Are we crazy to consider buying this home?
If it is not on the market, then the seller may not have any idea of market value based on actual comps…and commonly will price it based on their cost + money invested + brokerage. If they list it and watch it sit for a while, the price may start to come down to where the house + the cost of work starts to make more sense vs the asking price. If you have not done so already, snoop around as to why they decided to stop work. Does ACRIS show a mortgage and for how much? Are their any DOB violations? Just because they say it will be delivered violation-free, if there are a raft of violations, it will become complicated. Also, I recall a similar situation where the rights to use the plans remained the property of the architect and you want to make sure you aren’t caught in the middle on that. Finally, if you need financing, check with a mortgage broker about whether they will lend against a house that is not (yet) inhabitable.
housepoor
in General Discussion 6 years ago
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28 replies
jimhillra | 6 years ago
rjp, I can speak to your question of when to get the actual estimate. It has been our experience that any estimate from a contractor, no matter how honest, well-intentioned, etc., without a good set of drawings and specifications, is only good as a ballpark. It’s very hard to be completely inclusive of all aspects of a project without having worked out all of the details of the designs. It’s not the individual pieces of work that become the issue, but the ways in which one thing affects another, and these are often not apparent until the work is fully conceived.
As for an architect’s estimate of the work, we tell our clients that we can estimate the cost of the work within maybe 20% – 25%, but on a big project, that could be a very large differential. An architect can give you an accurate estimate of her/his own work within a few days or a week of meeting you and seeing the existing conditions, but that’s not the same as a construction budget. We, and I’m sure other architects, have no problem providing this before a client has closed on the property.
It’s prett y common practice to try to get as much design and documentation done as possible before closing. Sometimes, we’re even ready to file as soon as the closing happens, if we’re involved early enough. Likewise for contractors. If a contractor is interested, s/he can provide an estimate as soon as s/he has accurate drawings from which to bid. Closing has nothing to do with this part of the process.
mstamib
in General Discussion 6 years ago
Thanks, jlmhllra. We have a set of drawings (detailed floorplans for each floor), but I don’t know what else there might be, i.e. specs or additional drawings. (And I don’t actually know what drawings and specs an architect would typically prepare for a project like this, other than floorplans.)
I would expect to get access to the architect that drafted the plans, as well as whatever other documents may exist, once in contract. So, since we have drawings, we may be able to get more than a ballpark before going into contract, but it sounds like we should expect to further refine this between a contract and closing, when we would get more into the weeds on materials and finish choices.
panda10 | 6 years ago
You really need to have a strong sense of faith. I planned my entire reno and it’s been a year long project but I am good with unpredictability and changes on the fly. I don’t know you but it sounds like the project ticks all the right boxes and it makes financial sense and you can swing the payments. If that’s all true it seems like you’re seeking that last bit of confidence from internet randoms which is a mistake. I say do your hw and the gut check is a question you ask yourself. Good luck.
jimhillra | 6 years ago
RJP – Not knowing the extent of the work, I can’t really comment on whether or not the floor plans will be sufficient. I would hope to have interior elevations of all kitchens & bathrooms, as well as any other area that’s more than a simple wall. I would also want exterior elevations if you’re doing any work to the exterior. What about electrical/lighting plans? Sometimes those aren’t filed with the DOB, so they may not be there.
As for contacting the previous architect, why wait until closing? You may want to call her/him and discuss the project for 10 minutes to find out a little of the history. S/He may be able to share some useful insight.
Obviously, whatever costs you get will be for the work on those plans. If you’re planning on making changes, those should at least be written down for a contractor to price.
Guest User | 6 years ago
jimhillra is 100% correct about contacting the architect NOW. You can present a simple fact pattern: you are in the process of buying the house and are considering retaining the original architect. Ask about the previous owners’ plans in detail – what kind of heating/cooling systems were they planning to use? What was their budget? How was the previous contractor from the architect’s point of view?
I have used an architect from a previous owner before and often this is a win-win for all – the original architect should know plenty about the existing conditions before the renovation started, and he should already have the CAD files and necessary documentation to pick up the work where it was left off from an architectural perspective.
nednedx
in General Discussion 6 years ago
IMHO, you have more leverage than the seller. Stay firm on your offer and sees how it plays out…doubt that there would be a lot of demand for this property from your description
mstamib
in General Discussion 6 years ago
vanderlyn and jlm, we would definitely be in touch with the prior architect before closing, and i would be crossing my fingers that we like him/her and want to work with them, because it would certainly be easier. we are just in the offer stage at this point, but i think if we reach a deal and are working on a contract, we would try and get the architect’s info and reach out at that point.
jimhillra | 6 years ago
RJP – good luck! keep us posted