I still chuckle when I see marquee signs on Real Estate companies that say things like, “87 homes under $100,000 – Stop In For A List”. I chuckle not because they provide the list, but because the numbers can change by the day, even by the hour. New listings are coming on to the market constantly. Agents can enter new listings into the MLS 24 hours a day. And of course homes that have just gone under contract will fall off the list, too. If you're working from a list prepared two weeks ago - good luck!
But I recognize that it is a popular price range, so I thought I’d do some research as of exactly 06:52 this morning, on Tuesday, July 26, 2011. Here’s what I found.
In Livingston County there are 135 single family residences (SFRs), or detached homes, for sale in this price range. The lowest is $19,500. Located in Unadilla Twp in the southwestern corner of the County, the MLS remarks say it is not habitable and is just a shell. It was built in 1900 and is 1000 sq ft in size on a 100 x 131 ft lot.
There are also 42 condominiums for sale in this economical price range. The lowest priced is in Hidden Harbors on Green Willow St., just off Grand River across from Meijer’s in Brighton, listed at $23,900. They are smaller units in a ‘stacked’ configuration, like an apartment building.
First time home buyers looking at the low end of the housing spectrum should consider a couple of things before they start to look. First, the lower the price, the more likely it is that the house will need significant dollars to repair, even if it you can do it yourself. So when you get pre-approved (I recommend you do this before you ever look at a house), talk to your loan rep about rehab loans. If you qualify for FHA financing, there are FHA rehab programs out there, the 203K and the 203 Streamline.
The likelihood of needing repairs is quite likely and sometimes you can do repairs yourself, other times you must hire a contractor. Be prepared.
Condos are sometimes in better condition because the Condo Owners Association maintains the exterior and grounds, but occasionally there is significant interior work to be done. You also have to find out if the condo community is FHA certified. Your loan rep or Real Estate agent can do that for you. If you have to go FHA financing, there’s no point in looking in communities that aren’t FHA certified.
Investors with cash are definitely the ‘king’ for choices in the low end of the housing spectrum. They are often quite astute with estimating repair costs and they can quickly qualify or disqualify a property for their model of either renting and holding or repairing and selling. When estimating your budget, don’t forget about property taxes, homeowner association fees and maintenance. It’s always good to be able to have six months of rent in reserve for repairs and emergencies, too.
If you’re thinking about a low priced property, work with an experienced agent. I’d be happy to talk to you about your plans and formulate a search just for you.
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