All Forum Posts by: Sean Mathes

 Adam - Thanks so much for your response. I am trying not to be greedy, and am glad this is nearing a close, I found a good roofer and the job will be completed today. It's great that we got 17k over asking, but IMO it just means that it may not have been priced correctly. Who can say what would have happened there are a million hypotheticals situations and possibilities. Maybe we priced it at 195k and wouldn't have had much traffic. I doubt. But I digress. :) 

Thanks again everyone for all of your thoughtful comments. 

 Hey Bill - I know it won't close without a roof that's the point. They have played so dirty during this whole thing even their own agent said it's a crime what they have done. Anyway yes I hear you that it's still the best offer. My thoughts are though that if it were priced appropriately (say 195k) initially it would have easily received the same attention. There is zero inventory in this price range. There really isn't much else I can do now, they are saying specific performance if I back out, of course as there isn't much I can do. Plan is to raise the price and set it to active / taking backups. But it's time to move on, bigger fish to fry...

FROM THE APPRAISAL

Comparables over 6 Months:

The appraiser is aware that some of the comparables do exceed six months, however these comparables were used due to the lack of more similar comparable sales in this area. Ideally, it is the appraiser's opinion to utilize sales which have the most recent settlement dates, however, due to a paucity of settled sales in the subject's market area, it was necessary for the appraiser to widen the market search to obtain comparables with similar utility, style and effective age. The market has remained relatively stable and no adjustment was deemed necessary for comparables sold outside the preferred six month guideline.

Comp #5 is under contract
Comp #6 is an active listing UC accepting backups.

 LOL yea I loved the feces objection too. Basically I had tenants in the home before this that had a cat. Instead of having it use a litter box they just let it go under the stairs in the unfinished basement. Nice. These are the same people that when I said the house was filthy and that could they please do a little better job of taking care of it, she told me "I have seen a lot worse". So many great stories attached to this thing. A first for me as well. :) 

 Hey Bill - I really don't have any time constraints on this deal and it wasn't a 37k price reduction. My agent which is a friend of mine is a top producing agent here and I assumed he knew the comps to price it. Obviously after doing my own homework pricing at 180 was way way too low. The home went on the market for 180k. Had a bunch of offers, we asked for highest and best after the weekend. Their finally offer was at 215k and I accepted. Then after the appraisal came through they reduced their offer to 197k. At 197k their offer was the best by 2k. I am very confident if the house was priced at least at 195k in the first place it still would have been bidded up. 

I have another question, as the roof is already torn off and I don't have anyone contracted yet to do the replacement and the mess with the contractor what if I just leave the roof off? 

Also I was an agent, just not active anymore. I like to handle my transactions myself so these kind of things don't happen. Now there are multiple people involved and always playing telephone. Thanks for the thoughts everyone. 

Now comes the mess

Would love to get your thoughts on my deal guys. So here's what has happened now. I began the work that was requested on the inspection resolution which I will attach below. They asked for a new roof, furnace be cleaned and certified, water heater repaired, new basement window, blah blah blah. On Friday they came back after receiving the appraisal and said they were changing their offer. We were very very careful to make sure this wouldn't happen because of all the interest in the property and it's common for people to pull these shenanigans to get a property under contract and accepted for a ridiculous price and then later back out and reduce the offer for the "appraised value" so we wrote a special clause into our counter proposal.

On top of all this the roofer that I had hired took my $1k and ran off with the material money and also hired and scammed another roofing company that tore off the existing roof. I have spent the last week chasing this guy down, finding out what happened and really just costing myself a lot of aggravation and stress for absolutely no reason. This is a giant story all it's own. As the house sits now there is still no roof.

On Friday Feb 19th late in the day I received a message from my agent that he had some bad news. The buyers had dropped their offer down to $197 based on an appraisal that came in at 190k (the exact thing that we were drying to avoid by writing an exception into our initial counter offer). Their offer was at 215k initially which I accepted, we also had an addendum added to the contract that stated no matter what the appraisal came in at they would bring the additional cash to closing to make up the difference (now they didn't honor this). So for some reason they still thought they could drop their offer to 197k, which later I accepted. On Sunday night late at night after being overwhelmed and irritated with the roofing situation and the fact that I had a house with no roof, nobody to complete the job I decided to sign the amend extend / new offer and be done with it. Which I am now regretting.

Amend extend offer:

Original contract with appraisal condition:

Come to find out that the appraisal that came in at 190 seems highly suspect to me as well. Which I didn't receive until the morning of Tuesday February 23rd, but the amend extend had to be signed by Monday. Several things about this really rubbed me the wrong way. First of all, all of this work they requested I do on this house there was zero allowance or credit or any mention of this in the appraisal. How can we put on a new roof and receive 0 credit for this or additional value on the appraisal? Also a specific item stating that there was no adjustment for appreciation for the comps that are older than 6 months (which 4 out of the 6 were older). In a normal market this wouldn't be an issue, but Denver is one of the hottest real estate markets in the country, with 10.9% appreciation year over year as of November 2015 (case schiller).

Any thoughts guys? I feel so jerked around, taken advantage of, and downright cheated. I know pigs get slaughtered but this whole thing has just rubbed me the wrong way from the beginning. Should I just chalk it up to a lesson and smile with my 100g's or fight this cancel the contract and face specific performance which might mean still having to sell or face litigation?

Thanks

My Townhouse in Colorado under contract in Colorado. Insane Market!

I'm also interested to know if anyone is doing subject to deals in Colorado. I have done some in the past but 7 years ago when things were really bad here. Would love to mastermind if anyone is interested.  

I would love to talk to anyone that is interested in discussing real estate in Playa. I have been living here for over 6 months and want to purchase some properties.