All Forum Posts by: Brad E.

Yeah, I'm feeling a little let down here by my agent to be honest, but I realize the ultimate responsibility is mine.  

For a little more context here are the original numbers:

Ask: 88K

Agreed: 87K + seller pay 1500 closing

Appraised: 76K

So 11K is a pretty big difference when we are talking about numbers this low.... ~14%!

I just received my appraisal back on my first property (duplex).  It came back 11K under the purchase price agreement.  Not really sure what to do now.  Any advice?

I reached out to my agent already.  She unfortunately had a death in the family yesterday so of course I don't want to bother her with this right now.

I know I can go back to the seller and ask for a price reduction to meet market value.  Not sure what to expect from that.  If he does not agree it seems that it would not be wise for me to continue with the purchase.  Unfortunately, I've already paid for the inspection and appraisal (~$1200) so that is going to sting if I have to walk away.  Better that than paying way to much I suppose.

This is surprising to me because the same seller placed 3 duplexes in the same neighborhood on the market at the same time.  All were within $6K selling price.  The one I was able to get the contract on was the cheapest of the 3.  Both of the other duplexes had contracts on them within a week of hitting the market.  I was told by my agent that one paid full ask price and the other was a cash deal, but not sure for how much.

Based on that, my assumption was that these were all priced appropriately so I made an offer.  My first offer was low, which he refused.  After a few back and forths, I finally got an offer accepted, but only got him to come down 1K from asking price.

The seller is out of state now and he is set to close on all 3 of these the same day.  So I feel like he will be willing to move on the price some just not sure how much.

If he wont come down to appraised value is there a scenario in which it would make sense for me to pay more?  

Also what I should have done differently so that I didn't end up in this situation to start? 

On top of all this I feel pretty silly for almost paying way to much for this property.  I thought I was getting the hang of analyzing properties.  Clearly I need more practice.  Ha.

Thanks in advance for your feedback.

I'm looking for a recommendation on some local contractors.  

To start, I've got some work that needs to be done on soffit/fascia.  If they can do minor roof repair that would be a plus. 

I am also looking for a painter and floor person.  

Thanks in advance.

Thanks @Cody L.

@William Kelly How I found my realtor was just going to realtor.com, finding a property I liked, and then clicking the 'request info on this property' button.

Someone will reach out to you pretty quickly.  From there you can start a converstation with them and tell them pretty much what you said in the email.  It might take a couple tries but you will eventually find someone you like.  Also, as @Bob Razler mentioned, the REIA meets are good place. I've make a couple connections that way.

I am inheriting tenants in a property I have under contract as well.  I've got some good advice on BP about what to do, but one thing I did up front was put in the purchase agreement that the seller had to provide all current leases.  

Then based on some reading I'd done I sent an Estoppel cert for the tenant to sign.  But this is where I got stuck and had to turn to the forums here.  I still dont have it signed yet, but folks here recommended some good options to move forward.  Check out some replies to my post here: 

https://www.biggerpockets.com/forums/81/topics/466939-how-to-get-an-estoppel-agreement-signed

I'm in the exact same boat with a duplex at this very moment.  I had the same initial reaction - RUN!  However, after talking to some folks, I have decided to proceed.  

Not sure if you had a general inspection or a termite inspection but if you just had a general inspection, I would recommend getting a termite specialist out there to have look.  The inspection should be free.  

The termite inspector confirmed that the termite activity that the general inspection was 'active' and sent me a report stating such (yikes!).  I was out of town at the time so I received it via email.  The report didn't really say much other than there is active termite activity that he felt could be remediated with treatment.  

Still nervous, I called the guy to talk through it with him a little more.  I asked bunch of questions about what he could determine regarding the extent of the activity and potential damage.  Mine was behind a wall and they can't say for sure what the damage is without opening the wall up and looking.  However, he said based on the visible activity and some of the other checking he did, he felt that it wasn't very bad.

After that, I called up a long time friend who used to be in the pest control biz and went through my story with him.  He basically said the same thing the inspector said and I trust this guy 100%.

So, I think I would first try to determine the damage and make sure you discuss with the termite inspector so you can get a good read on the situation.

Around here, if you get a chemical treatment it will come with a warranty of 1 year.  You can continue the warranty year after year with a renewal fee.  The first treatment might be pricey, but the subsequent warranty renewals aren't to bad.  Another thing my friend told me is that the chemical treatment they put in the ground is residual for 6-8 years so you really don't need the extended warranty.  Apparently that's just a way for them to make additional money.

So, I feel your pain, but in the end I would try to make a reasonable assessment of the situation and then figure out how to proceed.

The Lesson learned for me on this was - always get a termite inspection first.  They are free and you will know about the termite before you pay for the pricey full house inspection. 

Hope everything works out.

@Dan Schwartz Gotcha.  Thanks!

Is there any expense tracking software that integrates with cozy?

what do folks think of verticalrent?

@Dan Schwartz very cool.  thats what I wanted to do but I didnt think it was an option.  starting with a clean slate sounds great.  is there a time limit after taking control of the property that you must get the new lease signed within?