2022 Boise Idaho Real Estate Blog

Cant Sell? Think Re-model!

Main Boise Home Loans

With homes currently selling at a much slower pace than in recent years, many homeowners have relegated themselves to just waiting on the market to change. Perhaps a re-model of their existing home should be considered?

As lenders get pickier about lending money to customers with less than stellar credit, it's getting tougher and tougher to buy a home at a rate that is affordable.  But if you are thinking about remodeling a home in the coming year, you are in luck!

With such a large inventory of new homes on the market, many builders are putting off new construction projects until some more of these homes sell.  That means that there will be many carpenters, tile layers, landscapers, etc. looking for work.  It is now easier to find a good architect, and building contractors, plumbers, and electricians are now, more than ever, willing to negotiate prices for work.

Home remodeling projects may also be cheaper in the coming year because the housing slump is pushing down prices for building materials.  Prices have been falling on lumber, drywall, and sheetrock.  However, if you're considering a re-model next year, be wary of shopping based solely on price.  Contractors who are offering you "low-ball" estimates may be cutting other corners in order to come in cheaper!

A renovation or rehab mortgage loan or a home equity line-of-credit may be a good bet for the financing you need to start your project. Renovation and rehab loans provide the funding to improve your current home and fix a monthly mortgage payment for the life of the loan by using the projected equity in your home as collateral. Your home’s value is determined by the appraised value AFTER the work is completed. Upon closing, the funds to pay for the renovation are deposited in an insured account that is monitored by the lender, and draws are taken from it to complete the work. The work and renovation typically must be done within six months.

 
Posted by Eric Leigh at 1/8/2008 3:48:00 PM

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