95% of Gainesville REOs Need Repair
95% of Gainesville REOs Need Repair Investors rush into the banks to buy foreclosed homes in Gainesville and lease them, expecting better returns than other investments. But experts warn investors to be careful they don’t risk their money in buying badly shaped foreclosed homes and end up taking more than they can actually handle.
This is due to the fact that about 95% of these homes need serious rectification, and some are even unsuitable for rentals.
Re-construction, renovation, or rectification becomes a necessity in this case. The quality and the total cost incurred for this rehabilitation can continue to become beneficial or it can exceed its initial cost of work completion.
Why do you ask are some Gainesville homes for sale seem to be great deals but are not?
REO lenders selling homes in Gainesville would fair much better in moving the property quickly and for a higher sales price if they would complete at least the basics. Cleanup, carpet, paint, and make sure the ac, plumbing and electric are in good working order.
Say its plumbing system runs on a cheap piping and materials, with a cheap cost comes a compromised quality. This scenario can result in higher maintenance costs over time, and it can also affect the exit pricing.
It is estimated that the renovation cost is about 25% of the purchase price. So investors must consider their attention in rehabilitation and the additional budget that comes with it before making another trip to the bank.
The Gainesville home for sale does not have to be modernized, however making these necessary fixes will preserve neighborhood values and move the properties much faster.
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Please seek legal advice. This information is for informational purposes only.
Contact Stephanie Anson, CLHMS, CDPE, SFR, Realtor®, Anson Properties LLC. Licensed Realtors® in Florida at 352-260-0153 to list your property for sale or to purchase a property in Gainesville, Archer, Alachua, High Springs, Waldo, Keystone Heights, Hawthorne, Melrose, Cross Creek, LaCrosse, Williston, Earlton, Ocala, Micanopy, Newberry, Kanapaha, Haile Plantation, Duck Pond and the rest of Alachua County Florida, Orange County Florida and Seminole County Florida. We are accepting referrals. Gainesville Short Sale Agents