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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 is Founder and CEO of New Home Co-Broker Academy LLC, home of the New Home Co-Broker (NHCB) designation. More than 4,000 real estate agents have completed the  Academy's course, How To Build A New Homes Niche, a three-hour online course based on research, case studies and David's  long career recruiting, training and supervising onsite teams, who sold more than $3 billion new homes and condominiums.

Along the way, he wrote Condominium Sales and Listings and has been the featured speaker for the National Association of Realtors and a present at the International Builders Show. He served as chair of the Sales and Marketing Council for the Florida Home Builders Association. 

He started in real estate as the project manager for Bay Island, of the first major condominium communities in Florida. During this time, he obtained his Florida real estate broker's license, served as chair of the Sales and Marketing Council for the Florida Homebuilders Association, earned his MIRM designation, and served as president of the Florida Condominium Developers Association. It was here that he leaned to work with local Realtors, 

After a successful three-year run, he brokered 27 lender workouts, 11 rental conversions, a TPC golf course, and more than 1000 condominium units in six different communities. 

He recruited, trained and supervised onsite sales teams for more than 70 communities, always insisting on co-broker cooperation in his listing agreements. 

He has been a contributor to Realty Times for 16 years and contributed to Inman News for 3 years. 

His education philosophy is based on these simple assumptions:

  • Builders need qualified buyers. Realtors need saleable inventory. 
    Today's home shoppers expect their Realtor to help them navigate the buying process whether it be for a resale or new construction. 

To lean how you or your office can benefit with our popular online new homes course, visit our website. 

newhomecobroker.com

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