Deal-Breakers

So after touring no fewer than sixty-two houses around the Louisville area, I got pretty good at recognizing things that can be fixed and things that just aren't worth the time and money. For instance, one home I looked at was amazing... three bed, three bath, completely remodeled inside, well-cared-for, beautiful, finished basement and garage. It was priced for that too. Now, normally it would be totally worth paying the big bucks for something turn-key (that is realtor-speak for you can move right in, for those not obsessed with HGTV). However, if you look a little closer, there are some things that will end up costing big bucks... which you have to take into account in addition to the asking price of a home. This particular home needed a new roof (around $10,000) AND a new air conditioner (around $1500 plus installation and possible rezoning costs)... DEAL-BREAKER. Just goes to show that even if a house looks perfect, there is a lot to consider before buying.

Not to say that some things aren't worth adding or repairing. My cute little house only has ONE bathroom... pretty typical of post-WWII homes, but not ideal for everyday living OR resale. So before putting in an offer, I researched the average cost of adding a *small* bathroom to a home... around $15,000. While that is a lot of money, putting in $15,000 now will not only increase my enjoyment of the home, but will provide almost a 100% return on my investment when I go to sell in a few years. Additionally, my house was priced low enough because it has only one bathroom, that I can afford to take the money I have saved and complete the renovation.

So when buying a home, take into consideration the average cost of additions and repairs and decide whether or not an old roof or a lack of back deck is really and truly a deal-breaker. To help you out, here are some of the average costs of additions/renovations:

Kitchen remodel: $20,000.00

Bathroom remodel: $8000.00

Deck addition: $5000.00

Window replacement: $8000.00

Family room addition: $25,000.00

PS... thanks to CNNmoney for help with estimates!

Now, most of these prices are quoted based on doing things on the cheap (coughSWEATEQUITYcough), but not completely by yourself. Obviously, these estimates will vary based on your location and the quality of materials, in addition to how much you do yourself or contract out. But say you find a great house in a great location for a great price, it just doesn't have a family room... will paying an additional $20,000 be worth your time, effort, and investment in the long run? Make sure to check comparable homes in your neighborhood to see how much they go for with your proposed addition.

Hope this helps for those of you thinking about setting out into the world of home-ownership... and hold onto your hats, because me renovating a bathroom is going to be a wild ride!