Bob, the secretary treasurer of the Clinton County Board of Realtors, sometimes needs Robin, the assistant to our broker, to help him with his secretarial tasks. Gee, I guess that's one secretarty helping another. Is that like one hand washing the other? Anyway, Robin must have had too much coffee that afternoon and decided to dance it off. We are a strange lot.
This week, despite the cold, the wind, the snow, the rain, we have actually had 8 homes get accepted contracts. The place is starting to feel like a real estate office again. But as you can see, we still have time for fun and games.
My one and only listing just suffered a whole house inspection in preparation for the closing next month. I say "suffered" because the inspector goes over the house with a fine tooth comb, pokes at sore spots with a stick and crawls around on the floor, and under it, with a magnifying glass. Quite a humiliating experience for the poor house. "And he invariably comes up with something, which is his job. Now we have to deal with these issues which could ultimately cost the sellers more money. Whole house inspections are always the "touchiest" part of a sales contract but we must push forward knowing that this too shall pass.
So in the meantime, let us dance.
Showing posts with label Clinton county. Show all posts
Showing posts with label Clinton county. Show all posts
Tuesday, February 19, 2008
Wednesday, February 13, 2008
I Should Have Known Better
Okay, I didn't realize that you couldn't rotate a video image with my software. Anyway, I am adding visual elements to my blog to better illustrate the life of a realtor. Sometimes words just can't express what goes on around here....
This is my desk today. The conversation is between an administrative assistant and one of our agents. It seems that there is a question regarding an envelope.........
Tuesday, February 12, 2008
Here, There, and Everywhere
My life has finally come full circle. And I thought I was just running around in circles. I keep up to date in my profession by, in part, reading a publication put out by the National Association of Realtors(r), oddly enough entitled Realtor(r). The current issue is dedicated to home design instead of just selling. Of course the emphasis is on how design influences people's buying pyche, both positively and negatively. I have a degree in interior design and now I have permission to use it!.
I have never been fond of the idea of going into someone's personal space and telling them that they have to paint everything white or the house will not sell. Poppycock! I think most people are savy enough to know that the seller actually lives in the house. But that doesn't absolve the seller from taking some action to make their home more broadly attractive and tasteful. I was pleasantly surprised that my professional publication acknowledged that color is good. But there is still no substitute for taste. Everybody's taste can't be the same but I certainly hope that a potential buyer recognizes taste even if it isn't their own. (Well, that might be wishful thinking but I'll give the public the benefit of the doubt for now.)
One school of thought is that the realtor should be aware of design trends in order to help their buyers visualize their new space. The flip side of the coin is that the seller should think in terms of classic. Once again, this doesn't mean that an extreme makeover is in order. But it does mean that the realtor must guide the seller to see their home as others may see it. We all get used to a certain amount of clutter that is the necessity of our lives. But eventually you cease to see it. A well informed and experienced agent can point out simple yet effective ways to spruce up without tearing up (tearing up?)
The bathroom, perhaps one of the most overlooked yet underdecorated room, is the one we spend the most time in. Spice it up! Don't go out and buy a polkadot shower curtain but bring in some contrasting curtains and towels and consider bringing in a small piece of furniture if space allows. This will warm up the space and make it look less utilitarian and more inviting.
Entryways are debris magnets. Come in the door, drop the shoes, the purse, the soccer ball, the mail, and next thing you know you have a mess. Clear up the debris and create a focal point that will literally draw people in. A bright pillow on a chair, a striking vase on a table and a decorative rug goes a long way. And once again, you don't have to spend money, just rearrange what you already have.
The living room can suffer from either over use or under use. It is either a showplace where no one is allowed to enter, or it is so lived in that it looks shabby, not chic. Again, bright accents will liven up the room; flowers, pillows, paintings, especially in red or yellow. Clear out that overflowing bookcase and set those old books packing. But don't make a sterile environment. If a potential buyer doesn't even want to set foot into that room, then it may as well not exist.
Lighting is always important but that doesn't suggest 300 watt bulbs in every fixture. Then you have an operating room, not a home. Warm, ambient lighting sets a comforting mood in living areas. Shine up that chandelier and dust off those lamp shades. Consider going to your local big box store and pick up a couple inexpensive accent lamps for the living room and master bedroom. If the buyer wants more light, let them reach for the wall switch.
The kitchen is perhaps the single most important selling point of a home. Clear away that mouse nest of unpaid bills and replace it with a basket of fresh fruit. Set the table with bright dishes, put a green plant by the sink and hang beautiful dishtowels. A bright enamal teakettle on the stove reeks of "home."
Come on sellers! Give us tired realtors a hand! Spice up, clear up, warm up and shine up. Then the next thing you know, you'll be packing up! That is the point, mmkay?
I have never been fond of the idea of going into someone's personal space and telling them that they have to paint everything white or the house will not sell. Poppycock! I think most people are savy enough to know that the seller actually lives in the house. But that doesn't absolve the seller from taking some action to make their home more broadly attractive and tasteful. I was pleasantly surprised that my professional publication acknowledged that color is good. But there is still no substitute for taste. Everybody's taste can't be the same but I certainly hope that a potential buyer recognizes taste even if it isn't their own. (Well, that might be wishful thinking but I'll give the public the benefit of the doubt for now.)
One school of thought is that the realtor should be aware of design trends in order to help their buyers visualize their new space. The flip side of the coin is that the seller should think in terms of classic. Once again, this doesn't mean that an extreme makeover is in order. But it does mean that the realtor must guide the seller to see their home as others may see it. We all get used to a certain amount of clutter that is the necessity of our lives. But eventually you cease to see it. A well informed and experienced agent can point out simple yet effective ways to spruce up without tearing up (tearing up?)
The bathroom, perhaps one of the most overlooked yet underdecorated room, is the one we spend the most time in. Spice it up! Don't go out and buy a polkadot shower curtain but bring in some contrasting curtains and towels and consider bringing in a small piece of furniture if space allows. This will warm up the space and make it look less utilitarian and more inviting.
Entryways are debris magnets. Come in the door, drop the shoes, the purse, the soccer ball, the mail, and next thing you know you have a mess. Clear up the debris and create a focal point that will literally draw people in. A bright pillow on a chair, a striking vase on a table and a decorative rug goes a long way. And once again, you don't have to spend money, just rearrange what you already have.
The living room can suffer from either over use or under use. It is either a showplace where no one is allowed to enter, or it is so lived in that it looks shabby, not chic. Again, bright accents will liven up the room; flowers, pillows, paintings, especially in red or yellow. Clear out that overflowing bookcase and set those old books packing. But don't make a sterile environment. If a potential buyer doesn't even want to set foot into that room, then it may as well not exist.
