What do you expect of a home when you read that it’s fully remodeled? This phrase can mean widely different things to different people.
Fully remodeled: what’s included?
“Fully remodeled!” “Completely remodeled!” “Extensively remodeled!” “Remodeled down to the studs!” If you’ve been looking at property listings, you’ve probably run into these phrases a few times, and you might be wondering what they really mean. It might be less than you expect.
The most important thing to know is this: when a seller or contractor asserts that the home is completely redone, you’ll want to know what specifically was done, by whom, and what permits and finals were obtained, if any. Ask for a list. Better still is getting receipts. And always review the disclosures carefully!
A “fully remodeled home” suggests that there’s nothing left to be done, which is seldom the case. It’s usually just puffing. Remodeling to sell is often limited to what is visible, such as:
kitchen
bathrooms
lighting
floor coverings
windows
painting
interior doors
sometimes landscaping, driveways, patios, decks
At times, we’ll hear that a remodel is “down to the studs”. This is a more specific descriptor and typically indicates a deeper remodel and may mean that the contractor replaced these items: (more…)
When completing or reading home sale disclosures, you may see something about “work finaled”. What does that mean? It’s simply asking if the county, city, or town inspector came to the property to sign off or final completed work. This happens after the home owner has paid for permits, had the work completed, and then scheduled the government inspection. The contractor may also arrange for this final inspection.
Work finaled in disclosure forms
This phrase will be seen in the PRDS Supplemental Sellers Checklist. That query will come right after one asking if permits were obtained. The reason that they are together is that “work finaled” means was the permit work finaled by the town, city or county inspector.
In short: if a seller did not get permits, the seller did not get the work finaled.
Often I find that this gets mixed up. Sellers divulge that they did not get permits, and then say that the work was finaled.
What is the benefit to a home buyer in knowing that the home sold recently? There are really two advantages: first, if it’s a normal sale (not distress), you can get an idea of the sellers’ equity. If it was a short sale or bank owned property, you may learn that it is a “flipped” house – and that would bear some extra investigating (did they get permits, did they do the important items which you cannot see, etc.). More importantly, though, if the current owners bought the home not too long ago, you may be able to read the priorinspections and disclosures.
Sometimes sellers – and sometimes even their real estate agents – are reluctant to admit that they saved this type of information. But if they hired the same Realtor who assisted them in purchasing this property (also reported on the MLS), that agent would have access to all of the disclosures and reports. California state law demands that brokers save all transaction records for three years. Homeowners and their agents usually save them for many more years than that, though. (Sometimes agents move brokerages and this can make it more challenging to get full and complete records.)
So back to the issue of buying a property that sold not too long ago. Let’s say you have found a nice bit of real estate in San Jose (a house, condo, townhouse) which you want to buy, and perhaps there are recent improvements, updating or remodeling, “permits unknown“. The best way to get clarity on the situation is to then ask for the prior disclosures, inspections and reports. It is imperative to get everything because clues may turn up in any of these documents. Often the current owner will not recall the story if the work was done by prior owners, and will not think to check the original paperwork. But by reading through it, you may learn what the status really is – whether there are permits and finals or not, for instance.
Particularly when buying a home that sold in recent years, you can leverage your knowledge to improve your ability to purchase wisely.
Please call or email me if you’d like to discuss buying (or selling) a home in Los Gatos, Campbell, Saratoga, Cambrian Park, Almaden Valley, or anywhere in San Jose – Santa Clara County.
Often homes in and near San Jose have some sort of non-permitted modification done. Sometimes it’s a roof, a water heater replacement or even electrical changes (or improvements) done without the necessary permits and finals.
If you buy a home or have one with this situation and live in the city of San Jose, there’s a great deal of information available online via the city’s website. Today I was looking on the site for a client who wants to do an addition (and wondered what the limits and guidelines are for that) when I found this page. It’s a gem!
I’m frequently asked how much permits will cost. To say the least, it varies dramatically depending on the type of job, but also it depends on what city, town, or jurisdiction the in which the home is located. The short answer is this: check with the municipality to see what it charges for the type of permit you’re after.
What is perhaps most surprising is the difference from one city or town to the next for the same sort of permit. Let’s look at the cost for the permit (and final) for a furnace and air conditioning pair to be installed at a residence. If you happen to live in Santa Clara (known for affordable utilities), your permit fee is low. If Gilroy or San Jose, it’s high!
Permit fees for adding a furnace and air conditioning:
Santa Clara $125
Redwood City $135
Mountain View $145
Santa Clara County $170
Morgan Hill $190
Saratoga $200
Sunnyvale $215
Los Altos $225
Los Gatos $230
Monte Sereno $265
Campbell $275
Palo Alto $365
Milpitas $370
San Mateo $393
Cupertino $400
San Jose $425
Gilroy – where you really need that A/C – tops the list at $450.
If you’re a Silicon Valley homeowner, you will sometimes need to replace elements of your home, such as the roof or water heater, or do repairs or remodeling to keep the home functional, comfortable, and efficient. Kitchens and bathrooms need to be updated from time to time, and sometimes remodeled. These repairs and remodeling projects often (if not always) require permits and finals.
Will you apply and pay for the required permits and finals?
What difference does it make if you do or do not get them?
Will it matter when you sell your home?
If you’re a Silicon Valley homebuyer, the whole idea of buying a home without all the necessary permits is a bit spooky. My buyer clients often hear or read something like “garage conversion done – permits unknown” or “kitchen remodel done by contractor but without permits”. They worry about the consequences of buying homes with non-permitted work, so let’s talk about the issues involved. (more…)
Helping nice folks to buy and sell homes in Silicon Valley
Mary Pope-Handy, Realtor ABR, CIPS, CRS, SRES
Christie's International Real Estate Sereno, Los Gatos, CA 95030 408 204-7673 Mary@PopeHandy.com License# 01153805
Clair Handy, Realtor
GREEN
Christie's International Real Estate Sereno 214 Los Gatos-Saratoga Rd Los Gatos, CA 95030 ClairHandy@sereno.com License# 02153633
Mary & Clair sell homes throughout Silicon Valley: Santa Clara County, San Mateo County, and Santa Cruz County. with a special focus on: San Jose, Los Gatos, Saratoga, Campbell, Almaden Valley, Cambrian Park.
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Mary Pope-Handy, Realtor ABR, AHWD, CIPS, CRS, SRES Christie's International Real Estate Sereno DRE License #01153805 408-204-7673 mary@popehandy.com “Helping nice folks to buy and sell homes in Silicon Valley since 1993”
Clair Handy, Realtor, GREEN Christie's International Real Estate Sereno DRE License #02153633 408-721-6160 clairhandy@sereno.com “Helping nice folks to buy and sell homes in Silicon Valley”
This is the Valley of Heart's Delight blog , covering Silicon Valley real estate - Santa Clara County, San Jose, Los Gatos, Cupertino, and nearby communities in the South Bay Area and lower Peninsula. Find info on neighborhoods, disclosure issues, buyer and seller tips, and housing market conditions in the west valley and most of the county.Please also see my other websites and real estate market statistics site, which are listed in the sidebar, above.
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Mary Pope-Handy, Realtor ABR, CIPS, CRS, SRES Sereno DRE License #01153805 408-204-7673 mary@popehandy.com
“Helping nice folks to buy and sell homes in Silicon Valley since 1993”
