The resale value of a completed remodeled old home

**zhy99001** · 05-23-2008, 07:22 PM

We are first-time home buyers at Bay area. We found one house that was build at 1924. This house was sold at $400,000 last year and it was then completely remodeled. We do not have the details of remodeling. The house looks brand new inside out. Now the owner is asking for $560,000. Because most of the houses that we can afford look quite shabby, we kind of like the brand new looking of this one and are thinking of making an offer. However, we do have several major concerns and when to get your expert suggestions.
1. Is the owner asking a reasonable price? (The ave. sale price of houses in that city dropped 30% last year).
2. Do we need to worry a lot about the initial building age (1924)?
3. Are there inspections that can significantly relieve our worry on purchasing a remodeled OLD house?
4. What is the potential sale value of this house? In another words, would most buyers really care about the initial building age despite the complete remodeling?
Thank you very much!

**jamesww** · 05-24-2008, 12:51 AM

Originally Posted by zhy99001

1. Is the owner asking a reasonable price? (The ave. sale price of houses in that city dropped 30% last year).

I can not answer this question for you as I do not practice in the bay area.

Originally Posted by zhy99001

2. Do we need to worry a lot about the initial building age (1924)?

No, as long as the plumbing, electrical, heating, air conditioning have been updated you should have no problems.

Originally Posted by zhy99001

3. Are there inspections that can significantly relieve our worry on purchasing a remodeled OLD house?

Yes, along with the normal inspection request a complete mechanical inspection that is to include plumbing, electrical, and HVAC. If all these things check out then a older home is a better option. Homes built in the 20's have much better bones than anything you will find for sale today.

Originally Posted by zhy99001

4. What is the potential sale value of this house? In another words, would most buyers really care about the initial building age despite the complete remodeling?

Most buyers will not have a problem as long as you provide them with a complete mechanical report. One thing you should note when you go to resell a older home like this get an inspection from the inspection company that is known to be the most picky and take care of anything that comes back on the report. This is because any little thing wrong with a older home gets blown out of proportion by buyers like yourself that are nervous about the homes age. Good luck with your home purchase and we are always here to help you out.

**portland real estate** · 05-25-2008, 11:20 PM

To find out if the price is reasonable you will probably want to get a local Realtor to give you a opinion and if you are serious and make an offer that is accepted, then the bank will almost always make you pay for an appraisal during your escrow period.

There is nothing wrong in principle with buying a remodeled home. You will want to check if the remodeling was done with permits, and if so then you can have some confidence that it meets modern codes and was inspected by local building officials. Personally, I like older remodeled homes, but it's a matter of preference.

You will also want to get a professional home inspection done that includes electrical, heating, and mechanical as mentioned above (this is commonly included in my experience). I also recommend getting a sewer scope (video camera down the sewer line), which is frequently done by a separate inspector.

Good luck