Lighting is always important but that doesn't suggest 300 watt bulbs in every fixture. Then you have an operating room, not a home. Warm, ambient lighting sets a comforting mood in living areas. Shine up that chandelier and dust off those lamp shades. Consider going to your local big box store and pick up a couple inexpensive accent lamps for the living room and master bedroom. If the buyer wants more light, let them reach for the wall switch.
The kitchen is perhaps the single most important selling point of a home. Clear away that mouse nest of unpaid bills and replace it with a basket of fresh fruit. Set the table with bright dishes, put a green plant by the sink and hang beautiful dishtowels. A bright enamal teakettle on the stove reeks of "home."
Come on sellers! Give us tired realtors a hand! Spice up, clear up, warm up and shine up. Then the next thing you know, you'll be packing up! That is the point, mmkay?
And Your Bird Can Sing
Yes, these are the male realtors of Bennett Realty that are vying for the opportunity to sell you a house! So sad.
Wednesday, February 6, 2008
Sexy Sadie
Let us all have a moment of silence for the passing of the Maharishi Mahesh Yogi.
For those uninitiated, he was the "guru" of The Beatles in 1968. Because of their trip to India and their sojourn into transendental meditation, made popular and Westernized by the Maharishi, The Beatles had a time of R and R that was much needed. Also, because of the cleansing of their bodies and minds and the opening of the mind, they wrote prolifically during that period and released an almost unprecidented double album know as "The White Album". The album cover itself was shocking in its absolute stark whiteness, except for the embossed words "The Beatles" along with a serial number. The white cover was a reaction to the complete and total image overload of the previous album "Sgt Pepper's Lonely Hearts Club Band."
At the time of the recording, their producer, George Martin, tried to talk them into gleaning only the "best songs" and shelving the rest. But by then, the lads were feeling their oats and insisted upon the whole enchilada. When asked decades later about that decision, Ringo said, "I always thought it should have been released as two albums, The White Album and The Whiter Album." We love Ringo.
Which brings me to the topic of improving. Can you really have too much of a good thing. If a little is good, isn't more better? Maybe when it comes to the Beatles, but not when it comes to improving a home.
There is a movement in these days of foreclosures whereas the people who buy investment properties are having a field day. Especially if you are a handy person and like to fix things yourself. Now if you are slum lord and are just looking to flip a house or move in some unfortunate soul, then you can change the channel now. However, if you are a fixer-upper kind of person please try to restrain yourself. Here's why:
Say you find a bargain for $35,000. It is run down to the max but has good bones and a good foundation. You want to make this home a showplace; clean, neat and so sweet. New siding, new windows, new porch, refinished floors, updated plumbing and wiring, new kitchen, added bath, fresh drywall and insulation in the attic. Now you are the proud owner of a fabulous house. But, and this is a big but, the other homes in the neighborhood are only worth $80K. Ooops! All that work, time, money and pride of workmanship and you are stuck with a white elephant. Would you pay $125K to live in a $80K neighborhood? Doubt it.
The other scenario deals with the seller who is extremely house proud. They built the house themselves, sometimes even with their own hands. They have a gourmet kitchen with stainless steel appliances, wood floors, jacuzzis, custom woodwork, hand built cabinets (sweated over for months in their own woodworking shop) personalized touches everywhere. A year later, they realize that they need to retire to the sunny climes of Florida. They have put their blood, sweat and tears into the house and they know it is the finest home around. And they are right. And here's that big BUT again, a comparable stock home typical of the area goes for waaaayyyy less. But these homeowners are ssoooo proud that they can't imagine why someone wouldn't want to pay for all of their good taste.
So yes Virginia, you can overimprove. Which is not to say that you shouldn't do all of the above. Just remember that if you do, do it for your own enjoyment and not with the idea of raking in loads of mula when you sell.
Rule of thumb; white elephants don't turn into White Albums.
For those uninitiated, he was the "guru" of The Beatles in 1968. Because of their trip to India and their sojourn into transendental meditation, made popular and Westernized by the Maharishi, The Beatles had a time of R and R that was much needed. Also, because of the cleansing of their bodies and minds and the opening of the mind, they wrote prolifically during that period and released an almost unprecidented double album know as "The White Album". The album cover itself was shocking in its absolute stark whiteness, except for the embossed words "The Beatles" along with a serial number. The white cover was a reaction to the complete and total image overload of the previous album "Sgt Pepper's Lonely Hearts Club Band."
At the time of the recording, their producer, George Martin, tried to talk them into gleaning only the "best songs" and shelving the rest. But by then, the lads were feeling their oats and insisted upon the whole enchilada. When asked decades later about that decision, Ringo said, "I always thought it should have been released as two albums, The White Album and The Whiter Album." We love Ringo.
Which brings me to the topic of improving. Can you really have too much of a good thing. If a little is good, isn't more better? Maybe when it comes to the Beatles, but not when it comes to improving a home.
There is a movement in these days of foreclosures whereas the people who buy investment properties are having a field day. Especially if you are a handy person and like to fix things yourself. Now if you are slum lord and are just looking to flip a house or move in some unfortunate soul, then you can change the channel now. However, if you are a fixer-upper kind of person please try to restrain yourself. Here's why:
Say you find a bargain for $35,000. It is run down to the max but has good bones and a good foundation. You want to make this home a showplace; clean, neat and so sweet. New siding, new windows, new porch, refinished floors, updated plumbing and wiring, new kitchen, added bath, fresh drywall and insulation in the attic. Now you are the proud owner of a fabulous house. But, and this is a big but, the other homes in the neighborhood are only worth $80K. Ooops! All that work, time, money and pride of workmanship and you are stuck with a white elephant. Would you pay $125K to live in a $80K neighborhood? Doubt it.
The other scenario deals with the seller who is extremely house proud. They built the house themselves, sometimes even with their own hands. They have a gourmet kitchen with stainless steel appliances, wood floors, jacuzzis, custom woodwork, hand built cabinets (sweated over for months in their own woodworking shop) personalized touches everywhere. A year later, they realize that they need to retire to the sunny climes of Florida. They have put their blood, sweat and tears into the house and they know it is the finest home around. And they are right. And here's that big BUT again, a comparable stock home typical of the area goes for waaaayyyy less. But these homeowners are ssoooo proud that they can't imagine why someone wouldn't want to pay for all of their good taste.
So yes Virginia, you can overimprove. Which is not to say that you shouldn't do all of the above. Just remember that if you do, do it for your own enjoyment and not with the idea of raking in loads of mula when you sell.
Rule of thumb; white elephants don't turn into White Albums.
Friday, February 1, 2008
All I've Got to Do
I hate to go on and on about the slump in the housing market, but I will anyway. The economic news has stated that housing starts were at an unprecedented low last year. So what does that mean? It means that builders aren't building because buyers aren't buying. "Housing starts" is not the only way you can tell that the market is down but it is one of those "economic indicators" that economists must use because they can't call all of the real estate companies in the country and say, "Hey! How's business!"
