First Flip - Getting offers! Need advice
I just finished my first flip ever, and am so happy to be getting
multiple offers! I've never actually sold a house on the MLS before,
and am wondering if any experienced flippers could chime in on what they
would take.
House is in Ohio. Purchased at 16.5k, rehabbed for 35k, and have a few thousand in holding when all said and done. All in I'm at 55k. We listed at 79k on Friday, and I've gotten 3 offers over asking so far.
1. 96k - FHA loan,
2. 95k - with inspection
3. 90k - no inspection
This flip was challenging due to contractors backing out, and while I believe everything is up to code, I have some doubts about their work. Considering the offer of $90k with no inspection, as my realtor warns a negative inspection report could hurt future prospects. Would love some insight!
Quote from @Evan Holly:
I just finished my first flip ever, and am so happy to be getting multiple offers! I've never actually sold a house on the MLS before, and am wondering if any experienced flippers could chime in on what they would take.
House is in Ohio. Purchased at 16.5k, rehabbed for 35k, and have a few thousand in holding when all said and done. All in I'm at 55k. We listed at 79k on Friday, and I've gotten 3 offers over asking so far.
1. 96k - FHA loan,
2. 95k - with inspection
3. 90k - no inspection
This flip was challenging due to contractors backing out, and while I believe everything is up to code, I have some doubts about their work. Considering the offer of $90k with no inspection, as my realtor warns a negative inspection report could hurt future prospects. Would love some insight!
You should counter the no inspection offer to 95k.
@Rafael Castro thanks! That seems so obvious now that you've said it, but it hadn't crossed my mind. That's what I'll do : )
Congrats. Great position to be in. I'm sure you learned a ton about the whole process and could repeat again if you wanted to. The wealth of knowledge is most important in my opinion. All of those offers are a success. You have real interest in a property that you worked hard to bring to the table. Do whatever you feel comfortable with (sounds like no inspection 90k). Cheers.
Sounds like a profitable flip and a good learning experience - great work.
This doesn't have anything to do with your original question, but your statement that "I have some doubts about their work" caught my eye. Not sure what Ohio's disclosure laws are, but you should ask your Realtor what obligations you have to disclose latent defects and/or material facts. You may be fine and not have to disclose anything (especially if your concerns would be evident to anyone walking into the house, e.g. not covered up behind drywall), but its worth having the conversation with your Realtor to CYA.
Good luck!
Ask for highest and best offer and take what ever the no inspection offer ends up being. Inspectors always find something its there job. It boils down to negotiating price and what you are willing to fix. So with the inspection you will probably be close to 90k after fixing issues or giving allowances for outstanding issues.
@Evan Holly What was there counter offer??
Congrats man! Sounds like a successful flip (thus far).
@Joe Norman thanks Joe! that’s a good tip. I will check with my realtor on that. I should say, I’m hopeful they did the work right, but they were a bit flakey all along, so I’m somewhat paranoid.
Quote from @Evan Holly:
I just finished my first flip ever, and am so happy to be getting multiple offers! I've never actually sold a house on the MLS before, and am wondering if any experienced flippers could chime in on what they would take.
House is in Ohio. Purchased at 16.5k, rehabbed for 35k, and have a few thousand in holding when all said and done. All in I'm at 55k. We listed at 79k on Friday, and I've gotten 3 offers over asking so far.
1. 96k - FHA loan,
2. 95k - with inspection
3. 90k - no inspection
This flip was challenging due to contractors backing out, and while I believe everything is up to code, I have some doubts about their work. Considering the offer of $90k with no inspection, as my realtor warns a negative inspection report could hurt future prospects. Would love some insight!
Where did you buy a house for 16k?!
-
Real Estate Agent Ohio (#2023000087)
- 614-300-7535
- https://linktr.ee/jimmysellscolumbus
- [email protected]
Quote from @Evan Holly:
I just finished my first flip ever, and am so happy to be getting multiple offers! I've never actually sold a house on the MLS before, and am wondering if any experienced flippers could chime in on what they would take.
House is in Ohio. Purchased at 16.5k, rehabbed for 35k, and have a few thousand in holding when all said and done. All in I'm at 55k. We listed at 79k on Friday, and I've gotten 3 offers over asking so far.
1. 96k - FHA loan,
2. 95k - with inspection
3. 90k - no inspection
This flip was challenging due to contractors backing out, and while I believe everything is up to code, I have some doubts about their work. Considering the offer of $90k with no inspection, as my realtor warns a negative inspection report could hurt future prospects. Would love some insight!
I would go with 90k " no inspection" or counter him at 95k. The chances are that after the inspection period, the 2nd buyer will try to knock down the price from $95k to a lower price.
-
Real Estate Agent ohio (#2022006870)
- 614-802-5698
- https://www.reafcorealestate.com/team/alfath-ahmed
- [email protected]
@Evan Holly, I know I am offering advice after you already have a signed deal on this one, so take this for future flips.
You are in a good position. Price is only one of many factors, as you recently learned. I always start with the offer with the best terms, and try to get them up on price, and the offer with the best price and try them to get to match the terms of the other.
These terms include: down payment amount, inspection and/or appraisal contingency, appraisal gap money, closing timeline, current home sale contingency.
I ALWAYS avoid FHA buyers. Last I heard (but I simply don't accept them for last few years) is most flips will require two appraisals for an FHA buyer. But beyond the appraisal issue, when you have a buyer with only 3.5% down, my perception is they have less money to absorb any items that come up inspection or appraisal. And generally, once you fall out of contract, you are going to simply see the offer prices coming down and down and down.
