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Placing a value on a home as is


Scarlett
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How do I go about estimating what my home is worth if we sell mid remodel?

 

I am exhausted.  I am pretty sure it would be very foolish to sell before we finish it....but I'd like to know what I could get out of it.  

 

We bought it 3 years ago. 1 acre, an inground pool and 1800-2000 sf 3/2.  It has a big shop (30 X40)..nice with concrete floors, electric etc.

 

We have put on new roof,

gutted and remodeled both bathrooms.  

Replaced every single light in the house. (includes 4 ceiling fans)  There was nothing here...stripped clean by previous owner I guess.

Scraped off popcorn ceilings and had hand textured put on

painted all interior walls.  

New pool pump and filter. And repaired and painted the gunite pool.

 

Added a nice new window over looking the pool where no window was before.

Installed 2 new exterior doors.  I new interior door.

 

Gutted all the flooring in the house.  stained the concrete.  And while it looks...not great to me, it is at least a blank slate.  

 

took down walls to create open living area between kitchen and eating area and living.  This is very nice and open...

 

The things left to do....the kitchen....It will be a gut job

 

The exterior siding. And paint.  Front door and one upstairs exterior door (to the balcony over looking pool).  

 

One kitchen window for sure.  7 others would be great, but not an absolute necessity.

 

And lots of little finish jobs.  trim, mosty.  

 

We paid $40K for this house.  I just have no idea how much it might currently be worth at this stage.  I probably just need to call the realtor and let her convince me to get it finished and sell for top dollar.  ;/  

 

 

 

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You paid $40K?  How much have you put into it?  

 

I would definitely get a realtor.  Your house may be hard to price.  Ours is.  Everytime we have had it appraised they tell us how hard it is to comp because it is so unique to the area.  But, they do give us an appraisal.

we too are exhausted and need to FINISH this remodel so we can MOVE!  I am so sick of it.

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Zillow is often under the real market value IME. I sold our last home for more than 40k more than the "zestimate", and I don't know anyone who has not gotten more than Zillow said they would. If you really want to know see if you have a realtor in your church who would talk with you and run some numbers at no charge.

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You paid $40K?  How much have you put into it?  

 

I would definitely get a realtor.  Your house may be hard to price.  Ours is.  Everytime we have had it appraised they tell us how hard it is to comp because it is so unique to the area.  But, they do give us an appraisal.

we too are exhausted and need to FINISH this remodel so we can MOVE!  I am so sick of it.

 

15K probably on the big ticket items.  Lots and lots of little things...but a lot of things dh has reclaimed from job sites...but yeah, I would say 15K.  That doesn't include our labor.  But also we have had no mortgage at all for 3 years...so there is that.

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I think we could do the siding and painting (including the doors and windows we need) for $5K.  I think the kitchen could be done for $10K.  That is with us doing the labor.  Flooring....eh....hard to say because it just depends on what we put down. I am inclined to leave the floors concrete and let the buyer do what they want with it.  Except for upstairs we would put carpet.  (400 sf) 

 

The fireplace is another thing we made workable...previous owners had pulled out all the piping.....we replaced that and have used it for 2 years but the fireplace itself is cracked and we think it would be better to pull it out completely and put in a wood stove.  That would be around $1500.  

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Zillow is often under the real market value IME. I sold our last home for more than 40k more than the "zestimate", and I don't know anyone who has not gotten more than Zillow said they would. If you really want to know see if you have a realtor in your church who would talk with you and run some numbers at no charge.

 

 

 

Zillow has us valued at 135K.  But it has the old pics.  LOL....anyone looks at that and they think.....whaaaat?

 

Oh and one more thing is we live in a lake community and we are one mile from a good Cove.

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So the big problem is.....we need to get enough out of this house to move into town and buy a move in ready house.  Seriously,  I am so done with these kinds of repairs.  I can paint and maybe do some landscaping....but this is just too much for us at our age and dh's health.  

