To Renovate or Not? That is the Question.
Written by Wena Roeloffze I Real Estate Consultant I Realty Club 74 I Brokerage by Coldwell Banker Realty
Homeowners, sellers and buyers have posed this very question to me several times during my career.
Homeowners would ask if renovations would add value to their homes and if the cost will be a return on investment when they would like to sell at some later point. Sellers would like to know if it will be worthwhile doing renovations for a better sale price. Buyers are asking at which point will renovating a home with “good bones” provide them equity. All good questions and relevant in all times of economic situations.
Realty Club 74 answers all those questions with the help of amazing partners and collaborators. As real estate consultants, our first and foremost role is to you are guide and navigate you through the changing markets to preserve cash reserves and making sure that your biggest and most valuable asset is not incurring you debt.
The numbers never lie and good old fashioned research into your unique situation is what makes us great at what we do. As an example, several of our buyers decided to approach the market somewhat differently, because they could not find what they were looking for in their budget. Instead of looking at their max approval amount, we started looking at a lower priced section of the market in the desired area. We threw the instant gratification feeling of a move-in ready home out the window and started a whole new process. The goal was not to get the must-haves on the list, but rather on getting the house itself, and figuring out if it lends itself to renovation, repair and picky finishes.
When our buyers accepted that no property will be perfect, the negatives turned into positives. It was a realization that everyone has to start somewhere and you are under no obligation to stay there forever. The goal became laser focused on finding the structure for the finishing.
Together with a trusted and patient contractor, we lined up limited showings of homes to determine whether the grand ideas could be brought to life in a hidden gem. The dated conditions became non-existent as we imagined the plausible end result. We took a deep dive into big-ticket items, the type of finishes and timelines of completion. With all of that information, the next great step was to make an offer on the home - not just to purchase the home, but to have the said renovations included in ONE mortgage.
This is where Guaranteed Rate Affinity comes into the collaboration. Not only do we have an offer to purchase, but also an appraisal on what the finished home will appraise for when repairs and/or remodeling are completed. This serves 2 purposes:
The buyers know exactly what they are buying in terms of house and renovation. They already know the scope of the work and how much return on investment (ROI) they have.
The lender knows exactly what type of risk this is. No denial of any sorts.
There are all kinds of creative ways to purchase a home these days. Anything worth having takes some work. Realty Club 74 is networking daily to make sure we are uncovering options that make financial sense to you, now and in the the future. We create the intention and action to lead to your great results in real estate.
Here is an article written by Matt Carson for GRA on June 23rd, 2022. It is about the latest renovation project rates based on a national level. Some great information on the value renovation will create in your home.
https://www.grarate.com/article/calculate-roi
We are always working for you, whether you are a homeowner, a seller or a buyer. If you need to know more about renovation, please feel free to contact us today. Consultations are always free and there is no obligation to sign up for anything. We hope this article is helpful. Also see our blog on what we do for buyers.