Need advice on House I found this is weird.

Have seen this house for at least two years sit vacant and finally this weekend a sign is in the yard for sale by owner. Longstory short look at the house and everything is great but a small issue with roof that needs to be replaced and some carpet. The guy was asking 59k to buy or owner finance for 69k. I told him I was an investor and turns out so is he. Somehow he buys properties in bulk from banks and then unloads them. Some unseen. Not sure how he does this but I digress. The weird part is I looked at the house twice and we came up with a price of 45k if I don't do an inspection but 50k if I do. He says he doesn't want to tie up the house for a period of time incase another buyer wants it. At 45k it is a pretty good deal. At 50 it is still a decent deal. I even offered a 500 option fee so I could do the inspection and he said no. Those were his two prices so take it or leave it. I am sure he just wants to flip it but its weird that I can't do an inspection but for the other price. All foundation looks good only thing that would maybe be a problem is AC could not work though it looks fine. Roof was ok from inside I looked in Attic and I could turn the water on myself. Anyone ever dealt with anything like this. He basically said as is no inspection for 45k and 50k if I want an inspection. House is probably worth about 65-70k.

Jerry D.

· Houston, tx

36 posts
50 influence

Dec 13 '11, 11:36 AM

Forgot the roof was just a patch job that he said he was going to do. I even called insurance company and their has been no claim on the roof so that is good news.

Jerry D.

· Houston, tx

36 posts
50 influence

Dec 13 '11, 06:51 PM

Would you buy a house without an inspection?

William Walsh

Real Estate Investor · Austin, Texas

38 posts
50 influence

Dec 13 '11, 07:30 PM

You can expect a lot more wrong with the house if it has been vacant for two years. Empty houses don't maintain themselves and they may require repair due to decay, vandalism or animals.

Would I buy a house without an inspection? Yes, however not with the amount of discount on the purchase price that you stated and, more importantly, not from someone who was pushing me not to get one.

Carlos F.

Real Estate Investor · Dallas, Texas

403 posts
11 awards
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Dec 13 '11, 07:32 PM

Just sold one today. The investor did not have an inspection done or request one.

Red flags though when someone says you can't have one.

Jerry D.

· Houston, tx

36 posts
50 influence

Dec 13 '11, 07:33 PM

Ok thanks for the input

David Beard

Real Estate Investor · Cincinnati, Ohio

Pro

509 posts
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Dec 13 '11, 08:06 PM

Not clear on this, are you saying the seller wanted more if your contract had an inspection contingency (this could be reasonable since the offer is inferior to an offer without contingencies), or are you saying he would not allow a professional inspector on to the premises?

Telephone: 502-321-6328

Joel Owens

Commercial Real Estate Broker · Canton, Georgia

Pro Basic

2,194 posts
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Dec 13 '11, 10:45 PM

Sounds like you have a professional seller that buys in bulk.Typically they try to make the most profit first with the best one and reduce the ones they have too that aren't selling.In the end if they come out on the plus side that is what matters.

Why not chat him up and ask some more questions.

How many did you buy in this purchase?

How long have you had this property on the market??

Have the properties been moving quickly?

You want to try to gain insight into his bulk purchase and where he is at divesting the properties and experience so far.

What would the property rent for once work is completed??

Jerry D.

· Houston, tx

36 posts
50 influence

Dec 14 '11, 04:32 AM

Thanks guys talked to him at length he does buy them in bulk. How does that even work? He says he bought this one and 15 more. I looked the guy up he is legit. Owns at least 50 other properties. It would rent for 900 to 950. If ac works and I get it for 45 k then another 3. To 5 k for fix up and closing depending on if I do tile for the whole house.

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Jerry D.

· Houston, tx

36 posts
50 influence

Dec 14 '11, 09:15 AM

Thanks that is what I was thinking as well. I even offered a 500 dollar option period so if I didn't buy the house he would keep the 500 dollars. It is just a weird situation I have never dealt with and wanted to see how yall would handle it. Thanks for all the good advice.