As you are spending more time at home, you may be looking around thinking it’s time for a little renovation. What does that look like from a price standpoint and how do you get started?
Watch as Signature Bank’s President of the Fayetteville Market Will Gladden joins Good Day NWA with practical tips and next steps.
Tips for someone looking to build or remodel a home right now?
- Hire a reputable contractor, check references and check with your banker.
- Make sure you understand construction contract and consider using a contractor that uses a fixed price contract to reduce the chance of cost overruns.
- Make sure you save money for cost overruns, banks generally like to see borrowers have at least 10% of the project cost in savings.
How much money will I need to pay as a down payment if I own my home or land and I would like to build/remodel?
- This will depend upon the “as completed appraised value” generally we require at least 10% equity in a project and limit loan amount to 85% of this “as completed” appraised value.
How will the Covid-19 Pandemic affect the real estate market and the value of my home?
- There are differing views on this but think Covid could lower values nationwide. Fortunately for NWA, Walmart and it’s vendors and support companies appear to be doing very well. I also feel people living in large cities may be considering moving to more rural areas like our which could in increase demand and values. Only time will tell but in the long run I am very optimistic about the NWA real estate market.
If you want to learn more or contact a Signature Bank lender, click here.