Howdy,
I live in San Diego Co.CA, Escondido to be exact. I’ve been looking for a fixer upper the past few months with no luck. Today I found one which I subsequently found was sold this morning but check this out. I was able to walk through it. The interior was a 100% loss. Cat pee smell(or other varmit) still in my sinuses, worst I’ve ever smelled and it was wide open! Baths, kitchen, walls, hardwood floor, plaster ceiling all shot out. This was a small 1948 3 bdr 2bath maybe 1200-1500 sq ft, on a 1/3 acre lot. It went for $325,000 and sold immeadiatly!
My gosh! The neighbor hood was semi rural with a commercial nursery across the street. Detached garage the best part. But c’mon $325K!!! I don’t see the percentage. The cost of an investor rehabbing would be $50-$75K or more just off the top of my head. We’re talking new EVERYTHING! It was that bad. And I’m assuming the wiring and plumbing are ok.
I don’t know. I find it discouraging. I’m sure the rest of the country is laughing at us here willing to spend so much on a rat toilet. Heck I can’t even get quailified for a poop hole like this one.
…sigh…
Anyway I thought as builders across the US some of you would be interested in what’s going on here in coastal So.Cal.
Cor.
Replies
A gut out job I'm on makes me wonder about all the water supply systems out there,house is 55 years old in Houston Tx.,the galvanized piping snapped in a couple places while we were removing it and these days with the 200/250 ampere needs in homes you should rewire if you have the walls open...And your wild 'A' guess is about right 75k...Good luck...
Scribe once, cut once!
Our Habitat chapter bought three duplexes of slum housing in Costa Mesa to renovate. They were about 50 yrs old. I think there were three runs of exterior plumbing repipes over the asbestos siding. Curb appeal, ya betcha.Had permits and plans for renovation.Got the siding off. Architects saw the interior framing and got very cold feet. Suddenly no more reno, rather tear down. The plumbing was shot - galiv and rotted out at the cast iron hubs. We demoed it and sold the good lumber for $1500. Usual delays in getting new plans, permits. Took two years. Over budget as a result. We were able to reuse the slabs.Anything 40 yrs and older in So Cal should be consider dozer bait. The termites probably are holding it up.But, hey, the finished product looks much better than the neighborhood.
The ToolBear
"Never met a man who couldn't teach me something." Anon.
If I had to guess, I'd say they were going to remodel that one with a bulldozer. They bought the lot, and now must build the largest house possible to recoup the investment.
Al Mollitor, Sharon MA
That was one of the reason we left SoCal(Temecula Area) for Wash State. Plus we got tired of the 2-3 hour commutes just to go 50 miles
So where did you lite in the NorthWet?Don't let the "low" prices fool you. We rented for two years and studied the market. We're now in Anacortes, but not in the winter.The ToolBear
"Never met a man who couldn't teach me something." Anon.
I'm in Ocean Shores now...
No regrets either. The day I left So Cal, it was 104*
I am in Alameda(S.F.bay area) the house next to me has been vacant for 6 years,just out of probate.It needs foundation, roof,elec.,plumbing-the kitchen sink is not even functional,known standing in 1885-starting to fall down in 2004
On the market 1 week,30 offers and they were asking 375k.My wife over heard the realtor say it is going for 50k over asking price-sale pending.
The market is crazy.Hope the new neighbors are nice,Mike
I live on the SF Peninsula and their really is no such thing as a fixer upper according to some "developers" I have talked to. Here's the deal on the Peninsula; it use to be you buy a house in need of repair, if you were smart and handy, boom!, you make the improvements and six months to a year later you sell it for a handsome profit. Not anymore; those looking to turn a quickie are competing with the part of the market who are often first-time buyers and/or just trying to get into the market here.
In essence, the difference between a fixed up house and one that needs work is so slim here, that it would be a real gamble on the margins. So yeah, there are fixer uppers here, but the owners are living in them, not necessarily tricking them out, just a few improvements to make it more liveable.
A few examples; (1) a house two houses up the street from me that needed "updating" went for $825,000 this past early summer; nothing fancy of a house and everything did need updating as I don't think any had been done in 20, 30 years. (2) My brother in law's brother and his wife just bought a house in Menlo Park for $675,000 and they have been looking for almost six months. The Menlo Park zip code was important to the wife and the house isn't a tear down by any means, but still needs updating; I'll help them with a kitchen and bathroom(s) remodel (complete demo's) and some updating on wiring. The masterbath is about the size of a small walk-in closet.
