Home Improvements

According to the National Association of Realtors 1 out of 3 houses sold in 2012 needed major repairs or renovations.  That’s 33%!! “But where do I get the money for those repairs?” Home Improvement/Rehabilitation Financing is coming back strong.  When the market took a fall, construction financing was not offered by many lenders. Now that we are on the upswing and the market is making a shift toward favoring sellers, construction financing is back on the table.  With such low inventory of houses on the market this is something to strongly consider.  Are you looking for that perfect 3 bed, 2 bath home in town?  Seems like that’s not too much to ask right? Then you start to notice that a handful of houses that go on the market in town are 2 bed, 1 bath homes.  This is where that construction financing comes in.  On average it will take about two to three months to add a bedroom and a bath and anywhere from $80,000 to $100,000 according to Peter Pasternack of Foundations Design.  Peter and his partner Brian are expert home flippers and have even been on A&E’s “Flip This House”.

A Seller could also make construction financing work in their favor.  So, it’s time to sell your home, but your fearful that the demand for 3 bed, 2 bath homes will send buyers running past your 2 bed, 1 bath home without even a glance.  Have a contractor come in a make a drawing for an additional bedroom and bathroom.  This usually costs $800 to $1,000 and would be money well spent. Make the drawings available to view during showings and hand them over to the buyer at closing so they have the plans to integrate into the house. It’s a great time to buy and sell and there are more options coming into play then there have been in a long time.

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