Monday, July 26, 2010

Community Service

Ok, so, the ugly is - my house hasn't closed yet. Underwriting decided to do a review and call for second appraisal. Seems to be the norm throughout the nation but hasn't been in California 'till now. I had 4 solid comps when i bought, since then in my hood there has been nothing but crap shorts and reo's with low numbers. There was one sale from an investor/appraisor/rehabber guy I know, but by the time I sold my house, that would only be one comp........kinda nervous. So we decide to sell fha to seemingly strong buyers who would have gone conventional but wanted to use the cash for their wedding. Their Mom is the buyer Agent so we feel pretty good. The first appraisal comes in superb.....exactly my sales price, BUT it's a 45 day close and my investor/appraisor/rehabber friend and I have not been doing any other projects to keep the market prices up in the hood, meaning if they did a second appraisal, it wouldn't look good. The second appraisal is desktop and comes in at 155k or something, our sale is 169k. Meanwhile we are out of contract so we ask the buyer for an addendum extension and the buyer agrees to order another appraisal to challenge the desktop. The desktop by the way used comps that were funky like over a mile away and one was a deed transfer.....frustrating. Meanwhile, the buyer's agent has power of attny so we are dealing with her. So, we wait......I want my price dang it, they verbally agreed to come in with cash to give me my price in the beginning. I can't hold them to it i know.

Over the weekend I went to take pictures of one I have under contract with a super speedy close, quick homework on this one like i like, more on that one later.

And, I learned something very valuable!! Have you ever followed houses you have made offers on? The ones that got away so to speak? BEFOREAFTER

Well, I had this one under contract and after inspecting the interior of one of the walls found moldy issues and decided to ask for a price reduction......didn't happen and I let it go. So, I followed it and drove by watching the construction for MONTHS! I drove by yesterday and they were having an open house. WOW what a beauty! A contractor picked it up and did it up right. It's WAY too pretty for the hood. The inside is all brand new, he moved walls added a bathroom, new pool equipment. It is fantastic - but - (BIG but)- I don't think he is making a dime. I know what he bought it for, I know what he put into it and I know how long it took, really sad. I feel for him. I'm calling this syndrome = "community service" fixing up the hood for free. I'm hoping to avoid this syndrome in the future.

Have a fantastic Monday!


Scott Costello said...

Thanks for the update Kelly! I'm sorry to hear that things keep getting dragged out, I'm confident things will work out for you though. Keep chugging!

Kelly said...

Thank you Scott! I'm trying to focus on bigger and better things. Patience is NOT one of my strong suits! Chuggin' on !! :)