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 Functionally obsolescent homes are functionally obsolete are homes that are dated homes with outdated or features that are no longer sought after.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.
Besides the most obvious drawbacks to purchasing a way outdated homes are a lot of issues you may not have thought of, but add to the reasons why you should think twice before buying one of these homes.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!
Subscribe To Our Atlanta Real Estate Blog in a reader
Subscribe Now! ...with web-based news readers. Click your choice below:
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.