All Forum Posts by: Lynn Z

I just bought a house that sat on the market in a good area for 1 1/2. Two agents tried unsuccessfully to market the property. Everyone in town knew this house was sitting but no one wanted to dump 50-60k in it to bring it up to a marketable property. No one wants "dated" these days. Get a list of houses that have sat for 1 year. Those folks are hurting. Offer low. See what happens or move in one and fix it up and take the tax free gain after two years----Certainly a safe way to go and lenders love to loan money to a homeowner vs. investor. Ride the emerging neighborhoods on Sundays but have financing lined up in advance so you can spring on a good deal.

very sage advice. Also, an offer is an offer between buyer and seller. You're either talented at negotiating or you're not. These days there aren't many buyers and they do want alot--I'm in that group. If you sell a house "as is" for a fair sum, the buyer may understand the "as is" through the home inspection report, appraisal etc. etc., termite inspection etc. The mortgage lender may understand an "as is" sale but on the day before closing the lender's closing attorney may decide that some old moisture damage on a threshold just must be fixed and demand that the CL-100 "clear" before they will close the sale.

I had one this summer in which everyone was on the page but the attorney and he "struck" the CL-100 clause in the contract because of the above. No presence of termites, just didn't like the old moisture damage on a house built in 1900's. The mortgage broker was horrified because he didn't care (as many don't these days) -- he wanted his loan closed. Be prepared on either end to be fair, up front and get ready to walk whenr some jerk sticks his 2 cents into your deal and throws his weight around.

I find the agent of the seller is the ugliest during negotiations on low ball
offers. They sign offers with their name (no POA designation)(the broker's signature) and no signature from the seller (is this even legal?); then after everything is negotiated they want to redraft the contract and have the "real" seller's name on the offer at the end. All this is to tell the buyer how trivial their offer really is (not worthy of the seller's initials). You have to learn not to react to this type of treatment. It happens all of the time. Other sellers refuse to fix anything on a home inspection report. If the agent doesn't pay to satisfy the buyer's demand they say "I'm just not going to sell". This can be a real waste of time because no one knew the hard ball approach was in play.

Because you can lose your shirt in the real estate market, you have got to know the costs of light remodeling, medium remodeling and a full gut job.
We find $28,000 might get you a top grade roof, gutters, new windows, molding, great paint job including closing costs etc. but more like $50-$60k for new kitchen (granite/stainless appliances/tile)...maybe a bath and refinished hardwoods. When you pay say $150,000 for a house and tack on $60k you're already at $210,000 and x months of payment to carry it to sale day. You've got to know that if you price it at $250,000 that you might be selling for $225,000 and be willing to live with $15,000 or $20,000 profit. Or, you can take a chance that your $210,000 investment will appreciate if you're lucky at 5-6% a year and hold it for a number of years by renting it to come out over the long haul. The only way to hold it is to get great financing and have a lot of cash in the house and that a great tenant. There's only two ways to go. Dump it and be willing to take less while it's new or take a chance and support it over the long haul. You can't cash out refi because the closing costs and payment will eat you alive. You can throw cash in a CD or MMA and come out probably as well in some circumstances. It's all a learning experience.

most sellers in my area would be suspicious to say the least if they thought you weren't a "real buyer" that could close them out with cash in their hand in 30-60 days Do know an appraiser/property manager that advertises cash buys for houses in the local paper but basically he gets short term bank money and holds them for at least a year and a day and rents them. He used to move every two years and take that tax free residential gain.

Is that where you have to buy the rolls of carpet from Dalton, Ga. etc. and pay freight etc? Tried that several times when remodeling. Took a lot of time and wasn't worth it. Just use a shop that builders use. Turnkey is better and faster.

good points made; I believe consumers do need education and I think they need better information. ARMS would be a good example of how one would need a PHD in finance to understand what's happening with indexes and margins. ARMS were PUSHED by lenders --- I think we can all agree to that and now the government is going to require that lenders make sure the buyer can make the increased ARM payment? Sounds like they got exactly what they wanted. Lots of loans. And the consumer -- they're refinancing like crazy to push back the reality of those very high payments on their ARM's . Doesn't seem fair...but it is continuing business for lenders...refinancing that is.

1) go to a large granite warehouse and look at the slabs. Someone there will tell you what's more expensive than others. For example, blue granite can be more expensive because there's less of it out there. They'll give you samples if they can.

2) I'm doing a galley kitchen. One slab will do it. Hardly any waste. They told me I can be present during the cut so I can pick which part of the granite faces the wall etc. I plan to be there.

3) Get a fabricator that will then order up the slab that you like. If it's not big enough they'll get another in for you to look at. They may want a deposit but that's reasonable if you plan to go with them and it's just a question of style.

4) Ask about hardness of the particular granite you order. Some granite is more fragile.

5) Use a well established fabricator that someone has experience with. Measurement of your area and cutting must be precise and good ones can make it look easy.

6) Pick out your edge and understand some edges you pay extra for. Small kitchens look great with thin granite. Gives the countertops a delicate look.

7) I buy sinks from the fabricator because that way they can cut the sink hole there at the shop.

8) I'm hoping my blue granite is going to sell my remodeled house.
Tiles would detract in our town. Nobody uses them anymore.

The tip is already figured in I assure you. Especially carpet companies. Just pay on time and send them business.

Just sold a triplex and single family rental this summer. During the inspection process, appraisal, etc. you're going to become very familiar with the tenants and should be present during these procedures. As the seller, I stayed in touch with my tenants by email and phone letting them know when the closing was to take place and that their security deposits were to be transferred at closing. Some of mine were month to month tenants so the mortgage lender wanted an affadavit stating there was no land contract or other agreements that might render the new mortgage void. My attorney prepared that paperwork.

After the closing, I called or emailed all tenants that the new owner, John Doe, for example at such and such address would be taking over as of that date. I informed them where they should sent their rent and as closings take place many times at the end of the month, this call is important. The leases were passed at closing as well as the keys. Original keys must be guarded closely as copies are never as good as the landlord's set.

Hope this helps. Tenants are anxious if they've been with you a long time
so it's not an easy situation for either party.

I know a great guy who owned a duplex for 5 years in the best section of town. He rented to his brother who was a jerk and wouldn't pay the rent. He sold the duplex to get out of the situation. Just couldn't evict his brother any other way. I vote no to family and especially friends. The bottom line is -- can you evict them?

are you saying Charlotte, North Carolina is that hot market? If so, there have been a series of articles in the Charlotte Observer as to problems with high foreclosures in many neighborhoods and one of the problems is developers having their own mortgage companies and letting purchasers get their downpayments from church group affiliations etc.
Is this the same city you're talking about?