 

There is a house in town for 137 that I would move into tomorrow.  But I want to be able to afford it.  If I thought I could get that much out of this house I would move in a heart beat.  Hopefully I could get dh on board.

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You paid $40K?  How much have you put into it?  

 

I would definitely get a realtor.  Your house may be hard to price.  Ours is.  Everytime we have had it appraised they tell us how hard it is to comp because it is so unique to the area.  But, they do give us an appraisal.

we too are exhausted and need to FINISH this remodel so we can MOVE!  I am so sick of it.

 

 

How much more do you need to do?  Have you thought about selling as is?  Is that just too hard to do because of the buyers financing?

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In the end it all comes down to what people will pay.

 

Obviously its a livable house.  Needing renovations is funny.  When we were looking at houses last time, a lot of things our realtor thought should be gutted, I was horrified at the idea - things like tile kitchens and bathrooms from the 40's that would cost a mint to recreate, and just needed a little sprucing up.  The house we bought does need some significant renovations, but we haven't really done any. We will later when we can afford it.  But if they had done it for us, it would have cost too much.

 

Then some people will never buy a house that needs work, and others would never buy it after you renovated because they wouldn't like what you did.

 

In the end, what does a house of a similar size and age cost where you live is the only place to start I think.

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In the end it all comes down to what people will pay.

 

Obviously its a livable house.  Needing renovations is funny.  When we were looking at houses last time, a lot of things our realtor thought should be gutted, I was horrified at the idea - things like tile kitchens and bathrooms from the 40's that would cost a mint to recreate, and just needed a little sprucing up.  The house we bought does need some significant renovations, but we haven't really done any. We will later when we can afford it.  But if they had done it for us, it would have cost too much.

 

Then some people will never buy a house that needs work, and others would never buy it after you renovated because they wouldn't like what you did.

 

In the end, what does a house of a similar size and age cost where you live is the only place to start I think.

 

 

It seems to me that even in the shape it is in we should be able to get $100K for it.  

 

I just saw that a mobile home on 10 acres with a shop sold for $105 about 1/2 mile from me.  No way to really compare that.....I saw 10 acres for sale 1/2 mile away in the other direction for 50K.  

 

I saw a same size newer house (more traditional) with almost 5 acreas, but no shop or pool that just sold for $155.  It is also a mile from the lake....so the area is comparable.  Few inside pics but the kitchen looked new and very nice.  I think if we did all we want to this house we could get $175 for it.  But that would be another 20K.  Bringing our total (renovations and purchase price) up to $75.  

 

The baths in this house absolutely had to be gutted.  The toilets didn't work right and the fiberglass shower floor was busted....that sort of thing..

But I do know what you mean about people thinking everything has to be gutted.  I see househunters and dh and I are just gobsmacked at what people are ripping out.  

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I would consider taking out a $30,000 construction loan and hiring someone to finish it all. I have zero doubt you could sell for more than the $85,000 you would then have put into it, and I'm guessing based on what you've described you could get double that. Let someone else do the work, pay the very low mortgage for a few months and get what it's worth. 

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You need a really good realtor.

 

I interviewed several before settling on one. He had lots of construction experience and flipped houses regularly.

 

I got way over asking price. Like huge piles of money more!! I was in a top rated school district and in a nice town.

 

My house was just old though. I mean you could have gutted kitchens and bath but they were more than functional. The furnace was a whole other story.

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No advice, but sympathy.  Our first house was a fixer upper.  Everyday, coming home, okay, what are we doing next?  It felt like it never ended.  We had a house in between that needed a few things, not too bad.   When we moved last October I wanted move-in ready.  DH and I are both too old for the fixer up thing! 

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I do find rural areas can be very tricky.  So much depends on the right person wanting to live where you happen to be.

 

Very true.  Our last house we got full asking price for, our realtor wasn't even expecting that.  They fell in love with the location.  It seems to also play out that way with "unusual" houses too.

