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So a relative who sadly is going through a health crisis owns a house that ACCORDING to Zillow is worth about $320k. Homes in the neighborhood generally range from $200k-$400k.
However, the house has some MAJOR issues:
- The house owes $30,000 in backtaxes (our region has sky-high taxes)
- The school district has declined and is mediocre/well below-average.
- This neighborhood has slightly-declined and borders a really bad area
+One good thing is that the mortgage has been cancelled on it since the homeowner was elderly.
The house also:
- Needs new (large) driveway, new (large) garage door and overall updating/facelift.
- Needs new roof (raccoons in ceiling of both floors)
- Floors are uneven at various parts throughout the house
- Porch leaks
- The ceiling of the family room, garage and lower bathroom leaks
- Both kitchens need serious updating (the home's a 2-family home)
- Needs electrical work b/c several lights don't turn on (probably either due to raccoons biting wire or water damage)
This cost to fix this home would probably EASILY exceed $100k+. We like some things about this home b/c it is a very large home and when it's fixed up, it could EASILY be the nicest home on the block; and we spent the last 15/yrs in this home.
We just don't know if we should take ALL this on!? (or just somehow walk away)
And we don't know if it'll be a good long-term investment!?
Last edited by MemoryMaker; 08-28-2014 at 04:53 AM..
...ACCORDING to Zillow is worth about $320k.
Homes in the neighborhood generally range from $200k-$400k.
- The house owes $30,000 in backtaxes (our region has sky-high taxes)
- Needs new...
- Needs new...
This cost to fix this home would probably EASILY exceed $100k+.
Lets call all of that $150,000 and if sold "as is"... probably another $50,000 'discount' off the
spurrious zillow value ... you about $120,000 (that still might have some taxes due).
Quote:
We just don't know if we should take ALL this on!?
If you are willed the property your choices boil down to taking it on or passing it by.
Personally, I'd find a $120,000 gift hard to pass by.
Just don't think of it as a $320,000 gift and it begins to make more sense.
you might check with a realtor but I think I'd pass.
The nicest house on the block bordering a bad area is still bordering a bad area.And with poor schools-that's a major issue with buyers with kids. Ever heard the real estate saying: location location location.
This place apparently doesn't have it. Resale value won't be that great. A nice house might be an invitation to some not so nice people-vandals and thieves.
You haven't mentioned any emotional ties-gramma used to live here, I grew up on this block, etc. so I'm assuming it's a financial decision. Unless you can use it as a rental, or the neighborhood is on an upswing with people moving in and renovating, I don't think it'd be worth it.
But then I have been wrong before. As I said, talk to a realtor.
You stated - "+One good thing is that the mortgage has been cancelled on it since the homeowner was elderly."
I've never heard of that. How does a mortgage get "cancelled" just because the owner is elderly?
You stated - "+One good thing is that the mortgage has been cancelled on it since the homeowner was elderly."
I've never heard of that. How does a mortgage get "cancelled" just because the owner is elderly?
Completely agree. If you are trying to figure out the value, you need an appraisal or a competitive market analysis from a local real estate agent. Then you can decide if it's worth it.
But I am also curious about the existing mortgage being "cancelled." You need to make sure you are completely clear about the financial status of things here.
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Which means you don't know
