Rehab and Refresh
The shortage of homes for sale has led to a burgeoning trend in today’s market. Consequently, real estate rehab, or the trend of buying and renovating older home is an increasingly popular choice for buyers. Home Qualified’s Ralph DiBugnara reports on what to seek and avoid when considering a rehab property.
Financing
Buyers need to seek mortgage loans that will cover the price of the home as well as estimated construction costs. Fannie May Homestyle and FHA 203K loans specifically cover this type of purchase. Adham Sbeih, a lender in Sacramento, California warns buyers to think carefully about their finances before applying. “It is important for the buyer to have additional cash on hand to cover overruns, change orders and contingency items. Any first-time rehabber needs to know that the costs rarely stay within the budget, and timelines are rarely met.”
Build Your Rehab Team
Thee right team of advisors is a crucial element for first time rehab home buyers. Buyers should contact a reputable contractor and property inspector addition to a trusted real estate agent and mortgage lender, contact a reputable contractor and property inspector. A reliable contractor will be able to assess exactly what the property needs and precisely what the cost for repairs will be.
Keep It On the Cheap
Fortunately for buyers on the hunt, many rehab fixes and aesthetic refreshers can be done cheaply. Many improvements can be done without the intervention of a contractor. Consider a fresh coat of paint or fixture replacements. In conclusion, the more repairs that can be done by the buyer, the greater the savings and better the investment.
Finally, if you need more information on how to rehab a home, visit us at HomeQualified.com