Is A “Fixer-Upper” The Right Choice For You?

bank owned 2Bank foreclosures are hitting the market again in the Naples Florida area.  We had a few months when there were very few bank owned properties on the market but it seems that the banks are releasing them again and more of them are showing up.  Some Naples bank owned properties are in very good condition and others need a lot of work to make them habitable.  Of course, deals can be had on the ones in bad shape especially if you can pay cash.  You need to consider your options and decide if it is worth it for the time and inconvenience involved in fixing up a “fixer-upper”.

What Exactly Are You Getting Into With A Bank Owned Property?

Renovations and repairs can be very expensive and there may be many hidden problems that a cursory walk through will not find.  It is definitely important to have a home inspection by a licensed home inspector before you buy the home.  The home inspector checks both the exterior and interior of the home and finds items that you would never be able to see for yourself.

After the inspection has been done, consider the price of the items you need to replace or repair and figure out if you are actually saving money by the time you add in the cost of your time or a contractors time.  Hiring a contractor can be a very expensive proposition but do you have the skills to do the repairs yourself?

A big question to ask is, will you be happy with the home once you have finished the upgrades and enjoy the fruits of your labor or are you buying this house strictly because it is a good price but it is really not to your taste.

What Is A 203k Loan?

A 203k loan is a federally insured loan that allows you to borrow money to make repairs on a single family home purchase.  You must submit a detailed list of the repairs that are needed on the home along with estimates of repair with your application.  An appraisal is done taking into consideration the improvements that you are planning to determine an expected market value .  The loan allows you to borrow up to the amount the home is expected to appraise for so that you have cash to make the repairs.  It is a good idea to work with a mortgage broker if you are considering this type of loan and I have excellent people I work with who are very knowledgeable regarding these 203k loans.

bank ownedHave You Got The Patience For Fixing Up A Home?

Fixing up a home can be a very stressful event and can take much longer than you planned.  Do you have somewhere to live while you are making the repairs?  It is very uncomfortable to try to live in a home that is under construction and living without a kitchen or bathroom for weeks at a time can be very nerve racking!  Your estimates for repair may be lower than the actual cost of doing the work and you may have to wait until more money is available for you to continue.  Keeping in mind the end result and how you can enjoy your new home may be enough to keep you going through the bad times.

If you decide that a fixer-upper is definitely in your future, call me for a list of bank owned properties in Collier County.  I can help you decide which area and type of home is best for you to renovate and enjoy a return on investment.  If you prefer to check out property yourself, start your search here and browse the properties available and then we can schedule an appointment to view your favorites.

Remember, it is always toasty in Naples and you deserve your piece of Naples sunshine even if you have to renovate it first!

 

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