I own clean, level lot in a good residential area. I bought the property with a fire damaged home on the site, and had the structure and the foundation removed (120 year old building).
This is for investment purposes (to put up for sale at some future date), as opposed to my primary residence. I have talked to a couple of home movers who have a few ranch homes ready to move. Figure that the move, and foundation/excavation work would be on the order of 40-50K.
Then the extras of tying in mechanicals, electrical, sewer.
Anyone ever weigh the pros/cons of a move of a home in good condition vs. a new build? One limiting factor is that the moved home will have to be a single level, vs. a 1-1/2 or2-story.
Opinions, please?
Thanks,
DIA
Replies
Seems like with the price of materials.....
Seriously though, with the current home buyer's attitudes I wouldn't want to market something that had a "non-typical" past. Buyer's have there say right now, and they will for quite a while, in my opinion. Lately, most don't seem to look at a house unless it's cheap and perfect.
I've seen some small old houses moved in my area and seems like they get fixed up for a long time. Saw one that they moved, gutted down to bare studs, joists, and rafters and replaced almost everything. Didn't make any sense to me....hope it was cheap or free to begin with. Took longer than new construction.
Insurance companies like new codes, too, from a buyer standpoint. I don't know where they would start as far as depreciation goes.
too much money for the move on. Compare to a new modular delivered. figure the cost of repairs after the move. Make decision.
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You stated the prior burned home was 120 yo. My question is, what type of home fits with the neighborhood? Are all the other homes 100 yo craftsmans and moving in a 1960's ranch would look funny and out of place? Or is that not a issue, are all the house different anyway?
Reason I ask this is that buyers tend not to like nonconforming homes. If the home is really odd and not what a buyer expects for the rest of the neighborhood it will not sell as easily. Further, it is hard to turn a 1960's ranch into a craftsman (example only) though it is fairly easy to build a new house that is craftsman-like.
Another issue: I assume you are going to get a house on the property somehow, rent it out for a few years while the market goes up and then sell. A new home is going to be easier on maintenance for the first few years (i.e. virtually none) than an older home will be. Less maintenance = high profits for you.
Depending on building costs in your area, and home values and local buying habits in the neighborhood and surrounding are, I would build, but thats just me. It might be more expensive up front but will most likely pay off higher in the end.
Last question is if you are financing this, what can you get financing for? It is hard to get construction loans right now, but I suspect it is even harder to get a loan to buy a house to move right now.
-Day
I moved the home my father built in the 70's (1800sqft) thirty miles. It was well built and in good shape, but needed to be totally renovated. Did I save any $$, probably not, but in my case the home would have rotted into the ground on the family farm and that would have been a waste so I really dont care.
If the home you are considering needs to be renovated extensively, then I would consider your costs carefully, particularily if you plan to make any major changes such as removing/relocating rooms or other. Renovations always cost more since the first step is always removing the old ####. If you end up only saving a shell, its not worth it. For this to make any sense you need to a home that generally suites a family or can be made to fit with a few carefully planned tack ons. The raw cost of the structure is not the biggest component of a home especially once you take out the foundation costs.
Brad
Questions to ask:
1) Does the cost of the move include any and all costs associated with clearing the right of way ( Fees, Permits, insurance, utilities, trees, signs, new paving on driveway etc).
2) Who pays for the new foundation?
3) If the home to be moved has a masonry chimney can it be saved and re-used by code?
4) If the home to be moved has masonry veneer can it be saved or not?
5) Who pays for any interior damage to home as a result of the move?
6) (Not a question but a statement here) Set a hard schedule for delivery , set down and cleanup of moving equipment.
7) Will the moved home have to be upgraded to meet current code for electrical , plumbing insulation, windows doors etc. ( Check with your Building Officials on this!
Edit:
I did two homes like this.
Paid $22,000 (1,200 ft.) and 27,000 (1,400 ft) respectively for the homes and the entire costs of the moves. I put the foundation under them handled all the repairs etc myself. Both were moved into a neighborhood that had homes within the age range the two I moved were in.
Edited 2/11/2009 4:00 pm by dovetail97128
I used to be a carpentry teacher and we built small homes at the school. Given the entry level nature of the home and buyer, moving was too expensive. I agree with Piffin. Get a nice modular built to fit. Too many problems moving and setting up an older house unless it's a good one and right near by.
Beat it to fit / Paint it to match