L.A. Owner / Atlanta Property Problems With Rehab. Not Me/Mine.

[Jason Dante]

A family member of mine is in the market for a small MF in the Atlanta area; Smyrna / Cobb County in particular.

He/she (The Buyer) found a duplex, made an offer, it was accepted and when the inspection came along, it was pretty bad.  Bad enough the property wouldn't have cleared adequately for the loan conditions (a conventional loan).  It is being sold "As-Is" but we all know as-is doesn't mean no-conditions / buy it blindly.  For a financed purchase via a conventional loan, it still should meet basic building/safety codes as per an inspection...

From his/her REA, The Buyer learned the owner is in Los Angeles and has a family member in the area responsible for the rehab.  The follow-up inspection found an electrical issue from the first inspection that had not been addressed to code.  

Now it's taking even longer, during which the owner may still be on the hook for payments etc...if it's a flip, and The Buyer may be stuck paying higher rent in the interim rather than sign another 12mo lease on his/her current apartment.  Even further, the buyer was asked to absorb "rapid appraisal" extra costs following the inspections to insure the property still appraises for the loan value.  That extra cost "went away" btw...

I'm posting as an observer looking at both sides thinking it's a good lesson for everyone to either carefully choose a VERY trustworthy agent to tend to one's business OOS or meticulously monitor the work being done.  Or maybe BOTH!  Lol!  Appears the owner's agent/representative in the area did not meet the needs of the owner who is (I'm sure / I hope) trying to sell a safe property, nor the needs of any common-sense buyer.  As a result, it's now costing both parties more time/money than would have been necessary to efficiently close an everyday real estate transaction.

I can only assume maybe the buyer's rep didn't get an adequate inspection?  Or any inspection at all prior to listing the property?  Maybe only an appraisal prior to listing; thinking the contractor/whomever performed the work would of course do the work to a standard that would meet code?

Anyway, I thunk it a good second-hand example of a less-than-optimal rehab.

Hope it helps one of us who reads this.  If anyone does!