Author Topic: Put our offer in on our first home... gas lines?  (Read 1461 times)

goosefraba1

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Put our offer in on our first home... gas lines?
« on: February 01, 2016, 09:28:23 AM »
Hey guys... my wife and I just put in our first offer for our first house! This one is rather large, but on a great street and next to probably the best school in southern ohio- Wheelersburg.  http://www.zillow.com/homes/for_sale/Wheelersburg-OH/78450076_zpid/55165_rid/38.721809,-82.847979,38.719135,-82.853236_rect/17_zm/

So, here's the problem. The house is incredibly inefficient currently. They are using two old heat pumps to run the house (about 20 years old), 2 electric furnaces (same age), and electric water heater. The house has been rented for the past 5 years as they have tried (with no luck) to sell the house. Honestly, they are asking too much at $220k because the whole place needs remodeled- which we can do DIY for the most part with help of family.

We will be adding a new roof, new industrial heat pump, new gas furnace, new gas water heater (we will search to see if we can get a deal on newly used). Gas is available on the street. I spoke to the gas company today. The main line ends about 350 feet away. The first 100 feet of extension is free, and then is $28.58 a foot of extension after that. We have scheduled a free gas line survey through the company to get the exact price... but we are looking at $8k just to extend the line to the house. No access fee after that. If we can get the neighbors on board (3 on the cul de sac), we will each get the free 100 foot extension. Realistically, we are looking at $30k to add all of these- but less if we can get others on board. Our realtor is contacting the neighbors to check.

Any suggestions on implementing this plan... or getting others on board?

goosefraba1

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Re: Put our offer in on our first home... gas lines?
« Reply #1 on: February 01, 2016, 09:35:20 AM »
Also... our offer was for 165k on this house. The owners bought it in 2001 for 175k... but they have done nothing with it other than add new appliances since then. We don't want a loan > 205k-210k. So, our walk-away point is 180k tops, but really 175k if it really will cost 8k to extend the line.

nereo

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Re: Put our offer in on our first home... gas lines?
« Reply #2 on: February 01, 2016, 09:46:25 AM »
well... you said that you will be putting in a new gas furnace and gas water heater, so either you will need a gas line or a gas tank on property.  Honestly $8k doesn't seem like that big a deal for something that should last several decades.  However, putting in gas won't make an energy inefficient home suddenly energy efficient.
A better question to ask yourself might be "what other options exist for making the home more energy efficient, and what would those cost?"

Have you done a complete energy audit of the home?  I'm guessing there may be more to making it energy efficient.  New windows and doors  are expensive but might be necessary.  Added insulation is cheap, especially if you DIY.
"Do not confuse complexity with superiority"

goosefraba1

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Re: Put our offer in on our first home... gas lines?
« Reply #3 on: February 01, 2016, 09:52:04 AM »
well... you said that you will be putting in a new gas furnace and gas water heater, so either you will need a gas line or a gas tank on property.  Honestly $8k doesn't seem like that big a deal for something that should last several decades.  However, putting in gas won't make an energy inefficient home suddenly energy efficient.
A better question to ask yourself might be "what other options exist for making the home more energy efficient, and what would those cost?"

Have you done a complete energy audit of the home?  I'm guessing there may be more to making it energy efficient.  New windows and doors  are expensive but might be necessary.  Added insulation is cheap, especially if you DIY.

Energy audit is scheduled for next monday, as is the line survey. I expect both of these to allow us to ask for a lower price on the house.

The attic does need more insulation. The windows are dual pane, the doors probably need swapped out. So, yes we are looking into these efficiency models.

nereo

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Re: Put our offer in on our first home... gas lines?
« Reply #4 on: February 01, 2016, 09:59:52 AM »
Energy audit is scheduled for next monday, as is the line survey. I expect both of these to allow us to ask for a lower price on the house.

The attic does need more insulation. The windows are dual pane, the doors probably need swapped out. So, yes we are looking into these efficiency models.
Good.  Come back when you have the results, and whether any neighbors would join you in installing the gas line. It's a nice looking house.
"Do not confuse complexity with superiority"

goosefraba1

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Re: Put our offer in on our first home... gas lines?
« Reply #5 on: February 01, 2016, 10:13:23 AM »
Thank you very much! I know it is unreasonably large for mustachians... however, we are currently trying for children, and will be adopting if not.

Edit: Just got word from the realtor that they seller will not take less than 215k for this home. That is his bottom dollar. We will continue looking. And... they will continue to have to rent the home, because nobody is taking on that project house for that price. 

bobechs

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Re: Put our offer in on our first home... gas lines?
« Reply #6 on: February 01, 2016, 10:29:49 AM »
Congratulations on walking away.

It is not done often enough by folks who also plan to drop big bucks into immediately changing up their new acquisition.

goosefraba1

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Re: Put our offer in on our first home... gas lines?
« Reply #7 on: February 01, 2016, 01:19:01 PM »
Thanks! We really wanted the house, but aren't willing to over-extend ourselves. We are more than capable of spending that much on that house, but by them time you drop 30k+ in energy efficiency... and then another 40k or so in kitchen/bathroom/flooring, you are looking at 280k at least into that house. We could build a new home on a nice lot for 225-240k, and pay less in utilities. This is most likely the route that we will choose. The housing market is ridiculous around here. My stepmom was showing us what 200k would buy in Kalamazoo, MI, and it makes you sick.

nereo

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Re: Put our offer in on our first home... gas lines?
« Reply #8 on: February 01, 2016, 01:41:29 PM »
...
The housing market is ridiculous around here. My stepmom was showing us what 200k would buy in Kalamazoo, MI, and it makes you sick.
I always find it amusing what people consider 'ridiculous' to be.  $215k for a 2800sqft home with a 1/3 acre lot seems cheap to me.  My previous landlord sold the 900 sqft, 1bd/1bath place i used to rent for $620k.
RE is so incredibly local.
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goosefraba1

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Re: Put our offer in on our first home... gas lines?
« Reply #9 on: February 01, 2016, 01:51:34 PM »
I understand those sentiments.... if this was a sprawling place. Unfortunately, it is not. The industry here is dead. We live in the rust belt where nothing thrives really. So, 220k is a lot of money around here. I can honestly say that at age 28, my income is higher than 90% of the county. That means nothing if we don't invest it correctly, though.

We will keep looking, I am just a little grumpy right now. Probably got too attached to that one.