to sell. I feel hopeless because when Inmake a mistake I have to fix it right away and I can't fix this right away. it's driving me crazy and my OCD is insane right now. how could I buy a house that needs SO much updating and that is the complete opposite of what Inwanted. I feel like I lost my mind when I bought this. it's not me in anyway.
I don't want to be medicated but I can't sleep longer than 3 hours a night. I lost 10lbs, I can't even go to store without crying.
When I make big purchases I always have that sick feeling afterwards.
Give yourself time. Find one room in your house to make your Happy Room. Make it perfect just for you. Hopefully it will make you turn around your feelings.
I have never been this bad. it's been 1 month and I am only getting worse. My husband is afraid if we sell it in 6 months and lose around $31,000 that I will flip out even more but right now I want out of the house so badly. I am going to try to sell in Spring. my realtor said he will list it as soon as Inam ready. Back to renting until I get my mind back to normal. I am too depressed to even get off chair to do a chore.
Op, if the house is in such bad shape, how could you or your husband missed so much during your walk through. You sound like an emotional wreck and I hope you get yourself some profession help. You are not much good to yourself or family this way, and you can become even more depressed during this holiday season so please talk to somebody. I certainly wish you well and hope everything works out for you.
we saw stuff was outdated and we thought we got a deal on house so we could update and make it even but then I found out we didn't get a deal so I would have never bought the house being this outdated and so much work to do. I hope I can get it together also because it's really bad right now. I just want out from under it.
Can you rent the house out? You won't have to live in it, and you will have income from the rental. Then you can buy or rent a house that you like.
Good suggestion, I would try to rent op.
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In a matter of a month I have fallen into a deep depression
