Monday, March 10, 2014

I'm Thinking About a Renovation Loan, What Is My First Step?

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There seems to be a large range of answers when you ask this question. They are not all correct however.

A consultant's job is to protect the client by forearming them with the cost of their construction prior to going out to bid. Giving them an idea of the cost of their project prior to taking contractor bids. Also to provide a "scope of work" that will aid in the contractor's bidding apples to apples.

What I have seen recently and more often in recent months:

1) We get called out to see a house and find they already have three contractor bids... interesting but now our job becomes to see if the bid they want to use is "reasonable" for the work they are doing.

2) We get called out to make our inspection and even though they have a bid, the scope of work isn't sufficient. The contractor missed a few items that are mandatory for the program and this adds costs to the project that wasn't anticipated yet, MUST be added.

3) Upon our inspection we see that there is insufficient egress at the bedroom windows. The borrower didn't plan on doing windows but now there is a MUST DO of replacing some windows to meet current egress requirements. In this last case the height from the floor to the bottom of the window is 57" and the current requirement is 42" and in this particular city it will be part of the "required repairs".