Renovate. Remodel. Enhance. Update.These are the key words that we tell our home sellers these days. Unfortunately, what was "hot" 10 years ago -- brass light fixtures and doorknobs, white porcelain sinks, Corian countertops, white appliances -- are not "hot" today. Today's buyer is looking for updates like granite, brushed nickel finishes on fixtures, stainless steel appliances and sinks (not to mention hardwood floors).
In fact, it has become difficult -- if not impossible -- to sell the 10-year-old homes without these updates! These are the homes that just "sit" on the market.
So what to do? The new buzz is "Renovation Financing," with conventional conforming and FHA 203(k) lending. This isn't a new concept, on the contrary -- this type of financing has been around for years. However, it has been typically cumbersome to use, and consequently, no one used it.
Now, however, lenders are developing and devoting entire departments at their banks for this type of lending ONLY! In fact, one lender has committed to making 10% of their entire loan portfolio in renovation financing!
How does it work? A buyer finds a wonderful home in a great location, but it has all those things I mentioned above that no one wants. So, an approved contractor and the buyer (along with a coordinator/consultant for the lender) choose the work to be done, the colors to install, and voila! The bank makes one loan to the buyer for the purchase AND the remodeling -- and the payments won't start for up to 6 months after closing, to allow time for the remodeling! So . . . if your lease won't be up for a few months, get started now!
Get the home you want -- where you want it -- and how you want it! For specifics, call me. Sam Ferreri. 832-200-5656. With my extensive home remodeling experience and my appraisal experience, I can help you through the process.
And now . . . I'm practicing what I preach! I've started remodeling my own home (built in 2000) and my office building (built in 2002). Yes, time for updates, renovations, and remodeling -- for my customers, clients, agents, staff, and myself.