BUying house that needs work

amother

Thu, Aug 08 2019, 6:31 pm

How do you figure it all out
We are looking at a home that needs an addition and fixed up.
How are you supposed to know what to do?
We are talking to 3 different types of people - architect, someone to measure existing house, contracter. I’m so confused. Everything is taking so long. I still know nothing
And I have no clue what offer the seller will accept or what final cost. Is. My head is spinning
How is this supposed to work ?

amother

Jetblack

Thu, Aug 08 2019, 6:45 pm

The way it worked for us is that we started with a contractor. We gave him a clear idea of what we wanted to do with the house. He gave us a ball park idea of the cost. Obviously that changes when the architect comes in, and of course the house needs to be inspected and that could change things too. But that's where we started.
So then we made an offer based on what we could afford and still have money left for all our rennovations.
Once offer was accepted we had 2 month to closing. Inspection went well. If not, we were entitled to back out of contract or ask them to knock down price.
Also during 2 months hired an architect and she measured and started on plans.
By the time we closed we had a pretty clear picture of exactly how much it would all cost and how long it would all take.

amother

Thu, Aug 08 2019, 6:48 pm

amother [ Jetblack ] wrote:

The contractor we spoke to wants measurements of existing home before speaking to us. Is that standard?

amother

Teal

Thu, Aug 08 2019, 8:11 pm

amother [ OP ] wrote:

The contractor we spoke to wants measurements of existing home before speaking to us. Is that standard?

When we went through this, the contractors met us at the house and walked through it with us, taking whatever measurements they wanted, and then giving us ballpark figures. This was before we submitted our bid.

thanks

Thu, Aug 08 2019, 8:36 pm

amother [ Indigo ] wrote:

Idk what area you are talking about but where I live and addition plus fixing up costs 300k+

There are so many variables. You cannot give an estimate without knowing how big the addition, and how much fixing up.
There is an estimated calculation of how much per square foot an addition would cost. (I just can't remember what it is.) That estimate is just for finished space. Of course if you'll want a bathroom or kitchen, it will add to the expense.
Do you need to do it all at once? Can you do the fixing as projects over time?

amother

Thu, Aug 08 2019, 9:16 pm

amother [ Indigo ] wrote:

Idk what area you are talking about but where I live and addition plus fixing up costs 300k+

Right now I’m ballparking 210k. It’s a small house (1500 sq ft on 2 floors - includes basement . And the addition would be small (1200 sq ft on 2 floors or less. . I also really want the location so happy to keep old bathrooms and kitchen. Willing to give up on some things.

amother

Thu, Aug 08 2019, 9:20 pm

amother [ Teal ] wrote:

So maybe I need to call another contractor.

FranticFrummie

Sun, Aug 11 2019, 4:53 pm

amother [ OP ] wrote:

I’m told no. But the good ones we’ve called don’t want to come down.

How much do the contractors want to charge you? If you have your heart set on this house and this location, it could be worth it to pay the fee.

When renovating, keep in mind that cosmetic improvements are going to cost a whole lot less than structural improvements. Ugly wallpaper and vinyl flooring is easier to fix than lead pipes and bad wiring.

You'll also want to know if the roof leaks or the basement floods (BTDT!) Buying a house in dry weather can hide a lot of flaws that will show up later when the rain comes.

The general rule of remodeling is to expect that everything will cost twice as much, and take three times as long to finish. If you set your expectations accordingly, you'll save yourself a lot of tears.

Amarante

Sun, Aug 11 2019, 7:33 pm

A contractor isn’t going to want to give an estimate for a house somebody is thinking of purchasing because his time is money. Any kind of meaningful estimate is not something he can pull out of his tush. And that is not even counting the time he spends going to the site and inspecting.

Would you buy the house if the addition cost between $150,000 to $250,000. If so, make an offer with a contingency of having an addition priced and pay someone to provide you with a realistic estimate.

Good tradespeople are extremely busy because so many people everywhere are remodeling and new homes are being built. I just finished a gut remodel and I could only find one GC who was interested in doing the job. Luckily he was very good and recommended by my designer so I would have wound up hiring him even if I had gotten other estimates.

And keep in mind that until an architect draws up specific plans which contain every single specification, elevation, finish and fixture, you can’t get a true estimate. And even that estimate needs a contingency of between 10% and 20% to cover contingencies and the inevitable change orders.

amother

Sun, Aug 11 2019, 8:48 pm

I found a designer who would do very rough drawings over the current space for cheap. The contractor said that he would look at.
I spoke to the current tenants and got some idea of the home. They live in the basement. I also live near the home and have an idea of its history and how other homes have worn over time.

It just seems so crazy to pay for all this work not knowing if you are buying. But it may be worth it.
I think I’m going to offer one price based on my highest estimate of work. If they don’t accept it then pay to see if it can be done for cheaper.

Amarante

Sun, Aug 11 2019, 9:03 pm

Einikel wrote:

Usually estimates are free

As OP posted, "good" contractors are not willing to come down to give free advice on a home that someone might buy because in this market good contractors have more work than they can handle.

An "estimate" in the remodel/construction world is a firm "bid" that is given after a GC has received detailed design plans so that he can accurately price out materials and labor. There will also be a walk through so the GC gets a sense of what is involved. And there will be items that are outside the scope of the bid which are included - these are things which could not be determined when the bid was done. For example, I needed an expensive new electrical panel which was outside the scope of the bid for electrical work for my remodel.

If you own the property and submit these kinds of detailed plans, the GC knows that you are a true prospect and not just kicking the tires so to speak.

In general it is cheaper to buy a home that meets your requirements rather than do an addition because building new is less per square foot than a remodel. However, there are certain areas in which adding an addition makes sense because the land value is so high and the homes were built for a more modest lifestyle. Keep in mind that a major remodel is incredibly stressful and you also have costs to carry on two living places unless you can live in a construction site. I had to move out for several months and rent during my remodel.