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  • February 12, 2011 at 6:10 PM #18516
    duncbdunc
    Participant

    Do any you of you notice that some in the buyer pool fail to price in deferred maintenance costs when ariving at fair value? I think one problem is that many novices have no idea how costly some of these repairs actually are. So I wanted to start a discussion on this topic with the hope that piggs with remodel/repair experience can help novices like me.

    To make this simple, lets use the typical 2500-3000 sqft stucco home built in 1990 with spanish roof as a proxy. Price range is fine, no need to get this exactly right. Please feel free to add to the list, but here are the big items I often notice. My price estimates are based on friends feedback and google.

    cost of new roof (15k-20k)
    cost to restucco (5k)
    cost of new windows (15-25k)
    cost to resurface pool (7k-10k)
    cost to refresh kitchen (25k)
    cost to refresh bathroom (???)

    February 12, 2011 at 6:34 PM #665427
    an
    Participant

    Doesn’t roof last longer than 20 years (especially here in SD where the weather is very mild)? Restucco, why would one need to restucco the house unless there’s some damage? Repaint should be around $3k. New windows is not considered a maintenance. How many houses have pool? It also depend on how old is the pool. But I agree with the $7k-10k estimate. Refresh kitchen (another luxury), especially if the house was well maintained, 20 year old kitchen shouldn’t be that outdated. For $25k, you can completely replace your kitchen w/ mid to high end stuff. Refresh bathroom, same as kitchen. It should cost as little as $2k and as much as $20k, depending on how expensive is your taste.

    February 12, 2011 at 6:34 PM #665490
    an
    Participant

    Doesn’t roof last longer than 20 years (especially here in SD where the weather is very mild)? Restucco, why would one need to restucco the house unless there’s some damage? Repaint should be around $3k. New windows is not considered a maintenance. How many houses have pool? It also depend on how old is the pool. But I agree with the $7k-10k estimate. Refresh kitchen (another luxury), especially if the house was well maintained, 20 year old kitchen shouldn’t be that outdated. For $25k, you can completely replace your kitchen w/ mid to high end stuff. Refresh bathroom, same as kitchen. It should cost as little as $2k and as much as $20k, depending on how expensive is your taste.

    February 12, 2011 at 6:34 PM #666090
    an
    Participant

    Doesn’t roof last longer than 20 years (especially here in SD where the weather is very mild)? Restucco, why would one need to restucco the house unless there’s some damage? Repaint should be around $3k. New windows is not considered a maintenance. How many houses have pool? It also depend on how old is the pool. But I agree with the $7k-10k estimate. Refresh kitchen (another luxury), especially if the house was well maintained, 20 year old kitchen shouldn’t be that outdated. For $25k, you can completely replace your kitchen w/ mid to high end stuff. Refresh bathroom, same as kitchen. It should cost as little as $2k and as much as $20k, depending on how expensive is your taste.

    February 12, 2011 at 6:34 PM #666225
    an
    Participant

    Doesn’t roof last longer than 20 years (especially here in SD where the weather is very mild)? Restucco, why would one need to restucco the house unless there’s some damage? Repaint should be around $3k. New windows is not considered a maintenance. How many houses have pool? It also depend on how old is the pool. But I agree with the $7k-10k estimate. Refresh kitchen (another luxury), especially if the house was well maintained, 20 year old kitchen shouldn’t be that outdated. For $25k, you can completely replace your kitchen w/ mid to high end stuff. Refresh bathroom, same as kitchen. It should cost as little as $2k and as much as $20k, depending on how expensive is your taste.

    February 12, 2011 at 6:34 PM #666560
    an
    Participant

    Doesn’t roof last longer than 20 years (especially here in SD where the weather is very mild)? Restucco, why would one need to restucco the house unless there’s some damage? Repaint should be around $3k. New windows is not considered a maintenance. How many houses have pool? It also depend on how old is the pool. But I agree with the $7k-10k estimate. Refresh kitchen (another luxury), especially if the house was well maintained, 20 year old kitchen shouldn’t be that outdated. For $25k, you can completely replace your kitchen w/ mid to high end stuff. Refresh bathroom, same as kitchen. It should cost as little as $2k and as much as $20k, depending on how expensive is your taste.

