Rehab or rebuild: Is an old house worth saving?
Organizations across the country are working to preserve the historic value of homes and neighborhoods. But how do they decide if a house can be fixed?
"You really are saving a piece of culture and a piece of the fabric of that community," says Nancy Welsh, who founded Builders of Hope in Raleigh, N.C., in 2006. "It has an impact on the people living there."
But not every home can be saved, so how does an organization decide whether to invest time and money on any particular house or street? Cost is necessarily a key consideration for all of these organizations, many of which receive federal funding and therefore have requirements for return on investment.
That's the case in Pocatello, Idaho, where Mark Dahlquist runs Pocatello Neighborhood Housing Services. In 2012, his organization received funds from the Community Development Financial Institutions Fund.
"The CDFI Fund likes to see a sustainability revenue of above 40%, meaning that at least 40% of the revenue of the organization comes from within," Dahlquist says. "They don’t like to invest in an organization that's totally grant-dependent. So we have to work like a private business and make some money in addition to our grant revenue."
The Pocatello organization makes that money by giving loans to homebuyers that those buyers repay with a bit of interest, and by selling the homes it has rehabilitated or built from scratch. To be profitable, it can't invest in fixing up homes that don't make financial sense.
"If we run across something with historic value but it would cost too much, we would walk away from it," he says. "The real historic ones that need to be saved are like that. But our organization, if we are going to sustain ourselves, can't do that. We have to make that economic decision to walk away."
In Syracuse, N.Y., where Home HeadQuarters operates, vacant housing is a big problem. Rehabilitating those properties can be cost-prohibitive, so the organization is selective about which homes to fix up.
"You can't do vacant-property rehab without a deep subsidy," says Kerry Quaglia, executive director of Home HeadQuarters. "You could buy a home from the city of Syracuse for a dollar, but it is very dilapidated and you might have to put $100,000 into it to fix it up to make it safe. And it might be in a neighborhood where you can only sell it for $50,000 or $55,000."
Many older homes require remediation for lead and asbestos just to make them habitable. "Then you can start addressing major systems of the house, like roofing, plumbing and electrical," Quaglia says. "It drives up the cost."
Judgment call
His organization has found that it is often more economical to demolish these homes and start fresh. But it does occasionally invest in properties that don't make purely financial sense.
"You might have a neighborhood that is otherwise pretty good, but there is one vacant house that becomes a nuisance," Quaglia says. "We'll get the resources to turn the property around and get it occupied."
For some organizations, the save-or-demolish question is more of a "negotiation," as Abigail Mack, who is director of homeownership of Homeport, describes it.
"It's based on everything from the historic value of the home to the aesthetic character of the home, the quality, the condition it's in," she said. "Some of it is cost. If the cost would be excessive to renovate a unit, it's a better use of public funds to demolish and rebuild."
Choosing character over cost
What's "excessive" for one organization might not be for another.
"If the character of the home is special in some way – a nice old style, really great features, a big front porch – that would be really hard to replicate on a new house, then that's a consideration," says Patrick Morrissy, executive director of Hands Inc. in Orange, N.J. "We might spend a little more money but would be saving a great old home."
Thank you for visiting our REMAX REALTY CENTER, Real Estate in Wisconsin website.
Please feel free to contact us for any of your residential or commerical real estate needs including an online market if you are a seller, or finding a home if you are a buyer.
Our real estate focus in the Waukesha County, Milwaukee County, Lake Country, Jefferson County, Dane County, Dodge County and Washington County areas. Several agents in the office also their IRES designation (International Real Estate Specialist) so they can assist you with all your real estate needs in Wisconsin, the USA or anywhere in the WORLD!
When you are seriously looking or just browsing at real estate in Wisconsin, RE/MAX REALTY CENTER, Real Estate in Wisconsin, is the BEST resource to help you with all your needs and questions, whether a first time home buyer, relocating to or from the beautiful LAKE COUNTRY area, looking to invest or explore foreclosure opportunities or just thinking ahead to the future.
Lisa Bear is the broker/owner of RE/MAX Realty Center, Real Estate in Wisconsin (262-893-5555) is an experienced real estate agent in Waukesha County and the entire Milwaukee Metro area. Lisa thinks "outside of the BOX" and encourages her agents to do so as well. If you want creative options and exceptional marketing and service - look no further!
The RE/MAX Realty Center Office, has experienced agents with expertise in luxury home marketing, lake property experts, foreclosure and short sale specialists, investment and property management brokers and commercial brokers.
Our agents areas of service include, but are not limited to:
The prospering communities of Waukesha County including Delafield, Waukesha, Oconomowoc, Pewaukee, Waukesha, Sussex, Wales, New Berlin, Dousman, North Prairie, Mukwonago, Chenequa, Menomonee Falls, Brookfield, Elm Grove, Okauchee, Eagle, Muskego and Merton.
Great municipalities in Milwaukee County including Milwaukee, South Milwaukee, Wauwatosa, Hales Corners, Greenfield, Glendale, Franklin, Bayside, Brown Deer, Cudahy, Fox Point, Greendale, Shorewood, Oak Creek, St. Francis, West Allis and Whitefish Bay.
The hometown favorites of Washington County, Jefferson County and Dodge County including Watertown, Hartford, West Bend, Germantown, Jackson, Richfield, Ashippun, Lake Mills, Jefferson, Johnson Creek, Slinger and Erin.
There is no place like "WISCONSIN LAKES"
If lake living is what you desire then Lake Country is the place to be! If you are thinking about buying waterfront property in Wisconsin,
a little time invested in learning about waterfront living will pay
back sizeable dividends in matching your expectations to realities. Lake Country Living on one of Waukesha Countys great lakes as a full timer or vacationer is a must and there are some great lakes to choose. Nagawicka Lake, Pine Lake, Oconomowoc Lake, Beaver Lake, Okauchee Lake, Pewaukee Lake, Moose Lake, North Lake, Lake Keesus, Lac La Belle, Upper Nashotah, Lower Nashotah, Upper Genesee, Lowe Genesee, Middle Genesee, Upper Nemahbin, Lower Nemahbin, Fowler Lake, Golden Lake, Pretty Lake, Silver Lake, Waterville Lake, and Crooked Lake. Great lakes of the surrounding area also include Lake Michigan, Rock Lake, Big Cedar Lake, Little Cedar Lake, Pike Lake and Lake Ripley.
Your best source for Lake Country Living is RE/MAX REALTY CENTER, Real Estate in Wisconsin
RE/MAX REALTY CENTER, Real Estate in Wisconsin, 262-567-2455 or 262-893-5555, offer online markets, listing package and FOR SALE BY OWNER (FSBO) options, MLS search access, buyer agency and marketing that will exceed your expectations, all with outstanding service!
Your home purchase or sale is likely your largest investment, be sure you have an good agent you can trust! Real Estate in Wisconsin is an excellent investment, prices are superb, selection is great and rates are outstanding!!!
Ask us about our preferred vendors -- from lenders to help you finance your new purchase to contractors to help maintain!
No comments:
Post a Comment