Houses selling for $1000!

Wow! I was amazed when I saw this ad running on television last night! The ad cited a story that ran in one of today's popular financial publications. The old adage of "If it sounds too good to be true..." certainly applies here. The ad went on to say that only renters should call today and that "all others" should call tomorrow. Funny thing is, I saw that same ad on TV the day before, and the day before that! This type of advertising feeds on the greed of consumers- the desire we all have to get a "good deal". Don't allow yourself to get sucked into this feeding frenzy!

After checking the Lexington Bluegrass Association of REALTORS database, I found that the least expensive home sale this year in Fayette County was for $8500. This was a one bedroom, one bath "shotgun" style house. Yes, it was a foreclosure and the listing agent's remarks indicated that the heating and plumbing had been stripped out of the house. The house had 609 sq. ft. and the lot size was 1,962 sq feet. Is this the type of home you envision when you see or read these ads? I think not. These type ads always show a beautiful two story home with an inviting front porch. The reality of purchasing a home in $8500 condition is this: you must pay cash - making it out of reach for the average consumer! Lenders require a home to have plumbing and central heat. It must be safe and habitable. Also, let's think about the language of the ad. If there really were an enormous number of habitable homes for sale in our area for $1000, what state would our economy really be in? If that were the case, few people would have the financial capability to spend over and above what their family absolutely needed to survive. God forbid!

Yes, there are still "good deals" out there. To take advantage of this you need 1) to have a source of funds, either cash, or a lender who is willing to give you a line of credit secured by other assets. You also may be able to find a private party who will finance your endeavors. 2) be handy, or have a partner who is able to do or oversee all the repairs these properties require. If you have ever done any major repairs to your home you know it always takes longer and costs more than expected, so keep this in mind as you plan. If you're intending to occupy the property as your primary residence there is a "repair loan" available that allows you to borrow up to $30,000 for repairs. There is a lot of paperwork on your end, but it is worth the effort. There are still some great values in real estate. Call me and I'll help you navigate your way to your dream home!