# Entrepreneur of the Week Shoshi and Hanoch Dombek # Post 3 # #Houston we have a problem Good morning, lots…
# Initiated week Shoshi and Hanoch Dombek
# #Houston we have a problem
Good Morning,
Thank you so much for the support and likes, it is not obvious and really warms our hearts ????
We continue today with a few more points for reference before purchasing a property.
There are several environmental factors and/or hazards that should be checked and paid attention to when purchasing the property. It's not that people don't buy houses near an environmental hazard, but it reduces the audience of potential buyers and may affect the time and price of the sale/rent:
Property in a Flood Zone - The Federal Emergency Management Agency (FEMA) defines various areas in the US as flood risk areas. Buyers will be afraid to buy a property located in a risk area for two main reasons: 1. No one is interested in their house being flooded and possibly destroyed (even if they have insurance) 2. The mortgage bank requires the purchase of special insurance in case of flooding, which increases the current expenses of the buyer.
Our first flip was in one of the sought after areas of Atlanta. After we had already renovated the house and put it up for sale, we found out that the house was in a flood zone. And how did we find out? The buyers' agent called and said: Houston we have a problem, the house is in a flood zone and the buyers are worried. We were ashamed to admit that we had no idea what she was talking about. A quick check on Google and... we passed out. We invested over 300 thousand dollars in this house and we were afraid that the money would go down the drain. I didn't sleep at night for two days. We studied the topographical area in detail, and after many tests and measurements we were able to convince FEMA to change the definition of the house and take it out of the flood zone. We survived! The buyers who really liked the house were happy, and we were also breathing again. Several years have passed since then, but we remember the feeling that the ground is collapsing very well. As a general recommendation, it is advisable to avoid buying a house in a flood zone. Although we were able to change the definition, it is not a simple move and requires obtaining accurate data and proving that other houses in the area with similar topographical conditions are defined outside the flood zone.
Property close to an environmental hazard - For most of us, it is clear that most people prefer to avoid buying a house near high voltage lines, oxidation basins, swamps and railway tracks, but problematic topography can also be a hazard, for example too steep a slope to a house or a low house.
And another story from life, we bought an unfinished house from a contractor who went bankrupt. The attractive price blinded our eyes and we ignored a conspicuous warning sign. Main road on the border of the backyard. The house was large, prestigious, in an excellent neighborhood and the price… gentlemen the price… we could not stand it. As usually happens in such cases, we convinced ourselves that it would be okay. After all we will be renovated and it will be so amazing that the buyer will not even feel like he has a road in the backyard. Yes, these are the stories we tell ourselves to beautify reality. In practice we had to wait for our buyer for almost a year! The buyer's appraiser dropped the property's $ 16,000 because of the proximity to the road and we cut the price far beyond what we intended. So it is true that we bought cheaply and in the final calculation we made a profit and still, it was a long year and a wrong business choice.
From our experience, it is worthwhile to add to the list of hazards a main road or a commercial center on the border of the backyard. A stream flowing in the yard is not only a ripple of water but can attest to groundwater under the house. We do not say no in a big way, and everything should be checked for the substance of the matter but do not ignore warning signs.
Crime neighborhood - you can check the crime rates in the area on the TRULIA website and other sites. In general, when you see pictures of houses with a lattice gate on the front door and / or bars on the windows - there is a situation that you are in a problematic neighborhood.
Sex offenders in the neighborhood - you can check on designated sites whether a sex offender lives near the house. In the United States, public safety outweighs the right to privacy and there is transparency about the offender's name and place of residence.
Neglected neighborhoods - abandoned cars or junk in yards, tall grass, unkempt yards. Junk properties, for example, are located in neglected neighborhoods that invite a certain audience of buyers. Alternatively, a neglected property in a well-kept area lowers the value of the houses nearby and the average buyer will be less enthusiastic about living next to a scrap collector.
And one more thing to note, there are neighborhoods (Subdivision) where the HOA limits or prohibits renting properties. If you are purchasing a rental property in a neighborhood that has an HOA, it is very important to find out this point in advance.
Tomorrow is a Thursday post with some renovation tips, is there anything to wait for??
imply,
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Very important points !!
It is always better to buy the most standard and banal house, that there are 10 more like it around.
The safest.
You renewed, thanks