Sell or renovate? How to decide? Where to begin?
Hi everybody. My girlfriend and I are trying to decide whether to renovate our 1870 wood-frame Bed-Stuy rowhouse or sell it as is. I figured the place to start was to get estimates for what we might be able to sell it for and what it might cost to renovate it up to a more livable condition. We get many mailings from realtors who offer “free market analysis.” I’ve e-mailed a couple of them, but they haven’t responded. Guess I’ll keep trying with that.
But I’m not sure how to get an estimate for a renovation. We’re not sure we’ll proceed with that, so I don’t want to present myself as looking to hire an architect or contractor, but the place needs major work and I’d like some ballpark estimates for what we’d need to spend.
If anybody has any big-picture or small-picture suggestions, we’d appreciate it!
krumpertsolarsolutions2021
in Renovation 3 years ago
12
Please log in, in order to post replies!
12 replies
cate | 3 years ago
Beautiful house. Hope the longtime owners get the full value when they decide to sell.
justinromeu26 | 3 years ago
Maybe if you sell in this market and rent and rebuy when the market softens you can go back in and buy a nicer place? Not sure how that will work if interest rates go up.
housebywe | 3 years ago
Agree with sentiment to sell. It’s a very strong seller’s market and many buyers actively look for “as-is” so they can renovate rather than buy a developer’s premium for a less-than-sound reno they didn’t have input in. That’s a very desirable neighborhood, and unless there is a major red flag on the property we’d highly recommend selling and echo Chris’ point about getting in quickly over your head with a reno – particularly since construction costs are so high.
ceci | 3 years ago
Strong Sellers Market!! Good luck!!!
krumpertsolarsolutions2021 | 3 years ago
Thank you all for the replies. We’re on Monroe St. between Bedford and Nostrand, the block with the YMCA. It’s a one-family, three stories plus a cellar, and in poor condition, but with some original details, like several mantles. I’m sure that whoever bought it would need to do a full renovation; exterior and interior. We have started speaking with realtors, and unless there’s strong math on the renovation side, we plan to sell.
lkrshacmzcy | 3 years ago
Honest Answer:
If you do not know how to get an estimate for a Renovation, it is probably the most Financially Smart decision to sell it as is.
I feel like I insult people on here sometimes but when you have never done a Renovation, especially one to add value and not desire, you can quickly get in over your head and eat away at your budget. Even when you know what you are doing it can go South quickly, especially in this market where material alone has seen 200%+ increases.
cate | 3 years ago
Value depends on location, condition, number of stories, number of units, whether the house is an SRO. If you could give us some idea, we could guess at some general figures. You can look at recently closed sales in the area on ACRIS (and our Six Months Later stories). Going to open houses and tracking the sales gives you a good understanding of condition and value. As for renovating, keep in mind the cost has more to do with scope of work than, say, whether or not you choose the cheapest tile. You will save money if you keep the walls and wet rooms in the same place and don’t change the occupancy, location of units or egress. Keep in mind you can upgrade all the plumbing and electricity without “gutting.” No need to replace all the plaster with drywall. Here is a story on renovation costs from 2016. I’d add at least a third, maybe double, onto the overall prices quoted. Renovations that once cost $200,000 are probably twice that now at least, I would guess. https://www.brownstoner.com/interiors-renovation/renovation-costs-kitchen-bathroom-brooklyn-house/
cate | 3 years ago
How did you acquire this property? Keep in mind all real estate transactions in NYC require you to hire your own attorney. For your own protection, never use one that anyone else in the transaction has suggested. As well, you would be wise to avoid taking a loan from or selling to anyone who approaches you and solicits your business. There are many outfits in Brooklyn (and beyond) who seek to defraud owners in one way or another.
justinromeu26 | 3 years ago
Consider what resident2 has said about the plumbing and electric. We have a 1928 house and one reason we do not undertake these things (most of which i can do myself) is because, once you begin an undertaking like this, you MUST do the electricity and plumbing in these old places. There are some creative ways around some of this – when we did our bathroom a few years back i pulled enough electric cable up to redo the second floor and left that cable coiled in the ceiling for when we need it later . I also ran new pipe up to the second floor at night when the contractor was not around, but here we are 7 years later and nothing else has been done. And now as i sit on the couch looking at the slope in the floor and thinking i would like lift the joists from below to level it, i also realize i might very well crack some tile in the bathroom. What i am saying is, it is all or none; piecemeal will not work.
If you are not at the level to hire an architect to help you decide what has to be done, find a really good GC. Someone with years in the business, someone who values what you do about a house and who can listen to you and what you desire and can communicate all of this back to you in their ideas on what your home will need. Don’t bother with contractors who lack the two-way communication to understand you.
Keep in mind, and resident2 mentions it: windows, facade, roof: if you don’t have those, you don’t have a building. So to all of the expenses you are contemplating for the interior, plan on these first for the exterior if they are needed.
And something else, if you are thinking of renovating to sell, study return on investment as it pertains to houses.
randolph | 3 years ago
i would guess about $300/sqft….but for a major renovation you probably cannot live there at the same time so then you have to factor in renting an apartment.
to be honest, if you are asking this question I think the safe answer is that you should SELL! renovating is not for the faint of heart and if the end game is not to live there, why put yourself through the mental and financial stresses?
resident2 | 3 years ago
There are many issues to think about: Do you have the cash available to do a major renovation? Do you have tenants? Where are you thinking of moving to if you sell? Can you afford to move to what you are thinking of?
To get the best price for what you have: de-clutter, de-clutter, de-clutter. Clean, clean, clean…. Even before you invite Brokers in. Then invite at least 3 brokers from different companies. Never list with a Broker that asks you what you are looking for it. Let them all know that you are asking a few Brokers in to get their opinions of value. And listen to what they have to say & ask for comps in writing, Google the addresses, you can often find photos on line of the past listings etc & see what the sales price was.
If you are leaning towards staying & repairing it: Work out what it really needs: plumbing, wiring? structural work? Roof, facade, windows? can you live with contractors for the next few years or does it all add up to needing to move out for a few months or years?
If the plumbing & wiring are all 75 + years old, there is no point just doing a cosmetic renovation, you will have constant repairs, leaks etc.
Lastly if you have a current mortgage on the property, it will not be easy to get a Home Improvement loan of an amount that works in NYC.
ladybug | 3 years ago
A good way to find a realtor is take a look at recent sales of townhouses on your block or in the immediate area on streeteasy and do a bit of research on the brokers who sold them to find out who is knowledgeable about your area and what the best sales strategy would be for you.