Please settle a debate (fixer upper vs renovated home)

We are having a discussion at work -

If there are two IDENTICAL houses - both structurally sound, however one hasnt been updated since the 1970s, and the other was recently renovated (granite all that jazz)

how much more would you pay for the updated house?


I was thinking about 10% - my co-workers were saying 25-30%, which I think is too much.

Re: Please settle a debate (fixer upper vs renovated home)

It depends how updated. You said the original was 70s. Was the updated one 90s? Or was it recently done last 2-3 years?

I would pay more than 10% because I know updating costs $$$$$$. But definitely not 30%.

Re: Please settle a debate (fixer upper vs renovated home)

10% sounds right to me

if it's a $400K house- then that's $40K for the renovations

I would not pay $80K to $120K more- b/c most likely they are not my taste

besides- I would rather by the fixer and make it my style rather then pay for someone elses

Re: Please settle a debate (fixer upper vs renovated home)

I think it completely depends on the house and what's been put into it.

Re: Please settle a debate (fixer upper vs renovated home)

Depends on the renovations.

Let's say a house is valued at $300K before renovations.

It needs a kitchen and 1 bathroom.

Let's say $30K for the kitchen and $10K for the bathroom. That's about 13%.

Now they have a 2nd bathroom redone. Another $10K.

That's now $50K in renovation. Over 16% so far.

You can't just say 10% is enough. You have to see how much it would actually cost to do the renovation.

Unless you do it yourself then the cost vary but in general you take what a basic contractor would charge.

It also depends on the actual value of the house itself. Doing renovation on a more expense house is cheaper in proportion.

ETA: then you have painting, flooring, etc...

It's not cheap to take a 70's house and put it up to date.

That's also assuming that nothing else breaks down. Broiler, etc.. all that stuff is old.

What about the exterior? Does it need new siding and windows?



My house is old and need A LOT of renovation to be "up to date".

The only issue with those houses is that you can't overbuild for your local market. So this is something to consider when buying a house too.

Message edited 9/24/2008 10:31:03 AM.

Re: Please settle a debate (fixer upper vs renovated home)

ok I guess I lose (which is good, bc i just updated my house, lol).

We agreed on 25%, granted all the other things (boiler, roof, etc) is new.

now back to work

Re: Please settle a debate (fixer upper vs renovated home)

Id buy the cheaper house, why pay for someone elses renovations especially in this market... If you can grab it a great price go for it

Re: Please settle a debate (fixer upper vs renovated home)

I think it depends on more than just granite and other things that are sort of subjective.

Updating can also mean

new roof
new siding & insulations (exterior)
new windows
new boiler
upgraded electrical - 220, new wiring, GFA outlets
new sheetrock and insulation (interior)
updated plumbing
CAC
redone floors or fairly new neutral carpeting
newer appliances
fence
deck or patio
landscaping

I sure as heck would rather go into a house with this stuff done than to have to do it ourselves. BTDT and it's a lot more than 10% of the average house price to do that stuff. So I will say 25% at least.

Re: Please settle a debate (fixer upper vs renovated home)

It would depend on the updating that needed to be done..if you mean gutting the kitchen and bath(s) only, then maybe just the 10%, say on a $400000 house...if you are adding in heating system, roof, new insulation/electric, possibly septic system, landscaping, etc. - I could easily go to 20-25%.