Housing starts is like the unemployment rate, the cost of living, the stock market, the rate of inflation, the gross national product, the national debt, ad nauseum. The bean counters have to count something so they make little charts then count the little dots. I'm not saying that these indicators are not useful, they are. But they can be a bit misleading because they are averages for the country. Every region, state and community are different. Look at Detroit. Car manufacturing has been slipping for decades and the place is drying up and blowing away.
One of Wilmington's economic indicators that I have noticed is a new little subdivision that used to be the hottest thing since sliced bread, canned beer and indoor plumbing. Three years ago, those houses were going up almost overnight and selling just as quickly. They were priced for the upper middle class family and for the upwardly mobile. I drive through that area now and it looks like a ghost town. There is an unfinished street, empty lots full of tall weeds, piles of construction debris, new construction that has never sold and empty homes whose first inhabitants have moved on only to abandon the house to the vagaries of the real estate market.
Gee, I sound like some armageddonist. But if you are going to sell real estate these days, you have to get real (no pun intended) then don't take anything for granted. When things are slow, you don't just sit back and prop your feet up. You must work even harder.
For the first time in my real estate career, I have invested in marketing books. I have always eschewed the inspirational writers and speakers because they sounded so slick and evangelical to me. So one of the books I purchased has true funny stories of sales people's blunders then an analysis of what went wrong. The other book has business letter templates for marketing, prospecting and follow-ups. And...I have actually been using them, not just trying to learn by osmosis.
So far, no good. But if you keep doing what you've always done but expect different results, you are clinically insane. You may be right, I may be crazy. But it just might be a lunatic someone is looking for. And when that time comes, I can proudly stand up and say, "I'm a lunatic! Let me sell your house!"
I think I have internalized the sales blunders. Ooops!
Housing starts is like the unemployment rate, the cost of living, the stock market, the rate of inflation, the gross national product, the national debt, ad nauseum. The bean counters have to count something so they make little charts then count the little dots. I'm not saying that these indicators are not useful, they are. But they can be a bit misleading because they are averages for the country. Every region, state and community are different. Look at Detroit. Car manufacturing has been slipping for decades and the place is drying up and blowing away.
One of Wilmington's economic indicators that I have noticed is a new little subdivision that used to be the hottest thing since sliced bread, canned beer and indoor plumbing. Three years ago, those houses were going up almost overnight and selling just as quickly. They were priced for the upper middle class family and for the upwardly mobile. I drive through that area now and it looks like a ghost town. There is an unfinished street, empty lots full of tall weeds, piles of construction debris, new construction that has never sold and empty homes whose first inhabitants have moved on only to abandon the house to the vagaries of the real estate market.
Gee, I sound like some armageddonist. But if you are going to sell real estate these days, you have to get real (no pun intended) then don't take anything for granted. When things are slow, you don't just sit back and prop your feet up. You must work even harder.
For the first time in my real estate career, I have invested in marketing books. I have always eschewed the inspirational writers and speakers because they sounded so slick and evangelical to me. So one of the books I purchased has true funny stories of sales people's blunders then an analysis of what went wrong. The other book has business letter templates for marketing, prospecting and follow-ups. And...I have actually been using them, not just trying to learn by osmosis.
So far, no good. But if you keep doing what you've always done but expect different results, you are clinically insane. You may be right, I may be crazy. But it just might be a lunatic someone is looking for. And when that time comes, I can proudly stand up and say, "I'm a lunatic! Let me sell your house!"
I think I have internalized the sales blunders. Ooops!
Tuesday, January 29, 2008
You Really Got a Hold on Me
The housing market, once again, is making headlines. Well, if you don't count the State of the Union Address, which I don't. Here are some recent news blurbs concerning the State of the Housing Market, which will continue to effect us all. Much more than some lame duck.
"Make housing part of stimulus, NAR Says...The federal economic stimulus package under discussion by President Bush and Congress should loosen constraints on Fannie Mae and Freddie Mac to help make homeownership more widely available to households, NAR says. "Any stimulus package must address housing issues and increase the conforming loan limits for these two government-sponsored enterprises," says NAR President Dick Gaylord. NAR has been calling on Congress and the administration to increase the loan limits for Fannie Mae and Freddie Mac from the ceiling of $417,000 to $625,000. Doing so would reduce the supply of homes on the market by more than a month, strengthen home prices by 2-3 percentage points, and increase economic activity by $42 billion, NAR estimates. Foreclosures could also be reduced by 140,000 to 210,000 and result in an additional 348,000 home sales. )"- The Ohio Association of Realtors.
Above is a link to the news about CountryWide, the well known controversial mortgage lender. As you may know, it was purchased by Bank of America. For good or evil? You decide.
'“It looks to me as though maybe we haven't reached the complete bottom yet, but we're in the bottoming phase right now,” he said.
But the latest data don’t help forecasters much. Since July, the median price of existing homes has trended lower, but it ticked up slightly in December. And while sales volume began perking up in late 2006, a 0.8 percent drop in last month has some analysts rethinking the notion that the market had bottomed out.
“I still think there's further downside risk,” said Richard Berner, chief U.S. economist at Morgan Stanley. “And the reason is that it has become a buyer’s market with the imbalance between supply and demand both for new and existing homes out there.”
The supply of unsold homes — which soared to more than seven months worth of inventory for single-family homes from four months at the start of 2005 — has come down a bit. But it’s not clear whether the market is getting back on its feet or sellers have decided to pull their homes off the market and try again when the market improves.'- By John W. Schoen Senior Producer MSNBC updated 6:34 p.m. ET, Thurs., Jan. 25, 2007.
But the latest data don’t help forecasters much. Since July, the median price of existing homes has trended lower, but it ticked up slightly in December. And while sales volume began perking up in late 2006, a 0.8 percent drop in last month has some analysts rethinking the notion that the market had bottomed out.
“I still think there's further downside risk,” said Richard Berner, chief U.S. economist at Morgan Stanley. “And the reason is that it has become a buyer’s market with the imbalance between supply and demand both for new and existing homes out there.”
The supply of unsold homes — which soared to more than seven months worth of inventory for single-family homes from four months at the start of 2005 — has come down a bit. But it’s not clear whether the market is getting back on its feet or sellers have decided to pull their homes off the market and try again when the market improves.'- By John W. Schoen Senior Producer MSNBC updated 6:34 p.m. ET, Thurs., Jan. 25, 2007.
More gloom and doom? Well, we need to be realistic. The single largest contributing factor in the housing slump is the simple principle of supply and demand. Of course, why there is more supply than demand is a bit more complicated. Foreclosures and the threat of foreclosure, due to greedy lenders and a false sense of security amongst them, has contributed greatly to the glut on the market.
