Monday, October 03, 2011

Home buying tips: Gauging repairs, renovations key to foreclosure deal

Jon Hill, General Contractor and owner, of Artistic Construction consults one of our buyer clients on flooring repairs. He's purchasing a bank owned single family home (foreclosure) in Roscoe Village.

Many buyers are attracted to foreclosure and short-sale house listings as studies have shown they can sell for an average of 20-30% less than non distressed properties.

With the discount comes great uncertainty. So first, Bob and I help gauge if a home will meet our clients expectation and capacity for risk and rehab. We are experienced home owners in Chicago and have been through many of our own personal purchase and renovation properties, not to mention our client deals.

Secondly we work with several long time trusted contractors that help our clients understand the task at hand. We bring people in during attorney approval to help clients ball-park repair and renovation costs. Many times one must take a leap of faith to get a great deal on a foreclosure or short-sale knowing work must be done..our instincts and contractors will help take out the mystery!  Our goal is to be "all-in" for an acceptable price and repair cost to the buyer.

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