Moving to new house vs construction

amother

Aubergine

Wed, Jan 04 2017, 11:14 pm

We are looking at two houses. One is a ranch with a small layout,old kitchen and bathrooms. Its 350k. Other option is a brand new 700k house with stunning updated kitchen,new paint, new floors etc basically in move in condition. We are willing to spend up to 700k but which house is more economical? To do construction and totally renovate 1st house and add a 2nd floor with two bathrooms, new carpets/lighting, update bathrooms, rip out kitchen , new windows etc or go with move in? How much does renovating even cost?

amother

Black

Wed, Jan 04 2017, 11:35 pm

There are many details that can affect this decision...
How big is your lot? How large can you build? Because there are no details it's hard to give an estimate but renovations like that can cost anywhere between 150-250k typically. Depends how large and how much you are going to put in upgrade etc. but at basic standard for 3000 sq ft that would be my estimate.

However, and here's the big but- you are inheriting old problems- piping, sewer electricity etc- it will never be the same as a new house. Many ppl opt to demolish completely and start from scratch... in which case the new house is a better deal-

There are also other factors to consider such as location , neighbors etc

doctorima

Wed, Jan 04 2017, 11:38 pm

If you're able to afford the fixed-up house and are basically happy with it, then grab it! Construction is about so much more than money; it sucks up so much of your time and energy that you can't put a value on it, not to mention that what you're describing may well end up costing more than the other house. But even if it doesn't, it certainly won't come out significantly cheaper, and the difference in your emotional health and quality of life makes this a no-brainer to me.

amother

Lavender

Wed, Jan 04 2017, 11:46 pm

You need an architect and GC to put some numbers together for you. I can't give you any idea since it depends on so many factors.

I will tell you, as someone currently renovating an older home, while living in it because we could not afford to pay for two homes while this one is fixed up, there is a certain niceness to getting a new home already fixed up and having none of the stress. I will also tell you that no matter what you are quoted for renovations, expect plenty of surprises and added expenses and for everything to be more complicated and take more time than they promise you and it is so stressful. BUT in a few months when this is all behind us and all the dust and intrusions are gone, I will have a house that is exactly as I want it, tailored exactly to our needs and tastes... and I think that's pretty great too. If that appeals to you, go for the renovations. If you're not so specific in your vision of what you want your home to be, go for the new and save yourself a headache.

Rubber Ducky

Thu, Jan 05 2017, 12:21 am

If I'm reading the OP correctly, the "new house" is not new, it's a remodeled house. If it was fixed up just for resale, it may be be more glitz than quality. Be careful if it's a house being "flipped." The pipes, sewer line, electrical wiring and other things you can't easily see were probably not updated. The things you can see, like kitchen cabinets, may look good — almost all cabinets look good when new — but may actually be poor quality. A good inspection will be helpful either way.

sourstix

Sun, Jan 15 2017, 10:53 am

Op, get an engineer for both houses to check them out and tell you how good the structure is in clouding the piping and all inner stuff. Including the basement. Making sure there are no leaks mold asbestos issues. These are very important factors. In fact I wouldn't buy a house without an engineer checking first. Then u can bring a contractor for numbers, but remember like a poster said. It's never the exact numbers. I had a huge surprise when I made my basement I was added an extra expense that my contractor that is familiar with my neighborhood had not heard of.

Bottom line you never know what expenses you may have. And there are always surprises.

amother

Seafoam

Sun, Jan 15 2017, 11:57 am

I would go with the new. I also looked at both options and there were way too many question marks with the old. We would have needed aprovals for doing additions, the old houses had septic sewers, and we were scared of hidden issues. We went with new about 5 years ago, and BH we have only had to do minor repairs in all the years. I didn't get my custom kitchen or perfect layout, but I also had no construction aggravation.