Repairs before closing?

[CarrieW]

ugh well so much for a break LOL there are a bunch of new listings... things that are in our price range and more what we were looking for originally.

so we are going to look at more. but I give up. I am letting my hubs handle it from here on out I am just giving a yes or no LOL

eta- I am still putting up the pool. if we have to empty it oh well.

 

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[CarrieW]

Ok 4 looked at so far. We just left the worst house I've ever seen in my life. I can't believe people lived there omfg

Sent from my SCH-I200 using Tapatalk

 

[CarrieW]

total of 20 houses looked at in about 6 hours over 2 days. 4 are good possibilities. we made another offer. talked to our guy @ the usda and we had one more extension available. we have until july 1st to get under contract or we need to make a whole new full application.

this place is asking 128,500 it doesn't need anything. we offered 125k with 4k s/a. we will go up to asking + closing on this place which would be 132500. obviously we want to get the best price possible. 128500 is just about market value...

 

[CarrieW]

hahahaha LOL so they have gotten another offer in on that house LOL, and supposedly a third one coming in. asked for highest and best.

we aren't changing our bid... so the chances of us being highest aren't very good because we are slightly under asking. were pulling the bid.

we have another house in that group we liked but its under a contingency contract as a short sale. the realtor is seeing if they are taking back up offers.

we got the pool cleaned out and ready to get filled over the weekend. upon hearing the multiple offer situation highest and best bullshit we turned on the hoses to fill it.

we are here for the time being. so for now still watching the market. our mtg pre approval expires on july 1st and we wont do another application until we have a contract... only if the perfect place appears will we move forward before February...

 

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[T14]

@CarrieW i'm loving this progress thread. Keep it up! I just set up my LLC to begin rehabbing houses o this thread has come at a great time.

I was hoping an experienced REI like @SteveO could share with us why it seems some investors seem to have an "easier" time getting properties off of the MLS under contract whereas others, especially noobies, have a more difficult time. Let's assume that both investors are paying cash with zero contingencies attached to their offers.

What are the reasons why some get a house under contract every month whereas some others can't seem to get anything under contract for months?

 

[Steve37]

@CarrieW
What are the reasons why some get a house under contract every month whereas some others can't seem to get anything under contract for months?

Relationships and track record are the biggest reasons. Many of the volume guys have already seen houses and have offers teed up before the houses even hit the mls. If an agent has already done some volume with one buyer vs an unknown quantity you know which way that will go. In a perfect world the listing agent will always represent the best interest of the seller, but that's not always reality.

 

[SteveO]

I don't really deal with single family. Commercial is definitely done through relationships. Performance and track record will bring you deals.

Business is not done through the mls.

Most good deals are found before they hit the market but not always. Occasionally there is a deal that was not presented well or it came out at a high price. Sometimes these owners become motivated to sell and drop their price. If you have kept your name in front of the agent with a price, you might be the recipient of a well timed deal.

 

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[CarrieW]

so the realtor just called LOL.

they counter offered. and we just went out and bought a brand new car last night LOL we were out and done until after summer once they asked for highest and best, we were going to reapply in a few months after the shock of the car purchase evens out and get another loan and start shopping again... I have been waiting since November to replace my car. so we could get into the house first. we have been a one car family since the guy totaled my old car. but now its summer and we have things to do and trips to make and I was all done being without wheels. they screwed around too long and oh well I hope one of their other "offers" works out for them cause they took just a bit too long for us...

I told her nope we aren't negotiating we told them we needed an answer by Monday. I would have went up to full price + closing but we cant now LOL.

SMFH only me I swear!!

 

[CarrieW]

So we have just gotten a bid accepted! It's a hud foreclosure. It needs work and we still have to get inspections and all but I LOVE IT! Wish us luck the rest of the purchase goes smoothly! Some pics.

 

[ChickenHawk]

Nice house! I REALLY love those wood floors. I can see that being a terrific selling feature.

I'm not remotely a flip expert, but I recall reading someplace that the place where you could get the most bang for your flip-buck was in paint, and also in landscaping, because houses without landscaping didn't show nearly to their full potential. It seems like you've got so much potential there. I can't wait to hear how this goes!

 

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[CarrieW]

Ok... Smh here... I had a hiccup in the mtg (AGAIN GAHH)

I believe it is straightened out. We are on track now I hope.

I really want this deal to go through.

Please send good vibes that everything goes well!

We haven't even begun inspections yet and I know there's a bit wrong with it. We are expecting certain things. I just hope there isn't something huge that we missed...

