Buying A Not So Perfect Home

Sometimes, when a buyer is searching for homes, after seeing many of them, they decide that they may be open to buying one that needs repairs and /or updates.   This happens more often in a seller’s market.  A seller’s market is when there are more buyers than there are homes for sale.  What happens in this type of market is that the homes that are nicely updated are the ones that sell quickly.  Most first-time home buyers get outbid and it becomes harder for them to compete. 

Homebuyers then have to readjust their expectations and after missing out on a few homes that most buyers want, they are more likely to look at homes that need updates and repairs.  The good thing about this is the buyers can purchase a home within their budget and make it their own with their personal touches and style, and personality. 

I know it may be difficult for buyers to visualize what a home can look like once it is updated with their own style, but that is something I can show them.  They can see what options they have and can estimate what it will cost.  With that information they can decide what they can do now or wait to do later, while staying within their budget. 

I have spent a lot of time working with buyers looking at homes.   Below is a list of the most common items buyers want to repair and/or update right after the purchase.   Keep in mind that the estimates to update or repair is just a ballpark estimate and is to give a buyer an idea of what to budget for once they purchase the home.   To determine a more accurate cost, I recommend you speak to a contractor – I can also help you with that. 

Most Common Costs for Repairs and Updates Right After Closing

1.  Painting the Inside
   This is the easiest thing to put your personality in your next home.  You can use bold, bright colors or neutral tones.   It will give your home a fresh, new appearance, along with a cleaner smell.  Sometimes, existing walls will need to be patched and prepped before receiving a fresh coat of paint.   The budget estimate for this work can range from $4,500 to $11,000 for an average 1,500 square foot home.  It depends on how much work would be needed to prepare the walls, how much trim, how high the ceilings are, the size of the home, and how many colors will be used. 
   
   
   
2.  Electrical Upgrade
   Sometimes, when looking at older homes with buyers, they notice that the electrical looks outdated.  That can include old knob and tube wiring, older light fixtures, outdated electrical panel, and not enough outlets in the rooms, especially with today’s use of many electronics.   So, an electrical upgrade may be wanted by the future buyer.  For a full rewire of a 1,500 square foot home can cost $15K to $25K, depending on how complex the project can be.  For replacing or upgrading the electrical panel, it can cost about $1,500.
   
   
   
3.  Heating Conversion from Oil to Gas
   This is another item that comes up a lot with buyers looking at older homes.  Depending on the current market, oil heat can be expensive and dependent on an oil delivery company.  With oil heat, the homeowner needs to monitor the amount of oil they have in their tank to know when to schedule the oil company to come out and fill the tank before it runs out – especially in a very cold winter.  Although oil heat works very well, most of today’s buyers are not familiar with how the process works.  Gas heat is more convenient; you just need to turn on your thermostat and you have heat!    The cost to convert from oil to gas can vary greatly.  First, if the home already has gas in the home, then it will cost a lot less.  For an average 1,500 square foot home, this can cost between $6K to $13K.  This will include replacing the furnace, may include replacing the chimney liner and adding ductwork.  If the home does not have gas inside the home, then the buyer will need to check if there is an existing gas line in the street.  You can find this out by asking the seller or calling the local gas company.   The average cost is $8,500, but it can go as high as $30,000, depending on how far the street is from the home.  The farther away the street is, the more it will cost.   Keep in mind that you may need to open the street to install the new gas line to the house, which means you will need traffic control in addition to permits.  But with an oil to gas conversion, the cost will pay for itself in a few years due to the savings on heating costs. 
   
   
   
4. Plumbing Repairs (Including Replacing the Water Heater)
   When looking at an older home, buyers sometimes notice that the plumbing and fixtures (faucets, toilets, sinks, etc.) are not in great condition and will need to be replaced.  This can also mean that the piping is also old and will need to be removed and replaced.  For a 1,500 square foot home, this can cost between $6K to $8K, depending on the type of pipe that is going to be used and how fancy the new fixtures are going to be.  If the water heater needs to be replaced, that will cost about $2,000, which will include removing the old one. 
   
   
   
5.  Roofing Replacement
   This is one of the items that comes up a lot with homebuyers – even if the house is not as old.  The most common roof type is a shingle roof, and they can last up to 30 years.  Most last between 12 and 30 years.  The cost to replace an entire roof system for a 1,500 square foot home can range from $7K to $12K.  If the plywood underlayment, gutters and downspouts are also replaced, then the cost can go up to $20K, depending on the type of shingle.   For buyers, this should be one of the first things to do after a purchase, so that they will have a nice watertight home that should last for many years. 
   
   
   
6.  Bath Update or Remodel
   Bath update (or refresh) comes up all the time with buyers, even if the home is newer but just not finished with their style.  There are so many options out there – you see them all over the renovation shows on TV.   For bathrooms a basic update can go from $2K to $4K.  For a full remodel the average cost is about $13K.  That can include, new floor and wall tile, new bath fixtures, paint, etc.
   
    
   
7.  Kitchen Update or Remodel
   This is another one that comes up a lot with buyers, like with baths, even if the home is newer but just not finished with their style.   A very basic kitchen update (or refresh as I call it) can cost from $5K to $10K for a minor remodel.  For a major complete remodel, it can cost $30K to $40K.   The bigger the kitchen, the fancier the wall tile, flooring and cabinets, the higher it will cost. 
   
   
   
8.  New Flooring
   Buyers don’t like carpets, and they tend to exist in older homes.  Most buyers like wood flooring (which can be very expensive) or vinyl plank floors which have the look of wood but are more budget friendly and easier to maintain.  The cost to install wood flooring in a 1,500 square foot home can be from $10K to $20K, depending on the type of wood.  For vinyl plank flooring, it can cost from $5K to $15K, depending on the type of vinyl plank.  It is better to have new flooring installed in a home before moving in, if possible, with the buyer.
   
   

There you have it.  These are the most common items that buyers think about doing when looking at a not so perfect home that they are considering buying.  Repairing or completing these upgrades will give buyers peace of mind knowing that is one less thing they have to worry about as they enjoy making this special home their very own.  

There is more to this list, but my experience is that buyers will do some of these common items before they move in and others are done well after buyers have moved in and lived in it awhile giving them time to explore the many options that are out there. 

If you want to find out more about buying your dream home or know someone that is, feel free to email me ccr@ccrsellsrealestate.com or click below to get started.  Let’s explore this option and see if it is right for you!  😉