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Very true.  Our last house we got full asking price for, our realtor wasn't even expecting that.  They fell in love with the location.  It seems to also play out that way with "unusual" houses too.

 

 

Well, our house is definitely unusual.  It is an A frame. Sits on a beautiful acre...lots of big trees.

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I would consider taking out a $30,000 construction loan and hiring someone to finish it all. I have zero doubt you could sell for more than the $85,000 you would then have put into it, and I'm guessing based on what you've described you could get double that. Let someone else do the work, pay the very low mortgage for a few months and get what it's worth. 

 

 

I think this might be the best solution if I can qualify based upon my piddly income.  Dh's credit is too bad......although I did have a banker say he would give us a loan based upon my credit score and dh's income.  That was a year and half a go. I had the papers filled out and we had decided to do it and then BAM dh lost his job.  Sigh.

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You need to get a GOOD realtor out there to talk to you.  We're out in the country and it's so much harder to determine value.  You're limited on particular people who want your location.  Alternatively, could you hire an independent appraiser?  They might give you a more realistic number.

 

As an aside, on your kitchen, have you looked around on Craigslist?  We gutted our 1970's kitchen two years ago.  I just happened to stumble upon someone in town who also gutted their kitchen and were selling their cabinets and Corian counters for CHEAP.  The cabinets were maybe 7 years old and all in great condition.  Professionally removed, too.  We snapped them up!  It took my dad and husband a bit to rearrange and fit to our space, but I now have a beautiful kitchen for very little money (but a lot of work!).  It's worth looking into.

 

Generally, if you have a nice location on/near a lake, you're going to want your house to be in tip-top shape to appeal to more people.  I know it is draining, but I'd keep going with fixing it up.  FWIW, we've completely overhauled our house and won't be able to get it back out but I'm still glad we did it.  The house is actually livable until we can ever get it sold. 

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if you have things that are in the process of being finished - you really need to get them done, even if you have to pay someone to do it.

 

If you invest some money in someone else doing those big buyer items, you will sell faster, and for more.   most buyers don't care about what is in the walls - but focus on what it looks like.  some are willing to do the work, but they are more the exception.

 

 

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if you have things that are in the process of being finished - you really need to get them done, even if you have to pay someone to do it.

 

If you invest some money in someone else doing those big buyer items, you will sell faster, and for more.   most buyers don't care about what is in the walls - but focus on what it looks like.  some are willing to do the work, but they are more the exception.

 

I think it depends on factors such as where the house is located, local market, etc...

 

We bought a house as is.  Lots of unfinished projects and neglected stuff.  But there are lots of houses like that around here because most of the houses around here are about 100 years old.  It would have made no sense for the owner to do anything to it.  He wouldn't have gotten much more for it. 

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How do I go about estimating what my home is worth if we sell mid remodel?

 

I am exhausted.  I am pretty sure it would be very foolish to sell before we finish it....but I'd like to know what I could get out of it.  

 

We bought it 3 years ago. 1 acre, an inground pool and 1800-2000 sf 3/2.  It has a big shop (30 X40)..nice with concrete floors, electric etc.

 

We have put on new roof,

gutted and remodeled both bathrooms.  

Replaced every single light in the house. (includes 4 ceiling fans)  There was nothing here...stripped clean by previous owner I guess.

Scraped off popcorn ceilings and had hand textured put on

painted all interior walls.  

New pool pump and filter. And repaired and painted the gunite pool.

 

Added a nice new window over looking the pool where no window was before.

Installed 2 new exterior doors.  I new interior door.

 

Gutted all the flooring in the house.  stained the concrete.  And while it looks...not great to me, it is at least a blank slate.  

 

took down walls to create open living area between kitchen and eating area and living.  This is very nice and open...

 

The things left to do....the kitchen....It will be a gut job

 

The exterior siding. And paint.  Front door and one upstairs exterior door (to the balcony over looking pool).  

