Guide RENOVATION INFORMATION
Review these items if your clients want a fixer upper
We don’t want to just help you find the right home, we want to also help you make it your own.
Here is what you need to know about construction before we get started :
1. Construction & construction loans can be expensive.
To do construction or to get a construction loan you ultimately will need to have cash.
Most construction loans require 20% down for the entire project (purchase + rehab).
Projects can range from $10-15k for just paint all the way up to $150k+ for full on renovations.
2. The Contractor gets involved after we get a home under contract.
Because our contractors time is limited, we do not bring them out for estimates until after we get a home under contract.
The difference between an Estimate and a Bid.
Getting a formal bid takes a ton of work, time, and energy. It involves bringing subs out to a site and often will require formal plans. This is why our contractors will give you a rough estimate range upon initial visit.
If their range sounds within your budget, you can then chose to formally engage the contractor to provide you with a formal bid for the job.
*Note: this will sometimes require formal architectural plans to accurately bid out the job and can take up to a few weeks to complete.
How long does a renovation take?
Most construction projects generally take 3 - 9 months.
6th Ave Homes does things right.
You get what you pay for. We are not the cheapest construction company in town, but we are some of the best.
We make sure your job is done right the first time.
Making an Offer
1. If your buyers want to remodel their new house after understanding the above items, then guide them through the process.
Before submitting an offer, run comps to ensure the house will appraise once it is finished
It may seem like a steal now, but the appraisal will be based off the finish plans of the house
Ask for a longer option period (10-14 days). You will need this to bring in contractors and designers to get a bid. Most will not show up until you are under contract on a house
2. Once offer is accepted, schedule contractors to provide bids the same day you are getting the inspection
Your clients are not required to use 6AH for their renovation project
3. Work with their lender to ensure they will qualify for a construction loan and finalize details they need for a successful contract
*Note: they typically require 20% down and a 45 day closing