Many people wanting to buy their first house wish to jump to their dream house while at the same time, they do not have enough of a down payment to accommodate the purchase. Dream houses have everything you want in them, especially if you get a custom house-made. The problem is how to make your dream a reality based on what you have to work with financially. The answer is buying a distressed property though it may not be your dream house; it can make your dream house come through. To make dreams come through, it takes effort, patience, and sacrifice.
Ms. W bought her first house 5 years ago in Hyattsville, Maryland, USA, for $175,000. At the time, the home was livable but needed updating. The kitchen and bathrooms needed updating, cleaning, painting, and lawn care because the house had been ignored for a long time. Ms. W looked beyond the work because the house was in a good location, and Ms. W could manage the required 3 percent down payment and 3 percent closing cost for the house. Though it was not what she had in mind as her first choice in buying a home, she controlled her ego and decided to make it work as a means to an end. Before making up her mind to purchase the house, she asked the smartest question; “What is the repaired value of the property?” She had a Comparative Market Analysis done (CMA). The CMA showed that the property repaired value would be around $250,000. With that figure in mind, Ms. W settled the purchase.
Ms. W initially had the plan to take her annual two weeks’ vacation in the islands, but when she came upon the house deal, she rearranges her plans knowing that good deals are hard to find. During her vacation time, her two sons were also on their summer vacation from school. Before Ms. W and her two sons moved to the house, they painted the house on the weekend, and Ms. W had a friend she knew in the flooring business sand and polyurethane the old hardwood floors. By the following weekend she moved from the apartment she was renting to her house.
Ms. W states that one room at a time was done; over time. She says that she watched a lot of real estate fix-up shows on television and got ideas on how to renovate on a low budget. Now five years later, she states that the house is fixed the way she wants it. Since then she did a recent CMA, and it is worth around $274,000. She claims now that she put so much of herself to bring the house to her taste, it has become her dream house, and she is no longer interested in other homes. She also states that in a few years, her teenage sons will be going off to college, and she may need the equity to help with their college expenses.
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