Estimating Renovation Cost During Escrow

[Jay Thomas]

I just placed an offer on a SFR. It will be owner occupied. It will be a major rehab and I will be doing additions to the house. I am currently prequalified for a rehab loan (homestyle) and the bank needs to know renovation cost to determine loan value. I am not sure how to estimate renovation cost as I/GC will need architectural drawing to determine SOW. How should I handle this situation? Do people usually get architectural drawing during escrow? Can I get a reasonable estimate from GC before architectural drawing is completed?

[Seth Holmen]

I'm an architect and also have build. If the addition and renovation is simple enough, then yes your GC should be able to give you a good estimate. However, architect drawings are a very important to have as part of your contract documents with your GC. Without drawings you don't have a baseline to bid from or control change orders. I would say get the drawings, it's an additional layer of protection against cost increases on the construction side.