The process begins with ordering a Feasibility Study. A Feasibility Study begins with a limited home inspection of the property, with a “rough estimate” of work that will be necessary to comply with HUD’s minimum property standards (MPS), in addition to desired improvements. A scope of work document is created by the Consultant for contractor’s bid specifications. This document describes the entire project in clear, unambiguous detail so all contractors bid the same list of required repair and remodel items. The Contractor uses the Scope of Work Contractor Bid Package to provide the homebuyer with a detailed bid that reflects the total cost of improvements, including labor and materials. If needed, PPT Inspections will negotiate with contractors, thereby helping the borrower get the most out of the repair budget. Once the bid specs are complete and a cost projection is calculated by the Consultant, the specs are reviewed by the borrower for corrections, deletions, or additions.
The Feasibility Study fee is due and payable at the time of the inspection. Feasibility reports will be available for viewing within 72 hours of the inspection and feasibility meeting. If after reviewing the Feasibility Study, and if the project is deemed to be Non-Feasible, then no additional fees are due. If it is deemed to be feasible and you want to move forward, then the “Work Write Up fee” will be due and payable upon delivery of that report once contractor bids are received and agreed upon and the Final Workup is completed.
Feasibility Study includes…
- 35-point property “Check List” approved by HUD
- Wishlist review
- Cost estimate for the construction project.
All Fees are “allowable closing costs” and are factored into your HUD minimum out of pocket expenses toward buying a home and may be credited back to you at time of settlement if you choose to add these fees to your loan amount.
Feasibility Study Fees are non-refundable.