The Fed recently lowered interest rates by 3/4% and it is rumored that there may soon be another 1/2% decrease. What does that mean to mortgage rates? Diddly. That lowered rate affects what one bank lends to another, sometimes to increase their on-hand reserves which is mandated by the Fed. Sound like a game of round robin. Yep.
So, if you have bad credit or no money to spend, the interest rate means nothing to you.
But hang in there, folks. If you are in trouble with your credit card company, you can call them and negotiate a different interest rate or payment. The same goes for your mortgage lender. Call them. I can't reiterate that enough. If this whole mess is going to turn around, we have to take advantage of all resources. Every little bit helps. Don't wait for the ones with all the power and money to come knocking on your door to help you. They are only worried about themselves. YOU have to take charge, be brave and take charge.
Knowledge is power. Al Gore invented the internet for a reason.
Tuesday, January 22, 2008
Cry Baby Cry
http://www.housingmarketfacts.com/
Still on the fence about buying a home? Do you even have a fence? Chances are, if you are a renter, you not only don't have a fence but you don't have a yard.
This website gives some factoids about the benefits of owning a home. One is that, chances are, a home will be your biggest investment and asset. And, for this reason, it is an endeavor not to be taken lightly. Be prepared, if you purchase a home, that you nurture it, love it and make it your own.
That got a bit mushy, but when something becomes personal to you, you are more likely to fight for it.
The above website will address the wherefores and how-to's. Part of my job is to help you find a home, not just a house.
I think I'm gonna cry......
Still on the fence about buying a home? Do you even have a fence? Chances are, if you are a renter, you not only don't have a fence but you don't have a yard.
This website gives some factoids about the benefits of owning a home. One is that, chances are, a home will be your biggest investment and asset. And, for this reason, it is an endeavor not to be taken lightly. Be prepared, if you purchase a home, that you nurture it, love it and make it your own.
That got a bit mushy, but when something becomes personal to you, you are more likely to fight for it.
The above website will address the wherefores and how-to's. Part of my job is to help you find a home, not just a house.
I think I'm gonna cry......
Power to the People
http://www.realtor.org/subprime_lending.nsf/Pages/mort_cancellation
This link could save your life, certainly your home. This info is from the NAR, National Association of Realtors. You may have seen ads on TV about this organization. It is a very prestigious organization and insures (in theory) the professionalism of real estate agents. A "realtor" is not the same as a "real estate agent". In order to be a "realtor" you must be a member of the NAR. That is why you see Realtor(r) as a registered trademark. I am a Realtor(r).
Why am I telling you this? Because the above link is real, no pun intended. It is not rumor, it is not spin. So take this info as gospel. If you are behind in your mortgage payments, there is something you can do. The worst thing you can do is nothing. Make a copy of this article and take it to your lender. I'm not saying that your mortgage will go away. But you may be able to catch up or at the very least you may have time to sell before you are foreclosed upon. Foreclosure, as well as bankruptcy, will ruin your credit for a loooonnnngggg time. Especially since the banks are tightening their belts.
So good luck. Take the bull by the horns and do whatever it takes to not let this recession (yes recession) take you down with it.
The deck is stacked against the dwindling middle class. But when the powers that be start feeling the hurt in their pockets, it is time to take advantage of the situation.
Power to the people!
This link could save your life, certainly your home. This info is from the NAR, National Association of Realtors. You may have seen ads on TV about this organization. It is a very prestigious organization and insures (in theory) the professionalism of real estate agents. A "realtor" is not the same as a "real estate agent". In order to be a "realtor" you must be a member of the NAR. That is why you see Realtor(r) as a registered trademark. I am a Realtor(r).
Why am I telling you this? Because the above link is real, no pun intended. It is not rumor, it is not spin. So take this info as gospel. If you are behind in your mortgage payments, there is something you can do. The worst thing you can do is nothing. Make a copy of this article and take it to your lender. I'm not saying that your mortgage will go away. But you may be able to catch up or at the very least you may have time to sell before you are foreclosed upon. Foreclosure, as well as bankruptcy, will ruin your credit for a loooonnnngggg time. Especially since the banks are tightening their belts.
So good luck. Take the bull by the horns and do whatever it takes to not let this recession (yes recession) take you down with it.
The deck is stacked against the dwindling middle class. But when the powers that be start feeling the hurt in their pockets, it is time to take advantage of the situation.
Power to the people!
Wednesday, January 16, 2008
Yesterday
Well, it looks like we'll finally get that piece of crap closed. When you are working with foreclosed properties, you are at the mercy of the whims of the bank. They like to drag their feet, but when they want something, they want it now. My client has bought many homes in this neighborhood. It doesn't look like a bad neighborhood, just a bit run down. However, I did read in the local paper yesterday that someone on that street had been brandishing a gun. Whenever I show my client "homes" in that area he always jokingly but seriously tells me I should stay in the car. But being the curious person that I am, I just plow right into these infested abandoned places just to see what I can see.
Usually all I see is crap. But there is that old house part of me that likes to visualize what this pile of planks and falling plaster used to look like. I like to think about what the neighborhood used to look like, who built the home and who wanted to live in it so bad that first day they opened the door. Reality then sets in and I see bathrooms that have had leaky pipes for who knows how long; rotted walls, stained floors, sagging ceilings. I see the remnants of past owners attempts to "update" the house, then, when the job became too big to handle, it was cast aside. I see bits of original woodwork that has been eaten by termites then "repaired" with something Lowes had thrown in the dumpster behind the store. I see missing foundations, broken windows, worn shingles. It's a shame, really. These older neighborhoods used to be the backbone of Wilmington. But as new was built, old became, not "cheap and cheerful" but just cheap.
In the defense of the city of Wilmington, several years ago they actually put money into these older neighborhoods. Some areas of the city had no curbs, crumbling streets and decaying yards. The city came in and gave these areas a face lift with new streets and plumbing. Yes plumbing! Not too long ago some parts of Wilmington had virtually nothing. And as the city took more pride in their town, so did the residents. Now you can find some really cute little places in the most unusual places. Like my house. I live in one of those old neighborhoods and things have been looking up these last couple years.
But things are not so good in other places. Better, but not quite there. Do I have the answer? Nah, I guess not. I wish I did. But as one realtor told me years ago, while I was shopping for a "fixer upper" for myself, "For every dirty little house, there's a dirty little buyer."
I never quite knew what to do with that one.
