Put in an offer for a house....

[hepcat]

4 minutes ago, LinvilleGorge said:

I don't. Think about it. The place was listed for awhile and pulled because he couldn't sell it. Did some upgrades and relisted. Willing to jump through all kinds of hoops including significant cash out of pocket to sell the house to you when he supposedly has cash offers for at or above list?

Nah. I don't buy that for a second.

You might be right, I don’t know that for sure. We can still back out though so we’re just going to wait and see how deep this rabbit hole goes. Not costing me any money at this point.

[LinvilleGorge]

Don't kid yourself, you're buying it. You seriously considered accepting a horrible offer. You've fallen in love.

I hope it all works out for you in the end or if the issues are as serious as they sound that you can't find a bank that'll lend on the property.

Just remember, as far as everything you've been verbally promised if it's not in writing in that contract, it never happened.

[hepcat]

5 minutes ago, LinvilleGorge said:

Don't kid yourself, you're buying it. You seriously considered accepting a horrible offer. You've fallen in love.

I hope it all works out for you in the end or if the issues are as serious as they sound that you can't find a bank that'll lend on the property.

Just remember, as far as everything you've been verbally promised if it's not in writing in that contract, it never happened.

The cash and option extension was added into the contract. Everything else is just his word. So sure it might not happen. Maybe he doesn’t have offers.

Another thing that I didn’t mention the extension gives us is the ability for our families to inspect the house with people in town for the wedding this weekend. My fiancé’s dad is a master electrician and her step dad is a roofing framer - both generally handy dudes. They know more about houses and construction than I’ll ever know. If they say pass on this house, we’re passing.

[LinvilleGorge]

4 minutes ago, hepcat said:

The cash and option extension was added into the contract. Everything else is just his word. So sure it might not happen. Maybe he doesn’t have offers.

Another thing that I didn’t mention the extension gives us is the ability for our families to inspect the house with people in town for the wedding this weekend. My fiancé’s dad is a master electrician and her step dad is a roofing framer - both generally handy dudes. They know more about houses and construction than I’ll ever know. If they say pass on this house, we’re passing.

If it's not in writing in that contract then it never happened. Especially I its just verbal. Maybe you'd have a case if you had an email or something, but forget all that. Those promises need to be in that contract, period.

[thefuzz]

12 hours ago, LinvilleGorge said:

If it's not in writing in that contract then it never happened. Especially I its just verbal. Maybe you'd have a case if you had an email or something, but forget all that. Those promises need to be in that contract, period.

Would likely have to hire an attorney to add any of this type of verbiage to the contract.

If there is no monetary penalty, "let the boy watch" and see what happens after the repairs.  If he will allow @hepcat 's plumber and structural engineer back in there to evaluate the work, everything could work out.

Personally, I wouldn't be too concerned about selling later.  If it was in Hickory or Winston Salem different story, but this is Austin...there will always be young, dumb, ambitious buyers in that market.

Not to mention, if you can afford it at all, you shouldn't sell that starter home if you get into it well, and especially not with these rates on a 30, but preferably 15 year fixed mortgage.  That could be a very good, long term investment property if you keep up with the work.

Good luck, and let us know when you record and get the keys.

[LinvilleGorge]

3 hours ago, thefuzz said:

Would likely have to hire an attorney to add any of this type of verbiage to the contract.

If there is no monetary penalty, "let the boy watch" and see what happens after the repairs.  If he will allow @hepcat 's plumber and structural engineer back in there to evaluate the work, everything could work out.

Personally, I wouldn't be too concerned about selling later.  If it was in Hickory or Winston Salem different story, but this is Austin...there will always be young, dumb, ambitious buyers in that market.

Not to mention, if you can afford it at all, you shouldn't sell that starter home if you get into it well, and especially not with these rates on a 30, but preferably 15 year fixed mortgage.  That could be a very good, long term investment property if you keep up with the work.

Good luck, and let us know when you record and get the keys.

Then get an attorney. All that work isn't getting done by Friday. LOL!

