Potential Quick Turn...Need to Move Fast!

[CarrieKoch]

A lady called me to buy her house. They have to be out by Tuesday and they want some more time to get packed and find a new place. In order to stay the "eviction" they need to have a purchase and sale in their hand by 4pm tomorrow.

Financial Details:
1st : 125,000
2nd: 32,000

Wells judgement against them? They will settle for $13,500.

The home was appraised for $200,000 in Jan 2010. There was also an inspection done that should some major things...sloping kitchen floor, foundation and roof. The appraisel was kind of a mid level okay report so I think we could get more for it in better condition.

The home is between Orillia and Barrie on a large lot. 4 bed, 1 bath, 1 1/2 storey, no garage. In a neighborhood of similar style homes.

What would you do on this? If anything?

 

[Lucas]

Hi Carrie,

I would contact a local Realtor to pull recent solds of comparable properties asap. In my experience an appraisal means very little when establishing fair market value (FMV).

If you can get quick access, bring your contractor through the place and see what their thoughts are on condition and repair costs.

That is a pretty tight timeline...your Realtor should be able to pull comps (let them know the size, # of beds/baths, neighborhood, upgrades etc...) without looking at it.

Are you referring to the second mortgage when you say they will accept $13,500? If so, is there something in writing confirming this is what they would accept? Also, is it possible to put a conditional offer on the house in order to buy yourself a little more time?

Essentially, the most important information IMO is the current FMV and the repair costs. The repairs you listed can be very costly and can vary greatly (ie. 10k to 100k or more).

Good luck!!

Lucas


QUOTE (CarrieKoch @ Mar 28 2010, 03:00 PM) A lady called me to buy her house. They have to be out by Tuesday and they want some more time to get packed and find a new place. In order to stay the "eviction" they need to have a purchase and sale in their hand by 4pm tomorrow.

Financial Details:
1st : 125,000
2nd: 32,000

Wells judgement against them? They will settle for $13,500.

The home was appraised for $200,000 in Jan 2010. There was also an inspection done that should some major things...sloping kitchen floor, foundation and roof. The appraisel was kind of a mid level okay report so I think we could get more for it in better condition.

The home is between Orillia and Barrie on a large lot. 4 bed, 1 bath, 1 1/2 storey, no garage. In a neighborhood of similar style homes.

What would you do on this? If anything?

 

[CarrieKoch]

It`s hard to get decent comparables because of the smallness of the market and uniqueness of property. Prices range from 150-400 for similar size/type of homes.

We are putting in an offer at 164,000 to tie up the property. (They paid $162,500 3 years ago). This will cover their 1st, 2nd and half of their judgement...I think it`s legal fees, etc.

We are doing exterior inspection tomorrow and will move from there. First thing is to stop the bank so we can move forward.

Our exit is either a quick flip handyman special (we have some contacts for this) or we will handle the renovation and flip by bringing the mortgage current, making payments, renovating and selling before close.


QUOTE (Lucas @ Mar 28 2010, 05:55 PM) Hi Carrie,

I would contact a local Realtor to pull recent solds of comparable properties asap. In my experience an appraisal means very little when establishing fair market value (FMV).

If you can get quick access, bring your contractor through the place and see what their thoughts are on condition and repair costs.

That is a pretty tight timeline...your Realtor should be able to pull comps (let them know the size, # of beds/baths, neighborhood, upgrades etc...) without looking at it.

Are you referring to the second mortgage when you say they will accept $13,500? If so, is there something in writing confirming this is what they would accept? Also, is it possible to put a conditional offer on the house in order to buy yourself a little more time?

Essentially, the most important information IMO is the current FMV and the repair costs. The repairs you listed can be very costly and can vary greatly (ie. 10k to 100k or more).

Good luck!!

Lucas

 

[markl]

Hi Carrie,

I would have your realtor or realtors give you an opinion on a list price and what average days on market might be as well. This would obviously give you more of an indication on possible sell price and once you determine how much reno you need to do you can determine whether it is a good deal or not?

Who did the appraisal? There is one company up in your neck of the woods known for being generous.

Regards,

 

[CarrieKoch]

Danford Appraisals in Bradford.

 

[Lucas]

I definitely would want a handle on what NEEDS to be repaired before you try to re-sell. If the cost of the repairs + cost of the property > the FMV of the home after reno`s you will be stuck with a niche property in a small market.

If the property will resell at 200k, you have very little room to work on a fix/flip IMO so be sure about the cost of the repairs before you buy it b/c reno`s can go sideways in a hurry.

Good luck!!

Lucas

QUOTE (CarrieKoch @ Mar 28 2010, 08:58 PM) It`s hard to get decent comparables because of the smallness of the market and uniqueness of property. Prices range from 150-400 for similar size/type of homes.

We are putting in an offer at 164,000 to tie up the property. (They paid $162,500 3 years ago). This will cover their 1st, 2nd and half of their judgement...I think it`s legal fees, etc.

We are doing exterior inspection tomorrow and will move from there. First thing is to stop the bank so we can move forward.

Our exit is either a quick flip handyman special (we have some contacts for this) or we will handle the renovation and flip by bringing the mortgage current, making payments, renovating and selling before close.