House #13: The Poor House

August 28, 2009 · 3 comments

We just got our next house under contract…

This house is in the same sub-division as The DIY House, and is actually very similar to that house. The big challenge on this one will be the exterior — the siding likely needs to be completely replaced, the roof needs to be replaced, and the front and back decks will likely be rebuilt (not necessary, but will make a nice aesthetic difference). After the exterior is completely redone, the interior will ultimately get a full cosmetic makeover, including a good bit of mold remediation in the finished part of the basement.

This will likely be an expensive project ($50K+), but the deal was a good one.

The listing agent actually wrote in the MLS listing, “PROPERTY IS IN VERY POOR CONDITION” — hence the name we chose for the house — which I’m guessing is why there was very little competition to buy this house. I have a feeling that the low price tag and this comment in the listing actually scared away a lot of investors who assumed that if the listing agent was putting warning in the listing, the house must be in HORRIBLE shape.

In actuality, the house is in no worse condition than 90% of the houses we look at, with the exception of the exterior siding and some mold in the basement. But, I have a feeling this agent is new to REO listings, and doesn’t realize the average condition of REO properties is pretty bad. If she had been a little less forthcoming about the condition of the house, she probably would have had a lot more investors through there, and I have a feeling it probably would have sold for a good bit higher.

I’ll post some pictures in the next day or two…

3 responses to “House #13: The Poor House”

  1. Jingle says:

    My favorite is when the listing says you must sign a mold disclosure before they will even let in the door. I’ve ended up with a couple of these houses because it winnows the buyer field. I just missed on one up the street from my personal house that was listed with one of these disclosures. When we finally got inside, we couldn’t find any mold. I bid a few K$ over asking and still didn’t get the house. I suspect an inside deal between the agent and a confederate. I’ve seen a lot of this happen, but what do you do????


  2. J Scott says:

    Hey Jingle –

    I don’t think I’ve ever seen a listing that required a signed disclosure before entering the house…now THAT would be my kind of house!!!

  3. Alex says:

    I’ve saw one property were the agent would only let you in if you had a mask on. And they made you sign a 12 page mold disclosure. The agent wouldn’t let me in because I’m a minor and so my signature wasn’t valid. I was with my business partner and the agent made a huge fuss over it needing to be signed by a parent blah blah blah.

    What’s even more frustrating is that another flipper bought it and made over 100k!

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