1) have the purchase price include the estimated repair costs, and then have a seller concession for the repair costs, or
2) just have the purchase price be for the end amount you'll pay?
I like the idea of Option 1, because that looks better to the buyer, they're going to be aware of the need for repairs, etc. I think it would also help to eventually bring up property valuations in the area, rather than drag them down.
The problem I see with the first option is that it might be difficult to get an appraisal to come in high enough since the repairs aren't done yet. I guess with conventional financing that could cause some issues.
Anyway, submitting this loan today, will either be a HML (then refi) or outside chance of another FHA 203k Streamlined loan. Wondering what would be the best way to do it.
When you're making an offer, is it better to
1) have the purchase price include the estimated repair costs, and then have a seller concession for the repair costs, or
2) just have the purchase price be for the end amount you'll pay?
I like the idea of Option 1, because that looks better to the buyer, they're going to be aware of the need for repairs, etc. I think it would also help to eventually bring up property valuations in the area, rather than drag them down.
The problem I see with the first option is that it might be difficult to get an appraisal to come in high enough since the repairs aren't done yet. I guess with conventional financing that could cause some issues.
Anyway, submitting this loan today, will either be a HML (then refi) or outside chance of another FHA 203k Streamlined loan. Wondering what would be the best way to do it.
THANKS!
Tracey