Foreclosure Home Remodeling
September 15th, 2009 | by admin |
There are many foreclosure home remodeling projects being undertaken everyday by professional contractors. These repair teams specialize in turning a foreclosed home into a resalable real estate commodity within 45 days of repossession or closing. Many foreclosure home remodeling projects are cosmetic and can be finished well before the 45 day deadline.
Other foreclosure home remodeling areas are more difficult to finish and will take almost all of the allocated time to complete. The foreclosed home may have been neglected for a long period of time, and rodents may have entered the home and chewed holes through walls, woodwork and attic spaces. The items that will need to be replaced, and the repairs that must be accomplished, must be determined before foreclosure home remodeling efforts can even begin.
Professional contractors have a good idea of what damage has been done by viewing each area of the home. They realize the materials that are behind the walls, and how many rolls of insulation are in each wall space. A foreclosure home remodeling project might include repairs to the ceiling areas due to water leaks. If the roof is leaking, then shingles will need to be added to the list of supplies that will be needed to complete the foreclosed home remodeling project on time.
Buckled flooring will definitely require further investigation because this is an indication of structural damage that extends to the support system under the home. The cement slab may be cracked by broken pipes, or the land might have shifted underneath the home from recent storms and a poor drainage system. This type of foreclosure home remodeling problem might delay the home from being listed on the market at all.
Home building contractors do not worry very much about peeling paint and dirt and grime. These are easy fixes for me, and this fix will allow a foreclosure home remodeling project to proceed as planned. Walls can be resurfaced if they are rough and unsightly and the white wall finish will make these walls look brand new after a few coats of paint. A foreclosure home remodeling project can require plumbing skills too. If the piping system in the home is broken, then there is going to be accumulated water somewhere under the home. Broken pipes have to be repaired before a home is placed on the market for sale.
Some of the foreclosure home remodeling projects – are very simple, and some are quite costly. In some cases, the cost of repairs will liquidate, the cash that the owners hope to make on the property, and cost of them more to repair than they will ever be able to recoup. In these cases, it is better to stop the foreclosure home remodeling project and tear the building down and start fresh.
The materials that are used to build the new home might not have as many outstanding features as it would normally have, such as Jacuzzi bath and marbled countertops in the kitchen, but the investors have to cut costs at every turn to recoup the monies they have lost. The new home is like to sell quickly if an attractive price is listed, and it will definitely sell because people love buying brand new homes. The new owners can start their own remodeling projects when they settle in to their new home.
Jena Luthovski
http://www.articlesbase.com/internet-articles/foreclosure-home-remodeling-128901.html
6 Responses to “Foreclosure Home Remodeling”
By MP on Sep 15, 2009 | Reply
What should I offer for a foreclosure home?
My Husband and I found a home we like, but it is a foreclosure that needs some work before we could even move in. The asking price is $133,900 that just recently dropped from $139,900. From the records it looks like it foreclosed in January for $121,500. Some of the big expenses we would incur are: The retaining wall needs to be replaced, the deck needs to be reinforced, all the flooring needs to be replaced and fresh paint throughout. 2 1/2 bathrooms need to be remodeled. These are all have to remodels, not just preferences. In the next five years, the roof and heat pump will probably need to be replaced, also it has masonite siding instead of vinyl so depending on the condition of that it might need to be vinyl sidded! Any suggestions of a offer price since we would have to put so much into it?
By golferwhoworks on Sep 15, 2009 | Reply
$120,000 sounds about right but try for a fha 203K loan for the repairs and add those in to your loan if you can
I am a mortgage banker in TN
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By Lisa on Sep 15, 2009 | Reply
Offer $122,000. I can’t see the bank taking less then they lost in the foreclosure.
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By David Z on Sep 15, 2009 | Reply
Without knowing the area there is no way to answer. $100,000 could be fair offer or $80,000 might be right. I will say lender is likely to stay close to asking price. They will lower price every few weeks and take their chances that way. Next price reduction will be $129,000 in about 4-6 weeks.
If mortgage balance was $121,500 it is hard to imagine it is worth more than that. If it was, the seller would have sold it to salvage something. the seller allowed it to foreclose so presumably it is worth less than $121,500.
Whatever you decide offer the fastest closing you can. 2-3 weeks would be helpful. That would make your offer substantially better than other competing offers. There is zero chance they will accept contingency offer if you have to sell a home first.
Think about all the stuff you need to fix and once completed what could you sell house for? You should be able to turn an immediate profit on a foreclosure, albeit a small one. If not then there is no advantage to buying this property.
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By J. Edward Egavas on Sep 15, 2009 | Reply
Walk away from a ‘cancer’ like that! You will spend as much as the asking price just to get it livable.
If you still persist that you believe you want it; offer no more than 70% but consider starting at 50%. You may be pleasantly surprised. I have bought tax sale property for pennies on the dollar. I have also bought foreclosures for considerably less than the asking. You may also try to contact the previous owner and check with them. many times there are options there that haven’t closed the door on yet. People, because of circumstances, sometimes must walk away. This does not mean that you should prey on their misfortune but check them out. Many times your ability to assume their libility is (or can be) a boon to them as well as to you. Check it out! While you are at it; check out ‘all’ of your options, particularly on foreclosures.
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Been there/done that!
By college on Sep 15, 2009 | Reply
Try 80,000 then they will make a counter offer. It better to start low.
$1.00 Homes Auction No Reserves Huge Selection Buy a local FOreclosured home NOW. http://www.foreclosurehouses.webs.com/
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