Marion And D…, Home Buyer in Thomson, GA

When can you tell if a home is worth being renovate? Is it worth the time and money? Will it be worth me just getting one already for the move in?

Asked by Marion And Dana Few, Thomson, GA Sun Jul 17, 2011

I am interested in buying a home for the family. We are currently renting right now. I need to know the above question.

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3
Marion and Dana, I am assuming you will need mortgage financing and, if so, the property must be habitable at the time of closing. The only real possibility of buying a property to renovate (other than with cash) is using the FHA 203K loan. The good news is that the first step of using this program is meeting with a mortgage professional experienced in the program and the FHA consultant who will help you determine what needs to be done and what you want to improve.

Once the work orders are completed and you are credit approved for the loan all of the information is given to an appraiser and he/she will determine value after all of the renovation is completed. In other words, you will know it is "worth it" before you buy because the lender will not approve financing unless the project improves the value enough to justify the loan.

Buying a property with the idea of doing the renovations yourself can really turn into a nightmare and be a total money pit (never ending costs). I would not recommend that course of action for the faint of heart. Best of luck to you.
0 votes Thank Flag Link Wed Jul 20, 2011
Hello Marion and Dana:
Generally sizing up a house for renovation involves at least two people - one familiar with materials costs and labor costs, and another person - usually a real estate professional - familiar with the market the house is located in. I have to back up Mack on this one.

You should let someone else take that deal and shop for something that doesn't need much work.

Best regards,
SuZ
PML of Longmont, CO
0 votes Thank Flag Link Sun Jul 17, 2011
If you are not a tradesperson, or experienced in renovations, I suggest that you don't learn on the most expensive item you've ever owned. Buy something move-in ready, or very close.

All the best,
0 votes Thank Flag Link Sun Jul 17, 2011
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