December 8, 2011
I have search parameters set up in the MLS (multiple listing service) system to alert me as soon as any houses that meet my criteria go on the market. My criteria is based on number of bedrooms and bathrooms, location, price per square foot and list price. I had been scanning listings on and off through the summer but we had remodeling projects so I wasn’t to serious about it. Around the end of October I was wrapping up my last remodel project of the year and figured work would be slow until the 2nd quarter of 2012 so suddenly I got very serious about the search for a property. I selected 10 or so of my best prospects (none of them were all that great truth be told) and went to look at them. I narrowed it down to 4 properties and took Mark (my brother & superintendent) to look at them. We narrowed it down to one property and I went to work.
The first thing that I do when we decide on a property is a really quick cost estimate. I have a tool that I use that allows me to determine the highest price I should pay for a property. I used the tool and made an offer below asking price for the house we decided on. The house was a foreclosure owned by Deutsche Bank. They rejected my offer and countered with a price that was too high. I made a different offer, they rejected that one as well. (The house is still on the market and is now listed for less than my first offer, banks are weird) Depressed I rescinded both offers and tried to figure out what we were going to do next. This was on a Wednesday.
On Friday I received an alert on my phone about a price change on a property that I had on my watch list. I had pulled it when it was listed at $99,000 but I didn’t go look at it before because it didn’t seem to meet the parameters as well as the others. The alert was a stunner, the price was dropped to $74,900. Suddenly this property was a must see. Saturday I went and looked at the property and put a full price offer in immediately after running the numbers and previewing the property. I knew that I wasn’t in any real risk putting in the offer because the bank that owned the property offers a 10 day risk free option period.
The next day I brought Mark, John (husband/retired crew), and the Investors (otherwise known as Mom and Dad) to look at the property. Everyone thought it was a good bet. So we let the offer stand. On Monday we received news that there were multiple offers. I let my offer stand and sweated until Wednesday, when the other Realtor called. By this time I had pretty much convinced myself that we didn’t get the house so I was shocked when the Realtor said “you got the house”. Apparently my offer was lower but it was cash and cash talks, thanks Investors.
So we’re scheduled to close on December 15th although I’m trying to speed things along. Over the next few days I’ll post a video tour of the house, go over the plans for the renovation, and the steps we take while we’re waiting for the house to close. Once the house closes the fun will begin, I’ll take you on a day by day journey of resurrection and restoration.