Just to clarify this house is for us not to flip. We are going to redo a lot but we aren't planning on selling.
Rei is for after We purchase for ourselves. its been over 9 yrs since we owned our own house

 

[CarrieW]

First of the inspections done today... went well I suppose.

It was a well inspection. The well needs a few parts (minor repairs) and someone put a concrete slab over the actual well so that is inconvenient. it still has a 1in opening where the wires are but the actual top of the well where the pump sits is covered in concrete... so if the pump needs repaired or replaced we will be busting up concrete... thankfully it is not a big slab...

So then I went to the county to find the history of the environmental permits and there is no record of the septic system... so I dont know the status or location of that. the septic people I called said an extensive inspection at this point would be useless as the house has been vacant for quite some time. the home inspector will do a general locating and visual inspection...

Tomorrow is the house inspection. the listing on the house said it was built in 2010. it seems the core of the house is quite a bit older than that. we thought that the windows were newer and didnt look very closely to them before we bid but now it seems that the windows downstairs are very old and some of them are in need of repair or replacement. so the old windows and the permit for the septic being before their record system both point to the house being pretty damn old. we still want to buy it but I am hoping to negotiate the price to reflect the age conflict of the house...

I believe the house is valued much higher than we are buying it for so I am not sure how much they will negotiate... it is a hud house. I know what the guys mortgage was for that got foreclosed but Idk how close his mtg was to todays value... idk if the sales price is the current value. there was no disclosure on huds appraisal. my appraisal wont be until next week. water tests from the county wont be back until 3/30 and that is my last day in my contingency period...

I am dying to get all this stuff taken care of and close on this place. I cant make everything happen fast enough! we have a tentative closing date of april 30th! thats like forever away I am so ready to be home!

 

[CarrieW]

the kitchen is the closest to original and I am almost certain this is one of the original windows. I am taking my camera tomorrow also to get better pictures of the other window problems. the other ones that need repair or replacing are the big tall ones you can see from the porch.

 

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[CarrieW]

Where to begin... Home inspection has to be rescheduled to next week. THANK GOD We didn't turn the water on to the house yesterday when the well was checked LOL. When we cut everything on the guy went around to make sure everything was off. Turned the water on to the house and within a few minutes We hear water pouring... Pouring out of the laundry room ceiling. Dripping down all the walls and out the light fixture and down the circuit breaker box! He cut the water off and turned off the power with a long wood stick... So we had to stop the inspection until they can get the plumbing fixed... Apparently they didn't do a great job winterizing the house lol.

 

[CarrieW]

http://s1054.photobucket.com/user/carrie_weber1/slideshow/house

some of the things this guy did are just crazy... the ac protector LOL that one foundation stack... I just saw that. there were more pics I wanted to get but I got sidetracked after the water incident

 

[CarrieW]

if anyone is around I could really use to get some others opinions...

just found out a few hours ago they are not willing to fix the leak. I am not allowed to turn the water back on to finish the inspection.

I want to renegotiate.

it is a HUD owned house.

can you insult HUD? can you renegotiate with them?

I want to lower our offer. like by a lot...

any advice? I haven't had or paid for a complete home inspection yet. but I have had many things inspected

the house has an obvious plumbing issue with the laundry tie in pipes over the laundry room. then it needs a few small items to get the well into tip top shape. (valves and such)

the electric was done not long ago. it actually is wired for 300amps 2 150 boxes only marked on the mains not stamped on the boxes. (I think that is what that means) as you can see in the pics in the link there was water running and dripping down the boxes. nothing shorted out and it was turned off. I am going to include those pics with my adjusted price I need to find out if they are going to be ok... the inspector that was there during the fiasco didn't seem to concerned he said everything would just dry out. the insulation and drywall in the ceiling may need replacing I think...

it needs a roof. there is some water stains and repairs that have been made but its not shrinking or curling and its still flexible so I can get a little time but not much on it. the guy said its like 20yrs old... the leaks were around vents and have been fixed supposedly. the inspector couldn't finish so I am just assuming it needs one.

it needs windows. it needs a new hvac system. and ductwork... (its laying on the ground and mostly the insulation is off) it needs insulation underneath the house itself it has none under the house. its got standard backer-board insulation in the walls and good insulation in the roof... the water system needs servicing and has a small leak in the valve but the inspector said they would fix that when they service it.

they said the house was built in 2010. it was not. it was built sometime before 1980... it was renovated in 1980 and then updated in 2010. I have to go to the courthouse to try to see if I can dig up records to find the original structure build date.

do you think they will be insulted if I drop the price from 109k to 80k?

