Start renovation paperwork after signed contracts but before closing?
Would you all start any of the initial work related to a renovation project after contracts are signed but before closing? We are strongly considering adding a 10×15 extension (3 stories) to a place we are hopefully going to have signed contracts on shortly. It should be a straightforward close b/c it’s a 2 fam…
Would you all start any of the initial work related to a renovation project after contracts are signed but before closing? We are strongly considering adding a 10×15 extension (3 stories) to a place we are hopefully going to have signed contracts on shortly.
It should be a straightforward close b/c it’s a 2 fam house within our affordability and we (husband and I) have excellent credit.
I would love to be able to start drawing up the plans and starting the work on getting work permits etc. while we are waiting to close, just to save time. We are hoping to not move into the property until the work is done, and therefore of course we’d prefer to get it done as quickly as possible.
However, is it a bad idea? Are we taking too much of a risk to start that kind of work before we have closed on the place? What is commonly done when people buy homes that require renovation before they move in?
Thank you for your advice!
We actually made it part of our contract for the seller of the house to sign off on the building plans prior to the closing. This was no big deal (ask your lawyer). Then, the names were updated when we finally did close. This saved us time and allowed us to line up bids, etc. You have to remember that every minute you own a house with a mortgage that you are not fully occupying you are sending money down the drain. Of course, you sould make sure you are closing, but in NYC, if you don’t close you are going to forfeit your deposit anyway, so you are pretty much sure to close.
Good luck!
I started with drawing up plans and choosing cabinets and materials for our new kitchen at our house after signing the contract, and before closing. I had everything listed on an order form with the kitchen designer. The day we closed I phoned the kitchen designer immediately, she put in the order, and I brought her a check. All on the same day.
It worked well b/c it gave me time to choose what I wanted, and I did need that full time I had between signing and closing. You’ll want the design done right so don’t rush it.
is the seller going to let you and your architect in for an extensive period of time so that he can do all of his preliminay measurements? Otherwise he can not even begin to do his drawings for any ideas on the work….if the seller is willing then this is probably time and money well spent
While I wouldn’t suggest you do any physical work, starting on your plans may be money well spent. Getting the plans right can take time – starting on them early will save you the cost of living elsewhere. So while the architect fees might be a few thousand dollars, depending upon your costs, a delayed finish might cost even more. So you may be better off playing the odds that the deal will go through.
6:57,
Agreed and I didn’t recommend doing it. I suggested getting all the papers ready so OP could file following closing.
slopefarm-
You can’t even file the work if you don’t own the property yet.
Thank you all – that’s great advice!
I was going to say what 6:06 said.
I think it would fine for you to hire an architect and start drawing up the plans prior to closing but I wouldn’t file the plans prior to closing. Worst case scenario, if the transaction doesn’t close, you will be out a few thousand dollars for architect’s fees. Also, I think you may need to be the legal owner of the property to sign the DOB filing documents (but you may want to confirm that with your architect), so you may not be able to start filing the work (unless you have an agreement from the Seller that they will sign the paperwork). Also, make sure your attorney puts into the contract that you and your agents should be allowed access to the property to take measurements, get estimates, etc.