If you insure the home for
real estate market value, you risk not having enough funds for repairs, and could have to pay the difference on your own.
Those few brave souls who bought in times of low real
estate market values have always realized major returns on their properties that by far exceeded any other stocks, bonds, savings certificates or any other kind of investments.
Even if they need to move and real
estate market values are down when they sell, up to the full amount of their down payment may be recovered and, if all program requirements are met, any potential loss would be reimbursed.
Even if they need to move and real
estate market values are down when they sell, up to the full amount of their down payment may be covered and, if all program requirements are met, any potential loss would be reimbursed.
Remember, there is usually a direct link between a property's condition and its real
estate market value: The better its condition, the more a buyer will likely pay for it down the road.
Joe Manuasa does a fantastic job explaining real
estate market value.