Lately I have found myself captivated with quite a few different property shows. I have been watching shows about people trying to sell their existing house, other shows about people looking to buy a new property to call home, and quite a few different types of renovation shows. I’m not sure why I am so fascinated by these shows, but I am, and I have been learning quite a bit about the ins and outs of the various stages of buying, selling and renovating a property.
For instance, I have learned quite a bit about how a house should be decorated when you want to sell, and what you should look for as a prospective buyer. One thing that stood out on one of the shows I watched on the weekend was just how expensive purchasing a new house can be when you get emotionally attached, rather than seeing it as either an investment or a place to live. This one couple ended up going over budget by 100K at an auction just because they really wanted this one place close to the city which they both instantly fell in love with as soon as they saw it.
One of the common themes throughout most of the property shows that I watch, is that there is normally some form of renovation work that needs to take place. Quite often someone is struggling to sell their property and so they get an expert team to come in and help them. The outcome of this expert help is often that the sellers need to fork out some money to do up a few of the eye sores around the house. The reason for this is that it can scare away buyers and that is exactly what you don’t want when trying to make a sale. Sometimes these renovations can cost between 10-20K and many sellers just don’t have that kind of money available in their bank accounts. Fortunately there are plenty of 203k mortgage facilities that are available for people who are looking to renovate or upgrade their home. One thing I have found interesting, is that after the renovations are complete, many of the property owners no longer want to sell as the house now looks like a million bucks.
On one of the American programs that I recently watched, there were a few guys that were buying and selling foreclosed homes. They would snap up a bargain property and renovate it to make it look brand new. Once the renovations were complete, they would sell it for a massive profit. In the most recent one of these I saw, the guys bought a place for just over $130K and sold it for $180K 6 weeks later. In total they only spent 15K on upgrades to the house, but it did look WAY better. I don’t know about you, but I would take 35K profit in 6 weeks in a heartbeat!
Obviously to be able to purchase a foreclosed home and turn it into a profit, you will need to have some capital to start with. That is where Homepath financing can be a great option for people who need some financial assistance to buy a property. For those of you who don’t know what the HomePath program is all about – The HomePath program was created by Fannie Mae to offer foreclosed homes directly to qualified buyers. So I could see this as being a great option for people looking to get into the property market on the cheap via foreclosures.
Do you have any experience with buying, selling or renovating a house? What has been the best experience you’ve had? For me personally I have only ever bought a house and I have no experience with renovations or selling a property.