Not a Gut Reno
We are house hunting and seeing a lot of estate sales – usually the verbiage in the listing suggests “bring your contractor” or something along those lines. I really don’t want to do a major renovation at this point – we’re hoping to find something habitable – maybe with a few things that need to…
We are house hunting and seeing a lot of estate sales – usually the verbiage in the listing suggests “bring your contractor” or something along those lines. I really don’t want to do a major renovation at this point – we’re hoping to find something habitable – maybe with a few things that need to be fixed. Can anyone share their experience of not doing a major renovation right off the bat? Is hoping that we’ll be able to repair things as we go too optimistic?
If you are holding off on a renovation due to funds, you still need to have a 20K reserve fund after the purchase. A house in “bring your contractor” condition is a ticking time bomb. What if the boiler dies this December? Maybe the termite inspector couldn’t see enough of the beams. Or some leaves block the roof drain the the weight of the water collapses your bedroom ceiling. A house needs some love at least every 50 years or else it will start to misbehave.
I bought an estate sale/as is place. One owner for 96 years (she was born there and inherited from her parents) who had not done many upgrades. There was an icebox in the kitchen and no electricity in the bathroom or shower (just a tub).
We gutted the bathroom immediately because you can’t live w/o a bathroom and peeing by candelight is a lot less romantic than dining by candlelight. The kitchen was pretty much unusable (old cast iron stove, aforementioned ice box) but we dealt with it using a microwave and the crazy vintage stove for about 6 months before we were finally able to renovate. We had always intended to gut the kitchen, but it took time to line all the contractors up (I was GC). Camping in my own place was not fun, and very stressful but definitely do-able. I’ve had the place for about 2 years now, and am just starting on the 2nd floor.
I think it really depends on how much inconvenience you’re willing to live with. Being a lifelong renter, I was used to lugging my laundry several blocks away to the coin-op. But now that the plumbing is redone, and I have my own washer/dryer I cannot imagine having to cart my laundry all over the place and spend my day sitting next to the machine reading month old magazines.
When I bought I told my mother that I was just going to change the kitchen around & otherwise all was fine as is. The previous owner had let me do the floors before the contracts were signed. Every year my mom sent me a Xerox of the letter as I re-did all the electrics, added central air, changed the windows, added a bath, etc. Twentysix years later I’ve almost finished everything on the to-do list & have only had to re-do a few of them.
We recently bought a place that had been renovated, albeit with some less historic finish choices and less thoroughness than we originally thought (and our inspector idenitfied, but that’s a different story). In any case, we have found 6 months in that there is more than enough for us to work on (roof, drainage issue in rear yard, water flow in second floor bathroom) to satisfy our reno bug. Key things to look for are good infrastructure (electricity, plumbing, heating), no leaks in roof or foundation, and workable kitchen and enough baths to satisfy your families immediate needs.
You didn’t mention your budget. Are you looking in neighborhoods where you can only afford fixer uppers? As Bob suggests, there are neighborhoods where you can get more for your money. For instance, a fully restored brownstone in Bed Stuy probably costs less than a shell in Ft Greene.
Maybe you need to avoid listings that are estate sales. These are often in worse shape because they were not well-maintained by an aging owner. These can involve not only the task and expense of serious rehab. If the broker is saying to bring your contractor it is so that they don’t get into a deal with someone who will back out when they realize all that is involved in such a house. Getting a mortgage may require a construction loan because the place may not pass inspection as legally habitable. Moreover, you may have to wait through the probate process which requires that a judge approve the sale of the home at the price you and the executor agree on if an heir complains or you can’t show means of paying. Will you lose your rate lock in the meantime, etc. etc. These may seem like their priced within your reach, but maybe you need something within your price range that’s more move-in ready.
Well, it depends on what are the “few things that need to be fixed”. First and foremost, if you are planning on financing, make sure that the house is in a condition such that a bank will even lend you money. You must have the correct number of bathrooms and kitchens in at least “average” condition, a good roof, no violations. If the bank does not see the house as “marketable” i.e. that they can sell it if you default, they will not give you a loan. Ask me how I know.
We owned a house that was one step above a gut reno. We lived in it for sixteen years before selling it, and I don’t think I would ever have called it finished. It was a great project, allowed us to live in a large space, but it takes a certain amount of…patience and stamina to live in a place that is being worked on and generally not quite ready. In our case it was worth it. Our kids would agree. We are doing another one now. But it is not for everyone and it really depends on the livability of the place and your mindset.
Good luck!
Yes, make a clear distinction between outdated but well maintained versus in need of immediate work. The word habitable means different things to different people. Don’t get sucked into the distinction of whether a place needs a “gut” renovation vs just a serious renovation, you don’t want either of those. Certain things you still might want to do before you move in, like screening hardwood floors and redoing the polyurethane, and painting, because these things are much easier to do before the house is occupied, especially the floors. Ideally, you’d find a place that had electrical and plumbing, heating system, and roof all replaced within the last 25 years but maybe outdated kitchen and baths or other cosmetic issues you could fix down the road like ugly siding on the facade.
Not too optimistic IMO. I think you want a house that’s been well maintained over the years, but not recently renovated. My neighborhood (PLG) has houses like that as, I’m sure, do other neighborhoods.