Financing a large remodel?
mikora7
13 years ago
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13 years agoBilll
13 years agoRelated Discussions
Financing a remodel
Comments (3)Well, that is a lot of money to put into a house (200-250k into a house worth 340k is a huge percentage on a remodel). If you sold the house for $300k and added $250k, you'd be at $550k. Have you looked at what is on the market for $550-$600k? I say this as someone who put $110k of renovation into a house worth $350k. We paid cash for the work, and before we did that we spent about a year looking for something else to buy (even looked at tear downs to just start over). In our market we could have gotten a bigger house or a better town, but couldn't find what we wanted (and wound up creating). We wanted a ~2000 sq ft house that was updated and on a good sized lot in our current town (low property taxes). In our case, low housing inventory worked against us. So we stayed here (great lot, easy commuting location) and updated this house. But by the numbers, it was a bad choice. We refinanced afterwards because the rates dropped so much and our $110k renovation only added $75k in value (so now the house is worth $425k). Honestly, I was surprised it added that much. I knew it was a money losing game from the get-go. So my advice is, unless you are also in a market where land is scarce and most of the housing stock is dated and in need of repair ... You will probably wind up ahead if you sell the inherited house and buy something else. The only other exception is if you are a meddler by nature and would have a hard time NOT changing a house. I am a meddler, and I admit it. It sounds sick (and probably is in some psychiatric diagnosis manual somewhere) but I actually enjoy home improvement, I lived in a new house once and hated it. I think of it as helping my house "reach its potential" (God, how I hated hearing that phrase used on me in school). So, if you have a similar sickness then either get cured or start saving money to do the renovations in cash. If you live in the house rent-free, you can save a ton of money each month and accumulate enough to tackle a big project each year. Best of luck to you!...See MoreAn individual contractor or a large company for home remodel?
Comments (17)$120,000 sounds low for that scope of work. Granted I am in an expensive market and construction in a high rise has additional costs but my actual costs will be close to double for a kitchen, guest bath, master, wood flooring (about 1000 square feet) and painting entire unit as well as skim coating and painting ceiling. I am not moving any plumbing and assuming standard electrical work but nothing extraordinary. No structural changes. That includes appliances. I am not even counting the $5000 for the hazmat company to remove my popcorn ceiling Granted I am going with more expensive finishes like Bosch appliances, a lot of cabinetry because I am having built ins for the dining area and my office as well as having marble and some costlier tiles but I have a small space and when I look at the line items, it’s the labor to do the showers and not the materials that is most of the cost so it doesn’t save me much to use cheaper finishes....See MoreRemodeling Large TV Niches - Has anyone tackled this problem yet?
Comments (12)I like the idea of making it MCM inspired, but don't go too midcentury, as it may clash with the rest of your house--unless you are considering doing a bunch of remodeling. based on your pics, I think a style like this could look good, but with a lower bench and no shelf above it: or something wide and low slung. this one might be too dark, but note the shape, and how the TV is not too high up: or.... when I look at your first photo, it kind of looks like you might be able to lay out the room so the TV is on the big wall to the right? would that work? fi so: I think your existing FP is kind of midcentury inspired with the flagstone surround. what if you kept it, turned the nook to the right into a bookcase and/or wood storage?...See MoreFinancing Remodeling
Comments (13)@C Marlin - For the most part based on impressions of the HH these are not people who are likely to have a lot of cash. For the most part they are first time homeowners who appear to have modest means. I am really basing it on what they are stating - e.g. that somehow for the ordinary buyer who is relying on a mortgage that somehow if they don't spend up to the amount the are approved, that somehow they will then have this "saved" money in pocket. Based on the way they are referring to having a "budget" which usually means what one is approved for. In general, one doesn't think of one's cash savings as being part of the home budget except to the extent that one needs a down payment and closing costs and for the most part a down payment isn't significantly less if one spends less than the "budget" - e.g. there isn't a direct correlation for being a home that is $50,000 less than what one is approved for and then having $50,000 for immediate improvements. ETA - And I am completely ignoring the economics of home remodeling for those who aren't somehow in the business and are paying full "retail" and not doing major DIY. Based on the "plots" (since all reality shows have somewhat of a story line) it is generally the aesthetics that are the issue - e.g. they want white cabinets or spa type bathrooms. Often times the actual expense of taking down a wall to create "open floor plan" is ignored....See Moremikora7
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