Usually all I see is crap. But there is that old house part of me that likes to visualize what this pile of planks and falling plaster used to look like. I like to think about what the neighborhood used to look like, who built the home and who wanted to live in it so bad that first day they opened the door. Reality then sets in and I see bathrooms that have had leaky pipes for who knows how long; rotted walls, stained floors, sagging ceilings. I see the remnants of past owners attempts to "update" the house, then, when the job became too big to handle, it was cast aside. I see bits of original woodwork that has been eaten by termites then "repaired" with something Lowes had thrown in the dumpster behind the store. I see missing foundations, broken windows, worn shingles. It's a shame, really. These older neighborhoods used to be the backbone of Wilmington. But as new was built, old became, not "cheap and cheerful" but just cheap.
In the defense of the city of Wilmington, several years ago they actually put money into these older neighborhoods. Some areas of the city had no curbs, crumbling streets and decaying yards. The city came in and gave these areas a face lift with new streets and plumbing. Yes plumbing! Not too long ago some parts of Wilmington had virtually nothing. And as the city took more pride in their town, so did the residents. Now you can find some really cute little places in the most unusual places. Like my house. I live in one of those old neighborhoods and things have been looking up these last couple years.
But things are not so good in other places. Better, but not quite there. Do I have the answer? Nah, I guess not. I wish I did. But as one realtor told me years ago, while I was shopping for a "fixer upper" for myself, "For every dirty little house, there's a dirty little buyer."
I never quite knew what to do with that one.
Thursday, December 20, 2007
We Can Work it Out
Yesterday, I went on an excursion to look at a piece of crap with a repeat client of mine. And yes, it was a piece of crap. I knew it, he knew it, everybody knew it. But my guy buys lots of pieces of crap, presumably so that someday he will have a whole heaping, steaming pile of crap. Okay, he actually fixes them up and rents them.
My car was being used by my significant other to engage in Christmas shopping. (I had to let him use it or I wouldn't get a Christmas present.) So in order for me to show this property, I had to let my client be the chauffeur. This has happened before, with another client, when my foot was broken. I am not ashamed to admit this, although I should be.
Anyway, my "limo" was a construction van full of 5 gallon buckets, tools, drop clothes and many unidentifiable filthy objects, aka ufo's. My client had to open the heavy sliding door for me, then I, quite ungracefully, hoisted my office clothes clad body unceremoniously into the debris strewn interior. We proceeded to our destination, me in the back, way in the back, of this disastrously decorated vehicle as my client peered confidently through the grease smudged windshield.
Upon arrival, I again hoisted myself up and attempted to gingerly step from the van while visions of another broken ankle danced in my head. As we approached the front door, I realized with horror that I had failed to bring the lock box code with me. Of course, I first blamed my client for misplacing it swearing that I had handed him my papers.
So I called the office, hoping that someone could locate the missing papers amongst the other piles of papers on my desk. No luck. So then I attempted to call the listing agent whose cell phone number, luckily, was on the For Sale sign. No luck. Then I called the listing agent's office but was greeted by an answering machine. By now, I was looking quite the fool. Okay, I was looking quite the fool long before that. So I then called the listing agent's team leader because, luckily, he had an easy cell number to remember. I actually reached a human being this time but no, he did not know the lock box combination but promised to make a couple phone calls to find out for me. By the time I got off the phone with him I had a text message from the listing agent with the combo. Yeah! But then I had to call the team leader and tell him that I indeed had the code, was in the house and sorry to have troubled you. Sigh. Red faced and with egg on it too.
Long story short, my guy put an offer in on the piece of crap which was totally overpriced considering the ceiling was caving in, there was little or no foundation on one side of the house, and the bathroom looked like someone had been hosing it down on a regular basis, but not in an effort to sanitize it. Overpriced because the bank who owned the property had the audacity to put a price tag on it at all.
So I am now waiting to hear if the bank will take our offer. I sure hope so. I can't imagine anyone else being brave enough to tackle this "house". I hope for my client's sake and for mine and my broker's sake who, as I informed him this morning, stand to each earn $250.
Not a bad return for all my hard and competent work.
My car was being used by my significant other to engage in Christmas shopping. (I had to let him use it or I wouldn't get a Christmas present.) So in order for me to show this property, I had to let my client be the chauffeur. This has happened before, with another client, when my foot was broken. I am not ashamed to admit this, although I should be.
Anyway, my "limo" was a construction van full of 5 gallon buckets, tools, drop clothes and many unidentifiable filthy objects, aka ufo's. My client had to open the heavy sliding door for me, then I, quite ungracefully, hoisted my office clothes clad body unceremoniously into the debris strewn interior. We proceeded to our destination, me in the back, way in the back, of this disastrously decorated vehicle as my client peered confidently through the grease smudged windshield.
Upon arrival, I again hoisted myself up and attempted to gingerly step from the van while visions of another broken ankle danced in my head. As we approached the front door, I realized with horror that I had failed to bring the lock box code with me. Of course, I first blamed my client for misplacing it swearing that I had handed him my papers.
So I called the office, hoping that someone could locate the missing papers amongst the other piles of papers on my desk. No luck. So then I attempted to call the listing agent whose cell phone number, luckily, was on the For Sale sign. No luck. Then I called the listing agent's office but was greeted by an answering machine. By now, I was looking quite the fool. Okay, I was looking quite the fool long before that. So I then called the listing agent's team leader because, luckily, he had an easy cell number to remember. I actually reached a human being this time but no, he did not know the lock box combination but promised to make a couple phone calls to find out for me. By the time I got off the phone with him I had a text message from the listing agent with the combo. Yeah! But then I had to call the team leader and tell him that I indeed had the code, was in the house and sorry to have troubled you. Sigh. Red faced and with egg on it too.
Long story short, my guy put an offer in on the piece of crap which was totally overpriced considering the ceiling was caving in, there was little or no foundation on one side of the house, and the bathroom looked like someone had been hosing it down on a regular basis, but not in an effort to sanitize it. Overpriced because the bank who owned the property had the audacity to put a price tag on it at all.
So I am now waiting to hear if the bank will take our offer. I sure hope so. I can't imagine anyone else being brave enough to tackle this "house". I hope for my client's sake and for mine and my broker's sake who, as I informed him this morning, stand to each earn $250.
Not a bad return for all my hard and competent work.
A Taste of Honey
Another year is drawing to a close. Things are winding down here at Bennett Realty. Everyone, clients and agents both, is readying themselves for the BIG DAY. Of course, some people are celebrating 8 big days. However you spend your holidays, it should be our priority and is our obligation to help those who are not as fortunate as ourselves. Maybe your year wasn't as fulfilling as you had hoped. Maybe the stocking hung on your mantle is not as full as you had hoped. Maybe you had health issues, or maybe this has just been a sucky year. I always hate the old saw, "When things go bad, remember there is someone out there who has it worse." This is supposed to make you feel better? For one thing, when YOU feel bad, you really don't give a rat's patoot how anyone else is feeling. And for another thing, the idea that there are people who are poorer, sicker, more unhappy is nothing to feel thankful for.
