Sellers and Buyers in Real Estate: Upgrade America!
It’s very common when you buy real estate, you are going to see some things in the home that no longer work, or just simply outdated. Of course, your one year home warranty would take care of the functional defects in a home.Keep in mind, when you buy real estate as a resale, chances are you will spend a significant amount of money the first two years you occupy your home. Usually, you would spend anywhere between $5K to $25K in the first two years after your escrow date to transform your home to a like new product. You could get an updated kitchen, bathroom, and the floors and walls would be upgraded to today’s standards in interior decor. Plus, the furnace is outdated, or broken, and needs replaced. Arizona law now required every home to have a replacement of at lease a 13 seer furnace.The catch of all the spending for these repairs is that financing is needed. There is an Upgrade America program that is provided by various local lenders. Upgrade America will allow you to upgrade and customize your home to your satisfaction as long it meets all the guidelines under their program, local ordinances and state laws. Your value will increase, and you’ll save money on monthly energy bills by financing these repairs. Of course, the most critical thing is improve the appraised value of the home.Why is a higher appraisal critical? For one, you get a return on investment of these upgrades if you sell your home. Two, if the buyer is getting a loan to buy the home and it did not appraise due to the lack of upgrades, they either walk away or come with the cash difference. This is extremely critical for the seller to upgrade and for the buyer to not deal with any of the hastles and fears of having the deal to fall through or come with the extra cash. These are all overall wins for all parties.
Here’s how the Process Works:
1. Offer the “as is” value on the property.2. A Certified Upgrade America approved contractor would submit you a bid.3. The bid would be submitted to a consultant for the write up and review.4. The consultant would submit the estimates to the appraiser so he or she will form an opinion of “Subject to Completion” value. The appraiser would use the Cost and the Sales Comparison Approach to form an opinion, which Sales Comparison is most reliable.
The rest is history. My goal is to get you connected to one of the best lenders, contractors, and titles to make every process as easy as 1, 2, 3! Contact me at (480) 788-9212 for assistance.
James W. Plummer III (Jim), Scottsdale