These are the last two photos, one of the entrance and stairwell, the other of the upper porch off the master bedroom.
Thursday, November 29, 2007
And yet more before...
These photos are of the lower unit. The bedroom will be (would have been) the dining room. All other uses will remain the same.
When you need time, take it.
Some issues need time to be resolved correctly. We have decided that the issues the cities building inspector has with the property we are buying deserve the time to be fixed, before closing. The other option would have been to escrow funds with the sellers promise of repair within a certain window. The sellers have not shown me any respect for the law, or "rules" if you will, so waiting is probably best. The work has begun and I am promised it will be done to the cities satisfaction, reinspected and ready to close by next week. The good news is some of the little projects I had planned on doing this winter are now being done at the behest of the city and though I locked my rate at 6.175, closing next week I will be able to for a small fee lower it to 5.875.
Wednesday, November 28, 2007
What can go wrong? ... and did.
Here's one for the record books. The fixer upper home we are buying will challenge me, but will buying it be challenging? Yes. Here are a few of the challenges we have faced so far. The sellers are no angels, I'll leave it at that.
Unit rents not as disclosed in listing contract.
Leases not renewed as dictated in the offer.
Pending work orders not completed as dictated in the offer.
Title work shows extensive liens and debt, perhaps in excess of proceeds.
Building Inspection code violations not disclosed.
Building code violations that have reached city attorney level.
So that is where we are about 24 hours before closing. I often wonder what happens to people that go into a situation like this without a Realtor.
Unit rents not as disclosed in listing contract.
Leases not renewed as dictated in the offer.
Pending work orders not completed as dictated in the offer.
Title work shows extensive liens and debt, perhaps in excess of proceeds.
Building Inspection code violations not disclosed.
Building code violations that have reached city attorney level.
So that is where we are about 24 hours before closing. I often wonder what happens to people that go into a situation like this without a Realtor.
Tuesday, November 20, 2007
The Little Things
Our recent home search took my wife and I into several homes, often accompanied by our 4 year old daughter Evelyn. As I searched for cracked plaster, signs of neglect or electrical deficiencies, Evelyn would notice and often fixate upon the little things. When we drive by a particular house now I often hear, "Daddy, that's the house with cigarettes on the floor." Little things can distract buyers, and make it impossible to envision themselves in our home. Fix those little things.
In kind of a kids say the darndest things real estate edition I am also reminded of Evelyn's comments about a home being rebuilt after an April 28th fire on East Gorham. "Dad, that burned down house is starting to look real nice. There is a red door and a new door knob. I think the new people are going to like it there." I thin they will too. You see they will appreciate all of the little things.
In kind of a kids say the darndest things real estate edition I am also reminded of Evelyn's comments about a home being rebuilt after an April 28th fire on East Gorham. "Dad, that burned down house is starting to look real nice. There is a red door and a new door knob. I think the new people are going to like it there." I thin they will too. You see they will appreciate all of the little things.
Timing is Everything
Timing is actually not everything, but good timing can be helpful. I had a call from an investor regarding my 2-Unit Listing. He was ready to deal and quick to remind me that taxes on the property would soon be due and the long heating season had just begun. He told me home buyers are preparing for Thanksgiving and Christmas are settled down for the winter. Maybe he could do us the favor of buying it at a low, low price. When selling your home, consider that your customer may change slightly with the season.
If you are one of the buyers that has not hunkered down for the winter, you are in a very good place. Your reasonable offer may look like candy when compared to the low ball offer a seller got last week from Mr. Tax Season is Coming.
If you are one of the buyers that has not hunkered down for the winter, you are in a very good place. Your reasonable offer may look like candy when compared to the low ball offer a seller got last week from Mr. Tax Season is Coming.
Sunday, November 11, 2007
Broken Windows
If you have yet to sit down and read "The Tipping Point", one of the things that stuck with me from that book was New York Mayor Rudy Juliani's "Broken Window Theory". Simply put, people will act as they feel their surroundings dictate. A broken window, makes breaking another less of an issue. Those two broken windows make littering easier. The litter blowing about will make it a place that criminals are more comfortable. On a smaller scale , this same theory applies to renting. Your tenants will never treat the home as good as you do, so you have to be sure to treat it so good that your tenants level of care and respect is satisfactory to you and others.
Taking care of issues quickly and in a quality manner will make them think twice about using a 10 penny nail to hang window blinds, maybe. In buying a new home, that is currently a rental property, I have seen evidence that the lesser the landlord the lesser the tenant.
