All Forum Posts by: Abhishek Agarwal

Quote from @Drew Sygit:

@Abhishek Agarwal these really aren't that bad once you really understand them!

1) LTV - seller doesn't want to you claim at last minute that you didn't get approved for a 10% NOO loan, so can't close and you want your EMD refunded.

2) PMC Holds EMD - PMC needs to be a licensed RE broker to do this. Seller wants them to hold EMD as easier for them to liquidate if you violate purchase contract.

3) Final Inspection - this really has nothing to do with your inspection request. Many buyers want to do a Final Walk-thru the day of or day before closing to make sure there are no surprises since their inspection.

4) Seller wants to only pay 2% commission, you will need to compensate your agent if they want more or your Buyer's Contract requires more.

 Thanks Drew. This is helpful context.

Thanks Bob. I will check with the seller whether they are getting confused with seller financing aspect. I do not plan seller financing on this so it should not concern them whether its 80% LTV or not. I am going to challenge them on emd request with a property management company. In my previous deal, there was an escrow company that help the emd.

@Chris Seveney Yes, working with an agent. I will have them look into this. I posted here to get some insights from our community so that I can ensure that I am not missing anything. 

Hello fellow homebuyers,

I recently made an offer on a house with an inspection contingency covering the roof, foundation, electrical, plumbing, backyard fencing, and pest infestation. The house is already occupied by a tenant and is on lease until April next year. The seller has countered with the following conditions:

1. - Loan to value (LTV): 80%
2. - Earnest money held by seller's recommended property management company
3. - Final inspection within 1 day of closing
4. - Commission paid by to buyer's agent is 2% of final sales price.

I'm seeking advice on how to proceed, as I have some concerns:

1. - Why would the seller request an 80% LTV? What benefit does this provide them?
2. - Does the "final inspection within 1 day of closing" replace my initial inspection contingency? If so, this seems risky as it leaves little time to address any issues?
3. - Could the seller be trying to hide potential major issues in the house by leaving no room for inspection results or could it be just ensuring not to disturb the tenant?
4. - Is it normal for the seller to specify the buyer's agent commission? What
5. - Should I be concerned about the earnest money being held by the seller's recommended company?

Any insights or recommendations would be greatly appreciated. I want to make sure I'm not overlooking any potential risks or unusual requests in this counter offer.

Thank you in advance for your help!

Hello fellow homebuyers,

I recently made an offer on a house with an inspection contingency covering the roof, foundation, electrical, plumbing, backyard fencing, and pest infestation. The house is already occupied by a tenant and is on lease until April next year. The seller has countered with the following conditions:

1. - Loan to value (LTV): 80%
2. - Earnest money held by seller's recommended property management company
3. - Final inspection within 1 day of closing
4. - Commission paid by to buyer's agent is 2% of final sales price.

I'm seeking advice on how to proceed, as I have some concerns:

1. - Why would the seller request an 80% LTV? What benefit does this provide them?
2. - Does the "final inspection within 1 day of closing" replace my initial inspection contingency? If so, this seems risky as it leaves little time to address any issues? 
3. - Could the seller be trying to hide potential major issues in the house by leaving no room for inspection results or could it be just ensuring not to disturb the tenant?
4. - Is it normal for the seller to specify the buyer's agent commission? What 
5. - Should I be concerned about the earnest money being held by the seller's recommended company?

Any insights or recommendations would be greatly appreciated. I want to make sure I'm not overlooking any potential risks or unusual requests in this counter offer.

Thank you in advance for your help!

thanks

Sure, but do I need to purchase kids ticket as well for BPCON or you mean to say, just add their names the registration?

Is anyone traveling with kids and would like to share how they plan to manage their schedule there? I am planning to attend BPCON with my wife and two kids 10 years old. While my wife and I would like to attend the sessions, we are not sure where can we leave our kids during that time? So if anyone attending with kids, please let me know. Also, not sure if we need to by BPCON tickets for the kids for the hotel stay or not?

Quote from @Joseph Bui:

Hey Abhishek, we've spoken in the past. I've purchased to turnkey properties in Memphis. Happy to talk again and share my thoughts on turnkey in Memphis. Overall, if you aren't meeting the 1% rule, I wouldn't do it, but, of course, there are exceptions to the rule.

It’s hard to find 1% deals anywhere in current market conditions. This one is close to 0.7% 

Quote from @James Mc Ree:

It is good to know the area, but I think you are focusing on the wrong thing if that is your primary focus. How does the condition of the house and its features relate to the area?

Your post really only says someone bought a property for $70. They say they invested $40 and are now asking for a significant premium over their investment. What did they do and is it worth it? Have you seen it? Check the value with comps. Don't blindly rely on the seller's numbers, just in case you are.

Built in 1964, this 1,040 sq. ft. home features three bedrooms, one bathroom, and sits on a 0.21-acre lot.

The property required extensive interior and exterior renovations to reach rent-ready condition. Interior work included refinishing hardwood floors, painting, laying new tile, and installing new light fixtures. Exterior work involved repairing the roof, painting, replacing rotten wood, and installing new light fixtures.

Multiple contractors were engaged for the project, with licensed professionals handling electrical, plumbing, and HVAC upgrades.

I have compared the comps in this area on Zillow and it’s in the range of 115k to 130k. 

all else checks out, except that I do not have boots on the ground to verify in-person.