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Post by laurazone5 on May 29, 2016 12:52:56 GMT
I'd be very hesitant to let the current owners do the repairs. You can be sure anything they'd do would be a slap-dash job. Because of the loan I am getting they would have to use an FHA Approved contractor. And they are not gonna fix one thing. Their mother passed and they inherited this home.
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Post by Ozarks Tom on May 29, 2016 13:34:40 GMT
This is pretty much the scenario the "We Buy Ugly Houses" people run into all the time. Many times the houses have fallen into such disrepair they buy them for basically the price of the lot, renovate them, and either sell or rent them.
If you're just dead set on buying this place you need to lowball the heck out of it. The things the inspector found are only what's apparent, not what's behind the walls or hidden elsewhere. Beside what just has to be done, there will be many things you'll want done as a renovation progresses. For instance, I didn't see a new water heater on the inspector's list, and remediation of mold would make me wonder if the wall framing has mold. Moving/removing walls to make the layout fit your needs comes to mind also.
Has your agent run comps on similar houses in the area? If so, use the WBUH formula to make sure you're covered. I've seen them buy 1200 sf houses for $15,000 from heirs who realized the house was nothing more than a burden to be disposed of.
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Post by laurazone5 on May 29, 2016 13:51:57 GMT
I am not dead set....I do love the location and all the potential of the house.....but I am not 'heels dug in' set.
I am just waiting for the 'estimate'.
They are asking 119,000. I initially offered 70,000 based upon what *I* could see. If the contractor comes back and says "It's gonna be 70K to do everything" I will offer them 40K.
This house will not finance FHA / USDA. I don't know what the rules for VA are, but if they are even CLOSE to FHA / USDA, it won't finance VA. The house is NOT up to code, and the sellers will have to do repairs so the sellers can go convential. It's gonna be REAL tricky to finanace, and it's gonna take 3-6 months to get it done!!!
Advantage, me!!
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Post by Ozarks Tom on May 29, 2016 17:21:42 GMT
I've bought a few houses VA, and they're pretty much the same as FHA. We had to put about $2500 into this place before VA would finance it.
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