The unfortunate thing about donating to food pantries, clothing drives, or the Salvation Army is the fact that we need these institutions at all. So many people don't make a living wage or work two jobs or have an absent spouse when there are children to feed. These are not the exceptions; the numbers are rising.
For example, in the Wilmington News Journal, a local columnist Bill Horne, a professor of economics at Southern State Community College recently submitted an editorial entitled "Everything going up but wages". In this article he sites the November issue of Farm World. In essence, for the last 22 years, the cost of a Thanksgiving turkey dinner has either increased at the rate of inflation or actually dropped in cost from one year to the next. This year, however, the cost of that same turkey dinner went up 11%. Also, our energy costs have climbed from 26% of our income to 47% of a workers income. Mr. Horne also speaks of the American worker's share of total income (as opposed to management, independently wealthy, business owners, etc, I assume). The first year that a 'total share of income' stat was taken was in 1929 as we were going into the Great Depression. In 2006, the American worker received the smallest share of the nation's wealth since the Depression. Depressing, huh.
So, I hope that you can see what is wrong with the big picture. We make less, our expenses are more. In this nation of wealth, the majority of Americans are missing their portion of the turkey dinner. But at the same time, they are helping those who are missing even more of the turkey dinner. Should we help others? Absolutely! Should we have to help others? Absolutely not!
Merry Christmas, Happy Hanuka, Good Festivus, Happy New Year to all!
Tuesday, December 11, 2007
Run For Your Life
Well, it sure has been nice working here at Bennett Realty. I do wonder, as I have mentioned previously, why I am able to keep this job that I love. My latest endeavor is to humiliate most of the realtors in my office. I purchased a new super duper camera recently. I took it to work to play with and started taking pictures of everyone. Well, with a 10x optical zoom and 8 megapixels, you can get up close and personal with your subject without physically getting in their face. Of course, people were getting a wee bit irritated because I was clicking away at them, although without a flash. It is amazing how you can actually capture the essence of someone after they start getting a bit p.o'd.
After I had harrassed my fellow realtors sufficiently, I down loaded my photos to the computer and tweaked and cropped them to my satisfaction. As a sidebar, I highly recommend the Fuji FinePix camera. Please, please, please don't let anyone talk you into a Kodak Easyshare. There is nothing "easy" about "sharing" photos when it comes to that camera or the software that comes with it. (I have lost count how many times I've been asked to help people "get those pictures off" their camera.) For one thing, you have to download your photos using the software that comes with the camera. You don't even need special software to download photos from any camera. Just plug in the USB cable and a window pops up and either a "wizard" opens or a dialog box that will walk you through it. However, the Fuji FinePix has very nice software that doesn't supercede the computer's own system. It is user friendly and has great editing capabilities. It's not Photoshop but it is the closest thing to having a dark room in your basement that I have found. Especially when used in conjuction with my new SLR style S800. With the manual as well as automatic settings, I can do anything for real estate or for personal use.
Which brings me back to harassing my fellow beings. After I assembled all of my loverly black and white photos, I ordered a calendar online using said photos and put silly captions underneath. I will then give it as a present to the broker and his wife, my supervisor.
So, it's been nice talking to you............
After I had harrassed my fellow realtors sufficiently, I down loaded my photos to the computer and tweaked and cropped them to my satisfaction. As a sidebar, I highly recommend the Fuji FinePix camera. Please, please, please don't let anyone talk you into a Kodak Easyshare. There is nothing "easy" about "sharing" photos when it comes to that camera or the software that comes with it. (I have lost count how many times I've been asked to help people "get those pictures off" their camera.) For one thing, you have to download your photos using the software that comes with the camera. You don't even need special software to download photos from any camera. Just plug in the USB cable and a window pops up and either a "wizard" opens or a dialog box that will walk you through it. However, the Fuji FinePix has very nice software that doesn't supercede the computer's own system. It is user friendly and has great editing capabilities. It's not Photoshop but it is the closest thing to having a dark room in your basement that I have found. Especially when used in conjuction with my new SLR style S800. With the manual as well as automatic settings, I can do anything for real estate or for personal use.
Which brings me back to harassing my fellow beings. After I assembled all of my loverly black and white photos, I ordered a calendar online using said photos and put silly captions underneath. I will then give it as a present to the broker and his wife, my supervisor.
So, it's been nice talking to you............
Thursday, December 6, 2007
The End
Finally, my last installment on the road to Renovation Lending.
Here are the various programs offered for Renovation Lending:
FHA 203(k)
FHA 203(k) Streamline
FNMA (Fannie Mae) Homestyle
FNMA Community Homestyle
Construction to Perm/One time Close Renovation Loan
In an effort to cut short the suffering my readers have endured over the 203(k), I will give only sight overviews of a couple of the 203(k) mortgage programs.
The first one, a first time homebuyer may have accidently come across it and not fully understood the purpose of it. (Unfortunately, there are lenders out there who do not speak in "people".) The HUD FHA 203(k) (almost sounds like a 1940's phone number) covers the mortgage plus there has to be a minimum of $5,000 in repairs. These repairs are required to eliminate health and safety issues such as roofing, energy conservation, site improvement and handicap accessibility. These are not decorating dollars.
The 203(k) Streamline allows up to $35,000 for repairs and upgrades. It is "Streamline" because it is "streamlined". No consultant needed, no structural repairs, no financing of mortgage payments which all results in lower fees. This mortgage would perhaps serve the non novice when it comes to home repairs and remodeling.
In all of these mortgages, self-help, or sweat-equity, may be discouraged but not entirely ruled out. If you can do the work and can demonstrate in some way that you indeed can do the work, then you might be able to stretch your dollars a bit further.
Well, I think I have totally exhausted this topic. Well, I guess not totally. There is obviously a lot more to know about this topic which is why I say, don't take my word for it. Do some legwork, call a bunch of lenders and get as much info as possible. If someone tells you there is no such thing as getting money based on what the home will be worth in the future, just smile knowingly and head for the door.
Countrywide Home Loans offers this type of mortgage, but I am sure they are not the only ones. Please do not let Countrywide's checkered past sway you too much. This is not preditory lending. But if a lender tries to pressure you into borrowing more money than you know you can afford, just smile knowingly and head for the door.
Now, go out there and RENOVATE!
Th--th--- th---That's all folks!
Here are the various programs offered for Renovation Lending:
FHA 203(k)
FHA 203(k) Streamline
FNMA (Fannie Mae) Homestyle
FNMA Community Homestyle
Construction to Perm/One time Close Renovation Loan
In an effort to cut short the suffering my readers have endured over the 203(k), I will give only sight overviews of a couple of the 203(k) mortgage programs.
