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Should Fannie Be In the Renovation Business

By
Real Estate Appraiser with Michael S. Bolton,Inc.

I’ve been hearing more and more about how Fannie Mae has been renovating some of their REO properties. My first thought was that this is surely going to be another boondoggle; being that I don’t really trust anything the government has done regarding housing.

 

I ran across this video about Fannie Mae’s renovation program, and the success they say they’re having with it. If their cost is only averaging $5,700 per house in renovations, then I have to admit this might be money well spent.


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Comments (6)

John Pusa
Glendale, CA

Micheal - Thank you for sharing detailed quality information on should Fannie be in the renovation business.

Dec 29, 2011 03:18 PM
Michael S. Bolton
Michael S. Bolton,Inc. - Zimmerman, MN
MN Appraiser

You're welcome John!

Dec 29, 2011 09:56 PM
Lloyd Binen
Certified Realty Services - Saratoga, CA
Silicon Valley Realtor since 1976; 408-373-4411

Hey Michael,

I share your skepticism about the government's ability to do large projects well.  But, I do think cleaning, painting, installing new floor and window coverings will at least pay for themselves even if the government spends twice what a private party would.  The Realtor's time coordinating and supervising the projects is included in the commission expense, so the feds are not paying extra for that.  And the Realtor is happy to get the REO business which always close.

I meet with a MN guy last night.  An early hire at FB!

Dec 30, 2011 08:09 AM
Michael S. Bolton
Michael S. Bolton,Inc. - Zimmerman, MN
MN Appraiser

Lloyd, I didn't realize that the agents had to organize everything. It seems to be a win-win for everyone, I guess time will tell. I bet the guy you met is enjoying the nice weather you have there. Have a great 2012!

Have an AWESOME evening!

 

 

Dec 30, 2011 11:30 AM
Roy Kelley
Retired - Gaithersburg, MD

Thanks for sharing the video.  Yes, they should be restoring the properties to good condition before putting them on the market.  Although many buyers are willing to purchase fix-up properties, most will not.

Have a wonderful weekend.

Happy Holidays!  Happy New Year!

Longwood Gardens IMG_2193

Photographs by Roy Kelley.  Canon PowerShot G11 camera.

Roy and Dolores Kelley Photographs

Dec 30, 2011 01:10 PM
Not a real person
San Diego, CA

Best wishes
for health, happiness, peace, and prosperity
in the new year and beyond!

Happy New Year!

Dec 31, 2011 10:55 PM