Why You May Need to Plan for Renovations to Your Once-in-a-Lifetime Real Estate Deal
Ever heard the saying “You get what you paid for”?
While this sentiment does not always ring true when it comes to foreclosure properties, and many real estate investors are walking away with truly incredible savings these days – some homebuyers are discovering the pitfalls of buying a home out of foreclosure. There are a handful of factors that may play into some rather unpleasant surprises after being handed the keys to your dream home after closing:
1) If the home was purchased at auction, the original owners may still be living there. This often makes it difficult to next to impossible to get a thorough inspection performed before their departure and your family’s arrival. It’s a gamble, but one many investors are willing to take.
2) If the home is a “real-estate-owned” (REO) foreclosure, these are often sold “as is” by the original mortgage lender. While foreclosed properties are often better off than the traditional “fixer upper”, certain maintenance issues may have been ignored or postponed while the previous homeowner struggled to simply keep their home.
3) If the home has been sitting in foreclosure for some time, it may have fallen prey to vandals, thieves (looking for appliances or anything of value left in the home), the elements or all of the above. Without a dedicated agent watching over the property on a regular basis, any number of things could go wrong.
Still, with savings averaging 30% and more off fair market value for many foreclosure properties – planning for the contingency of the possible need for repairs and renovations may be your best bet. You could still wind up with a significant discount and have an excellent opportunity to make the home all your own. Many times, this contingency can be allotted for with your mortgage lender. Because Highlight Homes, LLC is founded in the residential construction business – our new division, Highlight Home Restoration is well-prepared to help you navigate all areas of home restoration and improvement. We don’t merely specialize in one area of home repair, such as plumbing, roofing, carpet installation, painting, etc.. – we specialize in them all! We can also aid in bathroom and kitchen renovation, room additions, decks and patios, basement finishing and much more. Additionally, Highlight Home Restoration can help haul away unwanted items that have been left behind, recycle materials and assist with general clean-up of a vacated or foreclosure property. Transform that excellent real estate investment into a HOME by calling the talented team of designers, contractors and foreclosure renovation professionals at Highlight Home Restoration at (678) 873-9234. To learn more about Highlight Homes and Highlight Home Restoration, we invite you to visit us online at http://www.highlighthomesga.com.Sources: Hawkins, Asher. 2009. “Buying a Foreclosed Home” Forbes.com http://www.forbes.com/2009/10/29/buying-foreclosed-home-personal-finance-foreclosures.html (accessed January 19, 2010)