The first one, a first time homebuyer may have accidently come across it and not fully understood the purpose of it. (Unfortunately, there are lenders out there who do not speak in "people".) The HUD FHA 203(k) (almost sounds like a 1940's phone number) covers the mortgage plus there has to be a minimum of $5,000 in repairs. These repairs are required to eliminate health and safety issues such as roofing, energy conservation, site improvement and handicap accessibility. These are not decorating dollars.
The 203(k) Streamline allows up to $35,000 for repairs and upgrades. It is "Streamline" because it is "streamlined". No consultant needed, no structural repairs, no financing of mortgage payments which all results in lower fees. This mortgage would perhaps serve the non novice when it comes to home repairs and remodeling.
In all of these mortgages, self-help, or sweat-equity, may be discouraged but not entirely ruled out. If you can do the work and can demonstrate in some way that you indeed can do the work, then you might be able to stretch your dollars a bit further.
Well, I think I have totally exhausted this topic. Well, I guess not totally. There is obviously a lot more to know about this topic which is why I say, don't take my word for it. Do some legwork, call a bunch of lenders and get as much info as possible. If someone tells you there is no such thing as getting money based on what the home will be worth in the future, just smile knowingly and head for the door.
Countrywide Home Loans offers this type of mortgage, but I am sure they are not the only ones. Please do not let Countrywide's checkered past sway you too much. This is not preditory lending. But if a lender tries to pressure you into borrowing more money than you know you can afford, just smile knowingly and head for the door.
Now, go out there and RENOVATE!
Th--th--- th---That's all folks!
Baby You're a Rich Man
Holidays are looming large and even though not much is going on at the office, I have plenty going on at home. My mind is not on real estate but it really should be. Just because things are slow doesn't mean they have to come to a full stop. But that is the way I find that the psyche works. Have you ever noticed that you get better service at a restaurant when it is busy than when it is slow? That is because the less someone has to do the more they do nothing. I think it is a little thing called inertia. So you walk into an empty restaurant and stand there staring at the walls waiting for someone to notice you so you can be seated in the vast emptiness. The same goes in real estate. Even if someone walked in the door wanting to see a house, I would rise grumbling from my seat and half-heartedly talk to them, ultimately probably talking them out of the whole thing. My mind would wander, thinking, "This person can't really be serious about buying a house this time of year. It's cold and snowy and besides I don't feel like slogging away in the slush in the dark evening just to show this looky-loo a cold dark dump." So I've just talked myself out of a sale. Quite counterproductive, you see.
So I sit here, wondering why I'm not making any money. Go figure.
I did have a closing last week, surprise, surprise. Sometimes we do well in the biz despite our best efforts to do otherwise. In fact, this is the first year I will be getting a sales award! Our Board of Realtors Christmas party is this weekend and I will proudly and graciously accept my award and give my thanks to the little people. Okay, maybe not that last part. But I am thankful that, despite the downturn in the market, I have done well this year. It pays just to show up.
So I sit here, wondering why I'm not making any money. Go figure.
I did have a closing last week, surprise, surprise. Sometimes we do well in the biz despite our best efforts to do otherwise. In fact, this is the first year I will be getting a sales award! Our Board of Realtors Christmas party is this weekend and I will proudly and graciously accept my award and give my thanks to the little people. Okay, maybe not that last part. But I am thankful that, despite the downturn in the market, I have done well this year. It pays just to show up.
Wednesday, November 28, 2007
I'm a Loser
We at Bennett Realty have challenged the other real estate offices in Wilmington to a Biggest Loser contest. Each of 5 offices have 5 participants who have to weigh in weekly. Then our progress is measured by percentage lost, not pounds lost. We started this 2 weeks ago and it will extend to February 1st. So far each office has lost about 2.5 lbs. Our office has put all of our hopes in on our two "big guys". Let's face it, girls. Guys have an easier time of losing weight and if you are already big then dropping a few pounds is no big deal. It's entertaining, though, to see these guys with their afternoon snack of an apple and string cheese. I think we are all starting to feel a bit deprived at this time. We are starting to get a bit snappy, either eyeballing each other's food in envy or eyeballing each other's food in reprimand.
203k lending. Now that we know basically what a 203K is and how the money can be used, now we'll investigate the type of property that can benefit from the benefits of the beneficial loan.
1) 2-4 unit properties that are owner occupied
2)FHA approved condo's
3)Properties that are at least 1 year old
4)Mixed use properties
5)Of course, single family homes
6)Homes that have been DEMOLISHED (?) but have a usable foundation to be reused.
7)Single family homes being converted to 2,3 or 4 units or visa versa
Homes not eligible for 203k lending:
1)Log homes, don't know why
2)Cooperatives (you don't actually own the four walls)
3)Homes that have never been completed (started, but left to molder until the contractor decides to show up again
"Mixed use" properties present an interesting opportunity. A mixed use property is one that houses a business as well as a residence. This might be a downtown building that has a store front but the upstairs has not been used for years and fallen into disrepair. The 203k funds cannot be used on the business portioin but it can be used on the residential portion as long as it will be occupied by the owner. Not many people actually live about their store these days, but in metro areas where people are starting to appreciate their inner cities again and are starting to move back, this could work out well for a home based business. Home based businesses are also making a comeback as is the idea of taking old run down and abandoned downtown buildings and making them into condos or apartments. These to trends mesh nicely and will be a major factor in the revitalization of our inner cities. (I just love these win-win situations.)
Well, gotta run. I have a closing tomorrow (yeah!) and I must mentally prepare myself for it to be my last of the year. Sad, and hopefully not true.
More on 203Ks to come. Lots o' info as promised!
203k lending. Now that we know basically what a 203K is and how the money can be used, now we'll investigate the type of property that can benefit from the benefits of the beneficial loan.
1) 2-4 unit properties that are owner occupied
2)FHA approved condo's
3)Properties that are at least 1 year old
4)Mixed use properties
5)Of course, single family homes
6)Homes that have been DEMOLISHED (?) but have a usable foundation to be reused.
7)Single family homes being converted to 2,3 or 4 units or visa versa
Homes not eligible for 203k lending:
1)Log homes, don't know why
2)Cooperatives (you don't actually own the four walls)
3)Homes that have never been completed (started, but left to molder until the contractor decides to show up again
"Mixed use" properties present an interesting opportunity. A mixed use property is one that houses a business as well as a residence. This might be a downtown building that has a store front but the upstairs has not been used for years and fallen into disrepair. The 203k funds cannot be used on the business portioin but it can be used on the residential portion as long as it will be occupied by the owner. Not many people actually live about their store these days, but in metro areas where people are starting to appreciate their inner cities again and are starting to move back, this could work out well for a home based business. Home based businesses are also making a comeback as is the idea of taking old run down and abandoned downtown buildings and making them into condos or apartments. These to trends mesh nicely and will be a major factor in the revitalization of our inner cities. (I just love these win-win situations.)
