If you wish your house were different and are thinking about building or a major remodel, you should be interested in this very topical seminar offered by some real professionals who have lots of good advice. On Wednesday, January 29, 2008 I attended the version directed toward real estate professionals and found it very rewarding. It was great to have a number of experts assembled in one room and speaking on the specifics of the residential remodel process and pitfalls. There was plenty of time for questions and in some instances it was nice to hear the same question answered from different perspectives (builder, lender, designer, tax guy, etc.)
Here are a couple of tidbits:
If you are considering a major remodel where virtually every part of the house will be touched, it may be better, and possibly less expensive, to tear down and start from scratch. With building costs starting at $350/square foot (and ranging to $1,000 or more) and remodeling costs at similar cost numbers, rebuilding can be an opportunity to cure all the functional obsolescence and bring a good deal more value in case you might consider reselling the home in the next 5-10 years. (“New” always commands a premium over “remodeled” even if the remodeling is very recent, although my clients who buy new construction always wish they could buy it “broken in”.)
It might be worthwhile taking out a construction loan for a project even if you could just as well sell some excess founder’s stock to raise the cash. Why? The construction lenders require considerable hurdles in the process before paying contractors, including lien releases, which provides an extra measure of protection for you, the home owner. The construction lender provides an additional check and balance in the network of professionals to assure that you don’t become one of the horror stories that you may have heard about when people take the extra effort to have a home built to suit their needs.
If you are interested in the seminar, here are the details:
When: Saturday, February 9th from 10-12noon
Where: Los Altos Golf & Country Club
Who to Call: Nikki James, First Horizon Home Loans, (650) 559-5503
RSVP by February 8th
Panelists include: Nikki James, Construction Lending Specialist, Mark De Mattei, Home Builder and Remodeler, Bob Flury, Home Design and Architecture plus an insurance expert and a tax expert.
