c.1767 New england house ARV help needed

[Richard Walters]

Hey BP folks. I'm working on a property flip analysis on a c. 1767 New England house in New Hampshire and a few aspects of the house have me perplexed.

Does a renovated antique house warranty a higher asking price or only add to the charm? The property has a 4000 sf barn and a 3000 sf double garage/carriage house. The entire property needs major updating and renovating after decades of deferred maintenance. I'm struggling to find local comps with similar attributes to come to a realistic ARV.

What value does a barn, large double garage bring to an antique New England house? Any advise is greatly appreciated.

[Mason Hickman]

@Richard Walters

it’s great you’re looking into antique houses. My wife and I are big fans and live in one. What we see in our area is that the antique homes sit on the market a little longer than newer builds. Antique houses definitely reduce the overall buyer pool because of the high level of ongoing maintenance they are assumed to need. Additionally, many of the antique houses have quirky features including, but not limited to, box outs for heating/ducting, chopped up rooms to accommodate bathrooms and other modern conveniences, small closets, knee walls, lower ceiling height, etc. I would purposely look to see what types of quirkiness your property may have and how buyers will perceive it.

In short: we experience a smaller buyer pool and longer time on market.

[Richard Walters]

@Mason Hickman

Many thanks for your response. To be honest this wasn't by design, It was a driving for dollars lead. I relish a good challenge and bringing this relic back to its full glory gets me fired up. 

I totally agree with your sentiment regarding time on market and smaller buyer pool. I am having a tough time trying to get a realistic ARV though. With the age aside there is a large barn and carriage house which when finished could add some serious value. I just dont have any experience with houses of this nature and I dont want to scare the seller off or shoot myself in the foot.

[Colleen F.]

The age of the house may not be so big an issue as the extra buildings and location.  You need to assess the market for the extras and what will you do with them.  Is the area populated enough that having the carriage house as a rental or extra home space would be supported. Is the barn in good enough shape that it adds value or will be considered a liability.  Is it one of many neglected houses in the country or something close to a population center that hasn't been developed. The best you maybe able to do is adjusting for the added amenities.

Also it is a hard  appraisal  when you go to sell

[Richard Lovering]

Hey Richard,

The great news about antique houses is they aren't making anymore and the supply is somewhat limited. The bad news is that not a lot of people want antique homes due to the issues you mentioned, like maintenance, etc. I live in NH in a home built in 1760. We bought the house from my folks 2 years ago. Previously we lived in the house next door, built in 1766 (Both homes were built by brothers originally). So I've had some experience buying, selling, updating and maintaining antique homes. 

To some degree, the antique will be compared to others for the normal stats like sq ft, bedrooms, bathrooms, etc etc. I know in our dealings with old homes the appraisers and banks had to open up their search area when developing comps.  They weren't always compared to homes of the same age, but mostly homes 100+ yrs old. 

Perhaps the biggest issue when rehabbing/renovating an old home is what you find when you start taking things apart, or even sometimes what you don't find! Have you had the ability to walk through the home with a contractor yet? Have you rehabbed a home of this age before? 

I think the barn/garage can add a lot of value for the right person. I suppose it all depends on the condition of the out buildings and if they have utilities. Our barn has a work shop/tool room, gym and wine cellar. We've also converted the lower level to vehicle/motorcycle storage in the winter to generate extra income. So there's plenty of uses for those buildings for the right person in the right condition. It probably just needs to be presented that way when trying to establish a value. 

When we sold our first antique it took less than a week. We priced it well and it helps that we're in a desirable town in southern NH (Hollis). Ironically we only had one bidder, but they had been looking for an antique for well over a year in southern NH and they weren't letting our place go!  

If I had to decide whether to invest in a flip that was more up to date vs. antique I would go with a newer house only for the easy of doing business (updating, flipping). If time and money aren't a concern to you, the antique could be a fun option, but be prepared for some bumps along the way and for it to take a while. 

Best of luck!