Buying As-Is and Price/Competition in Alexandria or Arlington

[Anonymous]

A question for those of you who have experience in buying an as-is property and price, competition and how much a reno would cost and what would be involved:

I've been seeing homes in my target areas of Alexandria and Arlington that are in As-Is condition and priced in the $700-$800K range. How likely are homes in such condition likely to go close to asking?

Right now I'm in HGTVland dreaming of what could be. I have no idea how much it would cost to renovate a home that is 1500-2000 sq ft that needs reno from top to bottom, how much time it might take and what the pros/pitfalls are. Also, as a superstitious person, how can you find out the history behind a house beyond current crime reports -- i.e., is the home in the condition it is because of a frightening event, etc?

Any feedback from your experiences, would be great.

Thanks!

[Anonymous]

We bought an as is in that range but we're going to tear it down so we didn't care what condition it was in.

You would definitely want a really good inspection and input from a builder if you're planning to use the structure.

[Anonymous]

Anonymous wrote:We bought an as is in that range but we're going to tear it down so we didn't care what condition it was in.

You would definitely want a really good inspection and input from a builder if you're planning to use the structure.

How do you make that work? Most offers we made on places didn’t give time to tour with a builder before offers accepted.

And then inspection can have a builder walk thru, but they can only give very broad estimates which are essentially useless.

Maybe in a slower market you have the luxury to tour multiple times before making offer or expire contingencies

[Anonymous]

Find one that's off market.

[Anonymous]

Anonymous wrote:We bought an as is in that range but we're going to tear it down so we didn't care what condition it was in.

You would definitely want a really good inspection and input from a builder if you're planning to use the structure.

Not sure you would be willing to answer this, but how much does building from scratch cost? The land itself is so expensive. Is it realistic to think that $200K would be enough to build a 2000 sq ft home on a decent sized lot with really high end finishes? or a step below high-end finishes?

Again, I'm in HGTV wishful thinking mode and have no idea what I'm talking about it this area.

Thanks!

[Anonymous]

Anonymous wrote:

Anonymous wrote:We bought an as is in that range but we're going to tear it down so we didn't care what condition it was in.

You would definitely want a really good inspection and input from a builder if you're planning to use the structure.

How do you make that work? Most offers we made on places didn’t give time to tour with a builder before offers accepted.

And then inspection can have a builder walk thru, but they can only give very broad estimates which are essentially useless.

Maybe in a slower market you have the luxury to tour multiple times before making offer or expire contingencies

OP here--were you competing with builders coming in who didn't need to worry about inspections, etc.? Did any of those properties go below asking?

[Anonymous]

Assume $250-$300k for top to bottom Reno.

[Anonymous]

Anonymous wrote:Find one that's off market.

That's a good point. If a broker has the listing but it's not being listed until a certain date, that would be an advantage.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We bought an as is in that range but we're going to tear it down so we didn't care what condition it was in.

You would definitely want a really good inspection and input from a builder if you're planning to use the structure.

Not sure you would be willing to answer this, but how much does building from scratch cost? The land itself is so expensive. Is it realistic to think that $200K would be enough to build a 2000 sq ft home on a decent sized lot with really high end finishes? or a step below high-end finishes?

Again, I'm in HGTV wishful thinking mode and have no idea what I'm talking about it this area.

Thanks!

For an HGTV is the core of the house is good, sure, but you are looking at 2-3 times that for a new house and probably more for top of the line finishes. Most of the HGTV isn't what they seem.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We bought an as is in that range but we're going to tear it down so we didn't care what condition it was in.

You would definitely want a really good inspection and input from a builder if you're planning to use the structure.

How do you make that work? Most offers we made on places didn’t give time to tour with a builder before offers accepted.

And then inspection can have a builder walk thru, but they can only give very broad estimates which are essentially useless.

Maybe in a slower market you have the luxury to tour multiple times before making offer or expire contingencies

OP here--were you competing with builders coming in who didn't need to worry about inspections, etc.? Did any of those properties go below asking?

No we were competeing with cash rich buyers; they waived inspections and finance contingencies, and then bid over by $30k+ list.

Have you been looking in Arl long, it’s a blood bath.

If you find a home with a latent defect (on busy road, unbuildabe topography, next to pumping station) you have more options but those limit resale.

[Anonymous]

Hi OP. I'm based in Vienna not Arlington but I've run numbers on my HGTV fantasy a couple different times and always decide not to pursue it. Honestly you need a lot of cash or spare time (or both). For normal people who have jobs and can only tolerate a little cash risk -- for example if you have to keep paying two mortgages until construction ends and the project is running behind -- it's not great. I totally get the attraction of making something completely custom. But I also grew up in a house that was under construction for 15 years while my dad DIYed one room at a time, and I've been my own general contractor on small remodeling projects. It's a lot.

I love the idea of a "deal" and of making something my own ... but I think buying turn-key is actually more efficient.

[Anonymous]

Permits are a fortune and a headache in Arlington. Everything costs twice as much to do, build, renovate. We don’t know anyone that spent less than $450k-600k AFTER buying the home/lot.