All Forum Posts by: Peake Nasrallah

As of today, we are under contract over our asking price.

Listing: https://www.zillow.com/homedet...

I'll try to respond to each of these points:

We have very solid contractors and they're pretty reasonable, but with materials and their labor, 50K didn't go far. We decided not to rip out the tile in the bathroom because while it's not updated or modern, it's not that damaged and keeps the mid-century vibe. Additionally, with the white paneling we felt the same way. Believe it or not, we've had a ton of positive feedback on the the painted wood paneling. So with those items untouched we were saving thousands of dollars because ultimately, with replacing almost all the plumbing and electrical, fixtures, all windows, all new kitchen, new appliances except washer/dryer, adding the 1/2 bath, replacing the basement stairs, painting the entire interior/exterior, new roof, all new doors, all new trim, and all new floors everywhere we were out of money. Our hard money loan was $50K and we simply ran out. And as far as comps go, we saw several 3-2s sold in the high 300s and low 400s at the time of listing so we felt ours was priced nicely in the middle of that at $365-370K and was give us a marginal profit after closing costs and commission comes out. Most of the homes you listed do not have basements. Our basement adds 800sqft additional. Maybe we factored that too heavily into our ARV, but we felt it provided a ton of potential value.

 Hey so according to my agent and everything I knew up to this point, I did not think you could challenge an appraisal that you didn't schedule. That would fall on the buyer since it's their contingency for the lender to approve their mortgage on our property. Or am I dead wrong on this?

Hey BiggerPockets! I am fairly new to this whole thing. My partner and I finished our 2nd flip in a North Atlanta suburb back in February. We bought it completely in cash at $271,500 and used a family source for the construction loan. We bought higher than we wanted to, but felt the neighborhood had solid value and excellent comps. We put roughly 50K into the rehab and priced it slightly higher given the current seller's market and because of how much $$ we had in it. We completely redid all the floors, added a 1/2 bath and fully remodeled the kitchen and all new appliances along with a ton of other upgrades. We put it on the market for $370K. Our agent was able to get us under contract in 2.5 weeks. That contract fell through due to the appraisal coming in at 305K?! The appraiser's comps did not accurately reflect the home we were trying to sell at all. In fact, we felt all of the aspects of this appraisal grossly undervalued our home. 3 weeks later and we went under contract again...3 days later the buyer cancelled the contract because they decided "they weren't interested anymore." We then put it back on the market at $365K for another 2 weeks without any offers at all. So, we pulled it off the market and began to address some mild cosmetic issues with the home that buyers were pointing out: all new interior doors, replaced the rest of the old trim, new front door, and various other cosmetic touches. 1 week later back on the market at 365k just in time for our agent to do yet another open house over the weekend: no offers. Now its the beginning of May, if we drop our price anymore, we'll further cut into our profits. How long do we keep this thing on the market at its current price before we drop the price again? How can we avoid bad appraisals in the future? Are we doing anything fundamentally wrong with this deal other than maybe buying too high?