Would you rather... (house buying)

[Carrie12345]

I'm just playing through scenarios in my head.

 

Given the choice, would you

 

A.) Buy the "eventually perfect house" that needs a ton of cosmetic work, but is priced accordingly. It will likely take you a few years to make it meet your dreams, but the mortgage would be paid off very quickly. (Let's say less than 10 years.)

 

or

 

B.) Buy the "fits your needs just fine" house which needs zero work. There's nothing BAD about it, but you'll probably find yourself wishing there was one extra room, or that the kitchen was different, or that the property layout was better. Because it's in tip top shape, you'd be looking at a 15 or 20 year mortgage.

 

Just working through my dream hypothetical situations. :)

 

ETA: Assume adequate hs room in both houses!

[Pippen]

I would buy the eventually perfect house if I was fairly certain that there would be sufficient funds to put towards the work that needs to be done through the next ten years. If the budget only allowed for funds to put towards the mortgage, I'd go for the "fits your needs just fine" house.

 

We moved into the fits your needs house in the neighborhood we wanted. Funds were tight and 15 years later it's paid for but we only had funds to make necessary repairs and minor improvements. It's got the job done, but it never will be the house I'd really like to have.

 

I would take out extra on the loan to make improvements to the eventually perfect house now. It will extend the mortgage, but in 15 years you'll have the home you really want paid for.

Edited September 12, 2012 by Pippen

[Momof3littles]

Have you ever lived through a remodel? Could you remodel some of the messier or bigger things before moving in?

 

I have never lived through large scale renovations, but have always said to DH that I think I'd have to move somewhere else temporarily.

 

If you are talking about smaller renovations, perhaps it wouldn't be as disruptive.

[marbel]

Beside the financial concerns, what about time?

 

I've lived in 3 houses that needed work. (We're living in the 3rd now.) With the first two, we didn't get around to doing most of the work until we were getting ready to move and we needed to do it to sell the house. The new owners got the advantage of all our remodeling.

 

My current house needs work too. We are in a weird transitional situation, so expect to be moving, and made a conscious decision with this house to wait to do the renovations so things would be new for putting on the market. So we are starting now even though we don't really have an idea if/when we are moving.

 

In any case - how likely is the work to get done? Are you/your husband motivated and capable of doing the work and/or getting contractors in to do it? Or will it be put off and put off for years?

 

In my experience, it's very easy to get complacent and let things go. Life can get in the way of house remodeling. I'm sure there are others with the opposite experience, so of course I'm not saying it's impossible. But think about how likely it is the work will get done.

 

(For all I know you and your husband are skilled at home repairs and love doing them so it'd be all fun for you!)

Edited September 12, 2012 by marbel

[Luckymama]

We chose 'A' but with a 15 year mortgage :) The size of the house is perfect, the lot is amazingly large for this area and backs to a wooded area with a creek, my parents lived across that creek in a different neighborhood :)

 

The house, bank-owned, had been empty for almost a year. It had good bones but was a mess inside. It was filthy and smelly (the house had been abandoned with a full fridge and the power had been off...). A pipe in the master bath had burst at some point and ruined the family room and kitchen ceilings as well as the wall between the two rooms, but there was no mold.

 

We had to strip the family room to studs. We replaced the flooring all over the house. Everything needed to be painted after I spent an entire month cleaning. Some windows were broken, not the glass but the internal workings. The family room sliding door to the deck didn't slide at all. All appliances were disgusting and had to be replaced.

 

We were able to do the yucky work, the flooring, and most of the painting before physically moving into the house as we scheduled the closing on the new house for six weeks before the closing on our first house. We had the resources to carry the two mortgages.

 

Three years after we moved in we replaced our quick press-and-stick downstairs tile job with beautiful hardwood floors. Last year (five years after moving in) we replaced all the windows. This spring we had a larger deck built, essentially giving us another room. Last month the original furnace/air conditioner was finally replaced.

 

This is our forever home :)

Edited September 12, 2012 by Luckymama

[Carrie12345]

Have you ever lived through a remodel? Could you remodel some of the messier or bigger things before moving in?

 

I have never lived through large scale renovations, but have always said to DH that I think I'd have to move somewhere else temporarily.

 

If you are talking about smaller renovations, perhaps it wouldn't be as disruptive.

 

I have, but I was a kid at the time. It was a full-on re-do (everything but 1 bath and the livingroom.) This hypothetical would be much simpler in terms of useable space (no taking the roof off, for example!), but I do have more kids and pets than my parents did, lol.

