House #13: First Contract

December 8, 2009 · 4 comments

We put The Poor House on the market about two weeks ago, and given the slowness around the holiday season, I wasn’t surprised that we just got our first showing just this past weekend. The great news is that this first showing resulted in a full-price contract…

Not only a full-price offer, but the buyer wants to close next week; and, according to both his mortgage broker and the closing attorney, they may actually be able to push this closing through in that time. Realistically, I would expect that we’ll close by the end of the month, but if they want to shoot for next week, I’m certainly not going to stop them.

We still have inspections and an appraisal to get past, so it’s not a done deal yet, but I’m thrilled that our first potential buyer was willing to make a quick full-price offer…as I suspected, we shouldn’t have too much trouble selling this property.

We signed the contract today, the appraisal is being ordered tomorrow, and I imagine the inspections should take place some time this week. I’ll have more to say once we get through these key milestones…

4 responses to “House #13: First Contract”

  1. Chris Ranney says:

    Awesome J.
    I put a bid on my first “real” rehab last week. Asking 24.9k
    I bid 7600.00– They called back my realtor in minutes saying NO. I countered today with 10k and as of yet, not heard anything. It needs alot of work. Roof, siding, new bath, kitchen etc. The realtor says the retail price “sweet spot” is 64.9K if made to look decent. My contractor is a fellow churchmember and is willing to do a split on the profits when I sell it. I would get the materials and float him some monies while it is on the market. It sure is different making the bids vs. reading about them LOL.

  2. J Scott says:

    Chris –

    Congrats on the first offer! It’s stressful, I know, but rest assured that once you get the first offer accepted, you’re going to be ecstatic…

    Great idea to partner with your contractor on the first one (or first couple). This will give you some experience with a reduced risk, and will give you an opportunity to really learn the construction side of things. For me, this was the hardest part, and being able to ask my contractors lots of dumb questions in the beginning is really what gave me the knowledge to be confident in my inspections and rehab estimates.

    Good luck, and keep me informed of your progress on this one!

  3. Eric D says:

    jason, how could they possibly close in one week? this is not a enough time to pull the abstract and get a title insurance policy

  4. J Scott says:

    Hey Eric –

    It’s actually about 10 days, which — assuming there are no snags — should be enough time to get this closed. The title work should only take a day or two given that the last sold about 75 days ago as an REO, so all title work was previously completed only a short time ago.

    The appraisal can take a while to order, be done and be written up, but the lender assures us that this shouldn’t hold anything up; and the broker tells us that he can most likely get the loan prepared in this amount of time.

    Again, I’m not confident that this will actually get done that quickly, but it’s certainly possible…we’ll see…

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