Yes, the listing agent (a guy) has tried to counsel them that it probably will not be homeowners purchasing the property because it will not qualify for a loan and there is a huge amount of work required. They kept telling the agent that they wanted to refinish the original floors (they are nice wood in bad condition, but new finish will get ruined during a remodel) and paint the house. He keeps gently trying to tell them that the type of buyer that is going to purchase the house is not really going to care about a new paint job. They are still under the illusion that the brother is going to paint the house. Please please please… don’t let him near the walls. He is going to slather paint all over the gorgeous wood beams or something. I cannot imagine that he has skills to ‘cut in’ perfectly against the original wood work in the house.
^ ugh. Maybe you should have specified in your offer that no painting was allowed.
I agree that if you make a future offer, it specifies the house is AS IS, with no painting, so you don’t have to undo and redo.
Undoing the DIY messes… just no! 
Only HD and Lowe’s win in this situation.
On pins and needles here - good luck! Sort of like a roller coaster - just jump on and hold on!
I like the touch of saying “no painting etc to be done”. As is means just that.
My counter offer is good for 24 hours. So, I will know the outcome by the end of the day today. I fully expect another counter back with, maybe, a little bit of budging on their asking price.
There is still about 20 days left in their ‘off the MLS’. Agent told me that their next step would be to start telling agents in their company who are in other offices. My gut is that agents from El Cajon or Downtown San Diego are not sitting on big $$$ buyers that want a massive fixer. I’m not too worried about that. My only concern would be the agents from the La Jolla office. They usually are representing buyers looking for ocean view properties at top dollar.
CB: Found the house from Thursday nights Flip or Flop. It was purchased on 7/3/14 for 710,000, listed 12/15/14 for 1,149,900, 1/3/15 pending sale, 1/27/15 relisted, 2/2/15 pending sale, 3/13/15 sold for 1,150,000. So apparently, at least in this case, there is about a one year lag between filming and the time the show airs.
But I wouldn’t expect that the La Jolla-type buyers are looking for a fixer upper.
No, don’t think La Jolla buyers are looking for fixer uppers but there is one heavy-weight investor that works out of La Jolla. Agents receive emails weekly from all kinds of investors “We Buy Houses” and beg agents to call them when they find anything. So a La Jolla agent might start calling these investors and get them crawling all over the house.
Regarding Flip or Flop
That was 14 weeks they were working on the house before it was listed = $13,500 in hard money interest
Another 3 months to get it sold = $9,000 more in hard money interest
That’s a total of $22,500 just in interest carrying costs alone
Here’s my total estimate in carrying costs and transaction costs for the Flip or Flop (as compared to what they would state at the end of the show). Unfortunately I cannot remember what they said at the end of the show
Interest Charges = $8,000 + 22,500 = $30,500
Carrying Costs (property taxes, insurance, utilities) = $8,200
Selling Commission = $28,750
Transaction Costs = $4,000
So, in addition to the renovation costs, they should be showing $71,450
I’m sure the show will be rebroadcast and one of us will see it! Actually, you might try online. I don’t know which episode is the right one but try this link:
12 Pt Loma
This is the wildest roller coaster. I received a Counter back from the Sellers. They have dropped their price to close to my offer, but marked it ‘Firm’ in the counter. They are asking for a 10 day all cash close (no problem), but want to allow the brother to stay in the property for 15 days after close. This puts me in the position to be the bad guy, if it comes down to it.
Meanwhile, the other investor did not counter by 5pm yesterday but his agent says that he will be submitting a new offer by 5pm today (a couple of minutes). I either sign this Counter right now and go into contract or let the cards lay.
I have decided that I cannot go up to their new price just yet. I am scrambling to schedule a formal foundation inspection tommorrow morning because I just do not want to make a big mistake on the cost to fix the floor sloping issues.
cb, can you tell us what their new offer is?
And you are very wise to be doing more due diligence. You won’t get caught unaware.
What are your options to get him out?
It occurs to me that you might accept their offer (depending on what it is) but also charge the brother (or the family, or whoever) rent for those 15 days.
And what happens if he does something like trashes the place during those 15 days? Would insurance cover that contingency? Would you need a formal lease?
What happens if he won’t move out? What is the eviction process like there? Here it would take months to evict someone.
Well, it sounds as if it wouldn’t matter if he trashes the walls, unless he attacks the woodwork.
CB, I STRONGLY suggest you ABSOLUTELY not be the one put in the position of getting the brother out. Complete possession of the house and all keys should be handed over to you the day escrow closes. Period. Full Stop.
otherwise you are asking for lots and lots of trouble…
I would be wary of leaving the brother there since that is 15 days until you can start working with the clock ticking on the loan.
The sellers should be the ones to kick out the brother prior to close.
Sounds like he is just trying to stall the inevitable by saying he will paint walls.