If it's not spelled out in that contract, then it never happened.

@hepcat, you cannot stay in this deal beyond Friday without those agreed upon promises written in that contract or another extension to allow time for the agreed upon promised repairs to be made. Period. You're highly likely to get bent over and fuged if you do.

As far as the comments about "there will always be another young, dumb, ambitious buyer in that market... that's what a lot of people in the Denver area market thought leading up to the housing crisis too. Highlands Ranch, CO was #1 in the nation in foreclosures for awhile as a result.

[hepcat]

1 hour ago, thefuzz said:

Would likely have to hire an attorney to add any of this type of verbiage to the contract.

Correct. You can easily add extra cash for closing and extensions to option periods as addendums to real estate contracts, but repair guarantees are difficult. 

15 minutes ago, LinvilleGorge said:

Then get an attorney. All that work isn't getting done by Friday. LOL!

If it's not spelled out in that contract, then it never happened.

@hepcat, you cannot stay in this deal beyond Friday without those agreed upon promises written in that contract or another extension to allow time for the agreed upon promised repairs to be made. Period. You're highly likely to get bent over and fuged if you do.

As far as the comments about "there will always be another young, dumb, ambitious buyer in that market... that's what a lot of people in the Denver area market thought leading up to the housing crisis too. Highlands Ranch, CO was #1 in the nation in foreclosures for awhile as a result.

We're requesting the option period deadline move to 2/28. The plumber he sent out is finishing up his work today and we'll get his report this afternoon. No idea on the foundation, he said he already had that quoted. I plan to have the plumber we used for the second opinion to review the owner's plumber's report and quote.

Honestly the foundation isn't that big of a deal. The house is within normal limits for settling per two different foundation companies. There is minimal evidence of repairs that have been done to the foundation over the last 55 years. A $10k fix for the foundation is actually really cheap compared to what other houses just in our neighborhood have required.

The most expensive fix this house needs is a new driveway.

[Khyber53]

17 hours ago, hepcat said:

Been a whirlwind of a day! So I've got lots of news. 

We were all ready to submit the cancellation paperwork on this house when the owner reached out to us around noon. He said he understood our concerns and wanted to work with us. He really wants to sell the house to us because he wanted to sell to someone who would live in the house and also help someone that might not otherwise be able to buy a house in this neighborhood. As I've said, this house was already well below the median price range for this neighborhood and the agreed upon price was already below his asking price.

The option period is extended until Friday.

He added an additional $6k in cash for closing costs, putting us at the maximum allowed by the owner by law, covering all of our closing costs.

He said he would pay for additional repairs done to the foundation on the side where the flooding occurred by adding a pier and beam to that side to stabilize it, and adding another trench drain away from the house. He said he'd get this done immediately and already had a quote to get it done when the flooding originally occurred last year.

He also said he'd get the plumbing professionally assessed before Friday. If we don't like the results, we can walk away.

I'm pretty sure given all these extras, we might be accepting....but it's been a crazy process today.

Run from this. Run away, don't look back. 

This guy is desperate to unload the property and saying he will do repairs is a long way from actually doing them. He isn't providing enough time in the option to handle this.

And let's look at the $6,000 in cash back. He is giving you back $6,000 from your mortgaged amount rather than just coming down on the price more. You'll have cash in hand to do the repairs, but it is money out of your own pocket with interest for the next 15-30 years built into it. The guy will also be paying 5-6% commission on that $6,000, which shows how much he understands the game (not a lot). 

Foundation problems never get better on their own and repairs to them often have a cascade effect. Foundation cracked --> masonry wall needs repairs---> load bearing wall sagging ---> uneven floor ---> chimney pulling away from house ---> flashing between chimney and roof no longer seals ---> damage to soffits and insulation ---> and on and on and on.

And let's not even get into all the drainage problems it sounds like the place has. Just walk on and keep looking. There are better houses out there.

