Homes for Sale by Owner to Get More Competition from Renovated Houses- By: John Cutts
Sellers of FSBO or homes for sale by owner will have additional competition before 2011 ends as the city of Covington, Georgia starts to work on the rehabilitation of the foreclosed properties that it purchased using U.S. federal funds. The renovation of these distressed homes is scheduled to start on February.
Using the $5 million issued by federal authorities through the Neighborhood Stabilization Program (NSP), the city has purchased foreclosure in Covington and other distressed properties that it can refurbish and then sell to qualified buyers. The city has so far purchased a total of 33 foreclosed homes, some of which will be sold to people looking for residences while others will be refurbished as rental houses.
According to local officials, some of the home foreclosures in Georgia that have been renovated to serve as rental dwellings are just about completed and will likely be open to renters in the coming two weeks. Meanwhile, the construction or renovation of those structures that will be sold to families and homeowners will start in the third week of February.
Although some sellers of homes for sale by owner will see the addition of these properties as further competition, the project is actually beneficial to the city's housing market in general and to its residents. Officials behind the effort stated that the finished products and their low prices might encourage more buyers to come to Covington and make their homes in the city.
In addition, the initiative has also helped cut down the number of abandoned and empty home foreclosures that are causing neighborhood blight in communities where the number of vacant properties is high. Covington authorities have purchased foreclosed properties for the program from the areas of Banklick and Austinburg. Out of the 33 properties, 14 will be sold as residential properties, while 19 will be converted into rental dwellings.
In the long run, the program is expected to benefit even other home sellers in the area, including sellers of FSBO or homes for sale by owner. Authorities stated that improvements in neighborhoods will convince more buyers to come into the city and make a purchase and maybe even settle permanently in the area.
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John Cutts has been educated in the finer points of the foreclosure market over 5 years.