First Flip Offer / Counter Seller Shenanigans PropOffers.com

First Flip Offer / Counter Seller Shenanigans PropOffers.com

Member since 2019 · 18 posts · 5 votes

New to the Bigger Pockets community and starting our journey into real estate investing. We thought we would start with a flip. Found a house that we could pay cash and offered. It is a foreclosure and the offer process is managed by PropOfferes.com. This site is ridiculous. Feedback is painful. Timely replies are non-existent. Contact information is not available. The selling agent is not involved in the PropOffers.com site and not responsive to my agent. We submitted our first offer a couple of weeks ago. It was rejected. We re-submitted another offer. They countered we countered, they rejected. 

They dropped the list price of the home. The next day we submitted a new offer which they countered. We accepted this offer. They expected an increased amount of earnest money via certified check. The agent went into the web site and clicked the button to accept the counteroffer. We went to the bank and sent our agent a picture of the check and dropped the check in the mail. We then received the docs to sign online. The agent uploaded those docs and received an email that there were multiple offers and to submit the best and final offer.

We are in limbo right now and can't get anyone to tell us what is going on with the house. There is no customer support number and we are not getting anywhere with the seller or the seller's agent.

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Russell BrazilBusiness Member
Moderator
Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
7y

This is just part of bidding on an reo through an online portal. Nothing sounds out of the ordinary. 

See this reply in the discussion

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  • Member since 2019 · 18 posts · 5 votes
    5y

    The place was originally 1 BR/1 BA. We added a 16x26 addition over the original kitchen/dining area and added 2 BR/1 BA. Moved the laundry to the main floor and added a 1/2 bath to the main. Pushed the stairs back and turned the top 3 stairs at a 90 so you didn't hit your head at the top of the stairs.

  • Member since 2019 · 18 posts · 5 votes
    5y

    View of the back on the day we closed.

  • Real Estate Agent · Southington, CT · Member since 2008 · 5k+ posts · 3k+ votes
    5y

    We have dealt with Prop Offers quite a bit here in CT over the years when involved in REO transactions. To be honest, they are one of the better vendors to deal with. Nothing you have described is out of the ordinary and what I have found over the years is the listing agents on these foreclosures are not as in the loop as you think they are with the banks/asset managers. It really depends on the bank and how they have things set up.

  • Member since 2019 · 18 posts · 5 votes
    5y

    View from the back when we listed.

  • Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
    5y

    Nice job! What a rehab

  • Member since 2021 · 1 post · 0 votes
    5y
    Originally posted by @Russell Davis:

    They say kitchens and Bathrooms sell a place.

    A Gorgeous Kitchen is always a selling point for me!  Where are you flipping? Any tips on rebuilds?  I have an offer in with propoffers.com but I am not holding my breath with this market.  Even if I get the house, there is a long climb back to it being a good home because of its crushed roof.  I am looking for nice properties at reasonable prices (which don't really exist around here).  I feel like most of the 'rebuilds/rehabs' are more spackle and paint then actual quality workmanship.  Your pictures tell a different story, I love the level of detail you put into your flipped houses.

    Thanks for sharing your propoffers.com experience, it is helping me cool down.  I haven't seen a response from them a week after putting my offer in.  With regular houses it was within 48 hours. I didn't realize that the expectations were so drastically different for REOs. As others have stated the website doesn't provide much information but I did find that in their "FAQs" page, it says 24-48 hrs.

    https://www.propoffers.com/FAQ...

  • Member since 2019 · 18 posts · 5 votes
    5y

    Good luck with your offer with PropOffers.com! Don't get rattled. We received an email about submitting our best and final offer. We panicked and submitted another offer, which triggers another email from them about submitting best and final. It's my understanding that the site (might be configured by listing, idk) has a two-week window from offer to acceptance hoping for competing offers. I find it a very stressful waiting period.

    We used the old saying of buying the worst house in a good neighborhood. Sounds like you found one! As our first flip, we definitely took on more than we can chew, but it was a great learning experience. It turned out great and tested our skills and abilities. We flipped in a small town in Iowa.

    To me, planning is the key. Having a solid awareness of the market, but understanding it can shift. Get good at finding comparables and understand what it will take to get your home to, or above, that level. I like to use dollars/sq ft. It is a really good indicator for similar houses in the area. If you are rehabbing older homes, you should be able to get a premium dollar/sq ft. 

    What really propelled our home was taking a 1 BR/1 BA, adding a second story on top of the old kitchen/dining area adding 2 BR. Reconfiguring the old kitchen/dining area allowed us to bring the laundry to the main floor and add a 1/2 bath to the main, while moving the upstairs bathroom into the addition.

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