Buying and remodeling a foreclosed property 

Today there are many foreclosed properties for sale in Miami.  For those who have cash in hand and good credit, this may be an opportunity to buy their first home or to buy an additional investment property. But many homes are left in complete disrepair once the occupant moves out.  What is the best course of action for the new homeowner or investor? What should he be aware of? And what is possible with a foreclosed property? 

All of us, myself included, want to maximize the value of our investments.  One way to add value is to improve the foreclosed property.  There are actually many things a new homeowner can do without a general contractor or architect.  In fact, there are actually many improvements which do not require a permit in unincorporated Miami-Dade County.  The following is a list from the Miami-Dade County Building website at http://www.miamidade.gov/building/permit-exemptions.asp: 

• Surfacing of floors or slabs with carpet, tile, brick, wood, or Chattahoochee.
• Kitchen cabinets, vanities or paneling installation inside the home. Any associated plumbing and electrical work may require a building permit.
• Playground equipment for residential use.
• Decorative reflective pools and/or fishponds with certain requirements. 
• Ironwork for decorative purposes only
• Interior or exterior painting and roof painting (water tight coatings require a permit).
• Paving and drainage
• Painting and wall sign.
• Resurfacing, re-striping, seal coating of parking lot.

Some of these may require another type of permit.  See the website above for more details. 

Although I, like you, would want to cut corners and save the most money, careful forward planning and detailed project management can be less expensive than the possibility of making a costly error.  Mistakes in construction can delay a project and introduce unnecessary and unplanned costs.  Construction materials and labor are expensive.  Do you really want to take the risk? What is possible with a foreclosed property? 

A foreclosed property offers a rare opportunity to invest heavily in a property because the initial investment was smaller than it would have been normally.  Instead of having to live with certain peculiarities which come with a house, an architect can make suggestions on how to improve the floor plan and make it more livable or how to beautify the house and give it “curb” appeal. And once the architect finishes the plans, since he/she is well-versed in the construction process, he/she can work with the homeowner during the construction phase.  An experienced architect intimately knows the pitfalls of construction and has a working knowledge of construction law, including the Florida lien law.  In addition, an architect can make suggestions for protecting the homeowner for an unscrupulous or inexperienced contractor. 

If you would like to tell us about a foreclosure you have just bought or have a question in reference to one you are about to buy, leave us your name, email address, and any information you have about the property which you consider relevant.