Death of the 'McMansion': Era of Huge Homes Is Over

[debk]

We were told we could get up to $50,000 in a rehab loan on certain homes if they were trashed.  We saw one house that was so bad.  The rehab loan would have done nothing.  The cupboards, sinks, toilets, tub were all gone.  Holes in the walls, mold in most areas, broken windows.  It was awful.  They were still asking $115,000 (sold for $386,000 in 2004) for it.  What a joke.  It was a beautiful home otherwise.  Whoever bought it has to put a lot of money into it.  For us, it obviously wasn't worth it since we were looking from homes that were move-in ready.

If it qualified for $50,000....it could have been fixed for that using "average and reasonable materials and vendors".

The loan amount is based on at least 2 or 3 Realtors and an appraiser giving repair cost estimates.

As I said, up above....I have one that I'm doing tomorrow. One of the things I do on these reports is estimate
the cost of rehabbing to make the property decently habitable.

That does not mean, granite countertops, high-end custom cabinets, artisan tile floors in the kitchen, whirlpool bathtubs and Pella windows....unless that is what was there, and is damaged and needs repair. 

For a kitchen or baths....I take prices from Home Depot or Lowe's cabinetry and fixtures. Same with carpet or vinyl, windows. Repairing holes is a guess on what it would cost to have it done, same with a roof. Mold is cleaning off with bleach, then painting with Killz, unless the drywall is so bad that it needs to be replaced.

Asking $115,000, for a house that originally sold for $386,000, is less than 30% of the original value....that's damn cheap if it's in a decent area. We don't see those kind of depreciations here, except in the inner city areas.

Even with all that you mentioned....here it would be about $250,000. $386,000 minus the $50,000 to bring it to value, less 20% for quick sale. That's provided the neighborhood comps still support the $386000 original value.

If the original value isn't supported....it's the current value based on 3 current lists, 3 sales within 90-180 days...within .5 mile, that can be extended to 1 mile if necessary. Which would be current value "as repaired" minus the 50k, minus 20%....unless there are a high number of foreclosures in the area, then it might be an additional 10% less.

Pricing is reviewed, at a maximum of every 30 days....in some markets less, or if several agents have gone in and all reported to list agent that it was still too high for location, condition, or current market....which can happen when a lender is trying to recover their loss.

 

[Chris_]

That damage looked more than $50,000 worth.  But then again, my profession is not figuring out how much everything costs in the home.

I live in Las Vegas.  All of the neighborhoods are full of foreclosures.  We did find a foreclosure for $105,000.  All it needed was some fresh paint in one of the bedrooms and a nice steam clean on the carpets.  All of the appliances came with the home.  I don't know why my husband didn't like it.  It was the perfect size for us, but he complained about it.  Go figure.  lol

[Chris_]

Sometimes it's a lot more than just cleaning up.

Light fixtures, plumbing - pipes, fixtures, faucets, appliances, countertops and cabinets, carpeting, heat pumps, hot water heaters....any or all may be gone. Holes in walls....I see a lot of holes about the size of someone's fist or foot....they have a distinctive look.

One of the worst though, that was not a trashout(removal of personal property and cleaning) situation (some of those are so awful)....was one that looked like someone had stood on a ladder and peed on the walls.... either that or they had incredible aim to hit 6-7 feet up on the wall!!!  

Sometimes....there's really nothing wrong with them....that a little paint, carpet, yard cleanup, won't fix.

I have to go to one in the next two days....depending on what it looks like....I may post some pics.

Yeah......it can be a LOT more.......we bought our current house in forclosure nine years ago, and it was trashed.......appliances, light fixtures, carpeting, some plumbing fixtures, garage doors (all three) and even the switch plates and door hardware were gone.  It was a bargain at the time, and it took us a year (doing the work ourselves) to complete the renovation, the biggest part of which was removing several acres of vivid purple floral-patterned wallpaper, but it was fun, something to do, and we're happy with the end result.