(3) A house in my neighborhood the summer before last sold for like $685,000 (and looking back now at just over a year, that was probably a deal). It was advertised as a "handyman special" or something along those lines. When I walked through it, another realtor and his contractor buddy were checking it out to possibly buy it. Nope, it went for way too much as it turned out. It ended up being owner occupied, the red barn paint is still on the exterior. Looks like some new fencing has been put up, but I have not seen in the last almost year and a half any piles of demo or refuse boxes being delivered and taken away--I guess paint really does go a long way.
(4) Just last month I looked at a two-bedroom, two-bath on a large lot (there was already some drawings of a "proposal" for splitting the lot and demo'ing the house as it would split the new lot lines) with some updating, nothing fancy or tricked out, but some some granite counters, new (or recent, maybe in the last few years) cabinets...some basic new or recent tiling in the bathrooms. Anyway, this thing went for over a million dollars!!! Or that's what it was listed for, I want to find out what it sold for and it will be interesting to see if the lot is developed. Probably not, just one more million dollar entrance into the market here. What I can't fathom are the friggin' property taxes people are paying for these properties.
Wiley,
I live in the SF East Bay. Houses in this neighborhood (mid-60's ranchers, nothing fancy) are going (quickly) for the low-to-mid $700's. Even if you can get into a "handyman special" in the $600's, after the mortgage I don't know how you can pay the utilities much less have money for upgrades. A couple of buckets of paint is probably a splurge. I'm just grateful I got in when I did!
Wayne
So, I'm guessing that anyone in your are who is more skilled than a conviencence store worker makes 6 figures? Those prices are crazy... and with the house payments who could afford much remodeling...
Matt
Yup.. See I had a wanderlust for most of my life..Had no intention of ever settling down. Until about a year or 2 ago. Now I'm 44, and my staying away from credit situations has backfired and I have crummy credit from my lack of it. Girl and I together make about $60K a year and can't get out of the rent cycle. I end up broke almost every month. To establish credit I had to buy a truck at high interest, rent and bills on top..... I know there are ways to get into homes with little or no cash but after contacting about a dozen realtors I'm starting doubt it. Problem is there are enough investors that are dialed in and are getting there first. Been that way for a while. Friend got lucky a few years back but it was a matter of literrally being on site at 8am with approved loan. 8:30? Forget it. Average price for new here is $500K and that's for basically a detached apartment. Ever hear of zero property lines? In fashion around here. This is where you get a 10' side yard on one side but zero on the other. The wall of your house is right up against the neighbor! Homes are literally 10' apart here and most new developments in the $500K range.Anyway I'm outta here in June.But where...???Cor.
Where to ?? well, I will take it upon myself to invite you to,,,, Prescott Arizona. Lots of work, little water, lots of sunshine. Jim J
Ya know,That's on my short list! haven't been there in some time and only spent an afternoon then but like that whole area.I sorta fell for the Williams area last summer but from what i can gather not a booming econmomy nor much new building.So there's work huh.....Thanks,Cor
At Ash Fork, you should have gone South for 50 miles, hwy 89. Work?? you ask, Yep, lots of it. Williams, nice town, but they have very, very little water. Prescott, well the City council seems to think that we have lots of water, and so far,, so so. The region is calle the Tri City Area,, Prescott, Prescott Valley, and Chino. All of the three are in Yavapai County, which happens to be one of the fastest growing Counties in the USA. At times, Prescott Valley is one of the fastest growing Towns in the USA,,, ugg. I've been in Prescott for over thirtyfive years,, oh the memories. Jim J
Matt, this figure comes up all the time here on the news, I think it goes this way: for the average priced home here on the Peninsula (I think right at about $500,000--that's the average!) you need an income, or combined income of, I think it was, $120,000 per year. Wayne, is that about right?
I suppose there's some variables; existing equity, downpayment, etc. And perhaps the above was for first time buyers.
Wayne, that's just as bad here. When you write "east," are you Oakland, Hayward, Castro Valley, etc., or further east, Pleasanton, Walnut Creek, San Ramon, etc.?
Wiley,
I'm in Pleasant Hill. Grew up in Walnut Creek when they still grew walnuts, and had a creek. Both are pretty much gone now. Left for several decaces so I didn't get into owning a home here till the late 80's, then after the divorce... Anyway I was incredibly fortunate to buy our home 4 years ago, for "only" $340K. I gotta tell ya, if someone can swing a mortgage on a $500K home with a $120K salary they are doing a MUCH better job of managing their money than I am :-).
Wayne
$120K a year, huh? Hard to imagine how that would work. My wife and I make a combined $100K, have only a $40K mortgage (owed on an $80K house) and we struggle month-to-month. Two car payments (two Dodge Neons ... the old truck is paid for), child support, long commutes, heating oil and high taxes (New York state) take their hits, but what the heck do the mortage payments, insurance, taxes add up to on a $500K house in Calif?!! How do people afford food?!
