Im about to take the plunge

[JACKSONFREAK]

Into home ownership and could use some non biased advice. I found a house i like Well i like the outside of it. IT's got great curb appeal, looks great outside, huge completely fenced in yard, 2.5 car garage with a work shop space in it, a tool shed with power, central air relatively new vinyl siding on everything, newer roof. It's in my price range and in a good neighborhood. Taxes are affordable. Now the problem is the interior. The kitchen looks like it was in the process of a remodel when the owners got foreclosed on. The counters arent secured to anything. The counter with the sink in it is in the middle of the kitchen like an island. But the counters and cabinets are designed to be backed by a wall. There is no wall. And the utility room is in disrepair. There's a gas line snake like pipes running from the floor to the ceiling, I understand the gas line runs into the house from the attic. Due to being a slab foundation Then runs under the floor and back up to the hot water heater. (seems excessive to me and obtrusive.) The walls throughout the house for the most part arent dry wall but seem to be some sort of panel like material. I guess its used for more of a fast installation. No mudding or sanding of the mud to hide seems. It needs carpet in almost every room due to stains or just worn out. The kitchen vinyl flooring needs replacing. The bathroom needs to have the walls finished to match the part that was already done. Most of this would seem minor as its own task. But its a lot of to do for just me. I can build a guitar but this is definitely a challenge. The kitchen needs a wall put in to back the counter and seperate it from the utility room. Which is the main thing along with rerouting the gas line securing the counters etc. So my question is. Do i go for it and make an offer based on its potential? Or do i pass on it in hopes of possibly finding something better? My situation is unique as i have to use an FHA loan and have to stay in a price range. So my selection is some what limited.
I really like the outside of the house and the yard etc.. but like i said it needs quite a bit of work inside.
Thanks for any help and or suggestions you guys may have.
Gil

[Axewielder]

I'm currently trying to sell my house, and am competing with foreclosure properties. In general, the banks try to sell them for 40% off what they would normally go for. If you don't mind having to take on all these projects after moving in, these are a great opportunity. I'd look at comparable properties in the neighborhood, and see how much of a discount you are getting. If it's not near 40%, maybe look at some other foreclosure properties? It's definitely a buyer's market.

[atdguitars]

First off find out what if any building permits are need and inspections as well. If you're not familiar with moving, relocating or hooking up gas lines hire it done. Mistakes mean death. As far as the wall between the island and the utility room see if there was an existing wall at one time or if a half or knee wall will do the job.The island counters could be just missing their backer or rear finished panel.
It's simple to build a small wall/backing for the island if you want to go that route. Carpet and linoleum/vinyl are wear and tear items and easily but not always cheaply replaced. As for the walls not seeming to be drywall I'd ask if it was a modular home thats been placed on a foundation. Nothing wrong with modular homes but sometimes the panel type walls are used in construction to allow flex while the modular home is being transported to its destination. Drywall cracks if a modular home is flexed too much.
If its in your price range, will hold its value to some degree and you have the time to invest then go for it. Don't expect the work you will be doing to increase the value of the house though. You're simply repairing the mess someone else left behind.

[Shawn Lutz]

I think unless the home is WAY under market value for the homes in the area I'd walk away. Its going to cost a good deal of money to make the inside right even if you do it yourself.

[broken_fusion]

Its such a buyer market. Keep looking. If you are in the position to buy a house now, you are lucky, you should be able to find your dream home at a smoking good price. I bought right before the crash. Now it kills me to see houses I would love to buy at a fraction of what I paid. And the kicker is I can't sell my house for nearly what I paid. Don't settle for anything less than the perfect house!!!!

[Jacksons Shred]

Really, if you have the money, this is the perfect time to buy. Do not settle for something that is going to cost more money just because the outside is pretty. I'm sure if you wait and look around you can find a house equally as gorgeous and will need less work.

Location Location Location Sir!

[Reverend Timmy]

Shawn,ATD and JS are right.My sister has been selling real estate for 20+ years and she said if its not a helluva deal,wait.Its a buyers market and with a little patience you can get what you want at a pretty good price...........................

