See the September 2019 South Bay Area Real Estate Market Intelligence Report… Here
Jack McSweeney – REMAX Estate Properties – DRE#01027223
310 346-0391
Interest Rates are near record lows!
Interest Rates are near record lows!
I just wanted everyone to know that a client of mine just locked in an interest rate of 3.46% with no fee’s and no appraisal needed on his 30 yr fixed Refi.
Note, he does have a lot of equity and an 800+ Fico. If you want the name an contact info of his lender, call me.
Jack (310 346-0391
Buying a Flipped Home? Here’s What You Need to Know
House flipping is when an investor purchases a property (typically an older home), renovates it and then sells it for a higher price. Renovated homes often offer some great updates and modern features, and most house flippers do high-quality work.
If you’re thinking about buying a house that’s recently been flipped, though, keep the following considerations in mind:
The history
Find out as much information about the property’s history as you can. You can check local records and ask questions. How old is the property? What kind of condition was it in before it got flipped? Exactly what type of renovations have been done to it? Your real estate agent can work to help get you answers.
The flipper
Many investors, known as “serial flippers,” buy multiple homes and flip them in quick succession. If you’re dealing with a serial flipper, check out any homes the investor has fixed up in the past. How does the previous work look? Were the buyers of those homes satisfied? Conversely, if this is the flipper’s first project, be cautious about possible mistakes made through inexperience. If the flipper is a company, check the consumer protection department and Better Business Bureau for complaints against the firm.
The permits
Structural changes are common in flipped houses. If any were made, verify that the work was properly permitted and that all the necessary inspections were done. You want to ensure any house you buy is up to code and safe for your family.
The quality of renovation
As with any potential home purchase, be sure to get a proper inspection of the property. Have the inspector pay special attention to the home’s structure or any recent changes. Although many house flippers are extremely talented renovators, some cut corners and take shortcuts to flip the home faster. Make sure everything is sound so you don’t stumble upon a problem post-sale. If you can’t have an inspection until you’ve made an offer, make sure to include a contingency clause enabling you to walk away if the inspection shows a critical issue.
Plumbing, heating and AC
Because many flippers don’t live in the homes while working on them, their systems may not have been used, and issues may go unnoticed or unnamed. Does the AC work? How about the plumbing? Are there any leaks? Be sure to check thoroughly.
Ultimately, by doing due diligence, getting an inspection and working with a real estate agent, you can rest assured that a newly flipped house is in tip-top shape and ready to become your home.
Costs to Estimate Before Buying a Fixer-Upper
Buying a house that needs some work and turning it from a fixer-upper into a home can be daunting. A lot of effort is ahead, requiring potential buyers to determine their skills, budget and schedule to get the job done.
Here are some ways to determine the true costs of a fixer-upper:
Start With a List
Either by yourself or with a contractor or home inspector by your side, go through the house room by room and write down what needs fixing. Many problems won’t be visible to the naked eye, so a professional inspector can help by testing to see if there are hazards such as mold, radon or lead paint.
The inspector should also look for possible structural problems. These can include foundation damage, major plumbing or electrical problems, an inefficient HVAC system, termite damage or even a damaged roof. Any of these major issues might be enough to convince you to walk away.
What Can You DIY?
If you have the time and the skills required, you can do some of the home improvement projects yourself and save money. Leave the hard and potentially dangerous work to the pros, but maybe you have experience hanging cabinets, repairing walls, building decks, tiling, painting or completing other low-impact projects.
Estimating Costs
Repair costs vary by where you live. For a ballpark estimate of home repairs in your area, go to HomeAdvisor.com and enter your zip code and the job you want done.
You can also ask friends and neighbors how much they paid for similar work, or have contractors go through the house and give you estimates, which should be provided in writing. If you’re doing any work yourself, shop at your local hardware store to see how much supplies will cost.
Finally, add 10 to 20 percent to the total estimate as a buffer in case problems pop up.
Other Costs
Your city government may require a permit to allow work on your home to proceed. These can be costly, sometimes as much as 1 percent of the total repair cost.
Another cost is financing. If you don’t have the money up front to pay for repairing a fixer-upper, you may need a bank loan, a few credit cards or an FHA 203k loan from the Federal Housing Administration that combines a home purchase loan with a home improvement loan.
If the cost estimate falls within your budget and you’re up for all the hard work, buying that fixer-upper could be right for you.
Pros and Cons of Downsizing
If you’re overwhelmed by the cost of your mortgage or the amount of time you spend cleaning and maintaining your home, or if your kids have moved out and you have more space than you need, you may be thinking about downsizing. While there are many advantages associated with moving to a smaller house, there are some potential disadvantages you need to be aware of before making a final decision.
Reasons to Downsize
Most people who downsize do so to save money. There is no reason to make high monthly mortgage payments for a house with rooms that sit empty. Moving to a smaller home can help you dramatically lower your mortgage payments and save money each month. A smaller house will also likely have much lower utility bills. The money you save can be used to invest for retirement, take vacations, pursue a hobby or help others in need.
Downsizing can save you time. Fewer rooms means less cleaning. If you move to an apartment or condo, your landlord or management company will likely handle maintenance, landscaping and repairs, which can save you even more time.
If your current home is cluttered with possessions you have accumulated over the years, downsizing will force you to get rid of things you no longer need and to become better organized. If you often spend too much money on new clothing and household items, you’ll be less likely to do that if you move to a smaller home because you simply won’t have enough space to store them.
Downsides to Consider
If you enjoy hosting parties or large holiday gatherings, you won’t be able to do that as comfortably in a smaller house. Think about whether that is a change you and your family would feel comfortable making.
Some people find a smaller home cozy, but others feel cramped. Downsizing generally means having significantly less storage space. That means you’ll need to eliminate unneeded possessions and buy less when you go shopping. You can save space by using furniture with built-in storage and digitizing important documents, photos and even your music collection. Even if you prefer the greater simplicity and organization of a smaller space, it will still take time to get used to the change.
Many people take pride in having a large and impressive home. If that’s important to you, you may feel a loss of prestige if you downsize. Even if your family and friends love your new house, you may be tempted to compare your home to theirs and experience negative feelings.
Is Downsizing Right for You?
Moving to a smaller home is an excellent way to save money and to simplify and organize your life. Downsizing is also a major adjustment. Before you make the decision to find a smaller home, think about the many ways in which your life would change—and consider how you and other members of your family would feel about your new lifestyle. If you decide that downsizing is right for you, it can be the beginning of a rewarding new life.
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