If we don't count our labor, it cost about 15K to complete, and would likely qualify as a "McMansion", with over 4000 sq. ft (if you count the finished walk-out).  It was then, and is CERTAINLY now, way too much house for two people and two dogs, but compared to what the same amount of money would have purchased at the time, it was a hell of a deal.  Even in this depressed market, we could probably sell it for what we have in it, but we are going to wait for a while to unload it, as we're in no real rush to relocate......and haven't really figured out where the hell we want to end up.

This is our second "distressed sale" purchase, and if you buy them right, they can be really good opportunities.......and there is a lot of that out there right now.  We've thought of buying another one just for spec......

doc

[Ptarmigan]

Sometimes it's a lot more than just cleaning up.

Light fixtures, plumbing - pipes, fixtures, faucets, appliances, countertops and cabinets, carpeting, heat pumps, hot water heaters....any or all may be gone. Holes in walls....I see a lot of holes about the size of someone's fist or foot....they have a distinctive look.

One of the worst though, that was not a trashout(removal of personal property and cleaning) situation (some of those are so awful)....was one that looked like someone had stood on a ladder and peed on the walls.... either that or they had incredible aim to hit 6-7 feet up on the wall!!! 

Sometimes....there's really nothing wrong with them....that a little paint, carpet, yard cleanup, won't fix.

I have to go to one in the next two days....depending on what it looks like....I may post some pics.

That too. That falls under maintenance.

[debk]

Yeah......it can be a LOT more.......we bought our current house in forclosure nine years ago, and it was trashed.......appliances, light fixtures, carpeting, some plumbing fixtures, garage doors (all three) and even the switch plates and door hardware were gone.  It was a bargain at the time, and it took us a year (doing the work ourselves) to complete the renovation, the biggest part of which was removing several acres of vivid purple floral-patterned wallpaper, but it was fun, something to do, and we're happy with the end result.

If we don't count our labor, it cost about 15K to complete, and would likely qualify as a "McMansion", with over 4000 sq. ft (if you count the finished walk-out).  It was then, and is CERTAINLY now, way too much house for two people and two dogs, but compared to what the same amount of money would have purchased at the time, it was a hell of a deal.  Even in this depressed market, we could probably sell it for what we have in it, but we are going to wait for a while to unload it, as we're in no real rush to relocate......and haven't really figured out where the hell we want to end up.

This is our second "distressed sale" purchase, and if you buy them right, they can be really good opportunities.......and there is a lot of that out there right now.  We've thought of buying another one just for spec......

doc

We got ours, because of a divorce (the wife didn't know it at the time ) and got ours at under value for the neighborhood, and is about the size of yours. Two years later, it had doubled in price, now 2 more years, and it's back down, about to what it would have been if it had been priced where it should have been. We figure it will not go back to where it was, but in a couple of years, maybe half again. 

[Chris_]

We got ours, because of a divorce (the wife didn't know it at the time ) and got ours at under value for the neighborhood, and is about the size of yours. Two years later, it had doubled in price, now 2 more years, and it's back down, about to what it would have been if it had been priced where it should have been. We figure it will not go back to where it was, but in a couple of years, maybe half again. 

I hear ya.......the house next door to us is on the market for $285K, and it's showing, but no offers after two months......it is smaller than ours.  We've had no repos in our sub so far, but a number of the homes have been for sale for extended periods without results, and are now being rented until the market improves.

I told our neighbor that if her agent sells it for that, just have him move his sign over to our yard.......I'd take that in a heartbeat.  Three years ago, houses in this sub were going for $350 - $400K.......the market sucks, but its happened before.  It will get better in time.

doc

[Thor]

I won't even get into what my last two homes sold for..........

One was appraised at $320K, sold for $190K

the other was a $700K "McMansion"  that was foreclosed on (after I was sent away) that sold for $290K.   Dummies........

[Doc]

I won't even get into what my last two homes sold for..........

One was appraised at $320K, sold for $190K

the other was a $700K "McMansion"  that was foreclosed on (after I was sent away) that sold for $290K.   Dummies........

