How Home Renovations Help In A Sellers Market?

Home Renovations, Fixer Upper, Renovation Loans, 203k Loans,

How Home Renovations Help In A Sellers Market?

Tony Byrne 

Heritage Home Loans

With 

Lacy Thomas

4 Degrees Real Estate

What is a General Contractor?

A general contractor, main contractor or prime contractor is responsible for the day-to-day oversight of a construction site, management of vendors and trades, and the communication of information to all involved parties throughout the course of a building project. This helps speed up the process of getting the job done because there is someone that is managing the work, so you don’t have to. But they also make sure that all of the background paperwork is complete. For example pulling permits and having the correct insurance.

Being a General Contractor and real estate agent; how does that benefit your client/borrowers?

There are so many homes in this area that need a little bit of work in order to get certain funding, so when you get a general contractor involved then you can negotiate with the bank/lender to come in and do some of that work to bring the home up to code after the closing.

What are the most common things you are seeing being done in homes?

Exterior issues are the most common; earth up to siding, cracked and peeling paint, windows that are inoperable. But also bathrooms, kitchens or just painting are possible to do by teaming up with your lender and a general contractor to do these things after closing.

What is a general cost to redo your bathroom?

It depends on what you want to do, but a basic tub, vanity and toilet along with tile and paint – a general cost could be between $3,500 to $5,000. (This isn’t an estimate, just a general cost to help you understand what it might cost. However, if you are looking to have a gold toilet then it will cost more.) Of course, the costs are going up so things will always change.

What is a general cost to redo your kitchen?

It depends on what you want to do and how big of a kitchen you are working with, but most of the kitchens that Lacy does are between $10,000 to $15,000 the cabinets and countertops are where things very a bit. Most of the time you can do appliances for about $3,500. (This isn’t an estimate, just a general cost to help you understand what it might cost. However, if you are looking to have gold appliances to match your gold toilet then it will cost more.) Of course, the costs are going up so things will always change.

What are some of the challenges that people face in the renovation process?

The biggest issue is finding labor, when you have a busy market then you will only have a certain number of workers to do the job. When one project gets behind it can push the next project behind and so on. From a buyers point of view, the biggest challenge is to not have high expectations of what money will buy. (Most likely, you are not going to be able to buy the gold self-flushing toilet). Also, when you come up with a plan for what you are going to do in the renovation (ie. estimate) there isn’t room for upgrading from linoleum to tile after the lender has given the approval, unless you want to pay the extra cost out of pocket.

What are the benefits of renovating when you buy?

The number one benefit IS being able to buy a home. To be able to find a home that you like, but that needs a little work and you would otherwise not be able to buy it at all because the guidelines don’t allow for certain items in a home not to be up to code. Most of the time, if a seller could fix the items they would because they could get more money from selling the home after the work is finished. But for whatever reason the seller has chosen not to fix the items to get them up to code, so they choose to sell the property as-is for cash (usually), but if you negotiate with the seller working with a lender to do the work after closing then you are now able to get a loan on the property using most kinds of loans, such as Conventional, FHA and VA.

What is your favorite place to have food or drinks?

The Grain Shed – They bake their own bread and brew their own beer.

1026 E Newark Ave Spokane WA 99202 (509) 241-3853 Website 

How to get a hold of Lacy

Email: lacy@4degrees.com

Cell: (509) 218-7312 call or text

GET PRE-APPROVED FOR A RENOVATION LOAN

Tony

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