"Dream house" needs lots of work

[Anonymous]

We have a smallish house in a great neighborhood. It needed a lot of work - for example the one bath was all pink - toilet, vanity. We basically picked a project a year to work on. The bathroom was completely changed for $1K - got a nice vanity, faucet, and toilet from Home Depot and had them installed (the walls and bathtub were fine).

To be honest, after updating our house for seven years, I think that a house that you have customized to your own taste truly is a dream house. We have done many projects ourselves and have tremendous pride in the before and afters we have created.

[Anonymous]

This might need a s/o, but what is people's definition of gutting? I like older houses too and don't mind customizing, but what about when they need new heat and AC? How involved does that become in a "gut" and what kind of $$ are we talking?

[Anonymous]

Anonymous wrote:Seems like we've found a house that meets all our criteria (location, schools, commute, size). Thing is, it needs a fair amount of cosmetic work. We'd have to do things slowly over the years, so we'd be living with outdated bathrooms, basement, etc. for some time. There are also some key things that need to be done before moving in. Has anyone bought a house like this and what was your experience? Realistically, this is our best bet for getting into this neighborhood, but part of me is dreading living in a house I don't totally love from the outset. Other things to consider in a situation like this?

We did this.

Wood paneling
1960s kitchen
Smelly fridge
Broken chandelier
Few outlets
Pink everything
Plaster
Tiny closets
Broken locks
Poor insulation
No lighting
Chimney issues
Chain link fence
No landscaping
Electric washer dryer from 1960s

We regretted it year 1 because you'll sink $20k into things you can't even see or experience: patching a roof, fixing some plumbing, etc. year 2 we did hardwood, lighting, fencing, landscaping phase 1, improved heating
Year 3 we replaced w/d with high end stuff, tore out wood paneling and did drywall
Year 4/year 5, fixed closets and kitchen, landscaping phase 2
Year 6: bathrooms ??

It's been a bit of a pain in the ass but ... In all fairness we are ending up with a great home.
You just have to go in with the idea that you'll have to update it over time, room by room.

[Anonymous]

Are you pressed financially or do you not want to deal w hassle of renovations. Personally I think the house you found sounds perfect. The things that can't be changed are perfect-- location, schools, etc. The cosmetic stuff you can customize to your own taste, rather than have to live with someone else's preferences.

[Anonymous]

Just consider what your other options are. It sounds like the only other option is to buy a newer, more updated house in an area you don't want to be in. If those really are the only choices at this price range, then I would go for this "dream house." A lot of people are suckered into living in crummy locations by the look of shiny new bathrooms. They don't cost that much to redo.

[Anonymous]

We bought a house that needed some updating although it wasn't horrible. We did it all - even more than we imagined when we first moved in - within about 5 years. It was nice to live there awhile and have our style evolve. Eventually, after we were done the original house, we added on to the house and, because we had settled on the "look" we wanted, we were able to do the addition in a very seamless way. It really felt like "our house" because of the time we spent doing the work, living in it and figuring out how we wanted things over time, not all in a rush.

We recently sold that house to move to a much bigger one that was custom built. Everything is done. There is a lot more room. But, I am already starting to tinker and to change, and it doesn't really feel like "my house" yet. There is something about living there as you - and it - evolve that makes it yours. If we had to do it all over again, I wish we bought a big fixer upper, not a new construction house that was allegedly "done".

It is totally a matter of choice, of course, but for me I would do it, OP. Good luck.

[Anonymous]

Anonymous wrote:This might need a s/o, but what is people's definition of gutting? I like older houses too and don't mind customizing, but what about when they need new heat and AC? How involved does that become in a "gut" and what kind of $$ are we talking?

When I say we gutted our house, the only thing that remained were the 4 exterior walls that the house was sold with. All new plumbing, electrical, HVAC, generator, and insulation. The sub floor to the second floor also stayed but we found structural damage to the main beam and had to redo that as well.

[Anonymous]

Do it if you can afford the cost of the renovations without expecting that they are going to add significantly to the value of the house.

We have sort of the reverse situation: we don't like our house that much, but the only thing that makes us happy is that the bathrooms, basement and kitchen were fully updated! Sort of stupid in retrospect, obviously. It is much smarter to buy your dream house that needs a new bathroom than the reverse ...

[Anonymous]

Anonymous wrote:This might need a s/o, but what is people's definition of gutting? I like older houses too and don't mind customizing, but what about when they need new heat and AC? How involved does that become in a "gut" and what kind of $$ are we talking?

We got brand new hvac and it cost 10k and took three days. This is for a 1500 sq foot house, but even for a bigger house it's not a huge deal. We did a lot of other renovations before moving in but the hvac was the least of our worries.

