Retrofitting older foreclosed homes for profit
The recent real estate bust is a boom for the innovative home remodeling contractors. A group dubbed as “eco flippers” are buying foreclosed older homes and retrofitting them with more efficient heating and cooling systems; replace with energy-efficient thermostats; improve attic insulation; install greener appliances; install new energy efficient windows, doors and skylights; plant water conserving native plants in yards and sell remodeled homes for a quick profit.
The cost of remodeling an older home varies from state to state and region to region. In Houston, Texas the cost to remodel an older home cost between $75,000 and $120,000. Due to the energy saving improvements, remodeled homes are selling much faster than other older homes available for sale in the market.
When a glut of foreclosed homes are available in the market, it seems very difficult to sell a remodeled foreclosed home. However, the Earth Advantage Institute, and the National Association of Home Builders Research Center are overseeing the verification process and issue certificates making it much more easier to sell.
The selling point for remodeled home is its energy saving aspect. An older home that is half the size of a remodeled home could cost twice the amount for gas and electricity alone.