วันอาทิตย์ที่ 5 พฤษภาคม พ.ศ. 2562

Taking the Scary Out of Real Estate

"When did real estate become so scary?"

The fear on the face of the young woman across the table from me was unmistakable, but her concern wasn't unique. In a world of upside down property values, short sales, and foreclosures, even seasoned real estate investors can find themselves somewhat bewildered.

Times are tough, and many foreclosure properties have been stripped by their owners before being abandoned. Appliances, lighting fixtures, window coverings, countertops, and even flooring have often been removed and sold in an attempt to hang onto the structure. Graffiti born of frustration sometimes covers the walls.

Short sales can take many months to close, during which the house remains empty and vulnerable. Unemployed vandals are easily tempted. Heat pumps and air conditioners can soon disappear, as well as copper piping attached to under home water heaters. บ้านมือสอง กรุงเทพ

Making an offer on a distressed property demands a complete stretch of the buyer's imagination, especially if the purchaser isn't really into DIY weekends. As a result, many Americans have fallen prey to unscrupulous "flippers," who have purchased an abandoned home for pennies on the dollar, renovated it at breakneck speed, and then put it back on the market. Cosmetically, vast improvements have been made, but the work can be shoddy and occasionally even dangerous.

So what are the options available to a couple interested in buying a home?

You've saved a hefty down payment and scoped out tree-lined neighborhoods and good schools. Now, though, you've looked at a number of properties and, like the young woman to whom I was speaking, you're scared. Basically, you are faced with three options.

Are you ready for an adventure? Willing to make a dramatic career change? Consider apprenticing yourself to a construction professional. Given a few years, you should be ready for anything.

Not willing to go quite that far? Then the middle ground might seem more appealing. You can become a DIYer.

HGTV is there for you with one show after another that makes house renovation look really easy. On alternate evenings, you might want to consider taking courses in such interesting subjects as dry walling, plumbing and tile installation at your local home improvement store. Weekends, of course, you'll be devoting to projects. And more projects... And one or two more...

Don't see yourself as being enslaved by your new house to this extent? Then option Number Three may be your solution. Cast yourself as a flipper and become your own general contractor, hiring true, bonded and insured, professionals to do needed work.

Concerned about finding the cash to pay for necessary renovations, while still retaining your down payment? An FHA 203K mortgage may offer a perfect solution.

A financial vehicle designed specifically for today's diverse real estate challenges, an FHA 203K mortgage is basically two mortgages in one:

Part 1 - Covers the purchase price of the house, which must still be within the FHA approved mortgage limit for the area.

Part 2 - Covers necessary repairs that have been submitted to and approved by the mortgage holder during the approval process. The cost of these repairs must be at least $5,000.00 and less than $35,000.00.

The total dollar amount of both parts added together must remain within the FHA approved mortgage limit for the area, given the home's new upgraded value after repairs have been completed.

This means that the house must undergo two appraisals. The first appraisal determines that the home in its current, non-refurbished condition is worth at least as much as the dollars being lent to the purchaser under Part 1, and the second determines that the value of the home after all repairs have been completed will be at least as much as the dollar amount being lent to the purchaser under both Part 1 and Part 2 added together.

As with most financial options, an FHA 203K mortgage comes with its own potential pitfalls. A wise buyer, who chooses to use this type of mortgage to facilitate their home purchase, will secure accurate repair estimates from qualified professionals, insure that their own personnel finances are well documented, and be prepared to stay on top of the process from making the initial offer to the home's final inspection.

Having made the proper investment in both time and money, a savvy home purchaser, even in today's market, can come out a winner.


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