Yeah.....you got hosed on that last one (you told me the story).........

However, you kinda have to take a long view on houses.......over our lives, my wife and I have owned twelve houses, and we only really took a beating on one, which was in New York (Long Island), bought it for $400K, and sold it for $320, but when we bought it, it was new construction, and we learned a valuable lesson from that........never buy a house that the market has not established a relative historical value on.

On the upside, when we got transferred to California (Thousand Oaks), we bought our house for $250K, and three years later, sold it for $750K.......so over the long haul, we're still ahead.  That was our big score, the others we made some strategic improvements, and generally made $20-30K on them when we unloaded them, but the old adage applies......"you can never go broke taking a profit", so we never really tried to make a killing on one, the California house was a fluke in the market out there, and it collapsed about three months after we left.  We got lucky.

doc

[RobJohnson]

Lemme guess--you probably picked your house up for LESS than I picked up MY 1900 sq. ft. "McMansion" on an acre-plus.  A former SCC poster threw that one in my face, right before the bitter angry lesbian picked up a "historic" home for herself and her strap-on buddy.

Dammit.  Then again, my assessment dropped about 20 percent from the time I bought it to now.

The house is zoned multifamily and has an in law apartment attached. It's on a one acre lot with a great view of the mountains. It can only go up in value.

[RobJohnson]

You can get some mighty good deals with foreclosed homes. Sometimes, you have to inspect to make sure it is not trashed by the previous owner. Other than that, it is a fire sale.

For me personally, I would not like to live in a McMansion because it is a lot of work and maintenance and I would like to keep that to a minimum. I hate those hypocrites who complain about McMansions.

Very true.

I went to a moving sale in a very nice part of town. The house was huge and even had a 1200 sq ft game room on the back of the property that was next to the pool, hot tub and volley ball court.

I bought two nice light fixtures...that they took down for me.  Even the toliets and bathroom sinks were for sale. They were stripping the house before they had to move. The lady claimed that she paid cash for all the fixtures and cabinets when she had the house built four years ago...which I find hard to believe.

[RobJohnson]

That damage looked more than $50,000 worth.  But then again, my profession is not figuring out how much everything costs in the home.

I live in Las Vegas.  All of the neighborhoods are full of foreclosures.  We did find a foreclosure for $105,000.  All it needed was some fresh paint in one of the bedrooms and a nice steam clean on the carpets.  All of the appliances came with the home.  I don't know why my husband didn't like it.  It was the perfect size for us, but he complained about it.  Go figure.  lol

4 to 5 years ago people were buying homes in Henderson, Las Vegas & Pahrump without even looking at them in person first. Real estate offices had waiting rooms full of people trying to buy anything they could find.  This all resulted in some really good deals right now.

Las Vegas is a nice city with much to offer. In what other major city could you find a nice house for $105,000?

[NHSparky]

Very true.

I went to a moving sale in a very nice part of town. The house was huge and even had a 1200 sq ft game room on the back of the property that was next to the pool, hot tub and volley ball court.

I bought two nice light fixtures...that they took down for me.  Even the toliets and bathroom sinks were for sale. They were stripping the house before they had to move. The lady claimed that she paid cash for all the fixtures and cabinets when she had the house built four years ago...which I find hard to believe.

So how much did you have to sink in to make it liveable again?

[NHSparky]

4 to 5 years ago people were buying homes in Henderson, Las Vegas & Pahrump without even looking at them in person first. Real estate offices had waiting rooms full of people trying to buy anything they could find.  This all resulted in some really good deals right now.

Las Vegas is a nice city with much to offer. In what other major city could you find a nice house for $105,000?

Not here, that's for damned sure.  While new home prices ARE still in the tank (the house behind me is 2300 sq. ft. on an acre, propane versus oil heat, paved driveway, started asking at $310K and now asking $260K) here, they're nowhere near as bad as many other areas of the country.  Yes, foreclosures are up, but not anywhere near what I've heard of in CA, NV, AZ, and other overbuilt areas.  Even the "cheap" homes are still going for $200K, when they started out around $220K for your basic no basement, 2-car garage, 1500 sq. ft. starter on 1/8 of an acre in town.

