May
1
Keep this in mind when you see a $45,000 property
Posted by Sandra Jeter under For Buyers, General Information
I have received multiple phone calls from potential buyers that sound something like this.
“ I am calling on the home located at 111 South Street. I really would like to see it as soon as possible. It is listed for $45,000 and I am really interested”
Me: ” Have you been pre-qualified?”
Caller: ” No I have not talked to any lender but this home is cheap and I think I really can afford it. My credit isn’t that good but the home is cheap and I should be fine”
And here is what I am thinking: The average home price in Fremont County is somewhere in the neighborhood of $145,000, any house listed for $45,000 will need work, I can tell you that for certain. Let’s assume a potential buyer will qualify for a loan the property will most likely not qualify for the loan and I am talking low down loans here. Some lenders don’t lend below $60,000 and properties just like buyers will have to “live up to certain standards” for a bank to lend on. If they do not meet the banks requirements, no loan will be available. When I see a $45,000 listing I am thinking about a legitament Fix and Flip and not about a purchase with immediate occupancy.
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