Real Estate Market

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Featured Listing

For Sale: $500,000

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Market Trends for Ventura County

How Lenders Deal with Unpermitted Structures

Over time, many properties have been added onto with or without permits. Obviously, it is much more desirable to have a permitted structure versus an unpermitted structure. Often times unpermitted structures, from a lenders perspective, was seen as a negative. Today guest, Wendy Russell from Homebridge Financial services, discusses how the lender world has evolved on the subject.

 

Make Sure Your Home is Covered for All It's Worth

A home is the largest investment most people make in their lifetime. About two out of every three homes in America are underinsured. The average underinsurance amount is about 22%, though some homes are underinsured by 60% or more. This means millions of American homeowners are at risk of major financial loss should a disaster ever affect their home. Homeowners in these unfortunate situations find themselves responsible for tens of thousands of dollars of unexpected out-of-pocket costs to rebuild their house. Many of these homeowners are financially unable to rebuild a house like the one they had prior to their loss.

What is reconstruction cost?

Reconstruction cost is what it would cost to rebuild your house from the foundation up with materials of similar kind and quality.

Is reconstruction cost the same thing as market value?
No. Reconstruction costs for your home may differ considerably from market value, particularly for older homes. Market value is what a willing buyer would pay for your home, including the lot. Location is a major factor in determining market value. Homeowners should also not assume that coverage matching their mortgage balance is sufficient to rebuild their home. The amount of insurance you buy should be based on rebuilding costs, not the selling or purchase price of your house.

What are some factors that affect reconstruction costs?

  • Access to your home site is limited because of trees, lawns, other homes and fences. Sometimes building code changes that occur after the initial build.
  • Inflation is generally greater for building materials than other commodities. Older homes may need unusual materials that may be expensive to locate or duplicate.
  • In a partial reconstruction, there is also extra cost in matching and aligning the undamaged part of the structure with the reconstructed part of the structure.
  • In partial loss situations, removing the undamaged contents to put elsewhere for safekeeping.
  • New home builders schedule their work for a building season and work most efficiently in a factory-line approach, which saves on both labor and material costs. Your reconstruction would be a custom job for them.
  • There are more new build contractors than reconstruction contractors. With an easier task of building a home and a greater supply of those doing it, new build contractors charge significantly less for a job than a reconstruction contractor does.
  • If the damage to the home is as a result of a catastrophe or at the same time as a catastrophe, demand surge pushes the price higher for labor and materials for all construction.
  • Extra costs to tear out damaged materials or demolition and debris removal.
  • Repairing a partially damaged home often means working from the top down, while new construction is usually from the ground up

Curb Appeal, A First Impression That Lasts

FIRST IMPRESSIONS

Most buyers form their first impression of your home before they even get out of their cars. This is “curb appeal,” or the view from the curb that tells the buyer how attractive and well-maintained your home is compared to other homes. In a competitive market, it takes more than trimming the hedges and planting a few flowers to create curb appeal.

The exterior of your home must be in pristine condition – freshly painted, cleared of clutter, with no visible repairs needed. A broken step, overgrown bush, or abandoned toys in the yard can spoil the appearance and your buyer’s first impression.

CURB APPEAL

Curb appeal is important because it sets the tone for what the buyer is going to see inside. If the buyer likes the exterior, he or she will be predisposed to also like the interior and you’re that much closer to selling your home. To see what needs to be done to sell your home faster and for a higher price, go outside, stand on the curb and try to look at your home the way the buyer will.

Walkways/driveways - Make sure walkways are clear of snow, weeds, or debris. Repair or replace cracked steps or pavers. Driveways should also be clear of vehicles, toys and debris. Park cars in the garage.

Landscaping - Keep your lawn mowed, edged and watered. Prune dead branches and plants. Weed flower beds and replace leggy, thin landscaping with fresh plants and flowers.

Exterior - Replace loose or damaged roof shingles, clean the gutters, and paint and caulk window trim and doors. Repaint the front door an eye-catching color that complements the rest of the exterior. Replace broken windows.

Entry - Power wash siding, brick, windows, and porches. Paint or replace furniture such as rocking chairs or porch swings. Replace mailboxes, light fixtures, door knobs or any other fixture that looks less than fresh. Put out a welcoming new floormat.

Some parts of your home may require more work than others, but it’s well worth it to get buyers eager to see what’s inside.

Contact Information

Photo of Harold Powell Real Estate
Harold Powell
RE/MAX Gold Coast Realtors
5720 Ralston St. Ste. 100
Ventura CA 93003
(805) 339-3516