MEGGA CONGRATS!!!
I’m so confused…is this the one that is in the wooded area? Or is this another one?
Another one.
Yippee! Congrats!
Very happy for you, cb!
I now have a fully executed contract and we are opening escrow tomorrow. Here are the details:
This property goes all the way back to #6 in Post 30. I have been following up with the listing agent since December on this one. I was the first one in to see the property and thought I had the only offer submitted. Unfortunately, other agents in the same office found out about it and brought through their clients. I have been competing against another investor. Believe me, if more investors in the neighborhood even knew about this, there would have been multiple offers.
In the long run, I would have preferred to purchase #7 Assisted Living Lady house but I probably would have been way outbid for that one. I have to take the bird in the hand and not hold out for the ‘perfect’ flip. It isn’t out there. But, I feel this house is very special and unique. It needs a lot of love.
When I was contacted in December I was told that the Sellers were going to ask about $900k. When I finally got into the house and went to the agent’s office to write up an offer, I was told that the Sellers were insisting on asking $1,100,000 for the house because they are under the impression that it is 3 lots. After some education they finally understood that it can only be sold as a single lot and there is no way that it can be legally subdivided. So, asking price came down to $995,000 when they signed the listing agreement. I made it very clear that I had understood that the price was going to be $900k, I don’t really have any more funds. But, I finally made an offer at $925,000.
While they were contemplating the $925,000 offer, Sellers were informed that another investor was going to look at the property. He submitted a full price $995k offer, but with contingencies. Back / forth, back/forth and I received the $950,000 Firm counter offer. I am told by the agents that this is the absolute best they can do after a lot of convincing that my offer was better. (Oh, and gentle persuasion that they need to be the listing agents for the future sale)
I should have just signed it right then. I insisted on another detailed inspection to make sure there were not any significant foundation issues. Other investor submitted a brand new offer. All I know is that is was for ‘over’ asking price, but still had an inspection contingency. Sellers countered back to him to remove contingencies. Both of our replies were due at 5pm yesterday.
My understanding is that his final return was still over asking price. I have no idea whether he removed contingencies or not.
I don’t know exactly why I got the property… I will get it out of someone soon after the dust settles. They keep telling me it is because they are excellent agents and were very convincing to Seller that ‘their’ buyer was more trustworthy.
So, I paid $950,000 and I need to make the best of it. If you look online at Trulia or Realtor.com or something, they have the property valued at $1,010,000 or so based on current square footage. Unfortunately these computer generated algorithms don’t take into account larger lot, views, unique location, etc. There is a huge variation in value in this neighborhood, depending on a lot of factors.
Nice! Can’t wait to see the “before” pictures!
Just curious…where is the brother going?
In the end the Sellers backed off of their 10 day close of escrow with holdover tenant. We are now closing on Monday February 1st with no holdover. I didn’t have to convince them… their brother convinced them in his own way:)
On Sunday, I asked permission to do a full foundation inspection. Previously, the agents would not let me remove some horrible, water stained, cheezy, sagging, acoustic ceiling tiles in the basement in order to look at floor joists and beams. They said the brother would have a fit. I asked for official permission to remove some ceiling tiles during this inspection. I was told Yes by Sellers, but please stack them neatly in room. We removed about 6 tiles, some of them we had to cut out with a drywall saw and we stacked them in corner. Believe me, no one who buys this house is going to be horrified that these awful ceiling tiles are missing. Noone is going to want to keep them.
Evidently, when brother returned to the house after our inspection he went ballistic at the ‘damage’ to the house. He started calling his sisters ranting and raving and the agent had to go back to the house and calm him down for 45 minutes. I believe that the sisters realized that they could not continue to have him in the house and that it was going to be really difficult to have him ‘holdover’ while I was outside bulldozing the yard or something.
They have extended the escrow and, get this… the sisters have purchased a plane ticket for him with their own money to go on his hiking vacation before the end of the month, on the condition that he removes his personal belongings when he leaves for the trip. I have no idea where he is going or whether he will really get on this plane. He will definitely be homeless when he returns.
Congrats! I’m still confused as to which house it is. I read the description in post 30, but that was before you actually viewed the house. If you could identify the post where you describe the property, I’m sure we’d all greatly appreciate it!! I know I would!!
Wow. Just wow. Are we going to see brother wandering Rosecrans looking in trash cans, or maybe camping out down by the pier?
Also it doesn’t sound like you lost anything except a few days carrying costs by not signing initially. And you got the added benefit of clearing out the brother.
Posts #126 and #151 are the posts that begin the details of the house. That should help make it clearer.
Marilyn, I think you are right. If I had not held out that extra day and insisted on the foundation inspection… the brother would not have flown off the handle and created such a scene. I could still be in the position of having holdover tenant.
Thanks!!!
When can we start picking out kitchen cabinets and bathroom tile? 
I have been told that one of the conditions of the escrow (although it is not in writing) is that my agent had to p romise that I cannot have any more ‘showings’ at the house during escrow. I am not allowed to visit property any more. Guessing the brother hates me for ruining the house or something. I have never seen him.
I am glad you won’t have brother as holdover tenant issue. That could get very unpleasant and protracted. Glad he won’t be your problem and hope he hikes somewhere FAR away–Canada, maybe?
Will you have a have a pre closing inspection? Just worried that the brother will,damage something…although from your description…there isn’t much he could really damage.
I, for one, can not wait to see pictures of this house. You have been emotionally vested in it for over a month, and from your description, it sounds like it has a lot of charm.
Obviously he is going to Hawaii. :)]
But does he know that the house will be sold when he returns? Will he be camping in the backyard? Maybe this issue should be clarified before the closing.