[debk]

Not here, that's for damned sure.  While new home prices ARE still in the tank (the house behind me is 2300 sq. ft. on an acre, propane versus oil heat, paved driveway, started asking at $310K and now asking $260K) here, they're nowhere near as bad as many other areas of the country.  Yes, foreclosures are up, but not anywhere near what I've heard of in CA, NV, AZ, and other overbuilt areas.  Even the "cheap" homes are still going for $200K, when they started out around $220K for your basic no basement, 2-car garage, 1500 sq. ft. starter on 1/8 of an acre in town.

You need to move to E TN!!

This is my old house. I sold it to them for $239,500, the end of 2006....they sold it in April for $235, 500.

 


 

 

Wonderful Family HomeFormal Dining RoomFormal Living RoomKItchen w/islandLots of cabinetsBuilt in deskFrom the Breakfast RoomBig, bright Breakfast RmLaundry Rm with storageLaundry RmPowder RoomFamily RoomFireplace with bookshelevesFamily RoomMaster BedroomMAster BathMaster Tub and ShowerBR#2BR#3BR#4 or Bonus RoomHAll BathRec Rm in Basement has fire...Sun RoomFenced backyard
 

Lot Size: 95x174.94
Acreage:   Lot Description: Level Lot, Wooded

City Tax: $0 County Tax: $1, 573
Water: FUD Sewer: FUD

General Information
Rooms: 9   Bedrooms: 4   Baths, Full: 3   Baths, Half: 1
Square Feet: 3900 Upper Lev. Sq. Ft.: 1640 Main Lev. Sq. Ft.: 1220 Lower Lev. Sq. Ft.: 1040
Year Built: 1983 Age: 27
No # of Fireplaces: 2 Fireplace: Brick   
Floors: Carpet, Hardwood, Vinyl
Basement Description: Walk-Out, Finished Site Built: Yes

Room Dimensions
Living Room Size: 18x12 Kitchen Size: 15X12 Dining Room Size: 12X12
Bonus Room Size: SEE BR 4 Family Room: 20X15 Rec. Room Size: 30X20
Master Bedroom Size: 20x12 Bedroom 2 Size: 12X11 Bedroom 3 Size: 13X12
Bedroom 4 Size: 15X15 Bedroom 5 Size: 
Laundry Room: Yes
Extra Storage: Yes       
Features
Type: 2 Story Basement Style: Traditional
Construction: Brick, Frame Garage: Two Car, Attached, Main Level, Garage Door Opener, Side/Rear Entry
Fuel: Electric Heat: Central
Cooling: Ceiling Fans, Central Features: 2nd Rec Room, Breakfast Room, Dishwasher, Disposal, Microwave, Pantry, Range/Oven, Self Cleaning Oven, Washer/Dryer Connections, Walk-in-Closets
Exterior Features: Porch - Covered, Cable Available, Deck, Insulated Windows, Neighborhood Pool, Professional Landscaped, Screened Porch, Sunroom, Wood Fence, Wood Windows     
Additional Information
Public Remarks: Large family home in Farrington has fin.bsmt.4 bedrooms, 3.5 baths. Traditional floorplan w/all Brs upstairs.Large breakfast room open to kitchen with island.Rec rm, office and computer rm. Fenced backyard. The BEST location!!


 

[NHSparky]

Not bad, for a smallish lot.  I guess I'm spoiled now.  Wouldn't want to live on anything smaller than what I have now...nice and set back from the road, with plenty of woods behind me to buffer me from the neighbor (singular--so far) behind me, assuming anyone ever buys that place.

[debk]

Not bad, for a smallish lot.  I guess I'm spoiled now.  Wouldn't want to live on anything smaller than what I have now...nice and set back from the road, with plenty of woods behind me to buffer me from the neighbor (singular--so far) behind me, assuming anyone ever buys that place.

I know....we are on a bit over 3 acres now.