[Melissa in Australia]

I would go with option A

[Night Elf]

I'm currently living in house B and I'm not satisfied. However, I think it takes special people to renovate a home and I know without a shadow of a doubt that we are not special like that. We have outdated countertops that DH has been promising to replace since 2005. We have a hole in our shower that he keeps patching with some kind of epoxy something or other that is made for that purpose. It looks horrible. The bathroom cabinets need to be replaced. He did replace the floor but they aren't even. You can feel dips in the floor as you walk. If we ever sell this place, we're going to get shafted because someone is going to see our house as a fixer-upper.

[Carrie12345]

Beside the financial concerns, what about time?

 

 

(For all I know you and your husband are skilled at home repairs and love doing them so it'd be all fun for you!)

 

 

:lol:

Well, let's just say our skill, time, and desire are at 3 very different levels!

 

In my dream hypothetical, some work would be outsourced and some would be DIY. I *can do drywall and flooring, but I won't. Dh has become an expert at replacing toilets and sinks, but not so much with light fixtures. I hate painting, but I won't pay someone else to paint a square room. KWIM?

[amy g.]

I would buy A.

 

We have done two complete remodels, and we need to do a third, but the time is just not right yet.

 

When this one is finished, the house will be beautiful. The location and property are already what we want.

[cajunrose]

I have lived in a 'fixer upper' for 12 years. I'm done. We finished fixing it up about 12 hours before we listed it for sale. The next house will be move in ready.

[Scarlett]

I am actually living this right now. We bought a fixer that can someday be our dream home. It has the 1.2 acre, the big shop, the gorgeous pool....but the house is a mess. Seriously, the shop is in better shape than the house.

 

We've been living here for 2 weeks and it is not easy. But then I remember NO MORTGAGE! Yes, we paid cash for it. That has always been my dream and I am very happy about it.

 

It needs sooo much work that there is a possibility we will take out a small home improvement loan...Something that could be paid back in say 2 years. We haven't decided yet though.

 

I think it boils down to a core belief about debt and living within or under one's means.

[Ottakee]

By cosmetic work do you mean paint, flooring, etc. or big things like rewiring, redoing the plumbing and HVAC system (not just a new furnace but all new duct work, etc). That makes a difference.

 

We bought a house that is a great fit for us design wise but it needed new flooring in most rooms, new paint all over, a new roof, etc. but that was not terribly hard. A complete remodel/overhaul of major systems is different.

[Scarlett]

I have lived in a 'fixer upper' for 12 years. I'm done. We finished fixing it up about 12 hours before we listed it for sale. The next house will be move in ready.

 

LOL. I can already feel your pain but I've only lived in mine for 2 weeks. I do wonder if I will want to sell it when it is 'fixed' or if I will feel it is my dream home.

 

Why did you sell it?

[Princess Peach]

B.) Buy the "fits your needs just fine" house which needs zero work. There's nothing BAD about it, but you'll probably find yourself wishing there was one extra room, or that the kitchen was different, or that the property layout was better. Because it's in tip top shape, you'd be looking at a 15 or 20 year mortgage.

 

This one. DH doesn't have the time to do major reno work and we don't have the money to put into it, either. We are renting, but when we buy, we will buy something that is turn-key. Interestingly enough, the number of rooms and the kitchen are two biggies that we will need to be satisfied with as-is.

[speedmom4]

The dreamer in me would want to buy option A. The realist in me would realize we need to buy option B. My husband has a very demanding job and travels a lot for it so finding time to work on the house would be difficult. We could handle some cosmetic work but nothing major. I don't know if I could live in a remodel for an extended period of time.

 

Elise in NC

[elegantlion]

We did A, with a few caveats.

 

1. dh is a carpenter. He can do it all. The only thing he didn't do on this house was install the furnace.

 

2. how cosmetic is it? New toilets and maybe new cabinetry, paint a few walls. Or is it tear out bathtubs, hope the AC stuff makes it through until...

 

 

3. how important is the security of a paid-off mortgage? That is very important to us due to health and age.

 

4. Are you willing to live within the process of remodeling? We've been married almost 20 years and remodeling ever since. :lol: We pulled paneling out of our old bathroom (it was supposed to look like marble, it looked like old plastic) Well the glue was not worth tearing off, dh was going to skim coat the entire wall. In the meantime I needed to rehang the bathroom accessories, like the tp holder. I hung a nice new one directly on the wall where the glue was. My friends thought I was trying to be hip and modern. I was simply trying to not have the tp be on the floor or the back of the commode. Dh knows if he doesn't finish something in a timely fashion, I'm going to decorate around it.

