House #8: The 16-Bid House

March 4, 2009 · 0 comments

We got our eighth house under contract (actually, the contract was just verbally accepted) today! The house was listed very low in relation to it’s value, and according to the listing agent, the bank received 16 offers between the original listing and their accepting our offer; this was actually the first time we’ve ever offered more than list price for a house, and in this case we offered almost $6K more (our offer was $41,000 on a list price of $35,500). Of the 16 offers, apparently ours was the best, though our large deposit and offer to close quickly likely helped a bit.

The house is in the same subdivision as The Red Garage House and the layouts are very similar; additionally, the numbers are almost identical in terms of purchase price, rehab costs, and expected sale price. Additionally, if we find that we have trouble selling The Red Garage House quickly (which likely means we’d have trouble selling this one), the numbers definitely support renting this new house instead.

We picked this one up for about $4K less than The Red Garage House, but it has some additional exterior/siding work that’s needed, so the difference will likely be eaten up there. Also, the entire first floor of the house is tiled, so if we decide to hold it as a rental, this is a good feature (I assume the previous owner used it as a rental). The other major difference between this house and The Red Garage House (other than the garage not being red) is that this house has a large backyard, whereas The Red Garage House only has a small stone patio in the back.

I’ll have more to say about this one once the contract is finalized and once we get through the 5-day due diligence period…

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