Need Advice On Possible First Purchase
I have found a home that is a very old home(1900). It looks very badly on the outside due to a horrible color of paint.
I called the realtor and visited the property last night to take a closer look at the inside. Ugly Kitchen(needs new floor, counters, possibly sink). Nice maple Hardwood floors in the living room and dining room, but awful looking wood paneling on the walls. The ceilings are 10 foot ceiling but for some reason they have been dropped and it looks pretty bad as well. The upstairs needs carpet and some paint as well as a lot of elbow grease.
It has a large 2.5 garage that is the same ugly color as the rest of the house. The yard is a decent size for the area and is in very nice shape.
The house is on the market for approx 140k. Its been on the market for about 6 months FSBO and just recently got a realtor about 1.5 months ago. I seriously can NOT see this home realistically selling for 140k as is now.
The home is vacant for the past 5 months. I think I can bring the value up to 160k with the upgrades mentioned above. Do I make an offer? 100k? 110k? 120k?
The thing I am not sure about is how much the materials would cost, and I am not very handy...so I would need people to do the work for me.
How can I estimate the repair costs and the new value of the rehabbed home? Is it advisable to ask the realtor these questions? Should I have the realtor relist the rehabbed home when I am finished or should I try and sell myself?
Any help would be appreciated.
Thanks!!!
good comps will tell you what it could sell for fixed up. call a few contractors for estimates. buy low, then when you fix the home, sell it yourself at market value. good luck to you
Make sure you have good comps and you probably want to have a few contractors bid the job before you buy. Old homes are terrible work compared to those approx 1960+ I don't have the patience personally for old homes. However, I've seen a few deals and i'm sure with the right talent they can make a lot of money!
I see you are in wisconsin (I'm in iowa) so i'm guessing that if you wait until winter (end of dec-beg jan is fine) then you may be able to get the house at a premium. However, if you think that it will sell by then, get in the game now. I like to get involed in the house but not make an offer until they all but beg me to buy it. Good luck!
That could turn into a disaster.. old home are trouble. It`s one thing after another and most of the time a simple thing could turn into a HUGE project.
If you`re not handy, I`d be very careful...