All Forum Posts by: David Begley

 I'd further write a review on Kudzu, Angie's List and the Better Business Bureau about not only the contractor, but your experience with Lifestyles.  They would either quietly make it right or risk losing many times the disputed amount in the loss of future business.  

 Then that is part of the problem - unlicensed contractors.  A GC license is required in Georgia for any work over $2,500 and Permits cannot be pulled except by licensed contractors.  I complain often about the permit/inspection bureaucracy, but it certainly cuts down on the risks associated with hiring hacks such as the one in question and gives the consumer more recourse avenues.  I doubt this guy could meet these requirements: 

http://www.contractor-licensing.com/georgia/genera...

@Donald Hendricks  Doesn't Texas require these GCs to be licensed?   I would think in a situation like this where you agreed to allow this bozo a second chance at the urging of a "Lifestyles" representative and they screwed it up even worse, the company that promoted the hack as an approved vendor should pay the cost of fixing.  If not, I would do everything in my power to blacklist the company and vendor.  

Why not skip the 6% paid to Realtors, list as a For Sale by Owner and save $18,000 then? To me, that's the same logic - you may eventually sell the house as a FSBO, but do you really want to take the gamble that the carrying costs on a FSBO won't exceed the realtors fees? Of course you wouldn't. The reason for staging the home is for quick attention in the MLS, increased traffic and interest, and hopefully a quicker list-to-close time. In your example, I certainly wouldn't agree to pay 7% in closing costs - I'd agree to 6% so I could justify the staging. In my example, I doubt I would've received a full price offer within 24 hours without staging, and if staging shortens that time by 4-6 weeks, you've paid for the service. (Besides, I "save" 3% realtors fees by listing the properties myself.)

@Bill Gulley  You are correct sir!  The staging was 0.67% of the contract offer.   :^)  

@Jay Hinrichs I think you'll see a different market dynamic and strategy this time around with Hedge funds, and I predict this will primarily be a result of continuing efficiencies and creativity in the SFR rental securitization market. As home ownership declines and MBS/CMO product shrinks, I think you'll see a significant increase in the SFR rental securitization market. Yes, they (hedge funds) will, as a group, pay higher prices than us little guys will in the same market but they can do so knowing the securitization will mask the fact they are paying full or above retail. They know that in the short run price doesn't matter - especially after pooled with other rentals by their cash flow characteristics and a credit enhancement is layered on to obtain an investment grading rating.

Buy in the locations they are buying but don't overpay - just sit back and enjoy the appreciation as the hedge funds demand for product increases. 

@Bill Gulley No, staging certainly doesn't add value and is definitely a selling expense, but an expense that is well worth it if you plan to list on a MLS and have that feed Zillow & Trulia. Not even sure it will help get closer to your asking price; however, I do think staging and the resulting pictures on MLS will bring in more looks, traffic and interest than the same house not staged. Like I mentioned, I have an excellent professional "stager" that is also a real estate agent. For a 1,700sf home, the price is about $1,750 all-in for 6-months. I got a full price offer within 24 hours of listing a rehab that is scheduled to close next week. I'm not implying that this was all due to staging, but I will now be very reluctant to list a house not staged.

The family room and kitchen before and after staging:

@David T. I can only speak anecdotally, but when I was in the process of rehabbing an in-town property (http://www.biggerpockets.com/forums/223/topics/172559-a-jv-rehab-with-another-biggerpockets-member---a-success-story), I made it a point to review new offerings listed on MLS within a mile or so of my property to see how they were listed and marketed. I unscientifically noticed that those staged seemed to get quicker offers and closer to asking price than those that didn't. So, I decided to stage this house and whether or not the cause, had an offer the second day it was listed and had four very interested realtors with clients the same day, even before actually going through the house. Also, I was able to get a professional to stage for about $1,750 for a 6-month contract and they provided everything from towels, to pictures to window treatments. I think it can differentiate yourself and make your property more attractive at least for that first visit.

@Will Barnard  Jesus H. Christo, I just read this entire thread, and I'm numb!  I think after about 3 months of that nonsense I would've approached the Hell's Angels to see if they wanted to rent a cheap club/party house for a few months, put your squatters name on the Lease and deposit their "cash deposit and first months rent" in the squatters bank account. Fix the popcorn and sit back and enjoy...

At the very least I think I'll go jerk my daughter out of Law School!  lol  

Good Luck Will. 

 ..and if the only tool you have is a hammer, then everything looks like a nail.