Closing in 3 days and need your help with the numbers!

11 Replies

Purchase Price: 180,000

County accessor: 1292 (this is where we signed the square footage disclosure)

Actual square foot age: 1100 - 

ARV - 215,000 conservatively

Would buy this house house as a live in flip? More than likely we will live in it for more than two years.

No I wouldn't buy it as an investment property.   I didn't see any pics of the house in the video but how much repair does it need?  When you add that,  closing costs,  mortgage payments,  realtor commission,  utilities,  taxes,  insurance,  etc it doesn't make much sense as a deal.   Even with 5% appreciation over two years it's not a deal.  

Thanks for the feedback. We ended up asking them to lower the price to 165k or we are going to walk. We would rather lose the earnest money. Than buy a crappy deal. Thanks again.

@Jeremy Kleier : Did you have an inspection contingency in the contract?  You shouldn't have to lose your earnest money if you found out that the house had problems you were unaware of when you made the offer.  If you have the inspection contingency, you can either make the seller fix anything that came up or get your deposit money back when you walk.

Just watched your video- I should have done that first.  I am not a lawyer, and this is not legal advice, but because of the square footage discrepancy, you should be able to get your deposit back.  

Kevin Siedlecki That would be nice, but I am getting told by the "realtor" that since we already sign the square footage disclosure that we can use square footage to get out of the contract. Would you suggest getting a second opinion?

Why is "realtor" in quotes?  Is he not actually a realtor?  How did he present the disclosure to you?  If your offer contract was solid, you should be able to get your earnest money back for something like this.  An almost  20% difference between advertised and actual square footage is a big deal for an investment.  I would try to get a lawyer to look at the contract and look for a way out. 

Last shot, and definitely a long-shot, but maybe appeal to the seller's lawyer and agent.  If you lose your earnest money, they should be ashamed of misleading you on the deal.

Sorry forgot to mention:  Look for anything in the inspection that they did not fix.  Check your mortgage contingency to make sure that the mortgage you got meets the requirements set forth in the contingency.  I bailed on a deal once because my contract had a contingency for a fixed residential mortgage at a certain percentage, but the property only qualified for commercial financing.  I also closed a deal once even though my mortgage rate was higher than the contingency said.  I could have walked for that reason, too.

If all else fails, consider your lost deposit as an investment in your education, and check all these things before you get this far next time!

@Kevin Siedlecki

 Again thanks for the advise. I will check with our lender to see if we have a way to opt out of the contact. 

As far as the inspection goes we pushed hard to get everything thing done on time. So unfortunately I think we have done to good of job their. 

I put realtor in quote because we had to push pretty hard to get this far in the closing process. They fired the original realtor that we started working with, but they a high volume Remax brokerage that has good reviews.