Let's Talk Albuquerque!

head_left_image

Buyers Willing to Buy Homes that Need Repairs

When I am representing Buyer clients, I always recommend getting a home inspection.  If I were a qualified inspector, I would help, but as a REALTOR , it is my role to recommend getting an inspection, the buyer makes the decision.  I am of the opinion that a buyer should always get s home inspection.

 

“Buyers Willing to Buy Homes that Need Repairs”

 

I am not seeing any shortage of buyers willing to purchase homes that are in need of renovations. We have been doing FHA 203K loan for years. Most of the time, buying a property that needs renovation can be purchased at below market prices.

 

home repairWhat becomes frustrating, some Realtors don’t understand the process. I recently had a Realtor, recommend to my client, that they shouldn’t do a home inspection. The reason given was, the purchase agreement indicated that the house was being sold “as is”. It also was subject to an FHA 203K loan. After a short conversation, I explained it wasn’t the best way to represent the buyer.

 

I never have a problem with a sophisticated buyer having a willingness to purchase without inspections, but never a homebuyer that is buying for their own use, especially for a first time home buyer.

 

It is extremely important for a homebuyer to be working with a knowledgeable Realtor, when looking for a home that needs work.

 

 

Buyers Willing to Forego Foreclosed Property Repairs

 

By: Amilda Dymi

 

Demand for foreclosed properties is heating up in certain markets where the supply is shrinking at increased speed.

 

For example, Arizona is a very hot market right now, says Brent Taggart of Green River Capital. In popular areas such as Phoenix “listed homes are getting multiple offers and selling fast.”

 

A new twist, Taggart says he has never seen before during the 16 years he has been working in the mortgage business, is a desire to purchase these properties in an “as is” condition. He finds that homebuyers are purchasing assets as is because they prefer to make repairs themselves.

 

Historically in a buyer’s market private, individual buyers would negotiate with the seller in an effort to lower the sales price and expand property improvement options before loan closing. Investors on the other hand, as a rule, would rather take upon themselves all needed repair costs and negotiate the sales price based on potential property improvement demands.

 

Today, mostly due to the crisis and the recession, observes Taggart, the mindset of buyers has changed even though individual buyers still have the upper hand. “It was not done this way in the past.” any homebuyers choose to acquire a property in “as is” condition and take charge of repairs and renovations for a number of reasons.

 

“People have been saving so they are able to put a certain amount down and do the repairs at their own taste,” he says.

 

In fact, various customer trend reports are showing the average American is concerned about debt reduction and saving.

 

A recent National Foundation for Credit Counseling poll showed the greatest financial regret for 53% of the roughly 2,200 customers who participated is habitual overspending. It far outweighed other concerns such as inadequately saving at 18%, or not having bought a house at 10%.

 

Findings from a survey conducted by the Consumer Federation of America and the American Savings Education Council earlier this year revealed that 66% spend less than their income and save the difference. As a result they “have sufficient emergency saving to pay for unexpected expenses. Up to 42% have “a savings plan with specific goals.”

 

The 66% rate however is lower compared to 71% in 2011 and 73% in 2010 because the recession has not ended for millions of American families, but it has changed their spending habits.

 

Extended foreclosure timelines are affecting borrowers’ behavior. “Homeowners are calling to inquire about short sales and deed-in-lieu. They prefer to not be in default.” These changes have created a market for cash buyers and REO-to-rentals, he says. “I’m optimistic about where the REO market is headed.”

 image:freedigitalphotos.net

Joe Petrowsky, NMLS #6869

Right Trac Financial Group, Inc. NMLS #2709

110 Main St.

Manchester, Ct. 06042

Office: 860 647-7701 x116

Fax: 860 647-8940

Cell: 860 836-9294

Email: joe@righttracfg.com

www.righttracfg.com

www.joepetrowsky.com

Like me on facebookfollow me on twitterConnect with me on linkedin

Joe Petrowsky does not guarantee nor is in any way responsible for the accuracy of the information provided herein, and provides said information without warranties of any kind, either expressed or implied.

albuquerque real estate

Here are my Facebook Fan Pages. I would appreciate it if you would visit and like them.

Beautiful Bernalillo CountyLivingAlbuquerque, and Lloyd & Associates Real Estate.

C. Lloyd McKenzie, MBA

Associate Broker

Berkshire Hathaway HomeServices

New Mexico Properties/Allstar, REALTORS

6739 Academy Rd. NE SU 200

Albuquerque, New Mexico 87109

(505)888-1700  Office

Phone: (505)750-8552
Email: Info@LloydMcKenzie.com

Areas Served: Albuquerque Metro/ Algodones/ Bernalillo/ Cedar Crest/ Corrales/ Edgewood/ Los Lunas/ Los Ranchos de Albuquerque/ Placitas/ Rio Rancho/ Sandia Park/ Tijeras

Comment balloon 5 commentsC. Lloyd McKenzie • September 28 2012 08:20PM

Comments

As long as the floors don' give out, I say go for it! :) Good luck, Lloyd!

Posted by Laura Cerrano, Certified Feng Shui Expert, Speaker & Researcher (Feng Shui Manhattan Long Island) almost 5 years ago

Lloyd - This is a great post -It should be second nature to an agent to always recommend a Home Inspection, even on a brand new on, more so on an old one.

Posted by Debbie Cook, Silver Spring and Takoma Park Maryland Real Estate (Long & Foster Real Estate, Inc) almost 5 years ago

Lloyd, what a great post! I have always done that. Lately we have had a new inspector who is going way over board on his inspections. But he wont last in our market. lol....

Posted by Glenn W. Small, Full Time Realtor w/ 21 years of experience (Bayshore Group) almost 5 years ago
Thank you for the great education. I learned so much from your post.
Posted by Lucas Taylor (Keller Williams Miami Beach ) almost 5 years ago

Thank you for your very thoughtful comments

Posted by C. Lloyd McKenzie, Living Albuquerque almost 5 years ago

Participate