HOUSEBUYER CASE STUDY DETAILS
PROBLEM:Expired Listing
SOLD IN: 7 DAYS
RENOVATION COST: $96, 300
RENOVATION TIME: 51 days
The seller’s listing with her real estate agent expired without one offer on the house. Due to a job transfer the seller already moved out of the house and was living out of state so she couldn’t “keep it smelling clean” as her real estate agent advised her in order to sell the house faster. She knew the conventional way of selling her house could take many more months, which meant two house payments.
On top of that the owner’s insurance agent informed her that a vacant house was a higher liability due to undetected water leaks and fire hazards, theft and vandalism. This was going to double the cost of her insurance; which was “more money being thrown towards something I just didn’t want anyway.” she said over the phone the first time we talked.
SELLER TIP
SELLER TIPLet your insurance agent know that your house will be vacant. Failure to do so can result in disqualified coverage on any loss you might incur. That could also put you in hot water with your lender. Avoid big selling mistakes during a payment takeover using these Payment Takeover tips
THE TERMS
If we would’ve had to get a new mortgage the closing costs would have put the total price right over the top. Plus the appraisal from the bank would have reflected its current condition. That means if a bank would allow a new mortgage on the house the interest would have been too high to make financial sense.
I knew seller financing could make this deal happen quickly and relive her of trying to maintain the house and keep up on the payments. I gave her this offer contingent on seeing the house later that day:
I will close in one week. I will make up your back payments, take over your future payments. My exit plan is to rehab the house and find a buyer. Once I do we will pay off your loan. Until we do I will manage the house like it was my own.
IN REAL ESTATE: EXPECT THE UNEXPECTED
She said she would consider it and get back with me. Within 30 minutes she called to say that she accepted and her neighbor had a key.
I was able to look at the house the day she called but found some unexpected issues. I took pictures to show her, and my Guru Crew, everything I seen. My biggest concern was that the electric was off so the sump pump was not running which flooded the basement. It was wet long enough to cause dry-rot in the boards which attracted a huge community of ants that were quickly expanding their territory to the main floor.
I have learned to expected the unexpected and this was something I could easily handle. But now there was the additional urgency of water removal and mold prevention. I called the seller to let her know it was a ‘GO’. Then I called the title company to arrange the closing as soon as possible. Because I do a lot of deals the title company has all my information handy so everything is expedited and we close in a week as I promised. Avoid the selling hassles by getting a ‘No Hassle Home Offer’ to see if and how we can be able to save you time and money.
CUT THE OWNER SOME SLACK
The owner was a single mom without a lot of time or resources to devote to maintenance so the house was in rough shape. Not as horrible as her agent made it out be. But compared to other houses on the market that could be kept white-glove clean for every showing, this one didn’t have that move-right-in turnkey factor that every retail buyer is after.
But even with numerous repairs the house I knew that it could be the darling on the block in two months. Because of deferred maintenance there were a bunch of little eyesores throughout. No problem because those are easily fixed with my two ‘detail’ guys. The roof and basement both had some issues. Nothing that killed the deal but those would take longer and cost more. The bathroom, dining room and living room however needed complete updated. This is where the time and money came in.
ROLL UP OUR SLEEVES
We did new paint, flooring and fixtures. We spent a lot of time to remodel and reshape the kitchen layout and installed new counter-tops and cabinets, flooring and lighting fixtures.
After all of the carpentry was done work we refinished the hardwood floors throughout which eliminated some pet odor and made the rooms look warm and rich. There was a awkward unused, unfinished room that we converted and finished to be used as a 4th bedroom or den. The we tiled and painted the laundry room.
The basement was getting water so we put in perimeter tile around the outside and sealed the basement interior walls. Outside we cleaned up the patio and painted the house, storage shed and front porch. We ended up turning it into a wonderful home in a quiet subdivision of Fort Wayne ready for new family to move in.
YOU CAN MOVE AND LEAVE WHAT YOU DON’T WANT
We buy houses in any condition so you don’t have fix it up, clean it up, clean it out or even do the dishes. We literally had a owner mail us the keys from Florida and said the dishes were included if we buy the house (jokingly even the dirty dishes in the sink)
So after we bought and closed on the house – all of which took only eight days, we donated the dishes to the Fort Wayne Vincent Village, who seek to alleviate the problems of the homeless in Fort Wayne.
As a local real estate investment company I purchase many houses each month that solves these unique real estate problems. If you have a house that has been listed with a real estate agent and did not sell; please complete our seller questionnaire below. It’s completely confidential, costs nothing and you’re under no obligation. If your house qualifies and you’re flexible on price or terms, we’ll schedule a time to come out and make you an offer to buy your house in one hour or less, Guaranteed!
Has Your Listing With Your Real Estate Agent Expired?
There are many reasons why some houses sit on the market and do not sell. Some times it’s the condition or location of the house. Other times it is the lack of experience or knowledge of the real estate agent.
» Has your home been sitting on the market?
» Would you like to get a quick offer for your home?
» Do you have a Vacant House (or one that soon will be)?
» Would you like to sell your home quickly and easily to professionals?
I’ll give you a quick offer for your house no matter the condition or location. Simply call me or fill out the confidential form below:
CONFIDENTIAL SELLER QUESTIONNAIRE
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