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Functionally Obsolescent Homes are Hard Sells! Think Before Buying an Older Home!

Functionally obsolescent homes, what are they? Functionally obsolescent homes are functionally obsolete are homes that are dated homes with outdated or features that are no longer sought after. Are they a great buy? Or have others passed on buying them because of built in drawbacks? Every town including Atlanta has them. The reality is that older Atlanta homes in older neighborhoods sometimes aren't such a great buy! A home without and indoor plumbing would be an extreme example of a home that no one is interested in this day and age. Times and needs change. When a home reaches the end of a desired usefulness the price and value of the home starts to decline rapidly. Some examples of an obsolete home may be ones that does not have a garage, or has a one car garage, or open carport. Other features that may denote a home may be a conversation pit, lead water pipes, a home that has one 1 bath or 1.5 baths. Small bedrooms and laundry areas in the garage or basement are pretty standard finds. The reason they are considered not a hot buy! It isn't cosmetics that hold back the sale and future profit it is the limitations of size, the location of the property, and constraints of space that prevent the changes from being made at all.

carport Atlanta Besides the most obvious drawbacks to purchasing a way outdated homes are a lot of issues you may not have thought of, but add to the reasons why you should think twice before buying one of these homes. They may not be the great deal you once thought it was! Lead paint, asbestos, aluminum wiring are just a few more of the items that may be included in the sale whether you thought about them or not! Remediation costs must be considered before purchasing. The bottom line is that the cost of acquiring, renovating a home that is functionally obsolete must be reckoned to current market conditions and pricing, if you cannot bring it in under market it is a loser!

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Posted by Jim Crawford ~ Atlanta Real Estate-ABR E-PRO on 02/18/2008 09:47 PM

Comments (16)

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Originally posted at: Atlanta Real Estate | Atlanta Housing News for Real Estate: Functionally Obsolescent Homes are Hard Sells! Think Before Buying an Older Home!

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16 Comments on Functionally Obsolescent Homes are Hard Sells! Think Before Buying an Older Home!

FEB

2008

A loser for who...? My first home, built in 1940 probably has lead paint, the siding is asbestos, the plumbing needs work, the electric is going to have to be rewired the whole house through. There is no garage, the closets cannot fit one person let alone my wife's wardrobe, there is only one bath, and it is drafty...

I tell you what though, we love it! Our 2 sons love it - at least as far as we can tell with 2 infants... I look forward to the challenge of learning to work on the electrical systems. I've already repainted (all no VOC). I've installed baseboards, crown molding, stripped wood and refinished, i learned to make finished concrete floors and redid the laundry room, the home improves every day i live here - it's been about 3 months.

We bought this house prior to me being a realtor, and in desperate need of a home (our second son was close to being born, and we had a one month time frame to find a place and get in.).

The house, while full of problems is also valuable for its age, its quirks and its character. The original hardwood is in great condition. No new home will feel like this.

Even with today's market, we plan to work a little on this place, and move on in 2 years. I'm confident that we will make quite a nice profit on the place as the neighborhood is slowly improving (through other like-minded folks who like a little history and character).

These older homes are, often times, much better built than most new ones, and with a little work will make great investments.

What is functionally obsolescent to one may be completely charming and worth the challenge to another. What we need more than anything in this country is to hold on to our history, our old homes and our old neighborhoods - often times these are built more towards walking than driving and so have innately higher quality of life.

I'm not trying to say i completely disagree with you - some homes have reached that point. Just remember though, there are all types of folks out there, and many do not care so much about just 1 or 1.5 baths, or a garage if there is a great home where they can hang their flatscreen tv on an 80 year old wall and have the floors give a satisfying creek as they walk on them.

Jim, the concept of functional obsolescence that typifies the New Jersey home built 1920-1940 is the full bath on the first floor. Sometimes a powder room on the 2nd. Often the residents must pass through the kitchen to take a shower or bath. Tough sell in any market.

Alex Mordas - Tallahassee EcoBroker® Opportunity is siezed by those like yourself that makes a very informed decision! Some believe everything is a great deal. It isn't! Thanks for sharing!

Andrew J. Lenza (ABR*GRI*MBA) Monmouth County NJ Real Estate Broker Andrew, I am from Brooklyn New York, I grew up in homes that were over a hundred years old. 1.5 baths for 7 people was not a great thing!

FEB

2008

I see lots of folks buying homes like you've described, only to tear them down and build a new house.

Jim,

We bought homes similar with carports too..just like that one...they were mostly 2/1's...I personally didn't like the fact there was only one bath but after renovating them there were people willing to buy them...so go figure.

It's all in the perspective. I LOVE selling homes that are functionally obsolete. Good thing, because I live in one and am surrounded by them. lol. And I LOVE seeing what new young buyers do to them, as they sweep through the neighborhood, improving the homes both outside and in, updating the landscaping and creating 21st century state-of-the-art homes in 50-year old previously functionally obsolete homes.

Roswell Georgia Real Estate Agent - Nancy Rivera I know! Tear downs was a recent phenomenon that may disappear for a while. On hat I will wait and see.

Neal Bloom-Realtor ® Assoc.-Weston Florida LOL! I sometimes wonder in this new market we are entering into will people chomp at the bit as quickly? I guess we will have to wait and see! Have a great one Neal!

Margaret Woda, Maryland REALTOR When you live in the right area, it's a lot of fun, and really upbeat!

Hi Jim,

Great point in your post about older homes with outdated floorplans.

BTW I love youw wild colored blinking phone numbers. How did you do that...if I may ask?

Jim -Functionality like Beauty is in the eye of the beholder not the agent or the home inspector. There was a time when I would have considered a 2 bedroom home dysfunctional but today we are seeing a growing number of new homes being built with only 2 bedrooms. GO FIGURE!!

What is functional for you may not be for me or vise versa. I would never predetermine for a client what was functional for them based on age or features. Why would I not show a client a home that had only 1 bathroom and 2 bedrooms if that is what they require. Just because I like my 2000 sq ft home with its very large living areas, two bedrooms, and 4 bathrooms, does not mean it or their choice is functionally obsolescent.

For me a dysfunctional house is a 2200 sq ft 4 bedroom 3 bathroom home. Size, Shape, Amenities, are all factors in the decision making process but they are all factors that are viewed from the prospective purchasers point of view.

Tina Maraj Shah Fullerton, Ca. Realtor Thanks! I create them myself with Ulead Photo Impact 12 - the Animated Gif Creator.

Kathy Clulow ASP® SRES® Yes, but as a buyers agent my duty is advising that as a resale, the going will be tough to resell. All I have to to is look at a chart number of sales made in a month or a year. The 2 bedroom bath homes as a percentage of sales are at the bottom of the chart with the most days on market. If the buyer wants to proceed after they have been given all the options and stats it is then their choice, and as an informed consumer they will be very happy in the purchase they are making.

What is the difference if my buyer client tells me they want to buy a home that is on the road or under power lines? Do I just sell them the home without comment, or do I explain the real estate facts of life to them? As a buyers agent, I feel it is my responsibility to inform them of the differences of products, and probable market demand.

FEB

2008

Jim - Now we are taking about value as apposed to functionality and you are of course correct to inform them.

The question here is not so much should I not buy an old house because of its functional obsolescence but should I buy it (provided it is priced accordingly) because it fits my needs and price range.

Kathy Clulow ASP® SRES® If it fits needs and price range it is a buy.

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