I’m going to draw a modest home equity loan this spring and would like input on what I should spend it on. My abiding concern is to fix the house up just enough to sell it and clear a few dollars – I live in a very depressed market and need to be careful about sinking too much moola into this house.
So, roof or new furnace? The roof is a 90+ year-old slate roof. It doesn’t leak but isn’t so nice looking. The furnace is 25-30 years old and works just fine but isn’t energy efficient. Fuel bills are of concern in my part of the world.
Which do you think is the better investment? I might not be able to do both before I sell in a few years.
I dunno; neither fixing a roof that doesn’t need it nor replacing a furnace that doesn’t need it sounds like your best investment. I have heard that you get all the money back that you spend on bathrooms, kitchens, and garages - do you need any of those three? Is there any stuff around the house that needs doing?
If you’re set on doing one of those two, I would probably go for the roofing. Most buyers don’t really look beyond the cosmetics, so a nice-looking roof would increase your curb appeal over the new furnace.
If I was in your position, I’d hire a home inspector to give the house a good once-over and get his recommendations. A professional’s opinion would carry a lot more weight with me.
You have to be very careful here. Most improvements come out in the 60 - 95% range when you sell. That means that you will lose money on almost all of them. The most common reason that people fix up bathrooms or kitchens is because they want to enjoy them themselves while they live there. Other people do it because they want the house to sell quickly and don’t want one feature getting in the way. This isn’t the same as getting back more than they paid for it.
The only improvements that tend to have a positive economic value are egregious ones that are fairly cheap to get rid of. If you have garbage in your yard, it would be wise to pick it up. If there is a big piece of rotting wood hanging down, fix it.
What it usually boils down to is that you fix the simple and cheap things the buyers might not like and just take a hit on the sale. Fixing those things yourself would cost more in both money and headache.
I did have a home inspection when I bought this year (actually, two of them!) and both the roof and the furnace almost caused the loan to fall through. I went FHA and it seems that many people around here would also be those type of buyers. In other words, I’m afraid that this could cause escrow problems for the next buyer.
I did have a home inspection when I bought this year (actually, two of them!) and both the roof and the furnace almost caused the loan to fall through. I went FHA and it seems that many people around here would also be those type of buyers. In other words, I’m afraid that this could cause escrow problems when I go to sell.
If it’s an either/or, do the furnace first. At least you’ll save a few bucks on your heating bills.
Replacing a slate roof is going to be og-awful expensive. Can you at least find a good roofer with experience in slate to give you an estimate on whether it’s cheaper to fix or replace?
If it’s not an either/or, fresh paint, new carpeting and a little landscaping are probably the best fix-ups you can do for the money.
How is your electric system? Has it been completely updated?
In my area, there are a lot of old homes with their original ancient “knob and tube” wiring. When Hubby and I were house-shopping, our insurance company warned us that we would not be covered for fire insurance if we bought a house that contained it. It resulted in us passing over some houses we had considered in favor of one where the work had already been completed.
Plus, it is a real fire risk-- for your safety, if it hasn’t been done, you should do it.
How’s your basement? A dank basement is a turn-off to many buyers who want to use it as storage space. A finished basement is even more of a plus.
I will second this. As long as you are telling the truth about the roof not leaking on sellers disclosure form or any other forms, you should probably avoid fixing the slate roof. In my area, a single slate is ~$40. The slates themselves basically last forever, but the nails used to hold them on can corrode away. You definitely want an experienced slate man to do the repairs.
Yes, the electrical is updated. It was already modern (i.e., not tube and knob) but FHA wouldn’t pass it until a new breaker box and some outside wiring was redone.
Thank you for all the great advice. I have replaced all the carpet, painted and/or plastered the God-awful 1960s paneling, and will landscape this summer. My brother, a tiler, is coming out to tile and spruce up the bathroom and I’ve replaced the kitchen floor and will be painting the dated cabinets soon. This house had the nastiest 40 year-old green shag carpet and fake dark panelling theme you’ve ever seen!
The slate man who did the roof inspection said that it was a fantastic roof and to not replace it: The underwriter didn’t agree and it came down to nearly losing the house over it. My mortgage broker said he’d never seen an underwriter be so bitchy about not signing off, so maybe it was an anomaly. The roof has been sealed and doesn’t leak, it just doesn’t look so great.
My husband and I discussed this and decided to go with the furnace. The furnace is gonna take a dump soon anyway, and the money saved in the efficiency can be put toward the new roof.
