Recently, Realogics Sotheby’s International Realty featured an incredibly informative piece from Movement Mortgage about sellers who list their home for sale “as-is” and how buyers can receive a loan that’s actually based on the home’s future condition, instead of its current condition. For buyers, these loans allow more purchasing options and the opportunity to take a home that requires some significant updates to transform it into their dream home. Lenders, like Movement Mortgage, who offer renovation loans will appraise the home’s hypothetical, future condition, accounting for its upgraded features and state with your renovation plans in mind.

First, ensure that you, and the property, meet the loan requirements (your lender will be able to talk you through these). Then you’ll want to get in contact with a contractor who will be able to supply you with a thorough plan for renovations, including a detailed breakdown of everything that will be completed and costs. For example, if you and your contractor are planning an extensive kitchen remodel, then that will add serious value to the hypothetical condition and price. An appraiser will take all of your plans into consideration as they evaluate the home and complete their analysis which will comprise of the usual components, like a comparable sales analysis and inspection.

Although opting for a home that requires renovations does mean more energy and thought than purchasing a turnkey home, it’s also the perfect starting point to customize the house as you want it to look, feel, and function. Make it the sustainable home you’ve always wanted with features chosen by you and for you and your household. If the roof needs to be replaced, pick materials that will keep your home cool during hot summers, like white-colored materials or metal roofs that reflect light. Also, consider installing solar panels during the process. Solar panels will allow you to cut down on your energy bills and cut down on your household’s greenhouse gas emissions.

If you’re doing a structural remodel and changing the floor plan of the home, consider placing the living room or kitchen—or areas of the home that will be utilized and occupied most frequently—so that they get the most direct natural sunlight to cut down on lighting and heating bills. Using green materials, like reclaimed wood or tile, reduces waste and also adds a wonderful sense of character to a home’s aesthetic. Renovations are also the perfect time to ensure your home is properly weatherproofed, which will save you on heating during the winter as you won’t be fighting against incoming drafts.

The idea of buying a home that looks and functions exactly how you envision your dream home is appealing, but how often does that realistically happen? In today’s market where inventory is scarce, buyers may have to get creative about their home-buying journeys. Home renovation loan programs allow many buyers to afford their potential perfect property with a little work down the road to make it over into its best version.

Contact me today to discuss sustainable home renovations or if you’d like me to connect you with the knowledgeable lenders at Movement Mortgage.