Originally Posted by JOHNNIE36
This post begs the question of if you buy it at a discounted price because it needs new this or new that and the A/C is on it's last leg, are you going to buy it and live in it the way it is? A lot of people want a "turn-key" unit. Because of the problems in the real estate market, maybe this thinking has changed. One would probably buy a home in need of repairs and/or upgrades and then renovate it to suit their tastes.
In my case, I can perform simpler upgrades, mostly of the cosmetic or minor improvement type.
Anything "heavy duty" would have to be contracted out at my expense.
Examples include constructing an outside deck, installing hardwood floors, replacing worn/dirty carpet, redoing a bathroom/kitchen (functional upgrade not cosmetic), replacing roof, or repair/replace cracked steps or chimney.
So therefore, I would use the estimated cost of these functional upgrades as a negotiation point in an offer.
For a full DIY handyman supplying the labor, the situation would be very different.
As background, the home I've lived in since 1984 was in decent "move in" shape but needed some serious functional upgrades on the outside. Each was done over the years as money was saved. All upgrades were contracted out.
My home is in the best shape (functionally) of all of the homes near me, all built at the same time. So I feel pretty comfortable that some of the money spent over the years will be recouped when I sell it.
Construction date: 1977
Purchase price: $63K in 1984
Current assessment (school taxes): $186K