After months of looking at homes in the Alpharetta and Johns Creek areas, our clients looked at a Fannie Mae foreclosure in Kimball Bridge Crossing off of Kimball Bridge Road in Alpharetta, and fell in love with the floor plan. The problem was that it needed a lot of work.
This Fannie Mae property had been under contract previously, but was terminated due to the buyer becoming aware of the amount of worked required after going under contract. Once it returned to the market there were multiple offers received, and my client elected to make an offer above list price and was awarded a contract on the property.
As we entered the Due Diligence period it became extremely important to estimate the cost of the improvements and the affect the planned improvements would have on value. We were able to confirm what an appropriates AS IS price should be, assuring our client that what they had offered was in fact in line with its AS IS value. Additionally, the analysis showed that the After Repair Value (ARV) would be in the mid $300k range. This provided the assurance that the improvements that would be made would be a sound investment, resulting in a home that was fully renovated and reflected the personal taste of our clients.
After closing, a final list of the scope of work was determined and a Building Permit Application was submitted to Alpharetta Community Development. In a matter of a few days we had our permit approval and the renovation began.
The first step was to demo the areas that were being renovated. The master bath was completely demo’ed, popcorn ceilings were removed, window sashes were replaced with Low E sashes, LP siding was replaced with concrete siding, and a plan to move the existing furnace for the main level from the kitchen to the attic was engineered. This would now provide a pantry for the kitchen. A MUST HAVE in this price point.
Finally, after a little over six weeks, taking into consideration the Christmas holidays, and a few delays associated with weather, and a special order tub we were ready for final inspections. All was complete and ready for the owners to move in. Inspections went well and the next day was the move date.
Keep in mind as you are looking for a home, that buying one that needs a fair amount of work can actually be a great value. In the end you have a home that is fully renovated, updated, and reflects your own personal taste, as opposed to buying a home that reflects the taste of the current homeowner.
Van Purser is a licensed real estate broker in Georgia. Since1981 he has successfully purchased and renovated over 400 homes. His expertise is in the area of foreclosures, rehabs and fixer uppers. Additionally, he has represented hundreds of clients over the years as a broker with Metro Brokers, RE/Max and now with his own firm. He and his wife, Jeanne, who is also a broker, have been happily married since 1977. Van can be reached at 770-623-3313 or by email VanPurser@VanPurser.com