A rendering of the planned front of 210 N. Payne St. from Kulinski Group Architects.
Looking for the perfect home can be daunting: So little inventory to select from, which can force you to make sacrifices, and settle down while intending to renovate at a later date (which few rarely do until it is time to sell).
Why not buy the home you like and make it what you love? So few people take advantage of the opportunity, often because they don’t know it is an option or they are told the process is too complicated.
If you’ve been a subscriber to Alexandria Living Magazine, perhaps you watched our story unfold and witnessed the possibilities?!
My husband and I purchased 210 N. Payne St. with a renovation loan — this provided us the funds for the acquisition and renovation costs. (See the stories here!)
The End Result: A home the way we wanted it.
The process was actually fun (few times those words are ever muttered in the same sentence as renovation). I am consistently surprising people when I tell them what we did, how easy the process was and that I enjoyed it. So, I decided to write about the secret to my success.
The Keys to a Successful Renovation Project are:
- Having a dynamic team who are all familiar with the process
- Consistent communication
- Quick responsiveness
The key to success and a relatively stressless process lies in the team dynamics. All the parties must have experience working with home renovation loans. First getting the loan approved and then with every change, correction and draw all the parties have to be on the same page and be familiar with the process and the paperwork that are required. When one must make a change (either driven by the purchaser, lender, contractor or consultant) all the other parties must know how to respond and what is required from them.
Steps to a successful home purchase/renovation
The First Step - Identify your team: Meet with the contractors and lenders and Realtor to locate who you want to work with. Check their references as it pertains to a renovation loan specifically. Clearly outline how you expect communication to happen.
The Second Step - Start the pre-approval process: Have the lender qualify the purchaser so that when the property is located the project itself is all that has to be approved. Expect the entire loan process to take 75 days.
The Third Step - Locate the Property: This requires working with a Realtor who has vision and an in-depth knowledge of the market. The agent can work with you and the contractor to put together a feasibility study to determine if the property would work for the intended renovations. This can happen rather quickly. An architect may need to give preliminary insight. Your Realtor will then provide an After Renovation Valuation (ARV) to help you decide if the return meets your expectations.
The Fourth Step - Design and Pricing: The design schematics and pricing are established and submitted to the lender. The lender needs to approve the project and agree to provide the funding (they will increase the amount 10-20% for the unexpected).
The Fifth Step - Permitting and Construction. During this phase, in the field, changes will happen. Things that were not apparent will come up. This is where the majority of delays happen. Having excellent communication between ALL parties will help resolve issues quickly. I found working with a design/build company, when I had design changes, they were communicated directly with the crew on site to ensure there were no adverse effects of these changes and if there were, they were addressed immediately.
During construction, at certain pre-determined phases, the contractor will request a draw to get paid for material & labor up to that point. Lack of communication and or unfamiliarity of the paperwork could cause delays in payment to the contractor. If your contractor isn’t solvent and the delays are significant, the crew working on your project may need to be reallocated causing YOU even more delays.
Completion! The project gets wrapped up, punch list items addressed and final inspection with the final draw.
Would you like to “find a home you like and make it what you love?” I have the dream team and I would love to help you acquire your dream home.
Christine Sennott is a native Virginian and 3rd generation Realtor. She is also a proud resident of Old Town Alexandria and is fully immersed in the community. She helps her clients make informed decisions toward a successful real estate transaction. Learn more about her at christinesennott.com, email her at Christine@christinesennott.com or call 703-785-8762.
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Read the entire 210 N. Payne Street series here and follow the renovation of this historic property in the Parker-Gray neighborhood.
Part 1: 210 N. Payne Street: A Historic Renovation Diary
Part 2: ‘The Before’
Part 3: Strategy, Structure and Soil
Part 4: Onward and Upward
Part 5: Historic Elements, Tiny Living
Part 6: A Look Back
