Initial Renovation Credit
The condition of some homes in the program require significant renovations to make them suitable for inclusion in the program. These houses will be sold "as is" with the price set at 80% of the appraised "as is" value with the understanding that the participant will do a major renovation before inhabiting the home. The renovations will improve the value of the house benefiting both the participant and the University's long-term interest in the property. In these instances, Brown will provide a credit at closing for a portion of the estimated value of the proposed renovations. Following are the terms:
- Houses that are eligible for an initial renovation credit will be designated as such before being made available
- The participant is responsible for providing Brown with a written renovation proposal and cost estimate detailing the scope of work and schedule
- Brown has the right to accept or reject all or part of the renovation proposal and will guide its decisions by the impact on market value of the proposed plans
- The initial credit at closing will be 20% of the estimated renovation costs based on the written plans and estimates approved by the University
- Once the work is complete, a new market appraisal of the property shall be done by an approved appraiser selected and paid by the participant. The final credit will be based on the lower of the actual, documented renovation costs and the difference between the new market appraisal and the original "as is" appraisal. The University will have the right to contest the appraisal as described in the Appraisal Process.
- The participant is required to notify Brown in writing of major changes in the course of the renovation that are not in conformance with the approved renovation plans or cause the renovation costs to be 20% higher or lower than the approved estimate.