Redesign DC

“Back to the Future” of home renovations

The median home in the USA was built in 1964

Interesting Home Sale Statistics - 2010

• 50% of home purchases were first time home buyers - Average age = 30 years old

• There are 80 Million Echo Boomers– Age 18 - 31

• 20% of home purchases were single women

FHA 203K home loan

• A bank loans you money to purchase a home as well as the money to renovate the home.

• Allows you to finance your renovation.

• Allows you to keep your savings.

Things you can’t use a 203K loan

for:

Step 1: Get pre-approved

• Find out your maximum loan approval

• Monthly payment amount

• Total costs involved

• Bank of America

Prior to making an offer

• Make sure the cost of the renovation will not over improve the home.

• For example: If the sales price is $500,000.00 and the renovation will cost $100,000.00, the average price of a renovated home in the area must be $600,000.00 or higher.

203K write up

• A licensed inspector gives you an estimate of the total costs involved in your renovation.– Kitchen Addition– New windows

• 10% price cushion.

Contractor bidding

• Get at least three contractor bids to compare– What’s the size of your average job?– Do you use subcontractors?– What kind of warranty do I get?– Will you be pulling permits?– What happens if you die?

Neighborhoods to watch out for:

• H Street / Trinidad

• East Capitol Hill / Waterfront

• Petworth / Brightwood

• For the past 12 years the average home owner’s net worth is 31-46% higher than of an average renter.

• Washington DC is the Number 2 most competitive rental market in the US.

• Housing affordability index is lowest in decades.