[Anonymous]

Anonymous wrote:

Anonymous wrote:This might need a s/o, but what is people's definition of gutting? I like older houses too and don't mind customizing, but what about when they need new heat and AC? How involved does that become in a "gut" and what kind of $$ are we talking?

We got brand new hvac and it cost 10k and took three days. This is for a 1500 sq foot house, but even for a bigger house it's not a huge deal. We did a lot of other renovations before moving in but the hvac was the least of our worries.

Did you also replace all of the ductwork?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:This might need a s/o, but what is people's definition of gutting? I like older houses too and don't mind customizing, but what about when they need new heat and AC? How involved does that become in a "gut" and what kind of $$ are we talking?

We got brand new hvac and it cost 10k and took three days. This is for a 1500 sq foot house, but even for a bigger house it's not a huge deal. We did a lot of other renovations before moving in but the hvac was the least of our worries.

Did you also replace all of the ductwork?

Yes, floor registers replaced with ceiling registers.

[Anonymous]

Will you realistically be able to do the updating at some point, or might you be stuck with it? When we bought our first home, I swore I would update a handful of things ASAP...but the reality is we couldn't swing it for years. And in our current home, we desperately need to re-do our huge master bath (but it will cost nearly $25k on the cheap...it's ginormous), another bathroom ($10-15k), replace the tile in our foyer and kitchen ($$$), and finish the basement ($40k). Needless to say, it's not happening. We love our neighborhood and school, but I am pretty annoyed that my house doesn't look the way I'd like it to.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:This might need a s/o, but what is people's definition of gutting? I like older houses too and don't mind customizing, but what about when they need new heat and AC? How involved does that become in a "gut" and what kind of $$ are we talking?

We got brand new hvac and it cost 10k and took three days. This is for a 1500 sq foot house, but even for a bigger house it's not a huge deal. We did a lot of other renovations before moving in but the hvac was the least of our worries.

Did you also replace all of the ductwork?

Yes, floor registers replaced with ceiling registers.

No, I meant the duct work that runs in the walls...

[Anonymous]

It sucks because by the time you are done the first thing you did or fixed will be outdated or it will be time to sell the house. Point is that I would rather enjoy living in a new or updated house now.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Seems like we've found a house that meets all our criteria (location, schools, commute, size). Thing is, it needs a fair amount of cosmetic work. We'd have to do things slowly over the years, so we'd be living with outdated bathrooms, basement, etc. for some time. There are also some key things that need to be done before moving in. Has anyone bought a house like this and what was your experience? Realistically, this is our best bet for getting into this neighborhood, but part of me is dreading living in a house I don't totally love from the outset. Other things to consider in a situation like this?

In 2003, we bought a house like this in Alexandria. It wasn't our "dream" house -- but it was a starter house that met all our needs at the time. Because it was a "handyman special" we could afford a SFH instead of, say, a condo. We put an offer in for about $30,000 less than the most recent comp, and got it.

First thing we did was rip out the scalloped-shape eat-in counter in the kitchen and replace the range. We installed gas. We ripped out 1950s paneling and put in dry-wall. Eventually we installed a deck, did a cheap renos of two bathrooms. We converted basement storage space into an office. We painted cabinets, replaced kitchen counter, installed tyling.

We lived there for 9 years. When we sold in April 2011, we cleared $260,000 on it, a tiny rambler. We had four offers. It sold for the most ever on the street, in a still-difficult market.

So, while some of that appreciation was due to the general increase in this area, I figure our sweat equity was worth at least $100,000.

And while we had to live with it during the process, it was the best financial decision ever.

I'm sorry, but ALL of the appreciation was due to the housing boom. You bought in the right area at the right time. I promise you if you had done one third of what you did, you still would have cleared $200k.

It is misleading to give the OP the impression that the same kind of appreciation will happen with a house they buy now. If you would have purchased your house in 2006 instead of 2003 at 2006 prices, you would not have been able to sell in 2011 and cleared that kind of profit.

My husband bought a house in 2005. he completely gutted it, replaced everything. It was stunning. He was unable to sell it in 2009 because of the housing bust. When he did sell in 2011, he just about broke even when you factor in all of the money he spent remodeling it. And that doesn't account for the sweat equity for his own labor.

OP, don't buy the house thinking that you're going to make a fortune. Buy it because it works for you, even if that means you might want to upgrade bathrooms, et cetera, in the future. The truth is, unless you buy a brand new, custom-built house, you will probably find that you will want to make changes/upgrades to any house you buy, even remodels/flips.