 

5. There can be a anxiety that comes with projects being half done. Our kitchen is that way. We got free countertops to use until we decide and can afford what we want. The free countertops are terrible. It's formica, but for some reason it shows every stain. They're annoying, but not more annoying than the thought of a 15 or 30 year mortgage.

 

We traditionally move every 5 years, just happens that way. Our plan is to stay here, pay off the mortgage, and the bonus is we like the house.

[Candid]

Can you remodel the perfect house before move in and then handle the mortgage that results?

[Garga]

I'm just playing through scenarios in my head.

 

Given the choice, would you

 

A.) Buy the "eventually perfect house" that needs a ton of cosmetic work, but is priced accordingly. It will likely take you a few years to make it meet your dreams, but the mortgage would be paid off very quickly. (Let's say less than 10 years.)

 

or

 

B.) Buy the "fits your needs just fine" house which needs zero work. There's nothing BAD about it, but you'll probably find yourself wishing there was one extra room, or that the kitchen was different, or that the property layout was better. Because it's in tip top shape, you'd be looking at a 15 or 20 year mortgage.

 

Just working through my dream hypothetical situations. :)

 

ETA: Assume adequate hs room in both houses!

 

Well, DH and I know nothing about handywork, and I know my personality: I would "hate" to have to do it myself. I don't like doing work on houses.

 

Some people love it, though. They looove to paint and lay floors and refinish things.

 

It would depend on YOU. If you like doing the work, then get the house that needs to be fixed up. If you hate doing the work...don't go for the second option. Look for a 3rd house!

[Carrie12345]

We did A, with a few caveats.

 

1. dh is a carpenter. He can do it all. The only thing he didn't do on this house was install the furnace.

 

2. how cosmetic is it? New toilets and maybe new cabinetry, paint a few walls. Or is it tear out bathtubs, hope the AC stuff makes it through until...

 

This is all hypothetical, before even *considering* taking a tour and having an inspection done, so it technically could be anything! No AC, most to all baseboard electric heat (based on pics with baseboards shown.)

 

 

3. how important is the security of a paid-off mortgage? That is very important to us due to health and age.

 

Pretty important. We've felt overburdened by debt forever. The possibility of shaking it ALL off would be incredible.

 

4. Are you willing to live within the process of remodeling?

 

I really do think so, but I also realize thinking about something and actually doing it can be very different things, lol.

 

We've been married almost 20 years and remodeling ever since. :lol: We pulled paneling out of our old bathroom (it was supposed to look like marble, it looked like old plastic) Well the glue was not worth tearing off, dh was going to skim coat the entire wall. In the meantime I needed to rehang the bathroom accessories, like the tp holder. I hung a nice new one directly on the wall where the glue was. My friends thought I was trying to be hip and modern. I was simply trying to not have the tp be on the floor or the back of the commode. Dh knows if he doesn't finish something in a timely fashion, I'm going to decorate around it.

 

5. There can be a anxiety that comes with projects being half done. Our kitchen is that way. We got free countertops to use until we decide and can afford what we want. The free countertops are terrible. It's formica, but for some reason it shows every stain. They're annoying, but not more annoying than the thought of a 15 or 30 year mortgage.

 

We traditionally move every 5 years, just happens that way. Our plan is to stay here, pay off the mortgage, and the bonus is we like the house.

 

I have zero interest in moving after this, except maybe to a cushy retirement village!

[elegantlion]

I have zero interest in moving after this, except maybe to a cushy retirement village!

 

I think the security is a huge issue.

 

Our last house needed cosmetic work, but the payment was too high to do much. Then our personal economy tanked and we were in an ugly house with no money to fix it up, ever.

 

This "new" house is mostly done, it's more to our taste and the budget is cheaper than rent anywhere. We still have wiggle room.

 

I would have a hard time going back to a house that didn't have the security built-in. It makes the whole atmosphere of the house less tense, even though there are areas undone.

[Unicorn.]

Option A.

[Scarlett]

I think the security is a huge issue.

 

Our last house needed cosmetic work, but the payment was too high to do much. Then our personal economy tanked and we were in an ugly house with no money to fix it up, ever.

 

This "new" house is mostly done, it's more to our taste and the budget is cheaper than rent anywhere. We still have wiggle room.

 

I would have a hard time going back to a house that didn't have the security built-in. It makes the whole atmosphere of the house less tense, even though there are areas undone.

 

This is exactly how I feel. Even though our house is a MAJOR remodel. New roof, new ceilings, all new flooring, walls torn out etc. Plus you never know when you will get a pleasant surprise like the CH&A actually WORKS! :D

 

Insurance and taxes are $1200 a year combined. Even assuming we have a year of work where we need to buy materials every month we are still waaaay ahead. And if something does happen (dh loses his job) we can survive...might be living in an ugly house for a while longer but won't have the stress of making a mortgage.

