Second-Hand homes are a good alternative to buy when you can’t afford a recently built home.
Regularly, Second-Hand home prices are more affordable and the reason is the house might not have a complete upgrade of the main components. For example, the house might not have a new roof in the last 30 years, or the kitchen might need an upgrade in the next 5 years.
This means that the “apparent” saving between a recently-built home and the Second-Hand home is due to the deferment of some maintenance or updates in the house.
What to consider?
To make the right choice between a recently built home and Second-Hand home, you will need to do a visual and analytical comparison. You will need to add the cost of the pending maintenance and upgrades of the main components to the Second-Hand home listing value.
Of course, not all the pending maintenance and upgrades might need to be done at the same time. But it will be advisable you know the last time some of the features were renewed or upgraded, and what is the life span of them.
Here are the life span of the main home components:
In addition, the age of the housing stock varies greatly by region, with some areas having a particularly large number of older homes. In Los Angeles, most of the housing stock.
Based on the 2018 ACS 5-Year Estimates, in California close to 60% of homes were built before 1980. In Los Angeles County, close to 60% of homes were built before 1970. In other words, close to 25% of homes in California are less than 30 years old. In Los Angeles County, around 15% of homes are 30 years or less.
You can imagine, while buying a Second-Hand home gives you some savings in the short term, they have a high probability that there are hidden or postponed renovations or upgrades that must be done in the midterm.
How much these upgrades will cost?
Here are three examples:
a. How much cost to rewire a house?
Based on Homeguide.com, the cost to Rewiring a house runs from $1,500 to $3,000 for a small house, $3,500 to $8,000 for a medium-sized house, and $8,000 to $20,000 for a larger home; or $7.79 per linear foot of wall space plus the cost of the electrical panel at $1,200 to $2,500
b. How much cost to repipe a house?
Based on Homeguide.com, the cost to Replumb a 1,500 square foot home costs between $2,280 and $4,080, or $0.40 to $2.00 per linear foot depending on the type of pipe used.
c. How much cost to reroof a house?
Based on HomeAdvisor.com, Reroofing a house costs an average of $7,942, with most homeowners spending between $5,348 and $10,708. The project typically involves removing the existing shingles, making spot repairs to the underlying shingle, and installing new shingles. It’s important to note that this price fluctuates depending on factors like:
Final thoughts
Second-Hand homes are a good alternative to buy when you can’t afford a recently built home. That’s true. You should keep an extra saving of $15,000 to $20,000 for possible upgrades or renovations after buying your “new” Second-Hand home.
Are you Still Interested in Second-Hand homes?
No worries you can find homes for sale in the following link: Second-Hand Homes for Sale.
If you need an extra help, please feel free to contact me at (323) 942-9347 or fill up the below form.
[Form id=”1″]Sources:
https://www.thisoldhouse.com/21018361/how-long-things-last
https://www.bankrate.com/real-estate/whats-the-life-span-of-a-house/
https://redcapplumbing.com/help-guides/troubleshooting/how-to-prevent-pinhole-leaks-in-copper-pipes
https://todayshomeowner.com/how-long-does-copper-pipe-last/
https://www.homeadvisor.com/cost/roofing/install-a-roof/
https://homeguide.com/costs/install-new-house-plumbing-pipes-cost
https://homeguide.com/costs/cost-to-rewire-a-house