    February 12, 2011 at 6:39 PM #665432
    waiting hawk
    Participant

    [quote=duncbdunc]

    cost of new roof (15k-20k)
    cost to restucco (5k)
    cost of new windows (15-25k)
    cost to resurface pool (7k-10k)
    cost to refresh kitchen (25k)
    cost to refresh bathroom (???)[/quote]
    Mines 2200 sqft
    cost of new roof (7k using best arc. shingles)
    cost to restucco (5k) Mines starting this weekend for 2200 bucks
    cost of new windows (15-25k) Mines were 3k for retros
    cost to resurface pool (7k-10k) I did my pool myself for 2k and that was buyin all the pool equip that was sold off from previous “owner”
    cost to refresh kitchen (25k) I did mine with granite/limestone for 9k
    cost to refresh bathroom (???)I did my bathrooms for 3-4k each including granite, all wood vanities, and update travertine tile.

    Just have to look for the deals/contractors and spend a ton of time knocking your price down.

    Whats killing me now on price is the dang landscape. Its killing me trying to really knockdown the price. Thats why the next door kid spent 8 hours yesterday weed eating the acre lol.

    February 12, 2011 at 6:39 PM #665495
    waiting hawk
    Participant

    [quote=duncbdunc]

    cost of new roof (15k-20k)
    cost to restucco (5k)
    cost of new windows (15-25k)
    cost to resurface pool (7k-10k)
    cost to refresh kitchen (25k)
    cost to refresh bathroom (???)[/quote]
    Mines 2200 sqft
    cost of new roof (7k using best arc. shingles)
    cost to restucco (5k) Mines starting this weekend for 2200 bucks
    cost of new windows (15-25k) Mines were 3k for retros
    cost to resurface pool (7k-10k) I did my pool myself for 2k and that was buyin all the pool equip that was sold off from previous “owner”
    cost to refresh kitchen (25k) I did mine with granite/limestone for 9k
    cost to refresh bathroom (???)I did my bathrooms for 3-4k each including granite, all wood vanities, and update travertine tile.

    Just have to look for the deals/contractors and spend a ton of time knocking your price down.

    Whats killing me now on price is the dang landscape. Its killing me trying to really knockdown the price. Thats why the next door kid spent 8 hours yesterday weed eating the acre lol.

    February 12, 2011 at 6:39 PM #666095
    waiting hawk
    Participant

    [quote=duncbdunc]

    cost of new roof (15k-20k)
    cost to restucco (5k)
    cost of new windows (15-25k)
    cost to resurface pool (7k-10k)
    cost to refresh kitchen (25k)
    cost to refresh bathroom (???)[/quote]
    Mines 2200 sqft
    cost of new roof (7k using best arc. shingles)
    cost to restucco (5k) Mines starting this weekend for 2200 bucks
    cost of new windows (15-25k) Mines were 3k for retros
    cost to resurface pool (7k-10k) I did my pool myself for 2k and that was buyin all the pool equip that was sold off from previous “owner”
    cost to refresh kitchen (25k) I did mine with granite/limestone for 9k
    cost to refresh bathroom (???)I did my bathrooms for 3-4k each including granite, all wood vanities, and update travertine tile.

    Just have to look for the deals/contractors and spend a ton of time knocking your price down.

    Whats killing me now on price is the dang landscape. Its killing me trying to really knockdown the price. Thats why the next door kid spent 8 hours yesterday weed eating the acre lol.

    February 12, 2011 at 6:39 PM #666229
    waiting hawk
    Participant

    [quote=duncbdunc]

    cost of new roof (15k-20k)
    cost to restucco (5k)
    cost of new windows (15-25k)
    cost to resurface pool (7k-10k)
    cost to refresh kitchen (25k)
    cost to refresh bathroom (???)[/quote]
    Mines 2200 sqft
    cost of new roof (7k using best arc. shingles)
    cost to restucco (5k) Mines starting this weekend for 2200 bucks
    cost of new windows (15-25k) Mines were 3k for retros
    cost to resurface pool (7k-10k) I did my pool myself for 2k and that was buyin all the pool equip that was sold off from previous “owner”
    cost to refresh kitchen (25k) I did mine with granite/limestone for 9k
    cost to refresh bathroom (???)I did my bathrooms for 3-4k each including granite, all wood vanities, and update travertine tile.

    Just have to look for the deals/contractors and spend a ton of time knocking your price down.

    Whats killing me now on price is the dang landscape. Its killing me trying to really knockdown the price. Thats why the next door kid spent 8 hours yesterday weed eating the acre lol.

    February 12, 2011 at 6:39 PM #666565
    waiting hawk
    Participant

    [quote=duncbdunc]

    cost of new roof (15k-20k)
    cost to restucco (5k)
    cost of new windows (15-25k)
    cost to resurface pool (7k-10k)
    cost to refresh kitchen (25k)
    cost to refresh bathroom (???)[/quote]
    Mines 2200 sqft
    cost of new roof (7k using best arc. shingles)
    cost to restucco (5k) Mines starting this weekend for 2200 bucks
    cost of new windows (15-25k) Mines were 3k for retros
    cost to resurface pool (7k-10k) I did my pool myself for 2k and that was buyin all the pool equip that was sold off from previous “owner”
    cost to refresh kitchen (25k) I did mine with granite/limestone for 9k
    cost to refresh bathroom (???)I did my bathrooms for 3-4k each including granite, all wood vanities, and update travertine tile.