Well, gotta run. I have a closing tomorrow (yeah!) and I must mentally prepare myself for it to be my last of the year. Sad, and hopefully not true.
More on 203Ks to come. Lots o' info as promised!
Tuesday, November 20, 2007
She Came in Through the Bathroom Window
BEFORE
AFTER
All done with my money. It wasn't a fortune, but with 203K renovation lending, I wouldn't have had to live with a fugly bathroom for almost 3 years!
You Never Give Me Your Money
Food for thought (as opposed to the belly) - 83 % of homes in Cincinnati were built prior to 1970. That's a bit of an eye opener.
This figure won't hold up for all communities, obviously, but it is surprising and when you think about it, it presents a tremendous opportunity.
Hence, the 203K. Renovation lending. This concept was an eye opener for me so I'm fairly certain it is an eye opener for other Realtors(r) as well as regular people:>)
Here is a list of typical projects that Renovation lending could possibly cover. I say possibly because, as mentioned before, everything is subject to a feasibility study.
*Minor or major kitchen and bath renovations
*Cosmetic changes
*Exterior decking or fencing
*Garage addition
*Finish a lower level
*Doors, windows and siding
*Plumbing update
*Home office
*TWO STORY ADDITION!!
*MOVE A HOUSE!!
Holy moly, I wish I had known this when I bought my old, old, old 1865 house. (It was built the year Lincoln was assassinated. Think of that!)
The caveat here is that the home must appraise. For example: You find a home that you love, in the neighborhood that you love, and it is close to your work. The asking price is $150,000 but the furnace is older than the house, the kitchen hasn't been touched since June Cleaver wore pearls to clean house, and you could throw a cat through the bathroom wall.
First step: Get preapproved for a loan. Get an accepted contract. Make sure it contains the statement, LOAN IS SUBJECT TO FHA 203K APPROVAL AND BORROWERS ACCEPTANCE OF ANY ADDITIONAL REPAIRS AS MAY BE REQUIRED BY HUD, APPRAISER OF HUD CONSULTANT. A mouthful, yes, but it provides the borrower an out if the repairs are not feasible. Then take it to a lender that handles 203K's. Tell them what you would like repaired in the home. Then the borrower orders a feasibily study. This is where things get fun.
Okay, breathe, and decide if you are up for renovation....
This figure won't hold up for all communities, obviously, but it is surprising and when you think about it, it presents a tremendous opportunity.
Hence, the 203K. Renovation lending. This concept was an eye opener for me so I'm fairly certain it is an eye opener for other Realtors(r) as well as regular people:>)
Here is a list of typical projects that Renovation lending could possibly cover. I say possibly because, as mentioned before, everything is subject to a feasibility study.
*Minor or major kitchen and bath renovations
*Cosmetic changes
*Exterior decking or fencing
*Garage addition
*Finish a lower level
*Doors, windows and siding
*Plumbing update
*Home office
*TWO STORY ADDITION!!
*MOVE A HOUSE!!
Holy moly, I wish I had known this when I bought my old, old, old 1865 house. (It was built the year Lincoln was assassinated. Think of that!)
The caveat here is that the home must appraise. For example: You find a home that you love, in the neighborhood that you love, and it is close to your work. The asking price is $150,000 but the furnace is older than the house, the kitchen hasn't been touched since June Cleaver wore pearls to clean house, and you could throw a cat through the bathroom wall.
First step: Get preapproved for a loan. Get an accepted contract. Make sure it contains the statement, LOAN IS SUBJECT TO FHA 203K APPROVAL AND BORROWERS ACCEPTANCE OF ANY ADDITIONAL REPAIRS AS MAY BE REQUIRED BY HUD, APPRAISER OF HUD CONSULTANT. A mouthful, yes, but it provides the borrower an out if the repairs are not feasible. Then take it to a lender that handles 203K's. Tell them what you would like repaired in the home. Then the borrower orders a feasibily study. This is where things get fun.
Okay, breathe, and decide if you are up for renovation....
Tuesday, November 13, 2007
Junk
203 (k) - No, it isn't the latest employee retirement fund, although it may be more profitable, more secure, more headache and more personally rewarding.
203 (k), also known as Renovation Lending is the answer to my prayers. Where have I been lo these many years that I have never heard of this? Is it new? Is it a secret? Have I been under a rock? I don't know, I don't think so, and yes.
Renovation Lending is the practice of basing a mortgage on the future value of the property as apposed to the current value of the property. Because the lender is taking an added risk as well as a more active part in the value of the property, not all lenders offer this program. (In fact, not long ago I was looking for just such a thing and was told there was no such thing. Okay. So it is a secret. Sssshhhhh!)
In short, the purpose of a 203 (k) mortgage is to encourage people to buy homes in need of repair and then to actually repair them. Yes there is more paperwork involved in the loan but the lender plays a very active part in the process. From feasibility studies, to consultants, to appraisals. Inspections have to be performed periodically in order for the lender to see that the work is actually being done and by a qualified technician, then money is released to pay for the work.
This is a win-win proposition for all. The homeowner gets the home they want at a price they can afford, the community gets its older housing stock repaired, and the Realtor (r) gets a sale they might not have ordinarily got. Someone looking for a 4 bedroom home on 2 acres with only 150K to spend? Find them an older home which is usually also a larger home, get them on the road to fixing it up and they have a great home and you have a sale.
More details to follow. This is a topic near and dear to my heart so I will be giving it lots of blog space.
203 (k), also known as Renovation Lending is the answer to my prayers. Where have I been lo these many years that I have never heard of this? Is it new? Is it a secret? Have I been under a rock? I don't know, I don't think so, and yes.
Renovation Lending is the practice of basing a mortgage on the future value of the property as apposed to the current value of the property. Because the lender is taking an added risk as well as a more active part in the value of the property, not all lenders offer this program. (In fact, not long ago I was looking for just such a thing and was told there was no such thing. Okay. So it is a secret. Sssshhhhh!)
In short, the purpose of a 203 (k) mortgage is to encourage people to buy homes in need of repair and then to actually repair them. Yes there is more paperwork involved in the loan but the lender plays a very active part in the process. From feasibility studies, to consultants, to appraisals. Inspections have to be performed periodically in order for the lender to see that the work is actually being done and by a qualified technician, then money is released to pay for the work.
This is a win-win proposition for all. The homeowner gets the home they want at a price they can afford, the community gets its older housing stock repaired, and the Realtor (r) gets a sale they might not have ordinarily got. Someone looking for a 4 bedroom home on 2 acres with only 150K to spend? Find them an older home which is usually also a larger home, get them on the road to fixing it up and they have a great home and you have a sale.
More details to follow. This is a topic near and dear to my heart so I will be giving it lots of blog space.
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