[Chris_]

Not here, that's for damned sure.  While new home prices ARE still in the tank (the house behind me is 2300 sq. ft. on an acre, propane versus oil heat, paved driveway, started asking at $310K and now asking $260K) here, they're nowhere near as bad as many other areas of the country.  Yes, foreclosures are up, but not anywhere near what I've heard of in CA, NV, AZ, and other overbuilt areas.  Even the "cheap" homes are still going for $200K, when they started out around $220K for your basic no basement, 2-car garage, 1500 sq. ft. starter on 1/8 of an acre in town.

We still have new homes being built in some parts of Las Vegas/Summerlin.  I don't understand why.  I hate the stupid cookie cutter houses that are spaced two inches apart.  They look like cardboard boxes made out of stucco.  We did find a really amazing 70's house near us.  It's listed at $315,000 though.    It looks like a mansion from the 70s.  Very beautiful  home.

[RobJohnson]

So how much did you have to sink in to make it liveable again?

The house I bought was in move in condition. It had been empty since last fall, the bank kept dropping the price. It had sold last fall at auction but then the buyer backed out due to down payment issues.

It did have a leak in the pump house. A pipe on the water pump had a leak. The well and septic had to be certified prior to purchase, I guess they did not turn on the power when they did this.  

The leak cost me $30 to have fixed. Not a big deal.

The people that owned the house prior to me put a lot of money into upgrades. The kitchen is brand new & they added a bathroom.

I looked at several bank owned homes. Most of them had issues & were over priced in my opinion. There were a few gems out there that I put offers in on. Some of these REO companies never even respond to the agent.

[zeitgeist]

An if you think McMansions are a steal, just head out to an RV dealer with cash and see what you can do on a Diesel Pusher.  You'll be more popular than a pork chop at the dog pound.

[RobJohnson]

You need to move to E TN!!

This is my old house. I sold it to them for $239,500, the end of 2006....they sold it in April for $235, 500.

Very nice house. It reminds me of those I'm used to seeing where I lived in Illinois. The price is about the same also.

[debk]

Very nice house. It reminds me of those I'm used to seeing where I lived in Illinois. The price is about the same also.

It was a nice house, when I sold it. We bought it for #132,000, in '83...as new construction. Spent a fortune correcting builder mistakes. I took over 2 mortgages on it, when I got divorced.... I should have moved, but it would have cost me more to buy a much less expensive house, than to take over both mortgages, as I would have had to put 30% down on a different house....because I was a divorced woman. 

[Randy]

I'll be happy with my little 3br 2ba in town I paid 79,000 for. 

[AllosaursRus]

It was a nice house, when I sold it. We bought it for #132,000, in '83...as new construction. Spent a fortune correcting builder mistakes. I took over 2 mortgages on it, when I got divorced.... I should have moved, but it would have cost me more to buy a much less expensive house, than to take over both mortgages, as I would have had to put 30% down on a different house....because I was a divorced woman. 

Now who woulda divorced a sweetheart like you??????

He musta been a total jerk! 'Specially if he left you with the bills!

[debk]

Now who woulda divorced a sweetheart like you??????

He musta been a total jerk! 'Specially if he left you with the bills!

He's a urologist.

He's on Wife #3 now. I was the first.

Those "rumors" you always hear about doctors and nurses? Yeah, well....I meant it when I said my marriage vows in front of the priest. I was very stupid and very naive.....


I didn't get stuck with all the bills.....just a mostly unpaid 735 BMW, and my credit cards. I chose[/] to take over the house so my kids wouldn't get uprooted and any more distressed than they were over the whole mess. Otherwise, I would have had to pay for half of a $26,000 quarter horse he went out and bought, a week before he left, on the line of credit at the bank....that I had signed a couple of years before. My share of the upkeep on the horse would have been $1400 PER MONTH. He quitclaimed the house to me, and I quitclaimed the horse to him.

Get married again? 

[NHSparky]

Get married again? 

Sounds familiar.  Especially when I hear people asking when I'm getting married again.