104 is a nice day in the Imperial Valley of South East Calif.
Anacortes? Hop on the ferry and come over, I'll buy you something down at the ale house. Where do you winter?
Which ferry?
To Friday Hbr? Not the Quemes Ferry, eh?
We winter in SoCal - Newport Beach, where it is warm and sunny and we are grouting tile for the holiday. Install the base tomorrow. Now I need a bunch of quarter round.
The ToolBear
"Never met a man who couldn't teach me something." Anon.
We're going thru something similar here in NJ.
Contractors will buy a house in a decent neighborhood, spend anywhere from 300G and up, and tear the house down.
They will then put up some huge, ugly monster of a house, and it will sell very quickly.
For people selling and moving out of the area, they can do very well right now.
but trying to find an affordable house is very difficult. Starter homes in this area are 200G and ( very quickly ) up.
Same here. Canadian $.MLS¯: C555499 $539,000 MLS®: C555499 <http://pictures.mls.ca/mls/reb82/medres/9/c5554991.jpg> <?xml:namespace /><st1:place>Lot</st1:place> Size: 25.00x106.46 FT Bedrooms: 2
Cor,
You are not alone, as I live in Boston and am amazed at the prices here. It is pretty much the same as you indicate in CA. Luckily we bought a house in '97 - I'm still working on it! I would never pay today's $$ for my house. But try and hang in there, keep looking and something will come available or you'll make a different decision. It is wise not to get in over your head either financially or with the amount of work that needs to be done. By June of each year here, my wife is overwhelmed with another summer being lost on the house.
Good luck! Joe - Boston
I hear you. We own a house in Natick but are looking to move. We just found a ranch in Stow, MA on .98 acres for just over $300,000. We're basically paying for the lot considering the condition of the house. Good deal for us though as we're going to gut it and add a second floor, porches, etc. The other side of the market is that our lil ole Cape that I finished rehabing last year is going to fetch somewhere around 3 and a half.
That's one of the main reasons DW and I left the left coast!
In the town we live in now you can buy a fixer for $20k on up. We actually saw two homes sell this year for around $12k each.
Sure, they needed quite a bit, but if you can make a living in a rural area at least you can still get cheap housing.
You're unique! Just like everyone else! Scott Adams
I have one for you in Venice. My brothers and I have already turned down 535,000 for it. Two bedroom one bath a mile from the water. WE would entertain offers as we are looking at starting the fixup after the new year. If anyone needs a beach area summer home let me know.
Yeah but........
The incredible high prices mean if you could buy it for $325 and drop $50 into it, it would sell for $500K, and the developer could make a bundle.
Two ways to look at the problem from the buyer point or the seller point of view.
Would you rather have prices plumetting down?
Regards,
Boris
"Sir, I may be drunk, but you're crazy, and I'll be sober tomorrow" -- WC Fields, "Its a Gift" 1934
Hey if you all are lokking at the teardown market some somewhat pricey neighborhoods in Housto Tx. the lot values are as low as 150k or whatever... then the yuppy villas that go in are sold for 600k plus...Scribe once, cut once!
"if you could buy it for $325 and drop $50 into it, it would sell for $500K"I don't know.... Freind has a house around the corner that's got more land and a better structure. Last he had it appraised it was not quite a year ago and it was less than $400K. The new homes are going for $500K in the area with about 1/2 the land and neighbors on top. But NEW. From the limited knowledge I have of appraising homes I would have hesitated at even $150K on this one.Just shows how crazy the market ( and I suppose I am <G>) is.Did I mention the owner was asking $389K? When it dropped it $325K it sold in minutes the realtor said.Cor.
My parents lve in a 1200 sq. ft. old bungalow on a 1/4 acre in Westchester County NY. The house is 50+ yrs old and although I've renovated it over the years it's still tiny.
The house was recently assessed at 370,000. The first real estate agent they talked to said that she had a buyer 'that day !' who would offer them 400,000. He wanted to act quick before a bidding war would start as the realtor expected. The only thing is he was going to push the house over. He only wanted the lot really.
Needless to say my mother has decided against selling the house, it's the home all her kids and family grew up in and I applaud her for it.
By the way, they purchased the house in 1964 for $14,000.
I also left San Diego in 96 as prices started edging out of reality. I had a friend I surfed with that worked at a bank and would let me know when they were getting close to foreclosing on someone. If the neighborhood could support the numbers, I would cash out the owner, fix it up and sell it for a decent profit -- we all won! But as the market pushed up, folks would owe too much to make fixing it worth the energy and money. I miss San Diego but not the traffic. We landed in Upstate New York where the pace is much slower.
Norse