The Key to Your Dream Home: Renovation

It’s no big surprise that finding a luxury move-in ready home in Austin can be challenging. Don’t despair. Your dream home may be closer than you think. A home renovation strategy can turn a run down home into a dream home.

But before you sledgehammer those walls, it’s important to be sure you are adding value to your new home. Here are some common home improvement myths on what not to do when renovating an existing home or remodeling a newly purchased home:

Myth 1: If Drew and Jonathan Can Do It, So Can I

While the Property Brothers and other home improvement shows make a renovation seem easy, there is no substitute for professional and knowledge- able contractors especially on luxury homes. Renovation and remodeling projects often take more work, time and money than anticipated. Experienced contractors know this and will plan for contingencies.

Myth 2: It’s All Good.

Not all remodels are equal. Ultimately most luxury buyers need a property that meets their family’s needs and has universal appeal. Implementing unique architecture or novel amenities will limit buyers and hinder resale in the long term. Safe havens of investments include chef quality kitchens and spacious master bedrooms. However, do not ignore much-needed external updates such as roofing and and plumbing. The return on these investments can sometimes outweigh the value of a fabulous kitchen. Also, keep in mind location of the home and the quality of existing homes in the neighborhood can have an impact on the appraisal of a renovation. It is possible to overbuild or renovate. A good realtor or appraiser can advise whether your planned spending is worth it.

Myth 3: Time to Crack Open the Home Equity Piggy Bank

There is a general assumption that a renovation requires a significant outlay of cash or tap- ping into your existing home’s equity for a loan. “Renovation Financing" can be used on any home that needs or wants repairs. Borrowers tend to think that it is for “Fixer Upper and Needs TLC” homes only but it isn’t and it can be used for both purchase and refinance transactions” says Brad A. McMullen, PrimeLending V.P. Renovation & Escrow Lending.

These loans allow the buyer or existing homeowner to roll the cost of the renovation into the refinance or purchase. In a refinance scenario,the customer can use the equity(or appreciation) in the existing property. Oftentimes, customers owe very little at closing and sometimes nothing at all depending on the equity that they have in the property. The loan is based on the value of the completed project.

Will This Work For You?

Careful evaluation and planning are critical to a successful outcome when it comes to a renovation or remodel. As an experience PrimeLending Certified Construction expert, Joel Richardson, is available to share knowledge and answer any questions about the various home financing strategies available and help homeowners find the solution that is right for their needs. For additional information and a confidential, no-obligation consultation, please click here to connect with Joel today.