 

[Khyber53]

40 minutes ago, hepcat said:

Correct. You can easily add extra cash for closing and extensions to option periods as addendums to real estate contracts, but repair guarantees are difficult. 

We're requesting the option period deadline move to 2/28. The plumber he sent out is finishing up his work today and we'll get his report this afternoon. No idea on the foundation, he said he already had that quoted. I plan to have the plumber we used for the second opinion to review the owner's plumber's report and quote.

Honestly the foundation isn't that big of a deal. The house is within normal limits for settling per two different foundation companies. There is minimal evidence of repairs that have been done to the foundation over the last 55 years. A $10k fix for the foundation is actually really cheap compared to what other houses just in our neighborhood have required.

The most expensive fix this house needs is a new driveway.

Check and see if he has pulled permits for the work and will be having it inspected. Don't ask him, ask the local inspections office. If it isn't being done up to code and on the books, then you, and maybe he, are getting suckered.

Look, I'm not trying to hurt your feelings but I got my NC Real Estate Agent's license back in 1991, have completed the state course for residential appraisals, worked extensively with my dad (a LEEDS certified architect and 30-year general contractor), my grandfather (60 working years as a general contractor), my late step-father (lifelong brick and stone mason) and have written a number of articles about real estate and home repair for publications throughout the South over the last 25 years. Please, just walk away from this one. You are walking into a mess.

At least go rent Tom Hank's movie, The Money Pit, first so you'll have an idea of what is about to happen to you and your new bride. 

Edit to add: You are about to sign a contract that will make Matt Kalil's look like a move of pure genius!

[LinvilleGorge]

If you have an extension through the 28th then ride it out. See where it goes.

Just be really wary of rushing into a home purchase because of a "hot market" and end up buying a polished turd for less than what seems like market value. 

When we bought our current home a few years back, I really wanted to buy in the low threes... right up until we really started looking at homes in the low threes. They were poo like these or brutal commutes. We ended up buying in the low fours after reevaluating and I'm damn glad we did. We got a time house in a great spot with a great view and a little bit of elbow room. If we had bought in the low threes we would've probably been spending virtually every spare dime and minute on repairs and upgrades. You don't want to be a slave to a home.

Now we're probably going to sell it this summer in the high fives because I'm sick and damn tired of Colorado traffic. It doesn't make sense to live here for me when weekend day trips the mountains are virtually impossible due to crippling traffic. We plan on moving back to western NC and buying a similar house and having maybe a $100k mortgage after using our equity. 

[LinvilleGorge]

When a seller in a hot market is already listing below market value and is willing to make all kinds of concessions like this, it really starts throwing up a ton of red flags. Especially when claiming to have multiple cash offers of at and above listing price.

Put it all together and my bullshit meter is redlined.

[hepcat]

Just got the owner's plumber's report. Taking this with a bit of a grain of salt, but it says the pipes are clear and solid. Obviously old, but shouldn't cause issues. Recommended a pressure regulator valve be installed because the water pressure is a bit high. $500 repair.

I do think the problems with this house were made worse by the first plumber giving the ridiculous quote for repair, probably trying to be predatory and take advantage of a first time home buyer. We've now had two plumbers sent out by two parties say the plumbing is fine.

As far as the foundation....I want the owner to make those repairs. Maybe I can get him to come down on the asking price or get it in writing.

Waiting to receive the addendum for the option period being extended. Owner is apparently "considering" going with another offer. Probably trying to squeeze us to make a decision by Friday. If we can't get another extension I've decided to walk. That's where I'm at.

 

 

[YeahManD]

It’s not the only house out there.  Everyone is telling you to run but you come back with a excuse on why to buy it. You have obviously made up your mind to buy it.  Why ask for advise?

[PhillyB]

On 2/12/2019 at 7:29 PM, hepcat said:

He really wants to sell the house to us because he wanted to sell to someone who would live in the house and also help someone that might not otherwise be able to buy a house in this neighborhood.

L

O

L

pt barnum was right about suckers. nothing is going to change your mind about this house despite the fact that there are literally thousands of better options. unreal