Today, using two houses as an example, I want to show you what details you should pay attention to when you go to your first real estate viewing in California.
First Home
Let’s start with a home that is on the market for $1,500,000. It has 4 rooms and 4 bathrooms.
Exterior Inspection:
- Roof: The first thing you notice before you even enter the house is the roof. This is a must that you must fix in your mind because roof repairs can cost anywhere from $10,000 to $40,000 in America and it is, as you realize, an expensive repair. Notice if there are any sags in the roof, if all the shingles are in place, if there is no debris.
- Cracks around the house (outside): The second is cracks around the house on the outside. If the cracks are wider than 1 centimeter, this could indicate foundation problems.
Generally, we are now in California, which is located in a seismic zone, so houses are built in such a way that the vibrations during earthquakes do not destroy the foundation. But in some houses the foundation still cracks, and this, of course, affects the appearance of the house.
On the example of this house we can see that the roof is in good condition, the house was recently renovated, the roof is about 2-3 years old. We can also see that there are no cracks on the front of the house. Although we will still additionally take a look at the back of the house.
Interior inspection:
Now let’s inspect the inside and pay attention primarily to the following things:
- General impression (renovation): This home was renovated using standard FLIP (this is when you buy an old house, remodel it quickly and sell it). This is a standard FLIP with a light kitchen, light bathroom, light colored floors, with recessed lighting. A nice enough remodel that looks harmonious with any furniture.
- Ventilation: Also pay attention to the ventilation. It should be either on the ceiling or on the walls. This fact will immediately tell you if there is central air conditioning in the house.
- Bathroom: The bathroom features gold hardware, which has become very trendy lately. We see two shower stalls and two sinks. This solution is common in new homes lately, and it’s convenient if a couple lives there.
- Windows: The next thing to pay attention to is the windows. In this case here are new windows. If the house is old and the windows are old, single glazed, you will definitely have to replace them in the future, which is also quite expensive. In this case we have double glazing.
- Flooring: In this house, the flooring is laminate. It will last you 15 years, which is a normal amount of time, because basically the style will change and you will want something new.
- Furniture: In this home we see furniture that was brought in by a company that exclusively furnishes homes at the time of sale. That is, all of this furniture is not included in the price of the home.
Second Home
And for contrast, let’s look at another home that was built in 1979 and has been virtually unrenovated since that time. It is on the market for $1,150,000. Basically, you can see with the naked eye that the house is not in very good condition. It would cost about $100,000 to $150,000 to renovate a house like this to make it look good and repair the bathroom, kitchen, roof and so on.
Interior Inspection:
- Lighting: The first thing to look at is that there is not enough lighting and it is advisable to replace it with recessed lighting.
- Flooring and layout: Flooring also needs to be changed and some remodeling is possible, such as removing walls. The kitchen and guest room are separated by a door, which is not fashionable now. Basically, a kitchen remodel can cost $20,000 to $25,000.
- Bathroom: A bathroom renovation is $10-15,000. Of course, it all depends on what materials you choose, but that’s the price +/- licensed work in California.
- Electrical Panel: And also we can immediately notice that the electrical panel is not in very good condition, it’s old. In particular, it is not signed for what which toggle switches are for, which is a must in California.
Exterior view (backyard):
Backyard (backyard): There’s also a pretty nice backyard (backyard) in this home. It is quite large and has good potential. You could build a pool, garage or guest house on it. Speaking of which, a guest house significantly increases the value of the house if you sell it later.
Total cost of second home renovations (approximately):
- Kitchen renovation: $25,000
- Renovation of 2 bathrooms ($10,000 each): $20,000
- Landscaping: from $10,000
- Painting and general cosmetic repairs: $30,000
- Repairing the facade and making it look modern: $40,000
To summarize total repairs + the amount we bought the house for: $1,150,000 + $125,000 = $1,275,000.
Conclusion:
What am I trying to say with this comparison of two houses? If you have the opportunity and vision of what kind of house you want to get, I recommend you to buy an old house and renovate it to your taste. Naturally, you will save money, but if you don’t have the time, you don’t have an idea of how you want your house to look, then buying an already renovated house is the best option for you.
You can see from the calculations what a difference it makes if you buy a new house or buy an old one and renovate it yourself.
Written by Maria Shmagliy, Los Angeles Realtor
