Recently, I delisted the home where we had lawsuit issues. Since the current offers are lower than what we paid, we do not want to take huge loss.
I found a builder cum realtor who assures me that he will take care of remodel from 3BD 1BH to 4BD, 3BH with appx cost $275/sqft, and sell the home for break-even or more (including his commission+carry cost+remodel cost).
His condition is this:
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He gets his partner to build at lowest cost to break even.
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He will remodel a nice home 4BD, 3BH for sale point of view ( current home is 1400 sqft+ 2 car detached garage, will be 2000+ sqft+detached 2 car garage)
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I have to fund the remodel cost+carry cost.
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He and I agree on a break even cost plan
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He will sell the home and take the commission.
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If he is not selling the home (no offers due to market) for break even, I can take the home 4BD+3BH
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If he builds and I do not like to sell, I need to pay him 2.5% commission (as if he sells it to me).
Since he says $275/sqft build cost, I find it good for me to get rid of this home (as we do not like to hold as rental). They are very fast in remodel as they have crew in place.
I have visited one of the home where his relative build. The realtor bought the old home (buyer agent) in cupertino 3bd 1bh and remodel to 4bd, 3bh exactly similar to my case. Looks like they planned well during escrow period, got the home on Aug 5th, got permit and started building now. I have seen his remodel looking nice.
Ballpark estimate is 1 months approval, 3 months build, 1-2 month listing and 1-2 months closing.
The question is how long it will take to get san jose city approval above 600 sqft. I understand less 500 sqft is same day approval, but 610 sqft or 625sqft needs longer time frame. (I am asking him same question)
Second, the builder says $275/sqft is lowest he can do with low profit margin to help his relative (Dad bay area builder, Son Realtor). For me, inexperienced in building/remodel, it is attractive to get rid the home at break even.
But they question is whether it is doable build at $275/sqft ? or Am I missing some potential issue (except changing market condition which no one knows).