September 1st, 2005, 09:11 AM
Dh and I are going to look at a house, and this is a house on a GREAT street, and it looks better than our current house (bigger etc).
BUT... it uses electric baseboard heater (which we would convert to furnace/gas) and also has no A/C (a must for us!). Does anyone know how much it costs to put in a furnace and also central air? As the house is overpriced, i want to know how that should reflect the offer (if we do put one in). Should it be $15k less than the asking price (of $330,000) just for the work that will have to be done for those 2 issues (and i am sure there are more issues, but small ones at that). Oh yeah, and it also does not have a fence at the back (which i would have to put up right away because it backs onto a ravine. Add another $1,500 to the list of "what the house needs".
Any input would be really appreciated. I also know that their has not been a single offer made on the house (on market for over a month).
It is an old home in need of reno's.
September 1st, 2005, 09:23 AM
I don't think you can base your offer on what you would like the house to have but rather what it already has. I would compare it to recent houses that have sold in the area to see what they got as a final sale price. Congrats on buying a home btw!
September 1st, 2005, 09:31 AM
Adding A/C runs approximately 2000 in a new home. Of course, you can't get central air without the approrpriate vents--which I assume you will run when you get natural gas.
I agree that you must base your price on the market value, but at the same time, I too would reduce my offer by the amount I would have to spend to bring the house up to speed. Natural gas and central air are pretty standard these days in house buying, so I don't think it's unrealistic to want that changed.
People reduce their bids on houses that need painting, have a gravel driveway, need new carpets, etc...so why not for a/c and heat? If the house buyer doesn't accept your offer then you go back to the drawing board. It never hurts to try!
As far as the cost of natural gas, I would call someone who actually does it. There will be labour, parts, etc....depending on the size of the house, the price will change.
September 1st, 2005, 09:33 AM
One thing that makes a big difference in how you make an offer is where is this home you are looking at? If it's Toronto then it's a whole other ball of wax!
September 1st, 2005, 10:28 AM
It's not in toronto. I know the market there, and it is crazy! Even tiny 2 bedroom bungalo houses asking for big money.
Not only does it need new paint, but it is full of old wallpaper (i can see by the pics) which would need to be removed (talk about work - i did that with my house and hated it).
Really, it does not have anything really updated, and we dont like carpets (which it has) so that would have be to ripped out and get hardwood floor.
The one thing i like is the area, full of nice houses, and for a young kid like me, it is in our price range. Houses in that area sell in that price range, but those houses had been updated before they were sold. Back when i had seen them for sale (starting 1 year ago to a few months ago) we could not afford them, but now we can. So i think they are basing price on houses in the area, but those houses were renovated, and this house is not.
We were looking for etobicoke/toronto, but i would be spending at least $300,000 more then our budget, to end up with a house much smaller then the one i have right now, so that did not make sense to us.
I was told that to get a furnace/ducts etc in a 2 storey house of that size would be $10,000 for everything but was not sure if that was accurate.
Thanks again for the responses.
September 1st, 2005, 10:57 AM
I think you can take a look at a house that has been upgraded, see what it sold for, then start knocking off stuff that is needed - not wanted. Like the furnace and a/c. Does the current system work ok? Then I don't think you can expect them to drop their price to pay for the installation of the new one. The wallpaper - sorry, but that's cosmetic. Same for a fence. Now, if the furnace is on its last leg, and the roof is going to need new shingles soon, and the bathroom floor has water damage, then you can drop the price for those items. Ask the real estate agent about the seller's mood. The house has been on the market for a while. That could mean one of two things. Either they're dying to sell it and will take any reasonable offer now, or they're not really serious about selling and will wait for some sucker to offer them what they're asking (my neighbors did that for a couple of years, then just took their house off the market for good and stayed put :sad: ). Good luck!
September 1st, 2005, 11:14 AM
It's not that the furnace or a/c is old, it is that the house does not have either!
Looking at houses in the area, they all have those, and it is really considered the norm for houses in the market in our area (which the house is in our area).
I do know about wallpaper being cosmetic, and i would not expect them to lower the selling price because of that (i just hate the hassle lol). In fact, all of these cosmetic things are amazing, if anyone here watches hgtv and their shows on selling homes. I can never believe that they take houses that were on the market for a few months with no offers, and then they spend like $1,000 + dollars on dressing it up, minor fixes, making it look more modern and then the house sells for more then the asking price to one of the same people that did not like the house before the fixing up. Real estate is so crazy. (if we do make an offer and it is accepted, then we will be in that boat with selling our current house - which i don't look forward to).
I know someone who lives on that street, and she bought her house for $60,000 LESS than the asking price because the people were desperate. Talk about luck.
September 1st, 2005, 11:53 AM
Do you have a realtor who might be able to help?
Personally, I believe that wallpaper, repainting etc all drop the price. I watch the Life Network shows on open houses and selling houses all the time (which are canadian) and the realtors always tell the homeowner that their excessive decorating will cost them when they sell--unless they fix it first.
I would ask an expert if it were me.
September 4th, 2005, 01:07 AM
You definitely need a realtor do a market analysis for you. They will compile a list of comparable homes sold within the area and what features they had. You can then offer a fair amount justified by what features the home doesn't have. We just sold our home. The buyers asked for a $6000 credit toward their closing costs. They didn't ask for a new floor or paint as well as other things which it needed. We agreed to it. We figure that allowed them to get into the house with less $ down and they would then have that $ to do those things themselves. They could save $ by doing the labor themselves and would also be able to choose the materials they preferred. Same cost to us if we had to do it ourselves, but without the hassle. Sometimes, you get the same thing by just wording it differently. Realtors are experienced with this.