I recently had
some clients that were interested in buying a foreclosure or a “fixer upper”
and throughout the process of looking at properties and researching costs my
clients realized all the pieces that come along with such an undertaking. Here are a couple of the items that came up
in our travels….
found a wonderful looking home that was partially finished. This particular property the home owner just
seemed to stop working on the home and it was being sold as is. At first glance we saw that it was sided, had
windows and a roof and looked very nice from the outside. In doing additional research we found that
for that the well was installed which was fantastic and cut out potential cost
of up to $15,000-$20,000. The septic was
partially finished and needed to be attached to the house but having the septic
system in eliminates another potential cost of roughly $15,000-$20,000 as
well. Those two larger components were
complete and that was a good sign. Being
that the home had no sheet rock or insulation in yet we were able to see that
the bones of the home, the construction was done with really high quality work
and the electrical system was in for the most part and looked good. We had a heating contractor come in and give
estimates for what a heating system for the house would cost. The contractor quoted roughly $18,000 for the
heating system and another $2,000 for the heating source which was oil in this case. On top of that we needed to get estimates for
complete plumbing installation, sheet rockers, kitchen, flooring and
lighting. At the end of a lot of
research my clients realized that the cost to finish this home was going to be
out of their budget and with a heavy heart they decided to move on. My
advice? When considering taking on the huge task of finishing a home or
buying a foreclosure that is going to need a lot of work do your homework. Get as many estimates as possible and make
sure you are staying within your budget and completely comfortable moving
forward. You can even write in your
contract that you would like 2-3 weeks to get estimates from qualified contractors
for the completion of the project or the correction of a problem. Keep in mind that there WILL be unexpected items that come up along the way and give yourself a financial padding for handling these items. If you can do this, it can be a very exciting project to take
on however it will be a lot of work and making sure you are up for the task is
Author:Ryan Miller Phone: 802-999-6983 Dated: September 30th 2014 Views: 194 About Ryan: Coming from a family with countless years of real estate experience, I knew my calling early. After ...
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