Pasadena home buyers are finding that prices and inventory selection are very favorable these days. One area of the market that is attracting a lot of activity is the single family home priced under $400,000. Many home buyers who were previously priced out of the market are now finding that a single family home in Pasadena is within reach, thanks to lower interest rates and reduced home prices that make loan qualification more attainable.

Is the Home Really Affordable

Buying a house can be similar to driving a new car off the lot. Don’t just get caught up in the sticker price. Do you want the upholstery sprayed to resist staining? How about an undercoating on the car, and don’t forget that 4 year extended warranty. Oh and there is Lojack if anyone steals the car, we can find it. Consider all of the costs involved with your new property.

As a new homebuyer you may not be familiar with the rehab or fix up costs to make a house a home. Many of the homes that are selling under $400,000 are a result of foreclosure. One of the unpleasant truths associated with distressed property is that the previous inhabitants had a good idea they were leaving and as a result may have let the property deteriorate or how shall we say, inflicted some disrepair upon their departure. What to do and where to start?

Use the inspection period provided to you in the purchase agreement to thoroughly go over the house. I have discussed the home inspection process before, but this is also a time when you should be obtaining estimates associated with the cosmetic repairs or remodeling you have in mind. I have put together a list of some of the common things new homeowners do to customize their new home. In an average house size of 1000 to 1200 square feet in this price range, here is an estimate of what you might expect:

Home Fix Up and Remodeling Costs

1. Interior & Exterior Painting – exterior paint job would be about $3000-$3500 and count on approximately $350 to $500 per interior room.
2. Copper plumbing with one bath around $2500; add another $750 for a second bath.
3. Kitchen remodel – a fan favorite where it can get out of control. A modest remodel with new cabinets, counters and floor can be $15,000, but beware this can become $25,000 in a hurry
4. New 20 year composition roof can easily be $6000 with garage, depending upon how the roof is pitched.
5. Refinish the hardwood floors – a competitive price will be around $2 per square foot
6. Now that you have familiarized yourself with the costs involved add another 10% cushion to be on the safe side as you will undoubtedly change your mind about something.

The best thing to do is seek referrals from someone who has had a good experience with a contractor or tradesman. I would also suggest getting at least a couple of estimates. There are alternatives which can save you money such as doing some of the work yourself. For instance interior painting might be something you would enjoy. It makes a great beer and pizza party. Many real estate agents can also provide you with referrals. Be realistic in your budgeting expectations and don’t try and rationalize everything by saying “it’s a good investment”.

Pasadena Homes for Sale under $400,000

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Tags: Costs of homeownership, Remodeling costs of home ownership, Typical home repair or remodeling projects, What are the costs of upgrading my home