Most people who are looking for a home don't consider renovating an ugly house. However, a niche of investors buy these houses, renovate them, and sell them to home owners. I'm lucky enough to know a few of these investors who do an outstanding job bringing homes back to life!
This can also be a great opportunity for buyers looking for a personal home. Recently, I had a client looking for a house in Kirkwood. I had just helped an investor buy a house in the area, and I knew that the finished product is exactly what my other client wanted. However, it needed a complete renovation!
It took some imagination to see the potential in the house, but the buyer was able to do so. We worked out a deal before the renovation was even completed. This gives the buyer the opportunity to pick out custom finishes once the home is under contract. The buyer moved in over Thanksgiving, and all parties are thrilled with how it turned out. Below are some before and after pictures of the home.
Before After
Justin Landis
Keller Williams Realty Peachtree Road
office 404.419.3660
cell 404.803.0471
fax 404.704.0686
justin.landis@kw.com
www.justinatlantahomes.com
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Monday, November 30, 2009
Wednesday, November 18, 2009
10 Offers on 1 Foreclosure
Being a Realtor, the thing I hear constantly from prospective buyers is "I want to look at foreclosures." Everybody seems to be looking for that foreclosed home that is at the perfect price and needs next to no updates to be a great, move-in ready home. Buying this home is easier said than done. People sometimes fail to realize that: 1) This home isn't always easy to find and 2) buying a foreclosure is more involved than buying a move-in ready home, even with no renovations. Recently I was able to help a client find and buy such a house, but not without a few small hurdles of course.
I had been looking for a home with this particular client for several weeks. We had been in a lot of homes, narrowed down an area, and knew what we were looking for, we were just waiting for the house. One Thursday morning a great house came on the market in one of my favorite neighborhoods: Jefferson Park. The best part - it was priced approximately 40% below market value. The worst part - it was a foreclosure and we knew we had to act fast. My client was able to go by the house during lunch, and we submitted a full price offer that afternoon.
The next day we got a call from the listing agent, and there were 10 offers on the table! We discussed what we thought the house was worth and put together our highest and best offer. Sure enough, 48 hours later, we were under contract!
With foreclosures, the inspection is what can make or break the purchasing decision. Fortunately, this inspection came back great, except for one thing. We were unable to inspect the plumbing because the water had been turned off. After meeting the water company there not once but twice, (and getting water all over the kitchen floor both times due to a refrigerator valve that would not shut off) we got the plumbing inspected and everything came out great.
And because this client chose to use our recommended vendors for the inspection, mortgage, and closing- the rest of the process was smooth sailing. Today, they call that move-in ready foreclosure that they bought at a great price their home.
Buying a foreclosure isn't nearly as easy as those infomercials make it sound, but with a little patience and guidance it is possible to navigate the process!
I had been looking for a home with this particular client for several weeks. We had been in a lot of homes, narrowed down an area, and knew what we were looking for, we were just waiting for the house. One Thursday morning a great house came on the market in one of my favorite neighborhoods: Jefferson Park. The best part - it was priced approximately 40% below market value. The worst part - it was a foreclosure and we knew we had to act fast. My client was able to go by the house during lunch, and we submitted a full price offer that afternoon.
The next day we got a call from the listing agent, and there were 10 offers on the table! We discussed what we thought the house was worth and put together our highest and best offer. Sure enough, 48 hours later, we were under contract!
With foreclosures, the inspection is what can make or break the purchasing decision. Fortunately, this inspection came back great, except for one thing. We were unable to inspect the plumbing because the water had been turned off. After meeting the water company there not once but twice, (and getting water all over the kitchen floor both times due to a refrigerator valve that would not shut off) we got the plumbing inspected and everything came out great.
And because this client chose to use our recommended vendors for the inspection, mortgage, and closing- the rest of the process was smooth sailing. Today, they call that move-in ready foreclosure that they bought at a great price their home.
Buying a foreclosure isn't nearly as easy as those infomercials make it sound, but with a little patience and guidance it is possible to navigate the process!
Monday, November 9, 2009
Homebuyer Tax Credit Has Been Extended!
On November 6, 2009, President Obama signed a bill to extend the tax credit for first-time homebuyers (FTHBs) through June 30, 2010. The bill also opens up opportunities for some current homeowners as well.
First-Time Homebuyers (FTHBs): First-time homebuyers (that is, people who have not owned a home within the last three years) may be eligible for the tax credit. The credit for FTHBs is 10% of the purchase price of the home, with a maximum available credit of $8,000 Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.
Current Owners: The tax credit program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.
Deadline: In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010.
Income Caps: Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible. Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.
Max Purchase Price: $800,000
What is a Tax Credit? A tax credit is a direct reduction in tax liability owed by an individual to the Internal Revenue Service (IRS). In the event no taxes are owed, the IRS will issue a check for the amount of the tax credit an individual is owed. Unlike the tax credit that existed in 2008, this credit does not require repayment unless the home, at any time in the first 36 months of ownership, is no longer an individual's primary residence.
To learn more about the tax credit or to start looking for your first home, contact Justin Landis today.
Justin Landis
Keller Williams Realty Peachtree Road
office 404.419.3660
cell 404.803.0471
fax 404.704.0686
justin.landis@kw.com
First-Time Homebuyers (FTHBs): First-time homebuyers (that is, people who have not owned a home within the last three years) may be eligible for the tax credit. The credit for FTHBs is 10% of the purchase price of the home, with a maximum available credit of $8,000 Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.
Current Owners: The tax credit program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.
Deadline: In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010.
Income Caps: Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible. Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.
Max Purchase Price: $800,000
What is a Tax Credit? A tax credit is a direct reduction in tax liability owed by an individual to the Internal Revenue Service (IRS). In the event no taxes are owed, the IRS will issue a check for the amount of the tax credit an individual is owed. Unlike the tax credit that existed in 2008, this credit does not require repayment unless the home, at any time in the first 36 months of ownership, is no longer an individual's primary residence.
To learn more about the tax credit or to start looking for your first home, contact Justin Landis today.
Justin Landis
Keller Williams Realty Peachtree Road
office 404.419.3660
cell 404.803.0471
fax 404.704.0686
justin.landis@kw.com
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