Foreclosure & HUD Home Bids can be deceiving if you don't know your true cost of repairs.

Many people look at the glut of homes in the marketplace and think what great buying opportunities.  The truth is they are right...it is a great opportunity but you have to use some common sense and understand what you are buying.

The price ranges of homes is a wide spectrum.  You can find anything in all shapes and sizes.  Some people are amazed when they see a home that has a description of 8 bedrooms and 4 baths only to do a drive-by and find out that it is a 4 unit rental property.

Other homes are described as needing some TLC.  Instead they find that the TLC means "Think Loads of Cash"!  I showed a wonderful home today.  The curb appeal was very nice.   It sported a new roof too!  We walked in and the home reeked of pets.   The original roof had leaked for months or years before a new roof had been put in place,  the plaster was on the floors.  It was in sad shape.  What a disaster for such a nice neighborhood.

The buyer looked at the repairs and felt he could do most of them himself.  He estimated the cost of materials on the spot.  I was amazed at how quickly the spouted numbers and costs.

I had to ask....how do you know the costs so quickly?  He says, " it's easy, I went to Menard's and wrote down the cost for drywall, lumber per 8 foot lengths and light fixtures."  So I asked the next obvious question, "have you had much experience with building and remodeling?"  NO, he said, "I plan on buying a book so I understand the fundamentals and should be fine. "

I moved on without comment.  He seemed to have a wide array of knowledge or a bunch of cash.

Knowing your costs of materials is one thing, making the repairs is quite another.  I find that many people under estimate the cost of repairs.  Other like my buyer jump into projects and then have to hire a professional to come and finish what they started.

Make sure you get a professional to quote your repairs even if you plan on doing them yourself.  This way you have a good handle on your future costs. 

This allows you to make bids for homes based on facts and you can be assured your estimates are going to be close.  The last thing you will want to do is buy a money pit because you didn't take all the costs into consideration.

Hope this helps you consider your costs with your next foreclosure or HUD home bid.

If you live in the Grand Rapids or the West Michigan area, are not under contract and would like to sell or buy a home....give me a call.  It could save you thousands in your next real estate transaction.  FlexIt Realty designs selling and buying programs to meet our clients' needs.  Your call is always confidential and you are never pressured.

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Call Toll Free:  877-667-4699     Local: 616-784-2360     Email: garywhite@FlexItRealty.com