Thursday, July 7, 2011

That's It! Its Official!!!!

Chez Neumansky 2.0 Is Now Officially Someone Else's Problem.

Over a week late but it's done. The title was transferred, some funds were transferred, and now 1310 Pacific Ave. is somebody else's problem.

Originally we were hoping to clear enough money to get the new place repainted and re-roofed....but that's not going to happen...then we were hoping to clear enough money to get one or the other done....but that's not going to happen...Now, we just hope we cleared enough to pay for the legalization of the basement unit...we've already paid over $8k in permit fees for that so far...

At least now with only paying one mortgage, our income is going to be slightly higher than our outgo and we will stop bleeding money.

Sale Post Mortem
Well, let's see....it took waaaaaaaaaaaaaaaaaay longer to sell Chez 2.0 than we ever thought....
I don't have the official MLS info but Zillow says it was on the market for 112 days! Yikes!!! I don't know if the 'days on MLS' figure is to the close of escrow or to when the house is marked pending or what? But still, that's a lot longer than we thought.

Why we thought it would sell faster.
We put the for sale ads up on Craig's list and within a couple of days we had a nice couple tour the house and agree to buy it for the then asking price of $495k!!! Wow, we where stoked!!! The wife was an architect and the husband was a contractor seemed like the perfect fit! Then reality sunk in....they where both in foreclosure on two separate houses!!! No bank in the world was going to loan to them...
This literally happened within 2 days of posting it on Craig's list. We thought, 'dang we must have priced the place right.'

Rundown on Buyers.
Yep, we had more than one group of people interested in the house.

Besides the above.
Then we thought we had it sold again for $475k.  Things were looking great and the buyer was well-qualified for a loan...when it became clear to the buyer that the 203k loan requirements were not going to allow them to use illegal contractors and skirt the permitting laws they bailed as they felt that doing it legally was going to cost too much...

Then we thought we had it sold again for $465k. This time to a contractor who said he wanted to fix the place up for his daughter. Turns out this person could not qualify for the loan either....

Then there was the nice family from Berkeley who agreed to buy the house for $465k but that they couldn't qualify for the loan unless they sold their current house....

It gets fuzzy but it seems like that there were plenty of people who wanted the house, including some very nice neighbors of ours who we really wanted to sell the house to, but who just couldn't qualify for the FHA 203k loan.

What Worked For Us.
I think probably the Craig's list ads were what drove the most people to the open houses. It was also put on the major Real Estate Web Sites but honestly, I think it was Craig's list that drove the most people....it sure didn't seem like it was the local Alameda Real Estate agents trying to sell the house.

What Worked Against Us.
Obviously, the condition of the house. Having stopped mid-project was not a good thing for us. I think that when most people looked at the house all they could see was the mess it was in and not the house it could be when finished.  What was funny was that when people brought their contractors with them the contractors were like, 'All the hard, dirty expensive works been done already. If you are going to do this at all buy this house!!' That's like an actual quote from a couple different contractors.

The FHA 203k loan. For some reason people just couldn't wrap their heads around the idea....we never really could figure out a nice, tight elevator pitch way to get the idea across... That, and the fact that the 203k mortgage is not a cheap way to buy a house and they have pretty strict underwriting standards.

This Blog. I don't think that it's a coincidence that every single person who was interested in the house was either without a real estate agent or had an agent from a different area. I think that the animosity generated by my house reviews among the Alameda Realtor community really bit us on the ass, so to speak. And I'm sure some Realtors reading this are doing a little happy dance now that I 'got mine' but really, was it worth it? Possibly denying yourself a commission and a client a house?

Our Worst Nightmare Come True.
We sold the place to an investment group (for a low ball all-cash offer) who were not the most pleasant people to deal with. Being nickel and dimed to death is a phrase that comes to mind. They say that they are going to remodel the house as a single family and have it back on the market ASAP. One of my old neighbors said that it looks like they are already starting construction which would be interesting as they don't appear to have pulled any permits yet for the extensive remodeling they will have to do....

Of course when it does come on the market I will be there at the first open house and a review will follow.

What We Should Have Done.
Mrs. MadMadScientist did the math and if we would've strategically defaulted on the house back in January we would have come out about $10k ahead of where we are now...but hey, at least we still have our good credit!!! I wonder how much that's worth......

Even though we got screwed on price it feels good to be done with it and to only have one house to worry about...

4 comments:

Joel said...

Congratulations, you three. Hopefully now you can enjoy lower stress levels!

Paradox said...

Congrats again, glad that is finally off you hands!

Can't wait to see your follow-up review when she comes back to market after the flip!

Anonymous said...

congrats whats the saying live by the Knife die by the knife or something like that I recall or what goes around comes around nice-catch er

The MadScientist said...

Hi Anon,
Well it took a lot longer than I thought to get my first schadenfreude post..2 days.