How much to fix up an old house?

[freedomatlast]

Test the water by putting it up for sale on Zillow. It costs you nothing and you may be pleasantly surprised how fast you have a buyer without the cost and inconvenience of a realtor.

 

[pb4uski]

We faced this exact situation when we sold my mother's house in Florida.... they had been there 25-30 years and it was well maintained but dated. Our realtor recommended that we not do any fix-ups. We cleaned out all the "stuff", and had the wall-to-wall carpets shampooed and had the gutters and some of the siding powerwashed. That was it.

As a result of the inspection we had to replace the electrical panel and breakers, but that was it. And we priced it accordingly and it sold within a month or two as I recall.

 

[sengsational]

"As-Is" vs "As-Is"

I would avoid the words "as-is" at all costs. The term means, to some, that it's not ready to move-into. It's just an invitation for low ballers to waste your time.

What I would do in your case is spend just enough to make it "move-in ready". And to do that, I'd get an inspector and fix everything that would prevent the buyers from securing a loan, for sure. So get all the rotted wood bondo'd and if it needs paint, paint it (inside and out). Make sure everything works. Make sure everything is clean. If some things are marginal, for instance carpet that's going to need to be replaced for sure, you can call it out yourself before the offer is made by putting a small allowance in the deal ("$500 carpet allowance"). If you didn't do these things, you put your house in a "dump" category and can expect a lot lower offers (unless you're in a hot market, where the houses like yours have been flipped with new countertops for megabucks). But if that's the case, you might consider a significant face-lift yourself and not letting the flipper have the money.

 

[ut2sua]

Ive seen houses more beat up than ours sell quickly if priced a few 10s of $K less than comps. I have little doubt that our place will sell if priced similarly aggressively (though it may make our neighbors hate us).

OP, you have provided the best answer for your question above. Each market is different, and you already know what to do. Final goal is to net the most $ at the end. In your case, it means no remodelling.

 

[Unpaintedhuffhines]

Our relevant experience has mainly been from the buying side. Seemingly innumerable houses that we looked at both when younger and in our late 40s had been "rehabbed." The problem generally was that the seller wanted to recoup their expenses, while we wanted to pay less because of the cost of ripping out their "improvements."

This is a great point. It's much better for the buyer to do a whole new remodel rather than have to rip out a Home Depot remodel. When we bought our forever home, one of the draws was that it was a 50 year old house with almost no remodeling done - I could take it down to the studs and not feel guilty about ripping out that horrific black granite countertop.

I'd remove the clutter and have someone stage it so someone can see what's possible, but that's it.

 

[Morricol61]

I tend to agree with most posters here, sell the house, let the buyers have it cheap, they will fix it up the way they want and be happy that they got a bargain.


If your house was not in a desirable area then you might act differently, but it sounds like yours will sell quickly. Take the money and invest it in your second home.

 

[RobbieB]

There will be an inspection if loan contingent and per local (termite) and you may be well off getting one at your cost (before listing) just to see. I don't think it'll be over a grand.

Then you'll have your own basis to negotiate from.

 

[SheitlQueen]

I would probably replace the roof in a neutral color and that's it. Price it competitively and someone who doesn't mind or wants a fixer upper will buy it. Don't put a lot of money into remodels they may not even like.

 

[JP.mpls]

I would clean and declutter the home. This has to be done anyway. Maybe move some of your stuff into storage temporarily.
This will make your eventual move easier too.

Maybe paint a few rooms if they are painted dark colors, or the walls are really banged up.

Only fix what inspectors/mortgage companies determine is necessary to allow the buyer to establish a loan for the home.
They will come up with something to fix anyway, just to negotiate the price down slightly

Something I've never done, but I think might be a good idea, is to pay an interior designer to stage the home. Some people have an amazing eye, and can make any place look better and more inviting.

Good luck.

 

[Rianne]

Rather than remodel, stage. I would fix the important things roof, HVAC stuff new owners don't want to hassle with those things. Staging, even a dated home creates a well maintained to impression buyers. Even if you rent a few furniture pieces, buy new towels and add some pizzaz to countertops. HGTV Fixer Upper puts a lot into staging. And it's cheap. You never know what a buyer is looking for. Shabby Chic is popular. If you can blend shabby with new...that's trendy.

Comb through ideas like these:

https://www.pinterest.com/leeannsmall/shabby-chic-decorating-ideas/

 

[momoftwo]

We sold our well loved but well worn 1800 family home last year in a high cost, desirable location.
We struggled a bit with how to sell. Easily could have just thrown it on the market and obtained an ok price.

