All Forum Posts by: Lynnette E.

 I will respectfully disagree.  If you sign a contract that says as-is that is what your contract says.  To then ask for something is CHANGING that particular contract.  If the contract did not have that term, it generally has a process laid out with a time frame to negotiate changes in the term of the contract based on the inspection.  

To go into a contract knowing, expecting, to change the terms is disrespectful IMO.  It is not treating the other person with respect.  The other person entered into the contract with expectation that it would be followed.  In entering the contract the seller balanced many variables and one in that contract was the price was firm without concessions.

You can talk to anyone you want.  But you SHOULD not talk directly to the buyer.   

The reason is, in part, that some buyers are very picky and you do not want them to know anything about you or your family.  You want them to place themselves in the home and not think of the previous occupants.  And example, I was selling a house and a buyer found out that I had 2 special needs children.  The neighbors commented to the buyers during the inspection that they were the nicest girls and were doing so well with their goals (one was learning to walk all the time instead of crawling at age ten.)  The neighbor was being nice and actually liked us a lot. It made the buyer back out of the sale because this buyer was convinced that the house could cause birth defects.  Now, I could have told the buyers that both of these special needs children were adopted by me at age ten years old and both were special needs well before I ever met them.  Both spent almost a decade in foster care and were adopted as special needs kids.  But I decided, with the realtor, to not go ahead with their contract.  What if, later, they had a special needs birth?  They would want to sue me.  The would lose, but it still would not be fun, so why bother?  Great house and neighborhood, and more buyers!

Also, some buyers will try to milk extra information out of you and sometimes use it against you.  Like they will try to figure out why your are moving and your schedule.  Then make an offer that seems good.  But then ask for extensions or concessions when they know your timeframe is near its limit and you do not have time to find a new buyer.  Or later after the sale they may say the cabinet under the sink smells and they need a new kitchen to replace it.  Oh, BTW you mentioned a past water leak under that cabinet.  It's really better to let the realtor transfer information.  Then there is a better record of what was said and not said.  Plus sometimes realtors know the buyers well enough to avoid things that may make the buyer uncomfortable.

IF you do this, make sure you have insurance that will cover it and have in the contract with the leasee that they will pay the deductible for any claim or have their own insurance as well that covers hoteling.  And be very clear that you will not be doing any repairs--toilet plugged, carpet stained/torn, facet dripping, whatever.  They can drive you nuts with repair requests and with vacationers they will want it fixed immediately.

Personally I turned people down who wanted to sublease my house a few blocks from a marina.  I did not want to annoy the neighbors or have a house destroyed by partiers.

i

I did not see this post the first time it was posted.  I look on here when I have extra time, so miss most posts.

I don't have an end game number because my journey to real estate is different than that.  

I had a career that I liked, well most days!  But even on the not so great days, I was glad I was working and could contribute and maybe learn from the day and make it better in the future for others. So I was not looking for an escape from a life I did not like.  I liked my life as an employee.  I did retire after 30 years.

And after I retired I wanted to move from rural CA, near a lake to live on a lake in TN. I also decided to use some of my money in real estate as a diversification from stocks/EFT/etc. My parents had rentals which I helped them with a lot and personally I generally bought trashed houses and fixed them as I lived in them. My very first house was a foreclosed row home from HUD. I enjoyed the experiences of fixing houses and making them useful again. So that is what I focused on when I invested in real estate

Since I started my stocks, etc. are higher than before I took anything out, and my rental/housing activity is doing quite well also.  I could afford whatever I wanted when I retired, and still can. 

I am grateful that I do not have financial worries and even more so since I recently adopted a relative's baby that experienced birth trauma.  I have been able to get him the medical treatment and therapies he needs without worrying about the cost.  My two teens are in college now.  Their expenses are covered.  My 38 year old adopted daughter recently got her house redone with new flooring, fence, washer, dryer. and refrigerator. I use the assets I have been able to earn to improve the lives of my family.  (I have 5 adopted kids, most special needs.)

At this point in time, even if I would sell all my properties and put that money back in stocks/etc. I would be fine with enough assets invested safely with a market crash or two to last my lifetime and enough of my kid's lives they would be able to get to the point to care for themselves..  I would not want to put everything into real estate, that is more work that I want.  And I do not want to hire a property manager to get more properties as that takes my fun away and leaves me managing the property manager which is not as much fun.

So what is my number?  I am happy now should it be what I have?  But I may still buy something else if I want and I am selling one house now.  And I just bought one last month that my son wanted me to buy so he could move in to live in with roommates while in college.  (He even told me he would pay rent!!!  But I still pay for his food and college expenses, and gas and phone...  He pays for his car himself.)  So property is fluid.

I have no number...I have no exit plan...I am living my life!

I know that some people with long term special needs family members like a sink in the bedroom.  Like for cleaning feeding tubes, diapering, the air / water dishes for various machines.  It makes it nice, especially when the condition is long term.

SOOOOOOOOOOO Glad it All Worked Out For You!!!  Some of us were worrying about Dad's borrowed down payment.  Glad you won't need it now and can even buy him that mansion in Brentwood. 

When I sell as-is I just point back to the 'as-is' clause in the contract and ask if they want to proceed with the contract or cancel.  When I put in as-is in it is usually because the price is set an a low enough amount that I did not leave money for repairs.  Now if they want to increase the price we can dicker over repairs.  I think that is is disrespectful to ask for concessions when the price was not set to allow for them.

You should hire a realtor and follow the realtor's lead, especially since this is your first rodeo.  Don't try to drive yet, you don't have your learner's permit.  

The realtor will give you all the offers.  You can read through them or let him/her summarize them.  You can guess which offer is backed by a person who will try to double dip and get concessions based on the inspection, but its hard to tell, unless it is someone with a reputation.

If you really do not want double dipping you can put in the contract that "no repairs will be done and no concessions will be made based on the inspection.  The only decision from the inspection is whether the buyer wishes to cancel the contract or proceed."  I have done that when I lowered the price on one property and the buyer had a reputation to ask for concessions after inspection.  Even then he asked and I referred him to the addendum that had that statement.

In that case, I would also let them current owner know you live across the street.  And it may have been boarded up because the property is going through probate.  So you can ask that- does the estate have to go through probate before the house is sold?-- in your letter.

I have 12 properties in two different trusts.  I have never had any issues with getting insurance, but they are family trusts, so that may make a difference.  Trusts are better than being on the title, at least right now, because when the person passes the value of the property is reset at the value on the day of the death.  That lets you avoid capitol gains!  That is one of the tax laws that has been under consideration of change though.

I can understand why. When my parents passed I sold a house for $375k that originally cost $5.5k and another that had cost $15k for the same price.  Lots of $ the government lost out on!