one MEEN Ag said:
Rice and Fries said:
Wife and I are selling our first house. It's built in 1986 and has been a money pit. We can get out with a decent chunk of equity combined with some savings to buy a $500-550K house.
After seeing the issues we've had at our current house and it's age, wife is against anything but new. But I'm cognizant that new builds are usually built with less quality material, cheaper AC etc.
So the question is:
- would you buy a new house in that price range?
- if buying a used home instead, what year built/age would you target?
We are in North DFW if that helps. I like Stonebridge Ranch Area of McKinney, or some pockets of frisco near legacy.
So just a couple of questions. What about your 1986 home is a money pit that you hope to avoid with a future new home? Its still going to have a roof that needs replacing in a decade, an AC/hot water heater that will one day break. You're not escaping those things going bad by buying a new house. Even when you're trying to sell an old house, the three things buyers are going to look at are the age of the roof/AC/appliances. Limping along on a 35 year AC system just means you buy the new AC when you sell as a closing credit, you never got to use it.
Now what you are doing, for a brief period in time is adopting the mentality that 'nothing will break' when you buy a new home. But at the cost of a new house at the level of finishes you want, you could've easily justified replacing all of those things in your old house anyway.
Now of course, when you mean money pit, I don't know if you've got foundation issues that you think are going to cause more problems in the future.
My personal take is to find an older home in an older area with large trees, gut it, and completely start anew. Even if you don't lift a finger in updating the house yourself you'll probably still come out ahead if you have to sell quickly. Especially come out more ahead than a new built inside 3 years. Also, congrats on the tax savings by gutting an older home instead of buying new. Nobody's gonna know about your 200k updates until you decide to sell.
Moneypit so Far:
- Old AC System that was installed in 1997. Finally broke (we knew this going into the house). Had to replace both the 5 & 3 Ton unit. Now the kicker on this, the installation job in 1997 was a DIY by the old owner (electrical engineer). We got 3 quotes from HVAC companies and each one said it was in their top 5 of worst install jobs. Partly because our attic space is tiny and slanted. But we also had to replace the Airducts because they were practically eroded. Total cost - $25K. Again, I knew about the AC but not the airduct/install job.
- Foundation Problems: Previous owners had foundation repaired on the south side of the house. Well, we had cracks show up almost instantly. Previous owner had totally repainted and hid alot of the cracks, but the foundation was internally collapsing in the middle. We just had this fixed and it cost $14K.
- Tree issues helped causing the foundation issue: we had a giant tree removed that I was able to pay $1500 for the removal of. Shout out to Eduardo's Tree Service.
- No gutters - owners replaced the roof after the property was inspected and we put an offer on it/got it under contract. No problems there. What ended up happening was that between the owners, they did get the roof installed but had no gutters installed with it. So they had photos of the house taken for Zillow with the gutters and we didn't realize they were missing till after we signed on the dotted line. That cost us $2.7K.
-Dishwasher: seemed fine until it broke after two years, when we went to pull out the old one....it was installed on top of trim boards and literally wired together that was held by electrical tape. Not plugged into an outlet. THE OWNER WAS A GD ELECTRICAL ENGINEER WHO COULDN'T EVEN INSTALL AN OUTLET TO PLUG THE DISHWASHER INTO. LET ALONE A GFCI OUTLET.
- Sprinkler System: Another DIY hackjob by the engineer owner. He just totally installed the sprinkler system in the most weird complex way with only 5 zones trying to water a 10,000sf lot. Pressure was too thin towards the end of the lines and just overall was awful. This cost us $2k to fix and counting.
- Fence: the old fence was installed by the old owners cousin or something. Anyways, this was old and falling apart. One of our storms ended up knocking a chunk of the fence down and we just decided to replace it. Cost $8.2K. This was before the foundation work/issues were truly permitted.
Overall, we will be lucky to walk away with $5K extra from this house.
I knew that living in DFW, you'd have some foundation issues and buying an older house was gonna have some landmines. But, looking back - the old owner did some really nutty things. He was obviously a DIY, but a just get it working DIY and not actual quality. The AC job was hacked. The dishwasher, the freaking doorbell was broken and wired up and over into the garage on the other side (why, idk, but thank god for RING). The gutters really was the start of pissing me off, the sprinker went next and then the AC. By the time the foundation hit, I was just livid.
The icing on the cake was that the Sellers Disclosure didn't say jack shat. It was empty. and being first time home buyers, I know we were gonna get hosed for inexperience. but that was at least something our AGGIE realtor should have pointed out the difference on? Right?
Maybe, we were just too young and dumb to know better and this was an expensive life lesson to learn. But let me tell you. Do youre freaking homework kids. Inspect the **** out of the place and avoid our mistakes.