I should note if I haven't before the foreclosure price on the house was 196k. my agent is doing a cma for me but I have been watching the market for years I know the value is around the 180k with the improvements it is more like 220-250k. I pulled all the sales in the county (its a rural area) with close sq ft for the last 6 months and they range from 323k - 145k the closest local house was sold 2 yrs ago for 246k the trailer next door was sold for 109k. same size lot. the house is 2x the size of that trailer. My appraisal was ordered on friday and it should happen like any minute... I am dying to know what he says. it does need a lot of work but I am confident in the 180-200k valuation.

they had an inspection report saying that everything was in good or acceptable condition... including the windows that are horrible and the gutters and downspouts that don't exist...

thoughts?

 

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[CarrieW]

from my agent

Did a Comparative Market Analysis, found 11 properties Can't get it (her attachment pic I cant read)to come in any larger. Median at bottom of list reads 4/2br, 2428 sq ft, list price $229000, sale price $249900, 194 days on market, sale/per sq ft $104.41. The one at 506 Morgan Cemetery Rd is listed for $249,900 and is under contract.

 

[CarrieW]

Still trying to buy this house lol. It has been an experience thats for sure. Tons of things have happened. All very frustrating. After we close and get the immediate bank required repairs made I will post more details.

 

[CarrieW]

Just submitted a bunch of documents to the mtg co. Its do or die time... Fingers crossed. I know it will end up how its supposed to. I just hope I end up with this house! We are going to need approval for another extension. Hopefully we can close soon

 

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[CarrieW]

Still have not closed! I could scream... Just filed our 3rd extension request... I hate my mortgage bank. I wanted to pull it and switch last extension and was advised to just finish where I am because chances were better for a faster closing where we were... YEAH RIGHT! I knew it. Anyway we are still trying to close...

 

[CarrieW]

I'm in need of help interpreting this. #19

what does this mean? We have a escrow repair loan so I am not sure if they mean my final inspection after purchase for repairs or before... I am not allowed to turn the water back on because of the leak... I am freaking out and I can't reach anyone till Monday

 

[CarrieW]

page 1

 

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[SteveO]

Looks to me like they want a "shitload" of information still. As far as 19 goes, it looks like they want the appraiser to see the leak. I don't know if any other utilities were off during inspection, but it sounds like they need to be on. All of these items need to be completed before loan docs will be completed.

Who told you that you cannot turn on the water? How could you get a bid without turning it on for the contractor to see? Just ask for the appraiser to go back out and turn the water on long enough for them to see the issue.

 

[CarrieW]

They have like all of the info, I have been getting these people info since march 8th! I am ready to seriously lose my cool with them. The dept of hud people contracted to sell the house said we can't turn the water on. The inspection was done march 25th, they are just asking for this shit now? They also know about the leak. I am on my 3rd extension and this douche is talking about maybe closing June 26th! If we go past that its another 2extensions which are costing me 375 a piece! Omfg I'm so pissed

 

[CarrieW]

All the utilities were off during the appraisal, we found a leak during the inspection and had to cut the power and water and were told they are not fixing it and I was not allowed to put the water back on. I posted pics a few posts back. The contractor was there so he saw what it was when it happened. The only mention of utilities in the appraisal were to deduct the 15k or whatever off the value for unknown status...

 

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[CarrieW]

My rate lock is going to expire too. unbelievable. Idk what to do.
Wth is final WOE?

 

[DreamPursuit]

They want the utilities on for the appraiser. If it's a 204k loan the appraiser will have to come back out once repairs have been made to bring it up to the HUD standards. You will need a licensed contractor to do the work within 30 days of closing and provide a invoice, or sign off on it if y'all are doing the work.

Now if it's not a 204k loan the repairs will have to be done before closing by a licensed contractor.

 

[CarrieW]

Its a 203b loan with escrow. Repairs to be done within 30days. Limit of 5k. 203k is higher repair amount...

 

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[CarrieW]

I got confirmation of the extension today. I have until Monday at noon to forward the funds. I don't know what to do... I can't make them let me turn on the water.

 

[DreamPursuit]

Yep, forgot about that one! I've mainly messed with the 203k.

WOE is weight of evidence. http://ucanalytics.com/blogs/information-value-and-weight-of-evidencebanking-case/