Buying a home with minimum upgrades

9 years ago

We are looking at a home that is over 4000 sqft built in 97, but there are not a lot of upgrades done on the house. They have upgraded the appliances (range, microwave and dishwasher) and the countertop as granite with Laminate flooring in kitchen. Flooring is are not updated (carpets) and none of the bathrooms are upgraded. Basement is finished with laminate flooring, but in some areas the flooring was not complete and in one area they have not completed the wall fully and the ceiling was also incomplete. They started the price range from high 400's and now they reduced it to low 420s within a month. Our budget for a home is around 380K - 400K, and we liked the floor plan for this home, but without any upgrades, is it worth to invest in this home. P.S. This will be our first home.

Featured Answer

User

9 years ago

A 4000 square foot home is large. The cost to heat, cool, maintain, clean, etc. can be expensive and if you want to replace flooring it could be very high. A 20 year old house will start facing end of life issues with flooring, roofing, heaters, air conditioners, and appliances if all those are original. That type of work on a 4000 square foot house is expensive so you'll want to have some reserve for repairs not just remodeling. Are you sure your family needs a house of that size? Can you do some of the work yourself? Is this an outstanding location that will make the house desireable? If you can answer yes to at least some of these questions it might be fine -- but just know what you are getting yourself into with a large house (and perhaps an equally large yard).

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Comments (10)

Beth
9 years ago
There's not enough information here to answer the question.

What are homes in that neighborhood selling for that have been fixed up? How much do you think it will cost to replace flooring, possibly kitchen cabinets, bathrooms, and finish more of the basement if you need that space?

Without knowing what the neighborhood and the comps are (and which were kept current and which weren't) there's no way to know if that's a steal, reasonable, or a really bad idea.
Aravind Saseetharan thanked Beth
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Aravind Saseetharan
Original Author
9 years ago
Thank you Bethohio3 and Stan Z for your comments. My agent did some research on the homes sold within 0.5 mile radius and the average high is 395K and the avg SP % LP is 96%. The area the home is in Mason School District in Ohio.

We are still deciding if we really need a house with 4000 sqft. :)
cpartist
9 years ago
Sounds like they're way over priced for the area.

Personally, for your first home, I would look to something smaller and more manageable. It will help you to learn about how houses work, how to maintain them without it bankrupting you.

Figure out what you actually need for the next 5-7 years. Many first time homeowners have a fantasy image of how they think they want to live. The image many times has nothing to do with reality.

For example only: A couple who is comfortable barbecuing with small groups of friends outdoors and sharing beers and chips, buying a home with a huge kitchen and dining room, anticipating having formal dinner parties for 20. The reality and the fantasy are two different things.
Aravind Saseetharan thanked cpartist
User
9 years ago
Some friends of ours bought a 5000 square foot house with 6 bathrooms. They were shocked when they got an estimate from a cleaning service of $300/visit to clean it!
worthy
9 years ago
last modified: 9 years ago
They think that's high?? Cleaner salaries in the US range up to $25.40 per hour. Plus the cost of cleaning materials, employer taxes, travel time. But, of course, I'm talking legal and documented.
User
9 years ago
Deport all the immigrants! Except the housecleaners. Oh, and the lawn dudes.
K Sissy
9 years ago
last modified: 9 years ago
If $400,000 is the top of your budget, you probably can't afford the upgrades for this house that you would want, or to finish it the way that you would like. I think that you would be miserable in this house, having to live in it without being able to do what you would want to it. Wait for something to come along that fits your budget that is upgraded the way you want, so you can be happy and content in your home. Enjoy where you live!
Aravind Saseetharan thanked K Sissy
homechef59
9 years ago
If it's your first home, keep it simple. That's why they call them starter homes. Buy a home in good condition that only requires decorative painting and some flowers in a pot. You will be able to handle a paint brush with a little practice. Learn about the costs and responsibilities of home ownership in a less stressful situation. It will make for a much better life. HGTV gives people a false sense of what is not only possible but desirable. It's better to pay a little more for an updated, smaller house than a big house that needs renovation. Trust me on that one. Marriages are broken on projects when you get in over your head.
Aravind Saseetharan thanked homechef59
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Anglophilia
9 years ago
Yes, buying LESS than one can afford rather than the MAX is always a smart idea. Houses have a very nasty way of having things break when least expected or least affordable. The downpayment, mortgage and taxes are only just the beginning, no matter how new the house is.