[lbo-talk] more on house prices

Matt lbo4 at beyondzero.net
Wed Aug 22 07:52:52 PDT 2007


On Tue, Aug 21, 2007 at 09:43:56PM -0700, andie nachgeborenen wrote:
>
> $5K a year in maintenance sounds right, in fact low to
> me. Granted we have an old (1927) house. This year I

[...]


> basement, that was about $70K, you can count that as
> part of the cost of the house if you like.

I would count most of this. Bathroom and Kitchen improvements can usually be folded into a sales price at at least 100% of what you spent, often more like 115%. Your basement won't be quite 100%, more like 90%.

I was thinking of routine maintenance on a house that started out passing inspections and came with a warranty for maybe the first year. Would your 1927 home have passed an FHA or VA loan inspection, presuming you qualified as a borrower? As a first-time home buyer I qualified for FHA and beyond a new railing and some painting the house passed. I required the seller to get a complete warranty so I had a year where I could build up my emergency fund (this would have covered replacing everything from the roof to every appliance; in fact I got a new washing machine out of it, woohoo!) - this cost the seller $200 or something.

Matt

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