Taking care of issues quickly and in a quality manner will make them think twice about using a 10 penny nail to hang window blinds, maybe. In buying a new home, that is currently a rental property, I have seen evidence that the lesser the landlord the lesser the tenant.
If you close one eye and squint with the other...
This last week I accompanied veteran home inspector Dave Jacquish on an inspection of our future home at 201 Dunning. Knowing the property had seen years of inadequate attention, I asked him only to look for issues that are a danger to the current tenants or problems that could throw me way off budget when it comes time to prepare it for our occupancy. My wife Sandy and I knew there were a lot of things to fix, we wanted to be told about what we didn't know, or couldn't see.
Of the major home components, structure, hvac, plumbing, electrical, I was most concerned about the electrical. The home is of an age that would tell me the original wiring would have been knob and tube. Knob and tube did and would work fine, until you blow in insulation and plug in your 1500 watt microwave. We were pleased to find out that most if not all of it had been removed (often wires to over head fixtures are left intact). The upgraded electrical system now used an armored BX cable to deliver power to the house and most branches were rated at 20amps.
When buying a home and paying for an inspection, make your concerns and expectations clear to all involved. I made it clear to the sellers that I was looking only for major defects. I also asked the inspector to dig deep into select things rather than casting a broad net. Being on the same page makes for an easier deal and easier negotiations. In a home full of issues, the furnace was the only one we asked be attended to. An amendment, signed now by all parties, states it will be inspected and repaired before closing.
Of the major home components, structure, hvac, plumbing, electrical, I was most concerned about the electrical. The home is of an age that would tell me the original wiring would have been knob and tube. Knob and tube did and would work fine, until you blow in insulation and plug in your 1500 watt microwave. We were pleased to find out that most if not all of it had been removed (often wires to over head fixtures are left intact). The upgraded electrical system now used an armored BX cable to deliver power to the house and most branches were rated at 20amps.
When buying a home and paying for an inspection, make your concerns and expectations clear to all involved. I made it clear to the sellers that I was looking only for major defects. I also asked the inspector to dig deep into select things rather than casting a broad net. Being on the same page makes for an easier deal and easier negotiations. In a home full of issues, the furnace was the only one we asked be attended to. An amendment, signed now by all parties, states it will be inspected and repaired before closing.
Friday, November 2, 2007
The Money Pit
I am tempted to rent "The Money Pit" as a reminder of what I may have gotten myself into. My wife and I have an accepted offer on a near east side two unit we plan to convert back to a single family home. The home will require a considerable amount of work. Neighboring single family homes have been selling in the 230-250 range and we will acquire this one for 175. Because it will be the home we live in, it is in the heart of the area we want to live in, and the home after repairs will offer us almost everything we were looking for, we were willing to pay a price where the numbers "work" but there will be little topside after we are finished. For the most part we will have about 235 thousand into a house that is worth only slightly more than 235 thousand.
The Pros:
Our monthly payment will be that of a 175 thousand dollar home.
Updates and remodeling can be done as we can afford them over the first few years.
We will be in a better neighborhood, in what will become a better home.
In 2 years, everything will be new.
The Cons:
If the market is stagnant for the next two years (unlikely but possible) My hard work will be rewarded only by my personal satisfaction and the fact that we are living in grand single family home that suits our needs far better than the home we have now.
The work that needs to be done will require a lot of my attention and time, time I will not be able to spend doing other things.
When buying a project like this, one you intend to occupy, you have to strike a balance between the numbers (the investment) and the intangible factors like enjoyment, taste, and values you place on things like neighborhoods, raising children (and in our case) the benefits of living in a single family home.
The Pros:
Our monthly payment will be that of a 175 thousand dollar home.
Updates and remodeling can be done as we can afford them over the first few years.
We will be in a better neighborhood, in what will become a better home.
In 2 years, everything will be new.
The Cons:
If the market is stagnant for the next two years (unlikely but possible) My hard work will be rewarded only by my personal satisfaction and the fact that we are living in grand single family home that suits our needs far better than the home we have now.
The work that needs to be done will require a lot of my attention and time, time I will not be able to spend doing other things.
When buying a project like this, one you intend to occupy, you have to strike a balance between the numbers (the investment) and the intangible factors like enjoyment, taste, and values you place on things like neighborhoods, raising children (and in our case) the benefits of living in a single family home.
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