<p>cb, you might want to investigate auction.com’s foreclosure section. Selections are better there than the bank owned section. Its like going to the steps to buy a foreclosure. I have not looked into it before, but situation forced me to look at that.</p>
<p>What is your experience on buying foreclosed homes with original owner still occupying the property? One of my law suit is not over yet after she is being evicted.</p>
<p>I think the toilet in BR #2 is practically unused. It’s Kohler & isn’t low-flow :)</p>
<p>The pickled finish on the cabinets and doors is horrible. It casts a blue-gray light over everything and is so indicative of the time, and not in a good way. He’s doing some testing on various finishing techniques to see if the cabinet doors will have to be replaced after all. I think he’s decided that the interior doors have to go. </p>
<p>He replaced the shower door with one from HD (great minds and all that). Granite will be lighter in color; quartz was pricing out too high. The fabricator he’s dealt with in the past gave him some good tips on maximizing use of a slab. He’s not trying to make a living out of this, so he can take his time (within reason) and search out economical options. I’m surprised he hasn’t had to buy any new tools yet. </p>
<p>Where hall baths were fine 40 (50?) years ago, en-suite baths, and large en-suite baths at that, seem to be almost a requirement these days. I wonder how many people actually use that big soaker tub enough to make the square footage assigned to it worth it. Same with huge master bedrooms.</p>
<p>Suggestion for granite countertops, whether for kitchen or baths. There is a big market now for ‘pre fab’ granite. You do not have to buy a whole slab or go to a yard to pick out slabs of granite. The granite is precut to counter depth and comes in 8’ lengths with bullnose already fabricated. This is a huge fabricator labor savings cost and there are many granites to choose from, from low cost to high end. The only cuts that have to be made are end cuts to fit your lengths and cutting out the holes for sink and faucet, that’s it. There is a large labor cost for making the bullnose on granite slabs.</p>
<p>Search for ‘prefab granite’ somewhere near you. They usually have big showrooms in industrial areas, near wherever the slab yards are located.</p>
<p>I’m always checking Auction.com’s online auctions for anything. They also have ballroom foreclosure trustee auctions twice a month in our area. I am just amazed at how they can possibly make money on the ballroom trustee auctions - all other foreclosure auctions are on the courthouse steps. I’m either freezing to death, boiling to death and did I mention that I am frantically worried about having to go to the bathroom? At the courthouse steps you just never know when they are going to call your property for auction and any chance at a restroom is a block away. I have been very miserable many times 
</p>
<p>But the Auction.com foreclosure auctions are in ballrooms at the local hotel and there’s a restroom right there!!! And they have nice cushy seats lined up. It’s beyond luxurious for an old gal that has been standing on the steps for years. </p>
<p>They used to have about 100 properties for sale each auction but it has now dwindled down to a lot of postponements and cancellations. Maybe 8-10 actually go for auction. Plus, they have a tuxedoed auctioneer, several tuxedoed shillers and lots of support people all over the place. I have no idea whether they are going to last, not sure how they can make enough money to support all the overhead.</p>
<p>I was asking about your experience in “foreclosure” auctions in general, whether it is steps or ballroom. Did you have problems on eviction afterwards?</p>
<p>I have been to the old “nprl” ballroom auctions (the company that is the predecessor of Auction.com), in the high days of 2007, the shillers will push the price higher if you were bidding, at that time attendants were by the 100’s. I did not like the atmosphere.</p>
<p>BTW, from the previous thread, I reported I was viewing an online auction by auction.com. The house in Menteca sold for $136K hammer went right back on the auction block again. I guess the buyer did not like the fully destroyed inside AFTER he had won the house, so he probably forfeited the deposit. auction.com was very sneaky on their photos, they only photo the good side of the house, they did not show the boarded up front door, side door and the back door. :)</p>
<p>Interesting that it went back up to auction. Could it be that the bank had a reserve and they are unrealistic on the value of the house?</p>
<p>I drive every property that I am going to bid on at auction. One of the key things I am looking for is whether it is vacant or occupied. Then I try to research whether it is occupied by the owner or tenants or squatters. If there are many cars (parked on the lawn!!) or indication that the occupants are terrible losers, I am very careful about whether I bid or not.</p>
<p>I have purchased five homes that were occupied. Amazingly, the other foreclosures were vacant. Three of them were occupied by the owners and two by tenants. Amazingly one renter tried to say that ‘they had no idea’ the property was being foreclosed. This was inside a downtown condo bldg. so I had a meeting with the onsite property manager. He says that the notices are posted on the front door area of the building but that he meticulously removes them and puts them on the front door of the unit and takes a picture. Well, of course that notice had been posted on her door and she had full knowledge. The other renter had been fully updated by their landlord and they were ready for the knock on the door.</p>
<p>One tenant had a long term lease but he was an Air Force pilot that was being deployed and he decided to find another place to live - he actually wanted out of his lease so it was mutually beneficial. The other tenant got upset because I was invading her privacy while making repairs (which I have a right to do as a landlord with 24 hr notice to gain access). So she moved very quickly also and I gave her the prior owner’s deposit back (even though I did not receive anything from prior owner).</p>