Decided to invest a bit to depersonalize our choices and address the glaring cosmetic issues.
Tore out all the 40 year old ORANGE carpet and refinished the glorious hardwood underneath, removed old wallpaper and painted most rooms.
Removed one fake 'stone' wall in living room that we had basically ignored for 30 years.
Spent perhaps $5000.
We didnt choose to install central air or replace furnace or even rickety windows, or update main bath.
Kitchen was updated and still lovely.

House sold in about two months to another old house lover at a very fine price.

I dont think it has to be an all or nothing approach.

 

[Stormy Kromer]

I'd consider the roof and any other mechanical issues that may fail an inspection. Those things can be deal breakers. Other than that the only other thing I'd consier is a coat of interior paint. Then potential buyers can't point out what's wrong with your house, only what they don't like.


I sold my last house with older carpets that we knew needed replacing. We built a carpet allowance in the purchase price. The buyer thought that was great.


It doesn't matter if your kitchen is 40 years old or 10. If the buyer doesn't like things it will cost them the same to update it.

 

[Badger]

Every house, and market is different. Example, SIL lives in a home built in the 30's. The value is 1.2M. No amount of fix up will increase the value of the home, because it is going to be torn down. 1.2m is land value.

This is the same situation we are in but we are not interested in selling. What we have done are only those things that make life more comfortable for us and not with trying to increase its value. When the day comes ours too will be torn down for McMansions to be built just like 90% of the house on our street. No sense in going through the expense and annoyance of dealing with contractors as we throw money away trying to squeek out a couple more dollars that may not even happen.


Cheers!

 

[Teacher Terry]

I would definitely give a carpet allowance versus changing it because most people don’t want it and use hard surfaces. I would definitely clean, declutter and fix any obvious eyesores.

 

[38Chevy454]

Agree with the consensus that you are better off to just clean it up, declutter and depersonalize. As Sengsational suggested, be careful of the term as-is. A pure as-is sale means no inspections, or at least the inspections will not result in any actions for repairs. It will cause low ballers and flippers to waste your time with the very low unacceptable offers. Your as-is means that you will not be doing any significant remodeling or repairs prior to sale. Very different than the strict as-is real estate sale definition.

Just list with an attractive price, knowing that the buyer will be able to do what they want for colors, style, costs that they want. You cash out and move to your new place. There can be inspections and it is likely you may need some small repair items. But no new roof (you already know it is needing replacement), no new HVAC, no new water heaters, no new carpet, etc. No upgrading to current code since you are not doing any of the remodeling work. All that remodeling and fixing u p will only end up costing you in the end, and *may* result in a little easier sale. Remember though, price sells.

Not your problem what neighbors think about the price. Not your problem about real estate agent wanting all the remodeling to jack up the price and corresponding commission.

 

[pb4uski]

According to Remodeling Magazine’s 2013 Cost vs. Value Report, homeowners who have new roofing installed can expect to recover an average of 62.9% of the installation cost through increased home value.

So, if you want to give the new buyer 37% of the cost of the new roof, go ahead. Not me. Sell as-is.

You can look up the resale value of a new furnace, A/C, and water heater, but expect similar results, expecially if it's not DIY.

+2 Leave the roof as is... if it is an issue the buyers can negotiate for it. I've sold two homes in the last 10 years that had old roofs... but no leaks... we were never asked to replace either.

One of the roofs was over 35 years old but still looked good... shingles layed flat but there was a little wear along the eaved edges... but no leaks.

 

[travelover]

I'm not a proponent of pouring money in before a resale, but I got screwed royal by bad advice from a real estate agent with respect to having the septic system inspected prior to sale. It was 50 years old and working, but I'd heard from neighbors that it might not pass the mandatory inspection.

Long story short, by the time it failed the inspection it was winter in Michigan, the sale was held up and I paid over $22K to have it replaced. So, for others in a similar situation, beware.

 

[Koolau]

When we were getting our "old" place ready to sell, our realtor told us to paint the interior taupe. I had no idea what that was though DW had a general idea. We looked at color swatches and picked a fairly light taupe and used that. In the light of our very open and airy interior, it could have been beige for all I knew.

The place sold in 4 days, so maybe taupe was the ticket. YMMV

 

[mountainsoft]

We cleaned and repaired my mom's house a couple years ago before selling it:

Fixing Up The Dallesport House

She had smoked in the house for 20+ years (nicotine stains were running down the walls), didn't keep up with any maintenance, and just generally hoarded and trashed the place. It was dirty, smelly, and disgusting. I considered selling it as-is, but we wouldn't have gotten anything for it in the state it was in.

