By Dave Parrish, ABR ®, CRS, CSP, GRI, ePRO ®, REALTOR ®, RE/MAX MarketPlace
I do want to make it clear from the outset that I not only understand but very much appreciate the difficulty in finding the right home. At the same time, I know that no home is prefect. There are so many factors to consider: location, school zone, neighborhood/neighbors… are chief among those critical factors that really must be met, as they are difficult if not impossible to change. Overlooking any of these items is a recipe for disaster… my d really like this house, but…”
Now those objections can be of all types and levels of severity. I’ve heard buyers say: “I like this house but I can’t stand those green velvet drapes or that red couch!!” I understand… everybody’s taste is different… But the red couch is not staying; it’s going with the Seller to their new home. And, we can take down those green velvet drapes and replace them with something more to your taste. What would you rather see covering those windows, if this was your home?
Of course other objections may be more consequential. For example, a recent client was really concerned over the thirty-one year old AC. Certainly an understandable concern. Was that a showstopper? I negotiated its replacement and few other repairs as well.
But not every issue can be negotiated in this manner (where the Seller takes care of the issue). There are those foreclosed properties, short sales and other properties being sold-as-is where the seller will really do nothing other than perhaps address a few lender required repairs. What about those properties that if it weren’t for this or that issue or perhaps a much longer list of issues would really meet the buyers’ needs and desires. There is yet another possibility: A Renovation Loan.
So what is a renovation loan? While called by different names, such as 203(k) the FHA Renovation Loan or HomeStyle (the FannieMae Renovation Loan), both are mortgage products offered by many but not all lenders that provide homeowners the ability to obtain funds to renovate a property. These loans are available to both prospective purchasers, as their home purchase mortgage, and to existing homeowners through the re-finance process.
Make no mistake about it, there are additional rules and requirements associated with renovation loans but they are worth strong consideration for those homes that where you may be saying “I like this home, but…” Ask your Realtor ® to explain the option in more detail to see if this is a tool that helps you make that home work for you and your family. After al that’s our job… to help you solve problems.
May the market be with you…. And may all of your dreams be realized.