<p>All owners left peacefully. I negotiated a Cash for Keys agreement where I paid them money to help them move and they left by their deadline. One of them was an extreme hoarder and I had to work with her for 4 weeks helping her remove her possessions from the house. </p>
<p>So lucky that you had such good experiences with occupied homes. I had the bad luck of having a bad prior owner and am still in lawsuit with her after 2 years and after eviction. Its laughable that she wants “her” house back in the lawsuit.</p>
<p>Regarding the 136k house went back to auction block, I am sure it was not that the bank won’t let it go. The bank is well aware of the condition of the house and would be GLAD to get rid of it at that price. The repair bill would be very big, considering a new air conditioning unit and a heating unit.</p>
<p>I have given up on #9. Sent questions and draft offer on Saturday evening. Finally had to call the agent on Monday morning and he did not return my call until this morning. He couldn’t even tell me whether the tenant would be gone before close of escrow. Huh??? He said he needed to ask the Seller. For heavens sake, that kind of info is Real Estate 101. He just kept asking me how much I was going to offer. I told him it was dependent on answers to some of my questions. He acted like he couldn’t be bothered with me. Not even going to follow up on this one.</p>
<p>Went through #10, #11 and #12 today. #12 is a winner and I am very excited about it. Poor condition, house full of trash and it won’t be cleared by Seller. Small pool in back and it has an upside-down layout - all living areas are on the top floor. But there’s a reason for this, it has unbelievable views through San Diego to the coastline. They aren’t being taken advantage of with the small windows in the house. Unfortunately it doesn’t meet my retiree strategy, this house is 3,300sf and has stairs up to living area. Three car garage and lots of room to park RVs, etc. Asking is $440k and there will be a bidding war. I just submitted my offer directly to listing agent so he could double-end the commission. I offered $453,000 and I’m willing to go higher if I need to.</p>
<p>Ooooo, coralbrook, that sounds like a winner. Not for the retirees you were targeting, but I bet you can make some real money with that house. Fingers crossed.</p>
<p>Listing agent is trying to play investors against each other. I tried to get him to sign a Non-Disclosure Agreement which means that he cannot reveal my price or terms to the other offers. He wouldn’t sign it because he is representing two other investors directly. He just informed me that I have to come up around $500k just to be a finalist for the counter offers. I did it, but it’s not looking good. Too many other offers and competitors who will do a renovation that probably will cost a lot less than my vision for the property.</p>
<p>The listing agent is forcing me to send him all listings for my previous renovations to ‘prove’ that I can close on this transaction. Seems fishy… probably going to share my info with his regular investors. I just cannot catch a break with such stiff competition.</p>
<p>He wants you to raise your price to $500K, or he wants you to raise your price by $500K??</p>
<p>Regardless, sounds fishy and like a good reason to walk away.</p>
<p>Whats the difference if you just send the apn number, if that keeps you in the game? He should be able to figure it out in Title company with your company name, he is just lazy.</p>
<p>I sent him links to all my listings, I had no choice. But, what I find is that these listing agents want to try to get me to agree to let them have the future sale listing after renovation. I usually just smile and don’t say anything. But as soon as they get into the MLS and see my history they will realize that I have a relationship with my listing agent and it puts me at a disadvantage if a competitor agrees to let this guy have the future listing.</p>
<p>I raised my price to $500k but am waiting for the ‘finalist highest and best’ game today. They are selecting the top three offers and coming back with a counter. The game will continue.</p>
<p>I have been watching an Auction.com online auction for a short sale in my area. Property worth about $725k, opening bid was a real teaser. Bids are up to $650k with 2 days left and it still says ‘Reserve Not Met’. What a bunch of BS!</p>
<p>As I said, auction.com is no longer a place to buy. They are too greedy.</p>
<p>coralbrook, it doesn’t sound like this listing agent has your best interests in mind. His, maybe, but certainly not yours.</p>
<p>The table for buyer and seller has been turned around, it is no longer a flipper’s market. That is the reality, nothing to do with the broker or anyone. When you can buy cheap and flip, the broker also had the seller’s best interest in mind.</p>
<p>NPR just ran a story today on how much the flipper market has changed percentage wise (as tracked by purchases resold within six months) with a note about what that meant as re the health or bubble-ness of the market. . </p>
<p>TempeMom, what did they say about the percentages? Declining huge amounts? How does it affect the bubble-ness of the market?</p>
<p>Basically, we started out trying to make 10% on the cash invested. So, if you paid $300,000 for a property you expected to make $30,000 profit. My average was 11.5% (before business overhead)</p>
<p>Then big money got involved and the local guys had to reduce expectations, I learned some competitors were targeting 7.5% as new business goal. But, I can see that the reality is probably 5%. $15,000 profit on a $300,000 purchase.</p>
<p>If I look at my sales in 2013, I am still at 11.5% because I had a winner at the beginning of the year. But last two projects have only been 7.8%. </p>
<p>They said something like (mumble mumble) in our area it went from 8% to 6% or somesuch in 2013 and that under best market conditions (no bubble/presumably low foreclosures) it would be still much lower (not sure if they said or I just think they said under 1-2%). They also quoted some national numbers. </p>