For an updated list of FHA approved condos in Providence, RI see http://homebuyerwise.com/FHA-Approved-Condos/city/Providence-RI_23839. This link is available nights and weekends unlike the HUD site. You can also search for nearby cities... more
It really depends on many other personal preferences and factors unique to you. Are you planning to grow your family with children in the near future? Condo living can be difficult with young children. Common grounds/yard within the typical condo complex are very limited and not as much an option when the kids want to go in and out to play. North Providence has a "Homestead Exemption" Tax break of 20% on your property taxes IF you are an owner occupant, you may want to compare that to similar valued properties in Providence or East Providence. There are ALOT of condominium developments in North Providence....I happen to sit on the Condo Board of one of them of which is greatly regarded as one of the most well kept, efficient, and "healthy" developments. You just want to be sure what kind of financial shape a condo development is in before YOU buy into it. Find out the percentage of units that are currently rented out versus owner occupants, a solid and stable development should have a very low percentage of rented units. Another thing to consider with a condo/townhouse versus a single family home is that it is usually pretty difficult to find the right condo for you AND have a garage for your vehicles! A singe family home will yield more of a normal privacy level for you than living in a condo complex where your unit will be right up against your neighbors. Common annoyances due to "closer quarters" in a condo complex are something to always consider too...(ie: noise, pets if allowed, visitor parkings, neighbors smoking, etc...). Alot to think about!!!... more
start now: many sellers are putting their houses on the market now to sell this year. the risk of waiting too long is that your house gets bought by someone else. If you don't find something now, you'll know the market well by the time you're ready to purchase and move.
you also might be able to find something now/soon; make an offer with a far away close date and a pre-qual (different from a pre-approval) as proof of funds/financing and come to agreement. some sellers might appreciate knowing their house is in agreement and that they have the summer to stay there. If you were to do this, I recommend extending the inspection period as well as mortgage contingency until it's closer time to close.
the other option is to find something, close this spring and leaseback to the seller until you're ready to move out. you could leaseback at the amount of your monthly payments or whatever is fair. the struggle on this option will be to get owner occupied financing when you do intend to leaseback for a couple months.
but with a creative mortgage broker, it seems doable.
Good Luck with the process. Have fun with it ;)... more
This is a very pertinent question and a topic that anyone involved in todayâ€™s real estate market should understand. A couple of insights from working through many short sales in the Rhode Island market:
1. Short sales are not inherently good or bad. They serve as a market making tool (albeit a cumbersome and bureaucratic tool) to be used when the current value of the house no longer covers the value of the outstanding loan(s) secured by it. The key for both buyers and sellers is to help the lender(s) come to the conclusion that an accepting a given offer is a better business decision than the alternatives, such as foreclosure. This means much more analytical and detailed communications than a â€œtypicalâ€ home and requires a Realtor who understands the financial interests of all parties involved and can facilitate communicating the business case without crossing ethical or legal boundaries. Make sure the Realtor you are working with is prepared to make this level of effort and has the necessary background.
2. Not all short sales are equal:
When considering making a short sale offer as a buyer, find out if the seller has already received â€œbank approvalâ€ for a price named in an earlier offer. As discussed in earlier posts, it can take 4-6 months or more to get this decision from the lender(s), but if they have already completed the analysis in response to an earlier offer that did not close for some other reason, then the most lengthy part of the short sale process has already passed and you may be able to close in the typical 30-60 days.
Second, ask if there is more than one lender involved due to a second mortgage or home equity loan on the house. Two lenders make the process more than twice as difficult because they must each decide to accept the offer and they need to decide between them how much each will get.
If you are interested in the real estate market in Newport and southern RI, visit my website for additional information and feel free to contact me via Trulia.
Happy House Hunting!
Re/Max of Newport
55 Memorial Blvd., Newport, RI 02840
401-849-9859 fax... more
Oftentimes short sales are by no means fast sales--some banks are faster than others and there are no set standards of time, unless it was already preapproved by the lender; paying the list price unfortunately has no bearing on the time frame. Do make sure that you are aware of recently sold similar properties in the immediate area and determine if it's a fair offer--sometimes properties are priced on target for today's market or slightly below, then the possibility of multiple offers may come to play--your agent can advise you best.... more