Sunday, February 15, 2009

Before and After Fun: Budget Renovation to Sell

A couple days earlier I talked about preparing a listing. Here's a couple before and afters from a listing hitting the market this week.

This family bathroom in my lovely vintage home listing needed some help. The vinyl baseboard was in bad shape (I know, vinyl baseboard+bad shape is redundant). The walls needed repair and sanding, mirror and light fixture needed updating...toilet was a grey color and old. Help. For most baths I also recommend re-caulking everything and re glazing the tub if needed. Floor and entire vanity could have gone as well.

The clients only had a $1200.00 budget and the work was going to be done by a professional... not time for DIY and the finished product would not look as good anyway. The entire wish list including floor and vanity would have been $3000.00

We came up with a plan... repair, sand and paint the walls in a lush off white. This let the current counter top, vanity and floor blend in. Bath was caulked professionally. Baseboards were replaced (huge difference), mirror and light fixture were replaced. Toilet was replaced, clutter moved into the vanity storage and towel and paper fixtures were moved around.

What do you think? Nothing beats seeing the real thing... you don't see the real close up before and after detail in photos.

1 comment:

Anonymous said...

I think they did a great job with the funds they had in order to their home. If the eventual buyer wants to renovate more, there are a couple of great financing program avaliable today to achieve this. There is a Conventional Renovation program that requires a 10% down payment of the purchase price plus the renovation cost. (If the property appraises to the total of the both costr). If not, the buyer will need to bring more funds to close their transaction. So essentially, they can finance most of the renovation cost.

There is also an FHA 203k Renovation loan program. This allows a 3.5% downpayment, of the purchase price and renovation cost. In fact, if the property doesn't appraise out to the total cost, FHA will allow the buyer to finance 110% of the appraisal, to improve the property. Renovating certain things in a home, may not improve the appraised value at times, but improves the home (this happens rarely - but happens). FHA backs the buyer when they improve the home. Essentially, FHA wants to encourage home owners to improve their homes so they keep it and help develop the community. This is the best choice today to upgrade your home when you purchase it.

There are still great financing available today.