All Forum Posts by: Gohar Shafiq

@Kaohuhealani Trueman Jr

I ended up not moving forward. I had a few concerns and one of them was the "wholesale" pricing of the lots marked down by $10k to $15k" and when adjacent lots were par or cheaper than the lots advertise/presented at the $5k wholesale premium. A little bit of pressure in that the property owner fly in from Europe(?) Or some where overseas to transact. I thought we would have been able to do it all remotely. So a few items compounded with me deciding to reevaluate.

I am still in the market and looking for additional properties to move forward with but just decided this particular scenario wasn't it for me.

Hope this is helpful. Hope to find properties to move forward with. Looking at a few other turnkey providers.

Would you mind sharing how you are getting to those numbers for lot purchase, closing costs and then construction loan/Interest prior to refi?

I am working with them as well and the numbers are vastly different

$30k to $33k for a lot (cash)

$13k with a loan for construction (private money) closing costs

$30k or so to builder to begin construction

$6k in Interest Only payments at a rate of about 10%

love to hear how you are getting to your numbers

@Riley Schaefer very helpful! Appreciate the feedback.

@Brooke Andrea @Riley Schaefer - thanks for the additional feedback.  Have either of you sold any of your properties?  One of my concerns was paying at the top of the market for TK and the appreciation being slower.  From the thread it seems like homes appraised for higher than purchase price and you all have kept homes but also picked up did 1031 - not sure if that was of TK homes or other properties.

thanks in advance.

@Steve Morris I completely disagree with that statement. Agents are or should be listing the property at the value based on comps and what other plus or minus the listing property may bring. A seller has the option to offer below, at or above list price. The list price is simply the agents expert opinion on what the home may sell for and a price a seller would typically accept.

A seller will always accept more money given everything else is equal. Or other concessions such as rent back, cash offer, no inspection contingency, etc.

I'd like to better understand why you have the opinion you do. Perhaps there is something I am overlooking and not capturing in our communication.

One reason or thing to add is that homes are selling, or some are higher than list because of supply demand. 2 buyers, 1 house.....drives competition, drives value/prices higher.

@Steve Morris Yep, I think they list the homes at fair market and then let the competition drive up the cost of the home.

A buddy sold his place for $25k above the asking of $399k, and the offer he accepted was the one with funds to cover the gap between appraisal value and transaction price.

I think, my opinion only, the market is high and folks will come out okay if they stay in the homes 5 to 10yrs. Anyone trying to resell, will be challenged to break even after the real estate fees.

Also, many homes we looked at buying sold at list or above....if they went with 1 wk. After that 1 wk window, usually you see a price drop or transaction prices at or below list price.

Of course, we don't have info on concessions that may have been made.

@Steve Morris I priced it right and was the second highest for the floor plan ever sold. After I sold, a few homes sold for a few thousand less but most recently, one sold for $1,500 more. My list/sale price was same as those by other realtors trying to get me to list with them.

Am very happy with the results and not having folks coming/going during the less known covid state.

I probably could have done a direct sale without an agent had these been normal times bc I would have done open houses. But all in all, quick and easy transaction.

Hi folks, sorry - meant to provide an update.

After the home was listed on the MLS via a flat fee service, it became active on Monday @ Noon'ish and the home went under contract/pending on Friday.

Home sold for List Price. w/ $500 towards minor repairs, 1yr home warranty, and 2.5% buyer commission.  Home closed less than 30-days.

As expected, buyer agent created all forms and easy to execute via docusign.

appreciate everyone's support and guidance. 

Now, I'll be closing on my new primary home by end of year and hope to get a minimum of 4 to 10 renal doors in 2021.

@Collin Bryston Adams. I love Zelle but my tenant has to pay using 2 transactions due to the $2k limit.

We initially used cozy, and I still do for tracking payments and expenses but didn't like the delay in receiving my money via the free service transfer as others mentioned.

@Ryan Schwartz We are in process of potentially buying a home where we live without an agent and I will represent myself. Listing agent and I began total commission terms from 3.75% down to 2%. She was doing the seller a favor for listing based on past experience with them.

Not knowing the details, I would push for 3% to 3.5% total commission. Agent being a dual agent is significantly less headache not dealing with another agent but they have more work to do with being present for inspection and s bit more documentation.

Don't budge and be aggressive. As mentioned above, if you know your home will sell quickly, they know this too and you can get a great deal.

Another tactic is do FSBO, that will draw low fee agents who want the listing and open door for negotiation.