 

Honestly, I don't know that many people willing to do it this way. It is HARD. Especially in the society we live in where so many people have to have a certain standard. It is important to keep one's eyes on the goal...in our case being debt free including the mortgage.

[fairfarmhand]

I'd choose to be out of debt sooner.

 

But I'd also keep in mind how likely my dh would be to get around to getting the work done. I would be the one dealing with an ugly house all day, while he was off at work. If I thought that the project would drag out twice as long as it should (because of busyness), then I'd opt for a no-fixer upper house.

[Carrie12345]

This is exactly how I feel. Even though our house is a MAJOR remodel. New roof, new ceilings, all new flooring, walls torn out etc. Plus you never know when you will get a pleasant surprise like the CH&A actually WORKS! :D

 

Insurance and taxes are $1200 a year combined. Even assuming we have a year of work where we need to buy materials every month we are still waaaay ahead. And if something does happen (dh loses his job) we can survive...might be living in an ugly house for a while longer but won't have the stress of making a mortgage.

 

Honestly, I don't know that many people willing to do it this way. It is HARD. Especially in the society we live in where so many people have to have a certain standard. It is important to keep one's eyes on the goal...in our case being debt free including the mortgage.

 

This is why I was *almost surprised to see so many As here. I think if I'd asked elsewhere, the majority would choose B. I had a feeling this board would point out the benefits to A.

 

Basically, dh's new employment situation includes a regular salary with a high commission that kicks in at a certain point. We have a vague idea of how that's likely to shake out (he's been in this industry for 12 years.) My thoughts are to keep the mortgage well within our comfort zone based on salary, then throw chunks of money at it as it comes in.

 

If we were to choose B (which isn't a specific house, just a generalization), we'd have to compromise on a lot of things in order to keep the mtg within that safe zone.

 

If need be, we could stay here while fixing things up at house A, since we don't believe for one second that this house will every be a quick sale!

[Ottakee]

If need be, we could stay here while fixing things up at house A, since we don't believe for one second that this house will every be a quick sale!

 

But don't count on that :-) The house we bought last year hit the internet listings overnight. We saw it at 6am, called the realtor at 8am, she got us a showing at 11am (the owner worked a 2nd/3rd shift), we put in an offer at noon, and by 1pm they had accepted..........and they honestly thought the house would be on the market 1 year or more.....instead of just hours.

[razorbackmama]

I have lived in a 'fixer upper' for 12 years. I'm done. We finished fixing it up about 12 hours before we listed it for sale. The next house will be move in ready.

:iagree:

I'll spare you the annoying details behind our current home purchase, but the overly brief story is that I finally agreed to this house because it was relatively inexpensive (so we could get a 15-year mortgage) and we had some money left over from the sale of our previous home that we could use to make the changes. So we bought it.

 

Then my husband's transmission died.:glare:

Then we discovered that he work hours for his new job were not nearly at all what we thought they were going to be, so he had no time. :glare:

We could afford for HIM to do the work (and he does have the skills), but not hire it out.:glare:

 

We have been here 4.5 years and have done SOME (new windows, new stove, new dishwasher, new roof, currently painting the exterior, new bathtub and tile in a bathroom, new smaller things like light fixtures, ceiling fans, etc.). But we have a TON left to do before it will be what we'd like it to be (new kitchen cabinets, all new flooring because the carpets are disgusting, paint the interior, redo all 3 bathrooms and finish the 4th in the basement, new landscaping).

 

I actually took some "before" photos before we moved in, because I was so excited about what all we were going to do with it.:glare:

 

Never again.

 

(Now, if we had the money to hire out OR if my husband weren't gone from the house 7 am - 8:30 pm everyday, it might be a different story.)

[Scarlett]

But don't count on that :-) The house we bought last year hit the internet listings overnight. We saw it at 6am, called the realtor at 8am, she got us a showing at 11am (the owner worked a 2nd/3rd shift), we put in an offer at noon, and by 1pm they had accepted..........and they honestly thought the house would be on the market 1 year or more.....instead of just hours.

 

Yeah, I've never understood people thinking they can know how long a house will take to sell. All it takes is the right buyer at the right moment in time. Assuming of course you don't overprice it to begin with.

