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Nyu, Home Buyer in Virginia

Hello All, I'm looking for some advice regarding a house my husband and I have just "inherited." My mother-in-law passed away

Asked by Nyu, Virginia Tue Feb 23, 2010

recently and my husband and I are essentially the owner's of her house in a very desirable area of NJ. The house is paid off in full (no liens) and just property taxes due quarterly. The problem is the cosmetic condition of the house - it is in need of A LOT of interior work. The property is structurally sound. We have already put in quite a bit of sweat-equity. The kitchen and 1.5 baths must be renovated and we have a very reasonable estimate for the work, but my husband and I are not able to put out the money needed.
Are there are "tricks to the trade" of taking out a loan to do the work. Lending is so tight right now and I was wondering if anyone has been in this similar situation recently and if you could shed some light on the process. It has to be a conventioal home loan, correct? HEL and HELOC's are out b/c it is not our primary residence.

Thank you!

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Answers

3
You could possibly take a Home Equity on your primary home if you have enough equity. the Market in Peapack is good asI know if alot of people who find the character and charm of the old town feel appealing and the fact that there is a Midtown direct train line doesn't hurt. My suggestion to you would be to price it as is and let any potential buyers know what your estimates are for the repairs/improvements. I actually have a client who is looking for an older colonial in peapack but right now there is not much on the market. In any town today it boils down to price. If you would be interest in a market analysis I would be more than happy to help. My office is right up the road in Chester. My suggestion would be make it an "As Is " sale and price it accordingly.

Good Luck!!

Denise Gueterman Weichert Realtors 142 Main Street Chester, NJ 07930
908-879-7010 OFFICE 908-303-2472 CELL denisegueterman@hotmail.com EMAIL
0 votes Thank Flag Link Tue Feb 23, 2010
Nyu,
I used to live in Pepack so I know the area well. Are you renovating to sell, to rent or to live in? You may look into an FHA 203 K loan which is designed for renovation but is usually done for a purchase. I would check with a national lender such as Wells Fargo, Chase and see if they have a program that fits your situation. The guidelines for lending change often. I can recommend two local loan officers as well if you need help.
Mark's comment should be considered too. Is the investment into the house for the renovation going to get you more out especially if you are doing it to sell the house. An agent like myself who is familiar with the area can help tell you what is the most profitable way to go. Good luck and let me know if you need my assistance
Don Hansen
Certified Residential Broker
Broker/Owner
Century 21 New Beginnings Realty
908-647-2000
0 votes Thank Flag Link Tue Feb 23, 2010
Hi Nyu,

I would do just what is needed to sell it. Paint, cleaning, window washing etc. Fully renovating the kitchen and baths is probably not cost effective in terms of getting your money back. As long as the kitchen and baths are functional and not utterly disgusting, consider selling it as-is, but really go to town on cheaper things like paint and carpet.

You might want to have a couple of us (Realtors) out to evaluate the necessity and cost-effectiveness of doing a renovation. It may not be necessary in an area like Peapack. Also, keep in mind that if you are going to put in a new kitchen, a buyer in that area is going to expect top-of-the-line: granite, Silestone, maple, porcelain tile, etc. If you do less, you might actually lose money on the renovation.

If you have further questions or would like a consult, contact me privately.

Good luck!

Marc Paolella
Relocation Director/Appraiser
Century 21 Joe Tekula Realtors
Phone (direct): (973) 584-4235
Web: http://www.marcpaolella.com
0 votes Thank Flag Link Tue Feb 23, 2010
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