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This Old House - Do-it-Yourself

Resale Buyers Should Compare New Home Base Price With Projected Renovation Costs

Written by Posted On Wednesday, 11 November 2015 05:06

If you are thinking of buying a resale home, be prepared to spend a lot of time shopping resales that need renovation and/or heavy on deferred maintenance.

Orlando Realtor Kathy Llamas showed short sales to a couple for almost two months and was about to lose them to a 'we decided to wait' excuse. They kept seeing homes they liked, but could not afford after remodeling or renovation estimates were proposed.

For example if they looked at home for $300,000 and the renovation estimate came in at $60,000, the $360,000 price was too hgh either in fact based on a mortgage approval or their budget.

At the suggestion of a Realtor friend, she suggested she show her prospects a new home model, so they could actually see, feel and touch what they could get for $300,000. They looked at two new homes, bought one in two days, and closed in 30 days. 

So, my advice: Tell your Realtor that while you are interested in shopping resales, you would like to see at least one new home in the price range of the resales you will be shopping. You may find that after seeing the new home, you prefer the location of the resale and have more confidence in the offer you marking or the cost of the renovation. 

 

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David Fletcher, NHCB

Lifetime Achiever David Fletcher spent an entire 30-year career working with homebuilders, builder developers, and real estate agents. Teams he recruited, trained and supervised for more than 70 communities, sold more than $3 billion.

He is the founder of New Home Co-Broker Academy, LLC, where more than 2500 Realtors have earned their New Home Co-Broker designation. Those earning the NHCB designation must complete the online course, How To Build A New Homes Niche and pass a 20-question multiple choice exam.

newhomecobroker.com

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