Don’t Be Scared of Foreclosures or Homes in Need of Renovation!
Current market conditions dictate that lenders are able to offer versatile lending programs to their customers. Specifically being able to offer renovation lending options is key. Almost 70% of America’s homes built before 1992 and the vast inventory of foreclosed properties are uninhabitable. This alone means that consumers will need options to be able to move into these homes. Coupled with that you, as the Realtor, need inventive ways to market, list and ultimately sell these homes.
According to RealtyTrac, an online marketer of foreclosed properties, more than one million homes had foreclosure filings during the first six months of 2012 which is up 2% from the previous six months. I simply mention this to illustrate the point that while we all want the “move in ready” home they simply aren’t the prevalent feature of today’s marketplace. To take this a step further, not everyone has the cash to purchase distressed homes in need of renovation. This is where I can help!!
Any of the renovation loans available today allow a buyer to move into a home, finance the repairs and perform the required or in some cases the desired renovation after closing. It’s a win/win across the board! Depending on the buyer’s qualification we might recommend the FHA 203k Renovation loan or the Fannie Mae HomeStyle but fundamentally they all work the same – your buyer finds a home to purchase, than the amount of work is assessed upfront and based on the bid provided an escrow is set up (post closing) for the renovation.
We handle it all, you just allow the General Contractor access to the property. Once the bid is received and the appraisal is ordered the loan proceeds down the normal path.
From a Listing Agent perspective, how would you like to walk into a perspective client’s home and tell them that the foundation issues can be covered?? Or maybe let them know they don’t have to re-paint before listing because you have a program which will allow the new buyer to renovate the home? These are just a few examples of the possibilities associated with having knowledge of Renovation Lending. Think of it as offering a way for a buyer to take a house and truly make it their home.
I get calls daily from people stating they want to buy a home but it has a major roof or foundation issue. My short answer is…This won’t be a problem for me. We just need a bid for the work to be done, we will add it to the amount we are financing and after closing the work is completed.
Let’s partner together to move some of the foreclosure inventory in 2013! Now that I hopefully have your attention please feel free to call me for more details. If you want onsite training I’m happy to offer that to you too – even with an MCE credit. Repairs don’t scare me and they shouldn’t scare you either…in fact you might find this to be a big part of your business moving forward!