Brownstone update cost
We are in the process of buying a four story four family brownstone in bedstuy. We put an offer on the house, which was accepted, but we are not in contract yet. We knew the elictrica system needed to be updated and had planned 25k for that. We also knew the kitchens would need to…
We are in the process of buying a four story four family brownstone in bedstuy. We put an offer on the house, which was accepted, but we are not in contract yet. We knew the elictrica system needed to be updated and had planned 25k for that. We also knew the kitchens would need to be updated and had planned for that money also. We are using a 203k loan to get the renovation funds. We had an inspection yesterday and found that there were substantially more repairs than we had thought. Specifically the plumbing is in severe need of an update, there is no hot water heater, the boiler will need to be replaced, asbestos removed, all the windows need to be replaced. I have a couple of questions:
1. Even though the contracts are drawn up (not signed), is it okay to come back and renegotiate the price. The house has been on the market for awhile and the imspector thought there had been at least 3 previous inspection.
2. Does anyone have any off the cuff idea how much this would cost. I think we would do things like sheetrocking, labor for the kitchen updates, etc. But the bigger stuff listed above is definitely out of my skill level. We need to be able to come back with a specic number, but electricians an plumbers are (understandibly) hesitant to
do estimates and are trying to charge us for an estimate. I am hesitant to sink any more money into a deal that may very well go nowhere.
I’m writing this all late, but I’m going thru the process with a 203k loan also. Can you please e-mail me with and assistant with a contractor that you may have used. Thanks
Lucy, your comment is incredibly helpful. Thank you so much.
Hello there we live on Halsey and Throop. Bought our place back in August. The seller actually wanted us to do the inspection before we signed the contract as they didn’t want us to come back with price negotiations after the contract was signed. As you haven’t signed the contract you totally have the right to go back in asking for a lower price as I did.
We actually did similar work to what you need to get done.
-Replacing boiler and hwh cost $10K
-New windows 18 total cost $8K
-Minor plumbing work $8K
-We had the seller remove the asbestos
We got the price lowered by $25K.
Best of luck in your negotiations,
Faye
back to the subject at hand…
i’ve looked pretty extensively into 203k loans, and you don’t need to use FHA approved contractors. They just need to be licensed and insured for workman’s comp. You do need to use a GC when going through FHA and you won’t actually control your construction escrow account. It will doled out to contractor by a HUD consultant (who you pay $1000 to make periodic inspections) on a predetermined schedule.
Can I ask who gave you a quote of 5.8? Are you sure that didn’t include a lot of points? The best we could find with only one point was 6% from Wells Fargo, and that was yesterday.
lucy
strunkandwhite can’t read. The original post did not touch on the subject of landlord responsibilities.
Touchy, touchy. Let me get this straight. Someone who trolls a real estate blog message board to harp on grammer offers a snarky comment about being resposible for the lives of tenents (not being a resposible landlord mind you). One might be a bit skeptical as to the usefulness of that persons comments, might one not. Point taken…words have meanings. Part of asking questions on this board is to get advice so one does not become a clichéd NYC landlord. Or do I sense some class anxiety.
Touchy, touchy. Let me get this straight. Someone who trolls a real estate blog message board to harp on grammer offers a snarky comment about being resposible for the lives of tenents (not being a resposible landlord mind you). One might be a bit skeptical as to the usefulness of that persons comments, might one not. Point taken…words have meanings. Part of asking questions on this board is to get advice so one does not become a clichéd NYC landlord. Or do I sense some class anxiety.
Touchy, touchy. Let me get this straight. Someone who trolls a real estate blog message board to harp on grammer offers a snarky comment about being resposible for the lives of tenents (not being a resposible landlord mind you). One might be a bit skeptical as to the usefulness of that persons comments, might one not. Point taken…words have meanings. Part of asking questions on this board is to get advice so one does not become a clichéd NYC landlord. Or do I sense some class anxiety.
Touchy, touchy. Let me get this straight. Someone who trolls a real estate blog message board to harp on grammer offers a snarky comment about being resposible for the lives of tenents (not being a resposible landlord mind you). One might be a bit skeptical as to the usefulness of that persons comments, might one not. Point taken…words have meanings. Part of asking questions on this board is to get advice so one does not become a clichéd NYC landlord. Or do I sense some class resentment.