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Post by laurazone5 on May 22, 2016 11:56:53 GMT
I made an offer on a home. They declined, as they felt it was too low. This little house needs a lot of work....... basement needs dug around, sealed, and mold remediated. heating oil furnace that looks like it was on the Ark. chimney looks like Godzilla took a swipe at it. all windows and doors are shot. roof and decking is shot.
Won't know about the septic, well, wiring and plumbing until they accept an offer and it goes to inspection.
It qualifies for a 203K loan (only 3% down). It could take 3-6 months to close
I LOVE LOVE LOVE the location. 1/2 of the house was built in 1910 ,the other half (the addition) in 1965. It's an adorable farm house. Attached green house, and detached 2 car garage (no doors) 1 acre.
I have called an FHA approved contractor to walk thru with me and give me an estimate on what it will all cost to repair.
Please pray that if this is God's Will, and the home He has picked for me, to PLEASE make it obvious. Equally, if it is NOT the home He has for me that He too ,will make that VERY obvious.
Thank you!!
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Post by paisley on May 22, 2016 15:50:04 GMT
God's will.... equals success....God's time can be frustrating. Its been a long haul for you so you got it.
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Post by whereiwant2b on May 22, 2016 16:53:31 GMT
One thing that I've found is that getting inspections that detail all the costs to fix things can open the eyes of sellers to reduce the price. It's easy to be blind to what you have become used to gradually but to see it reported as needed and the c ost can be a motivator to sell before they themselves need to invest in the repairs.
I once negotiated a sales contract where the seller agreed to provide clearances. In the end she spent a lot more to get those clearances than she would have by taking my original offer.
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Post by Ozarks Tom on May 22, 2016 23:25:08 GMT
We've probably all seen the ads for "We Buy Ugly Houses". This is their formula. The get comps in the neighborhood of houses in good repair, then deduct all repairs and replacements from that comp. price. They also deduct for "white elephants" like heavy traffic, distance from shopping centers/bars/schools and anything else that might be off-putting to a buyer. What they end up offering is what many would consider a lowball price, but it's a very realistic price when everything is taken into consideration.
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Post by Deleted on May 23, 2016 2:19:59 GMT
Praying that God our Father will bless you with his very best.
The house sounds like a heckuva challenge, but it also sounds like it has fabulous possibilities!
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Post by laurazone5 on May 24, 2016 12:37:15 GMT
I have an appointment tomorrow at 1pm w/ an FHA Approved contractor. He and I will walk thru the house and find out every little thing that is wrong. Then I can go to the listing agent w/ my offer AND the pprwork showing what needs fixed, explaning why my offer is so low.
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Post by whereiwant2b on May 24, 2016 15:45:57 GMT
I have an appointment tomorrow at 1pm w/ an FHA Approved contractor. He and I will walk thru the house and find out every little thing that is wrong. Then I can go to the listing agent w/ my offer AND the pprwork showing what needs fixed, explaning why my offer is so low. Be very careful assuming that such an inspector will be able or even willing to find all the problems. The inspector, for example, can not tear a hole in the wall to see if something is wrong underneath. He may not want to crawl under the house is it's tight. It's really good to be there to point out things you see that raise a question you want answered. I found it difficult to insist when the inspector tried to flick off my concerns but worth the uncomfortable feelings to insist that issues be in writing on the report.
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Post by Ozarks Tom on May 24, 2016 22:38:08 GMT
Good luck! Don't be bashful about asking questions. Go back through the comments others have made and make a list. If he pooh-poohs something like aluminum wiring and won't put it on the list, call an electrical contractor and ask his advice. Same with other issues.
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Post by laurazone5 on May 26, 2016 12:21:02 GMT
Had an FHA Approved contractor go over the house yesterday for a full blown estimate.
New roof, gutters, eves and gutters. (ditto on garage) Repair 1 chimney, remove the other. New windows and doors. The siding on the house is wood, w lead based paint. It can be covered w/ vinyl. (Ditto on garage) Needs insulation blown in. Good chances it will need a septic, and need to locate and test the well.
Remove old furnace (asbestos) and oil tank, replace w/ propane Dig around basement, wrap, reroute drainage, remediate the mold. New joyces in the floors.
New plumbing (1 bath, 1 kitchen, add plumb for 1 more bath) Replace wiring that is not up to code Ground all plugs Add railing to upstairs Add 2 inches to roof joyces upstairs so it meets code to fill w/ insulation to finish. Cut hole in roof to add attic access
He said this house is SO NOT up to code it's not funny. I will get the estimate next week, then go from there.
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Post by my3boys on May 26, 2016 16:38:26 GMT
Do you have contingencies written into your offer for inspections and appraisal? So that you can walk away depending on how the inspections pan out and what the bank says the house is worth?
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Post by Ozarks Tom on May 26, 2016 18:24:59 GMT
Just my honest opinion, run. That house doesn't need renovation, it needs a bulldozer. Just from that list you could spend $100k and not be done.
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Post by paisley on May 26, 2016 19:56:23 GMT
Please hear what you may not want to hear...Tom is spot on... when you are a realtor you and you rep the buyer you would be wise to give your client the sad warning the above have stated.... yes, it would be a lose in commission in the short run but when the better deal for you client comes up...that person will share how you protected them from a money pit over the emotional want.
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Post by laurazone5 on May 28, 2016 12:35:20 GMT
They declined my first offer, as they felt it was too low. I have the contractor come in so I could show them WHY my offer was so low.
Contractor said the same thing, could be 70-100k but he had to get it all on paper. If it's 70 k, I will offer them 40k for the home OR they can fix it, and I will pay full price.
I love the location and the land. I love the greenhouse.
I'm waiting on the contractor. I am buying w/ my head, not my heart. If he comes back with crazy numbers, I will walk away, the end.
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Post by Ozarks Tom on May 28, 2016 15:19:51 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.
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Post by paisley on May 28, 2016 15:31:47 GMT
Yes, Tom is right... but..... carefully worded counter where it in includes another inspection and reappraisal on your dime could work.
Not to exceed final after work appraisal..
Saved my butt when a colored wax..heck we believe crayon was used to reattach the tiles on the fire place and grout.
Seller had to sell for far less than my offer due to their repair work damages devalued versus elevated the value.
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