Image via Wikipedia

HELLOOOOOO…. MY Wonderful, Beautiful, Wet and Cold Bay Area!!… Today we have a Q and A for you… check it out… (Send me your questions anytime…)

QUESTION… In today’s environment (February 2011) can one purchase a home with 10% down, credit score of 740, $200,000 income and a short sale in 2009?

Asked by Donsfan – Home Buyer in Oakland – Home Buying

ANSWER… Hello… As you must know the current market is not exactly a wonderful one to be in… one would think its very much to the advantage of the buyers to be able to buy lower than ever before… because of all the challenges in the lending process these days and because of all of its ever changing requirements it can be a huge headache to maneuver through… I suggest that you connect up with a realtor who has some years of experience to counsel and guide you through what can and cannot be done… Good Luck to you… Isi

Related articles

• How first-time buyers can get on the property ladder (telegraph.co.uk)
• Short Sales, Foreclosure and Your Credit Score (creditscore.net)

HELLLLOOOOOO My Beautiful, Wonderful Bay Area!!… Its a gorgeous day today…  hope you’re out there enjoying it!… Wanted to share some food for thought for all you 

First Time Home Buyers out there…  

First Time Home Buyers – so excited, filled with anticipation and hope for the future… the first homes you see may well be foreclosed properties – terrible carpeting, damaged walls, missing items, various aromas inside the house… the excitement and hope may begin to fade…

All of a sudden your dream home appears!!… Brand new kitchen, remodeled bathrooms, new paint, new flooring, new windows… its perfect!!… It’s the only one you want… no way will you consider those awful foreclosed/distressed homes!… its too good to be true!!…

Your Realtor informs you it’s a “Flip”…  what the heck is a “Flip” you ask?… A flip is a property purchased by an investor at a discounted price, either on the courthouse steps or some other means… the investor “Flipper” will usually send in a crew to upgrade and improve the home before putting it back on the market for a profit.  The upgrades usually include new paint, new flooring, new kitchen cabinets, new counters, new appliances, new dual pane windows, new hot water heater, a new roof and more…

The drawback is… permits are required for many of the upgrades, and in many cases the “Flippers” don’t bother.

Whenever improvements are made without the necessary permits its creates a real problem. Permits are required for almost every kind of home improvement.

When a buyer purchases a home without the required permits, they become liable for bringing the home to compliance.  This is the problem… time is money, to make a profit “Flippers” must get the home improved and back on the market asap.  Obtaining permits can take more time and delays and more money.

Since the “flippers” buy properties “as is” they inherit the pre-existing improvements – many without permits.  They really should get these properties into compliance with the local building departments BEFORE doing anymore additional work and re-selling.  Its safe to say this isn’t happening in most cases.

In Summary…

The Good?  Flippers are upgrading homes and improving neighborhoods.

The Bad? Shortcuts. Buyers should check city records for permits… None? Ask the seller to provide them.

The Ugly?  Not all flippers do good work. Some just paint over issues and hide problems to turn a quick profit. There’s no guarantee all improvements were installed properly and safely.

Make sure you get a proper home inspection so you know what you’re getting into. BUYER BEWARE!..

Thanks for checking in!! Your comments are always welcome…

Isi

Isi Wu… the realtor for you…
the right agent makes all the difference

Serving Clients All Over the Eastbay…

Related articles

• House Flippers: The Forgotten “Victims” Of The Real Estate Implosion (247wallst.com)