If you purchased a fixer upper - how did you see its potential?

[Anonymous]

Anonymous wrote:I'd buy a place that is already renovated. Unless you get a construction loan, you can't finance the repairs. With interest rates so low, it's probably smarter to pay more in sticker price. It would avoid doling out lots of cash on an ongoing basis. And you wouldn't have to live through the renovations.

Huh? Unless you get a construction loan you can't finance the repairs? What do you know about other people's financial situations? 1) yes, it is possible to get a construction loan 2) there are a ton of other ways to finance this including cash.

While buying already renovated means that you don't have to live through the renovations it also means you have to live with someone else's mistakes, that the renovation isn't to your taste or, often, standards. You also often pay an inflated mark up for substandard work.

[Anonymous]

We've earned money on our fixer upper largely because it checked the box on all the things we couldn't change (neighborhood, street, size of lot) or couldn't easily change (house size, high ceilings, architectural style). Everything that made it a bargain (old bathrooms and kitchen) were fixable and gave us a way to customize the house to our taste. Check all of the stuff you can't see in the open house through an inspection (electrical, roof) and cost out those updates and repairs, too. If the cost of updates puts you at or below the neighborhood comps you're in good shape. Also look at the trends in house prices in the neighborhood and reasons why they may rise or fall in the future (new development, etc) to get some idea of if the neighborhood itself will be a good investment. Good luck!

[Anonymous]

Neighborhood, school quality... We bought a TOTAL fixer in a great neighborhood in Bethesda. We knew we couldn't go wrong with 4 beds and 3.5 baths in the Whitman cluster and we bought for just under 500k which was a steal. That said, the constant renovations and constant feeling of being unsettled can be really stressful!! Be ready to spend double what you think the updates will cost and allow about 3X more time to finish projects. The biggest source of conflict in my marriage is this house!! Can't wait for it to be all done and then I'm never EVER buying a fixer again!

[Anonymous]

OP - Are you working with a buyer's agent? If so, see if the agent knows an architect or contractor whom you can pay to accompany you as you look at houses. A good agent who is familiar with the housing stock in the neighborhoods that interest you should have a feel for what's possible in different houses, and they should also know architects or contractors who have worked on houses in those neighborhoods.

[Anonymous]

I agree on location being primary concern. Then we went for detached so our reno wouldn't be tied to a control freak neighbour, or an hoa. Also relied heavily on an inspector for feedback on systems, structure, etc.

Comfort level will also depend on if you know anyone in the business that you trust or not and what skills/ pricecut they can give you for any work.

Also, if you are a visual / spatial person, seeing potential is easier. Looking at a lot of floorplans and having a lot of experience living in various plans will let you know what works or does not work for you.

[Anonymous]

OP, watch out! I think you have been watching too much TV. If you can't see it, it will be a problem for you. Also, renovation costs much, much more than it seems at first. Property Brothers is a TV Show. Triple the prices on the show and you get an idea what that would cost here.

[Anonymous]

Our contractor (Lou Sagatov) is now a realtor; he'd be good at telling you what's possible. I assume he's not the only contractor-turned-realtor out there, so depending on where you're looking, that would be one way to go.

[Anonymous]

Anonymous wrote:How was I certain of the potential in the dump we bought in 2000? The address.

That's the first and most important factor.

+1000

We bought our "dump" in '06, purely for the address. Sumpreme Court Justice lives right around the corner. We're still working on our dump - best decision we ever made.

[Anonymous]

Anonymous wrote:

Anonymous wrote:How was I certain of the potential in the dump we bought in 2000? The address.

That's the first and most important factor.

+1000

We bought our "dump" in '06, purely for the address. Sumpreme Court Justice lives right around the corner. We're still working on our dump - best decision we ever made.

PP, you've been renovating for 7 years? how do you keep your sanity?

[Anonymous]

Anonymous wrote:We bought a fixer upper and our first concern was the structural integrity of the house. Once we were reassured that the house had "good bones," we focused on location, the size of rooms and the overall layout of the house. We knew that it would take time for us to realize the house's full potential and set priorities vis a vis what we could live for a while with and what had to be changed immediately. Eleven years later we're still here and love our house more than ever.

How does one establish the structural integrity? What kind of professional can help determine this?

[Anonymous]

Anonymous wrote:

Anonymous wrote:We bought a fixer upper and our first concern was the structural integrity of the house. Once we were reassured that the house had "good bones," we focused on location, the size of rooms and the overall layout of the house. We knew that it would take time for us to realize the house's full potential and set priorities vis a vis what we could live for a while with and what had to be changed immediately. Eleven years later we're still here and love our house more than ever.

How does one establish the structural integrity? What kind of professional can help determine this?

We hired a construction company who specializes in foundation work for the inspection. After we bought we got a second opinion from structural engineer, who said some of the drainage work suggested by first guy was unnecessary.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We went for location first, then made sure through the home inspection that it was structurally sound (no foundation or water issues). The yard was obviously big enough to add on eventually, and the kitchen was a good size, if really dated. A contractor gave us a free estimate during the inspection period. Our 1930s home still needed a ton of costly fixes. We are now in the process of doing some aesthetic renovations, and it's interesting to talk to different contractors and architects because they generate lots of ideas and have wildly differing estimates. Everything adds up quickly so assume the worst in terms of cost, hope for the best.

OP here, this is really on point advice. thank you. our instinct is to buy the biggest house in the nicest neighborhood we can afford and go from there.

1930s fixer PP again. I liked working with the architect more than the GCs, because he seemed to have a clearer vision for future addition than the others. I have learned a lot about our house in the process, probably more than I wanted to know. I would research inspectors before making an offer. We relied on our agents recommendations, and some of those people were terrible. I didn't end up using any of them to do work.

[Anonymous]

Anonymous wrote:We're considering purchasing a fixer upper and budgeting for renovations and/or additions. The problem is that when DH and I see a home, we have very limited vision for its potential and how much realizing that potential would cost. If only there was a knowledgeable person with us to look at these homes and gives us ideas and estimates of how much it would cost. How should we go about doing that? Would it be a general contractor? Architect? TIA!

If you're having this much trouble with vision and cost estimation, than it's possible that a fixer upper isn't the right house for you.

[Anonymous]

ZIP is one of the most in-demand for mid-priced houses, and my imagination.

[Anonymous]

As others have said, it was location and the basic bones of the place. It was a mess; awful kitchen, bath, flooring, almost everything. We nearly gutted our condo, but didn't change the footprint. Our realtor was super helpful with suggestions on what was and was not realistic to change, and that helped make our decision. He was also very clear that he could not give us a precise estimate of some costs, because those would depend on how high or low end we went with different finishes.

If you're talking about a house, I would think you'd need some kind of general contractor or architect to check out the foundation, structural integrity, etc; or if you're thinking of renovations that require moving walls or changing plumbing, electrical, and other major work.

Although a major reno was a ton of work, and would be really difficult to do now that we have a child, we're really happy with our choice and we still love the location and layout of our place that made us fall in love with it in the first place.