Need Advice/Insight/Expertise

[Marvin S.]

I'm going to preface this post with full disclosure.... I am BEYOND pissed right now.

My wife and I found a lake house on the MLS approximately 3 months ago. We have been to the property twice and it is currently listed for $419,900. The house has been on the market for over a year and has sat empty since February 2014.

The house is a complete wreck, it needs...

• A new roof
• Windows
• Sliding Doors
• Deck
• Floors
• Bathrooms
• Kitchen
• Landscaping
• AND has confirmed mold issues that I saw personally!!!

The home was built in 1988 and NOTHING has been done to it. My wife and I are VERY new at this but we've been scouring bigger pockets the past couple months and consuming knowledge through a firehose. Going into this we were using the 70% rule and even bought J Scott's book on how to estimate rehab costs. After going back out to the site we estimated rehab costs of approximately $110k.

We even looked at comparable homes sold and the ARV we estimated was approximately $450k. So our offer price is around $205k. When I told that to our realtor she literally laughed. She said that was ridiculous and said she thinks a reasonable price would be $399k. Please keep in mind that we saw a comp from Sep 2014 with more SQFT and a finished basement completely move in ready that sold for $410k.

I honestly do not see ANYONE else purchasing this home other than an investor or professional rehabber. Sorry for the long story but I felt it was necessary to give you the full scope of our situation. 

BASED ON YOUR EXPERIENCE/KNOWLEDGE WHAT DO YOU SUGGEST? Should we fire our realtor and find someone else who will be willing to put an offer in for us? 

[Azeez K.]

Hi @Marvin S. 

Sorry that you are frustrated with the situation:

1. Network with other investors/flippers in your area and ask for Realtor referrals. You need a Realtor who has experience in working with the investors or even better a Realtor who has experience investing/flipping. Trust me there are plenty

2. To search for local investors use the keyword search on BP 

3. Connect w local investors/meet in person/talk over the phone w local investors who have experience in flips around your area and seek feedback

4.  Legally, your Realtor has to communicate any offer you present to the seller. Keep in mind most Realtors are not investors so they may not be thinking along the same lines as you the investor. You may want to level set expectations with your Realtor and discuss your goals and objectives so they are in a position to better assist you or provide a network referral for an agent who is familiar with what you are looking.. Your Realtor has to legally submit the offers you present and whether or not that is accepted is up to the seller. So if you feel the offer is fair that's what you stick with and test the water you never know until you ask. 

5. If you have signed an exclusive buyer brokerage agreement with your Realtor you may want to meet with the realtor and mutually terminate the agreement. 

So channel your frustration to find solution to you problem and get that lake house. Good Luck