Over the last couple of years the popularity of buying a home with “instant equity” almost seems to have become expected. I believe I have showed and sold more bank-owned property and short-sale property than I have ‘normal’ non-distressed homes; even though there are many homes in today’s market priced extremely competitively.
Although buying a ‘deal of a home’ , especially at today’s record low rates, may seem like a no-brainer, it has occurred to me that I have needed to gently question some of my buyers to make sure they are buying the “right” house for them, not just the “best deal in town”.
If your wish list for your next home includes a garage, a yard large enough to fence your dog and your 4 children, and a downstairs Master Bedroom; then the bank owned home you just found online on .12 acres, no garage, and all the bedrooms up should not get you excited, even if it is priced $150,000 under it’s tax value!
I caution my buyer clients that they are making one of the single largest purchases in their life, it is an important one. They will move their family into this home and mostly likely stay for at least the next 5-10 years. Is it really a deal if you paid “$150,000 under value”, re-modeled and added a 2 car garage for $100,000, had to take the kids and dog to the park to stretch their legs, and you still don’t have a Master Bedroom downstairs?
I encourage you ‘deal seekers’ to not pass up the locally, privately owned homes that are loved by their owners in every way…you may just find your very own ‘best deal in town’!
Welcome Home, laura
Recently I was asked by a Buyer Client the details of building a custom home. We have been looking at custom new construction and bank owned new construction homes in the Southern Wake area as we patiently wait for their existing home to sell. While there are some beautiful homes out there and some fantastic deals, not any one home stood out as having everything they would like in their new home.
A pre-sale (contracting with a builder to build a specific custom home for you) is a great option when:
1. There is no standing inventory that you love.
2. You know you want to live in this home for awhile.
3. You would like to customize your features as much as possible.
Because the builder is going to build a house just for you he will most likely require a non-refundable deposit (credit towards the purchase price at closing) because he is at a little bit of a risk if you do not end up closing on the house. The builder will also base costs on current construction prices, which may be higher or lower, than were used for existing inventory.
Banks and Mortgage companies are starting to offer Construction to Permanent loans again, which takes some risk off the builder. In this situation the Buyer applies for the construction loan and at time of completion of the home the lender converts the construction loan to a mortgage.
There are many beautiful lots available in the area, some at deep discounts and even bank owned. We have worked with many custom builders and will be happy to help you find a lot, plan, and builder to build your dream home!
Welcome Home, laura