 

One kitchen window for sure.  7 others would be great, but not an absolute necessity.

 

And lots of little finish jobs.  trim, mosty.  

 

We paid $40K for this house.  I just have no idea how much it might currently be worth at this stage.  I probably just need to call the realtor and let her convince me to get it finished and sell for top dollar.  ;/  

Call a handyman and get that trim finished and sell for top dollar!   You can paint, or hire a handyman for the painting.  Or pretty much a lot of guys down at the paint store.  They will give you names of the best guys. 

 

Then just disclose what is unfinished (not just dated, like the kitchen or the window, if you have a  usable window in there).

 

Get your money! 

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You definitely need a comparative market analysis and you should get a few. Realtors will all come up with different prices, so contact three or so and ask them to tell you what they think and then go from there!

 

 

I guess I gotta figure out what my question is first!  :)  Do I want to know how much it would sell as is?  Or what do we need to do to get top dollar and what will that top dollar be?  I guess I want to ask all three questions.

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You could get an appraisal.  That is what it is going to come down to anyway.  They aren't cheap, but Realtors aren't cheap either.

 

 

Well, I have found that an appraisal without a contract on a house is different than one with.  They factor in what someone is willing to pay for it.  

 

I am pretty sure I can get a market analysis done for free.

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A question I would ask the real estate agent would be whether someone could get a loan on the house as is.  If they don't think the bank will give out a loan, then ask what absolutely needs to be finished to make sure they a loan will be issued.

 

And I feel for you.  We bought our house as a fixer-upper and it has been a very long haul.  Good luck!

 

 

 

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I'd talk to a realtor before doing anything else. In my area, home prices are high enough, but so much of that value is tied more to the land than the actual house. People pay for location. If you're on an acre surrounded by acreage, that's tricky. You don't want to over improve and have to wait longer to sell. People moving out to the country might expect more land and less HGTV for their real estate dollars.

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We tried to sell a previous home mid-repair. The realtor was a real pain and we opted not to try. The kitchen not being done was a huge down factor. People want kitchens and baths done, but you know that. The location might make the difference for you. You might be able to get more if you allow some $ toward repairs too. 

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Of course you can get a loan for a house as is. The amount will be based on the appraisal done by the bank.

 

Again, we bought a house "as is" and got a loan.

Yes but you'll limit your market to traditional borrowers only.

 

If certain things aren't done, you will knock out VA, USDA, and FHA loans. Rural market, limited buyers, you really don't want to reduce that pool even further. It's a very important question to ask.... Are the repairs aesthetic or could they be potential loan killers? An experienced realtor could tell you that.

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Realtors are paid for a reason. The work they can do is valuable. If it is at all possible for you to get an experienced realtor with a good reputation to tell you, at least, whether they'd consider taking the house as an as-is at your asking price (no guarantees) and if not, why not, that would be useful. It will be worth it.

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Realtors are paid for a reason. The work they can do is valuable. If it is at all possible for you to get an experienced realtor with a good reputation to tell you, at least, whether they'd consider taking the house as an as-is at your asking price (no guarantees) and if not, why not, that would be useful. It will be worth it.

Yes, this is what I want to do. I usually have a really good feel for what a place will bring....but with this house o really have no clue. Except that I know we have done fine so far and not over spent.

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Yes but you'll limit your market to traditional borrowers only.

 

If certain things aren't done, you will knock out VA, USDA, and FHA loans. Rural market, limited buyers, you really don't want to reduce that pool even further. It's a very important question to ask.... Are the repairs aesthetic or could they be potential loan killers? An experienced realtor could tell you that.

 

Again, not true.  We got an FHA loan. 

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Again, not true. We got an FHA loan.

Maybe this depends on the market you are in somewhat, but I do know FHA, VA and rural development can be particular about some things. Not cosmetic stuff though.....but I do t think they would loan on my house with no carpet upstairs.....

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