The wife and I found a house that we are thinking about buying. It's been updated/remodeled in the past few years, but there is still some stuff left that needs to be finished up. As you can see in the virtual tour, (Click Here (homesight.net)) there are holes in the walls near the ceiling, of the living room, dining room, the kitchen on one side, and all three of the bedrooms. One of the bedrooms is still just drywall, and some of the ceilings had acoustic tile that has been pulled down, but nothing has been done after that. There's also an obnoxious patch in the wood floors by one of the bathrooms, which will have to be covered by something, be it carpet or something else.
The pluses include a 90% redone kitchen (there're the holes near the ceiling, and it needs to be repainted) Three bedrooms, two full baths, a *very* nice family room that opens out onto the deck, a two car garage, large fenced backyard, new roof, furnace, and air conditioner, still in the same-ish neighborhood we're renting in, but out on the street, and it's currently priced at $119,900, but the houses on either side of it stand at $160,000 and $148,000.
I'm thinking that we could probably come in with an offer around $100,000 because the guy obviously wants to get rid of it, otherwise he would have finished the interior to a greater degree. The house itself is valued at $140,000 as far as the county is concerned (tax appraisal), and I was thinking that if we got the mortgage for $115,000 we could get someone in to finish the house, minus painting.
So really, I guess my question is, would $10,000 be enough to get someone to possibly re-drywall a 1200sq foot house and redo the tilework in the bathroom?
"Tattoos are the mullets of the aughts." - Mike Naimark
The family room is completely without holes and finished, so I figured the rest of the house would be around 1200 sq. feet.
When I initially looked at the photo of the living room, I thought there was some kind of weird finish to the ceiling, as it was just too regular of a pattern to be any kind of damage, but no, they just pulled down the tiles and left it like that
(edited by Zundian on 15.11.07 1559) "Tattoos are the mullets of the aughts." - Mike Naimark
Is it really something you need to have totally re-drywalled? I didn't see anything in those pictures that couldn't be patched fairly easily.
The house looks decent, and as long as there aren't any major structural problems, the foundation is good, there is no water damage or mold, I wouldn't be scared off about a little damage in the walls.
I am not sure what the local customs are in IL, but if you were in California and my client, I would recommend just asking for an escrow credit to cover the cost of repairs. A licensed home inspector should be able to give you a better idea what it would cost to repair the damage, especially since they are seeing it first hand. In CA, you usually have a standard 17 day contingency period to get your home inspections in - I would imagine there is something similar out there, so as long as you have an inspection contingency, you can use that damage as negotiating leverage against the owner to try and get some kind of credit.
Basically, the short answer is that based on what I see in those pictures, I don't think you will have any difficulty repairing the holes and replacing tile. If you want to redo the drywall all together in the whole house and rip out the tile and redo it - $10,000 probably isn't going to cover it. You would probably be better served simply patching the holes and spending the bulk of your money redoing the tile.
It looks like you could put a ceiling texture up and cover where the tiles were. That isn't too bad as far as cost.
It sounds like you're serious enough to put in an offer and get a home inspection. Find out if you lose anything if you back out after the inspection. I know in our case our offer was contingent on the inspection, so we could have backed out without losing anything if the inspection didn't jive with what repairs we knew needed to be done.
It doesn't look like anything is too much beyond cosmetic, from the pictures. Think if you'd be willing to deal with some of it for an extended period of time (like if you can't get it done before you leave the place you're at now).
You are getting good advice already. Just wanted to point out that the appraisal by the county is kind of meaningless as far as price goes usually. To obtain a real value you need an independent appraiser and while you are at it an indpendent contractor of some sort to poke around and telll you what is right and wrong with the house. He/she will crawl around and find some things that may not be as they seem.