[eternalknot]

My gut reaction is A. But I'd have to really consider how likely it was that I'd "eventually" get around to making it that perfect house. It's easy to have plans for all of that cosmetic work, but are you the type of family that will really get it done? This is a great choice for Type A people LOL. You buy it, budget and plan for 1-2 projects per year, and make it happen. (I'm a Type B person, so I'd move in with a ton of ideas and never find the funding or time to put those plans into fruition. Certainly not with young kids, they exaggerate my Type B tendencies LOL.)

 

Length of mortgage isn't a factor for me; I know people like to have those paid off, but I'm fine carrying that debt because it frees my money for higher-yielding investments. If that were important to me, I'd have no problem extending from 10-15, but going from 10 to a possible 20 year could become overwhelming. I'd question that decision, and maybe make it the deciding factor.

 

So, what kind of person are you? What type of family are you? :tongue_smilie:

[ChristineW]

B unless you have the cash on hand to pay for the remodel. When we bought last year, our bank wouldn't give us a penny over the appraisal (which happened to be exactly the sale price). This house hasn't been remodeled since the early 80s but at least everything was in good shape. I'd love to replace the carpets and windows and put in a/c but we're trying to get the $ together for a better refi. So it will be at least a couple years before we get the goodies I want, if ever. If you have the money on your own to pay for the improvements, go with A but don't count on rolling it into the mortgage.

 

Christine

[Georgiana Daniels]

I have to go with Scenario B because hubby and I aren't handy whatsoever. In fact, I only recently bought a battery powered screw driver (OH, feel the power!!!) Plus, I can't live in remodel chaos, that would totally mess with my head.

[Carrie12345]

My gut reaction is A. But I'd have to really consider how likely it was that I'd "eventually" get around to making it that perfect house. It's easy to have plans for all of that cosmetic work, but are you the type of family that will really get it done? This is a great choice for Type A people LOL. You buy it, budget and plan for 1-2 projects per year, and make it happen. (I'm a Type B person, so I'd move in with a ton of ideas and never find the funding or time to put those plans into fruition. Certainly not with young kids, they exaggerate my Type B

 

So, what kind of person are you? What type of family are you? :tongue_smilie:

 

Dh and I are Type A Firstborns with Type B kids, lol.

[eternalknot]

Dh and I are Type A Firstborns with Type B kids, lol.

 

I (still) drive my poor Type A parents B*A*T*T*Y :lol:

 

(Just wait until your Type B kids start driving. You. LOL Good times, good times.)

[Carrie12345]

But don't count on that :-) The house we bought last year hit the internet listings overnight. We saw it at 6am, called the realtor at 8am, she got us a showing at 11am (the owner worked a 2nd/3rd shift), we put in an offer at noon, and by 1pm they had accepted..........and they honestly thought the house would be on the market 1 year or more.....instead of just hours.

 

I'd be thrilled to be proven wrong! :001_smile:

 

The house across the street is the same style as ours, but with an extra bath and bedroom, on property just as great if not better than ours. Priced just below where ours "should" be. It's been sitting for over 2 years now, probably closer to 3. :glare: My expectations are low.

[Catwoman]

I wouldn't buy either house. I would keep looking, because neither of the two houses you described seems to be a perfect fit.

[kokotg]

I guess we picked A (although it won't be paid off in 10 years, barring some unforeseen windfall!) We've been here since May and so far we've replaced both the furnaces, had a bad leak repaired in our sunroom, painted 5 rooms, fenced in the yard, etc. etc....and we're far from finished. But it's fun! Mostly. And tiring!

 

If it really is mostly cosmetic, I'd go for it. This house was a foreclosure that had been empty for 2 years, and it was a GREAT deal. It's pretty much the only house we looked at that wouldn't have meant making a major compromise on something we really wanted that would probably have bothered us long term (too small lot, no basement, less than ideal location, etc). Pretty much everything we're not crazy about with this house is fixable. The only thing we didn't get that we wanted was a fifth bedroom, but we can finish the basement eventually and get that, even.

[Scarlett]

I'd be thrilled to be proven wrong! :001_smile:

 

The house across the street is the same style as ours, but with an extra bath and bedroom, on property just as great if not better than ours. Priced just below where ours "should" be. It's been sitting for over 2 years now, probably closer to 3. :glare: My expectations are low.

 

Just to encourage you, a house 2 doors down from the house I just sold had been on the market for a year. 6 months while they lived there, 6 months vacant. Word was they were about to lose it. I went in it. I thought it was lovely. Almost identical floor plan as mine, but better lot. The price went from $108K down to 89K before it sold. I actually got my buyer from a realtor taking a young couple to see that house....on the second showing they decided against it....and she brought them to me.

 

I got $94 (but had to leave my nice kitchen appliances.) My house had a FSBO out front for about 30 days.

 

You just never know.