So, we spent about $6000 on basic repairs. We removed the filthy popcorn ceilings, repainted the house inside and out, fixed all the leaky faucets and toilets, and installed new (cheap) carpet. We "remodeled" the bathrooms using the cheapest materials we could find (peel and stick floor tiles, cheap mirrors and towel bars, etc.), but it "looked" new. I also replaced all of the light fixtures and electrical outlets, had a cracked window replaced, and replaced the water heater. We painted the kitchen cabinets and added some cheap chrome handles. Despite all of the inexpensive materials we used, everything looked and smelled new when we were done. It's funny what new paint and a few shiny handles can do for a place. I'm guessing we got $50-75K more than we would have received in as-is condition.

We did have to fix a few minor things before we sold it, like splash blocks for the downspouts, and painting the shed. They asked for more updates like a new header for the garage door and installing a heat pump, but those were out of our budget. We declined, they bought it anyway.

 

[RobbieB]

Hehe, yeah who cares about the neighbors eh? Not you, you're down the road!

 

[HI Bill]

I agree with the posters above. If things look dirty and are broken, replace them. Cheap carpet is inexpensive, as is paint. Replace anything broken that won't pass inspection. Don't waste time or $ renovating, or replacing anything 'dated' unless it doesn't function.

We just got our condo ready for sale in Hawaii. Replaced the stained carpet, repainted the walls with yellowed spots where art had been hung. Replaced the lanai tiles as a bunch were cracked. Replaced two broken kitchen tiles. Replaced a couple of light switches. That was it. All in for about $2K, and the place should sell quickly. We cleaned thoroughly, including drapes. Make it look good and clean. If it's dirty, buyers, even those wanting to do upgrades, won't be able to see past the obvious defects.

 

[Finance Dave]

I was a licensed home inspector for 7 years. Some home buyers want the one that's already been fixed up, others want the lower price and "dated" so they can do it their way...there is no "right" answer.

When I inspected any house that had been recently substantially renovated, I always put a paragraph in my inspection report saying something like....

"This house has recently been substantially renovated. The quality of the work behind renovations cannot be ascertained by our inspection, so we encourage you to get additional details from the seller such as the names of companies who did the work, any warranties available, and ask for permits that were pulled when doing the work"

Too often we saw people cover up issues, do poor wiring, and so on. One time I tested a tub in an upstairs bath, and when I went downstairs water was STREAMING through the ceiling...the person who did the plumbing failed to glue the trap below the toilet! The ceiling on the lower floor was drywall, so a large repair had to be made.

If you do fix it up, keep receipts, get warranties, and keep permits...put it all in a package so you can show the quality of the work that was done.

 

[sergio]

When I was looking for homes I purposefully avoided those that had obvious work done before going on the market. I don't want to pay $$$ for garbage-grade carpet or $0.99/sq ft engineered flooring that was installed by a handyman. I don't want to pay for a new low-end AC unit that's going to result in 10+ years of high utility bills and frequent repairs. Or a new roof using the cheapest shingles and cheapest fly-by-night installer. I'd rather just fix that stuff myself.

A buddy of mine replaced all the carpeting in the house he sold in 2015 since the carpeting looked awful. On closing day the buyer literally had his wood floor guy waiting outside for the green light to go in and start ripping up the flooring so he could put wood floors in the entire house... The buyer joked that he would've paid more for the house if there was no flooring and only plywood haha.

I would only fix major showstoppers that will legitimately make a house difficult to sell (mold, termites, odors from smoking) and any safety issues (leaky pipes, bad electric panel etc.). Those will likely come up in the inspection and you could get dinged for far more than it costs to fix them now. Maybe a coat of white paint in rooms that look awful. And definitely clean and declutter.

 

[calmloki]

Normal costs for repairs are 50-100% more than you figured. We are in Oregon and I've had the experience of hiring plumbers, electricians, and carpenters in the last month. It is NOT easy and takes way longer and is substantially more expensive than last year. Parts are unavailable, lumber availability is very spotty, and the costs are stupid - 1/2" plywood that was $15 is now almost triple that. Ugly. Not something you want to start and get trapped mid process.

 

[Doribe]

I'm not a proponent of pouring money in before a resale, but I got screwed royal by bad advice from a real estate agent with respect to having the septic system inspected prior to sale. It was 50 years old and working, but I'd heard from neighbors that it might not pass the mandatory inspection.

Long story short, by the time it failed the inspection it was winter in Michigan, the sale was held up and I paid over $22K to have it replaced. So, for others in a similar situation, beware.

Septic and wells inspections are commonly required by law before a property can be sold. In my experience the septic inspector and the regional supplier/contractor was one and the same.