[Rich#6]

Gil, keep looking. The market is way down in our area so you should be able to find something in your range without having to fix a lot of stuff. The inside of the house is what really matters. You only see the outside for a minutes a day. You also need to keep in mind how much money it will cost to fix the place up. Add that to your morgage and it may not be affordable anymore. The gas line is going to be very costly in itself unless nicor/people's gas is going to be installing new lines soon. For your first house you may want to look at smaller houses or in not the creme de le creme of neighborhoods. My first house was a 2 bedroom, 1/2 basement house in berwyn.

[JACKSONFREAK]

Rich im looking in the south burbs like will county. Cheaper taxes, it has lake michigan water supply and no septic.
As far as all the repairs etc. most are not necessary but are something i would like to do eventually. It is functional and livable as it is. The main things tho is the wall in the kitchen and the securing of the cabinets. I have friends who are willing to help me do alot of the work. The kitchen floor isnt really bad but the color is commong off a bit in traffic areas. No biggie. Its not pulling up or anything. And its small ebough of a kitchen i should be able to lay new tile in a day if i decide too. I'll probably do a half wall behind the counter then a partial wall from the ceiling to hide the suspended cabinet backs.
I have ideas and went looking at home depot yesterday for ideas and prices etc. So most tasks are not anything i shouldnt be able to do myself. Just gotta have the right tools or right friends helping that have those tools. Yes it's a buyers market and there are houses everywhere for sale. However my budget for a house limits me to what i can get. All i've seen so far in this range with the FHA loan needs some sort of work. I got comparisons of other houses just like or similar to this one in question and they've gone for 30-40 thousand more than the price of this one. So my theory is if its meant to be it will happen. I'll just have to employ my friends for beer. several have already said they'd work for beer. I love my friends
Thanks for the advice guys i appreciate it. I did tell my realtor to make an offer. So we will see. Oh and my realter has people that will do the gas line woirk for silly cheap so. With all this in consideration. It might not be all that bad. I would like to get the flooring and stuff doen before i officially move in cus it would be easier.
Gil

[Rich#6]

Gil,
That's great to hear that you don't think the repairs would be too much. I wanted to do the paint for pizza and beer on my old house and since I'm married the wife didn't like that idea.
check out HOBO for the flooring. They have lots of options and sometimes killer prices on closeouts, you just have to make sure you buy enough.They may not have any if you have to go back.
Good luck!

[Strangletooth]

Hey Gill, sup?

Got any pictures of the place, interior mainly? It is a buyer's market for sure, so I wouldn't hesitate to look around a bit more. I know it sucks up there looking for real estate and just pricing in general overall in Chicago.

[jk2171]

The rule in real estate is location, location, location. So if it's in a great location that you would prefer to live in that's a plus. I think the key though is making an offer based on what it needs to have done to it, not it's potential. Your real estate agent should be able to give you a rough estimate on what you'd be looking at it to fix it up. Add 10% to that, and then make sure your offer is low enough that when you add the cost of the fixup you come out ahead. If not, then keep looking. There is a glut of properties out there now.

What part of IL are you looking in?

[Shawn Lutz]

my first home was an FHA, brand new 2400 SQ FT. Check into new homes if ya can, I have to believe they are giving all sorts of incentives in this jacked up market.

I don't mind working if I'm getting a steal of a deal, if not the last thing I want to be doing after work and on wekends is doin home repairs and I willing to bet the buddies you ask to help you feel the same... lol

[JACKSONFREAK]

Shawn yes we all feel the same. But one or two days or a couple of weekends should have most of it taken care of. The rest i can do on my own as time goes on.
Pat hey sup? I dont have any pics. at least not yet.
jk the location is nice and its rather close to both locations im working. The neighborhood is really nice. Seems well maintained all over.

AS a side note I just received a copy of the preapproval and its lower than its supposed to be is this customary? Im new at this and confused.
Gil

[Rich#6]

AS a side note I just received a copy of the preapproval and its lower than its supposed to be is this customary? Im new at this and confused.
Gil

Sounds like they approved you for less. I would call your loan rep.