We made a bid on a house, and lost happily

Housing

Housing (Photo credit: james.thompson)

So, as you know from last week’s post, we have been house hunting. Our plan is to buy a fixer upper that costs no more than $150,000.

I have talked to several people and quite a few have asked me why such a low purchase price. A couple of my coworkers said they were looking in the $200,000-$250,000 range. This price range will allow them to buy completely new build with updated appliances and décor. My husband and I have tossed around the idea of looking at new builds but have decided against it. We all know the moment you see the new, shiny, glittery house, you’ll want it. It’s human nature. We all like nice things. We will somehow find a way to convince ourselves that we can afford the house. Don’t want to go down that rabbit hole!

This last house was a two story house. It was foreclosed and up for auction. We actually made a bid for $120,000 thinking if we snatched it up at the price, we could put $30,000 of improvements. This house would be valued at around $180,000 once it was fixed up. See pictures below. We didn’t win the bid, and I’m actually glad.

The more we thought about it, the more the purchase became scarier. There was so much to fix, and the layout was not as good as I would have liked it. Sure it’s 1700 square feet, but I say 500 square feet was wasted space due to the layout.

Plus immediate fix ups include:

–        Foundation – The house needed a foundation redone. Piers needed to be added to the concrete slab.

–        New windows

–        Previous owners added an extra room to the house but failed to construct it properly. Room needs to be redone.

–        New floors

–        New staircase

–        3 bathrooms updated

–        New kitchen

Then, I thought about the electricity bills, and I started getting a headache. Last month to cool our 700 square foot apartment totaled to $80. Not bad, but then you double it to cool a twice as big space, and maybe more due to the high ceilings, and suddenly the cost to cool/heat that place would be huge. The only thing I really liked about the house was the location and neighborhood. Regardless, the place seemed a little too much for our first home.

So the search continues for a 1 story home. Location is still pretty key in our search. Remember, there’s always the option of not buying. At the end of our lease we may end up deciding not to buy a house after all.

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