House #33: First Contract

June 13, 2012 · 3 comments

I mentioned the other day that we expected a contract to come over on The H2O House, and we received it today…

It was full price (though we basically made up a price since we hadn’t actually thought about it beforehand) and it was from another NACA buyer, which we love. This is the same agent (he works for NACA) who sold The Unexpected House and The Leak House for us (and maybe another one that I’m not thinking of).

In terms of the contract price, it was the same price as we originally had The Unexpected House under contract for, but that one appraised for a few thousand less. This one is right across the street from that property, so I expect this one may appraise for less as well — I have a feeling the buyer’s agent knows this too, and knows we’ll reduce the selling price if the appraisal comes in low, which is why the selling price wasn’t much of an issue either way.

While the buyer didn’t ask to have any input into the renovation decisions, we’re going to give him the opportunity to at-least choose his own paint colors (inside and out) and perhaps we’ll find some other opportunities to let him customize. We’ve told the buyer that we’ll be finishing up the rehab by the end of the month, so there’s some pressure to keep on schedule with the renovations; but assuming everything goes as planned, this one is now scheduled to close by the end of July.

Of course, a lot can go wrong between now and then, but we’re hopeful the buyer will stay committed and we’re confident we can deliver on our end…

3 responses to “House #33: First Contract”

  1. Inter M Properties says:

    This is an excellent insight into the way your company works. Seems like you are doing a great job. We will definitely take in consideration your tactics and apply them to our work startegy.

    Best regards,

    Inter M Properties, Cyprus

  2. Justin says:

    If he picks the paint and other finishes will you put something in the sales contract so he can’t back out of buying or has to pay some sort of penalty if he does? I’m in the middle of rehabbing a property and have an interested buyer. If I give him the option of picking the paint colors and he decides to go with a pink room for his daughter, I want to be sure he either buys it in the end or compensates me if I have to repaint. Granted, painting is cheap but I’m thinking of giving him more options with finishes.

  3. J Scott says:

    Hey Justin,

    I should have been more specific about what we’re doing — we’re going to give him several options of exterior paint schemes and several single interior paint colors to choose from (all neutral and popular). Every option we provide would be options that we’d have chosen ourselves, so if for some reason the deal doesn’t go through, we’ll still be perfectly happy with the choices. We’d never allow a buyer to dictate choices we wouldn’t be happy with if we had to resell, but we’re happy to give him some choices so at least he has a bit of input.

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