    Just have to look for the deals/contractors and spend a ton of time knocking your price down.

    Whats killing me now on price is the dang landscape. Its killing me trying to really knockdown the price. Thats why the next door kid spent 8 hours yesterday weed eating the acre lol.

    February 12, 2011 at 7:29 PM #665462
    duncbdunc
    Participant

    AN,

    re stucco: I understand that you are not supposed to paint over stucco. If you want to refresh color you need to apply a new layer of stucco. Apparently stucco is supposed to breath or it will rot inside from water damage. Paint seals the stucco.

    re roof: even if a roof last longer than 20 years, its still depreciated relative to a new roof. This should be accounted for in the price.

    re windows:I would argue that windows is deferred maintenance. A 20 year old window is worth less than a brand new one. Especially if its single pane. Over time, double pane windows lose their seal too.

    re kitchen: appliances have useful life. 20 years and you start pushing it. Also, a dated kitchen should be worth less than an updated one. This all costs money and should be accounted for in price. This approach helps when comparing comps too.

    re pool: good point, but I included because there are enough 20 year old pools in san diego to make this a relevant question and the cost of updating a dated pool can be quite expensive. I think some people underestimate this If the house you are bidding on does not have a pool, just ignore this particular item.

    February 12, 2011 at 7:29 PM #665525
    duncbdunc
    Participant

    AN,

    re stucco: I understand that you are not supposed to paint over stucco. If you want to refresh color you need to apply a new layer of stucco. Apparently stucco is supposed to breath or it will rot inside from water damage. Paint seals the stucco.

    re roof: even if a roof last longer than 20 years, its still depreciated relative to a new roof. This should be accounted for in the price.

    re windows:I would argue that windows is deferred maintenance. A 20 year old window is worth less than a brand new one. Especially if its single pane. Over time, double pane windows lose their seal too.

    re kitchen: appliances have useful life. 20 years and you start pushing it. Also, a dated kitchen should be worth less than an updated one. This all costs money and should be accounted for in price. This approach helps when comparing comps too.

    re pool: good point, but I included because there are enough 20 year old pools in san diego to make this a relevant question and the cost of updating a dated pool can be quite expensive. I think some people underestimate this If the house you are bidding on does not have a pool, just ignore this particular item.

    February 12, 2011 at 7:29 PM #666123
    duncbdunc
    Participant

    AN,

    re stucco: I understand that you are not supposed to paint over stucco. If you want to refresh color you need to apply a new layer of stucco. Apparently stucco is supposed to breath or it will rot inside from water damage. Paint seals the stucco.

    re roof: even if a roof last longer than 20 years, its still depreciated relative to a new roof. This should be accounted for in the price.

    re windows:I would argue that windows is deferred maintenance. A 20 year old window is worth less than a brand new one. Especially if its single pane. Over time, double pane windows lose their seal too.

    re kitchen: appliances have useful life. 20 years and you start pushing it. Also, a dated kitchen should be worth less than an updated one. This all costs money and should be accounted for in price. This approach helps when comparing comps too.

    re pool: good point, but I included because there are enough 20 year old pools in san diego to make this a relevant question and the cost of updating a dated pool can be quite expensive. I think some people underestimate this If the house you are bidding on does not have a pool, just ignore this particular item.

    February 12, 2011 at 7:29 PM #666259
    duncbdunc
    Participant

    AN,

    re stucco: I understand that you are not supposed to paint over stucco. If you want to refresh color you need to apply a new layer of stucco. Apparently stucco is supposed to breath or it will rot inside from water damage. Paint seals the stucco.

    re roof: even if a roof last longer than 20 years, its still depreciated relative to a new roof. This should be accounted for in the price.

    re windows:I would argue that windows is deferred maintenance. A 20 year old window is worth less than a brand new one. Especially if its single pane. Over time, double pane windows lose their seal too.

    re kitchen: appliances have useful life. 20 years and you start pushing it. Also, a dated kitchen should be worth less than an updated one. This all costs money and should be accounted for in price. This approach helps when comparing comps too.

    re pool: good point, but I included because there are enough 20 year old pools in san diego to make this a relevant question and the cost of updating a dated pool can be quite expensive. I think some people underestimate this If the house you are bidding on does not have a pool, just ignore this particular item.

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