My partner and I have been marketing the hell out of the Hamilton property over the past week. We’ve talked to our top tier buyers, put ads up on craigslist, went to REIAs and spoke up during the buy, sell and trade portion, spoke to people in our mastermind group and even put out bandit signs in the area. We got over 30 responses from buyers who were interested in finding out more information about the property.
After weeding out the non cash buyers we showed the house to some of the rest and with out fail each and every one of them couldn’t pay what we were asking. They all had a higher repair estimate then we came up with. Turns out we missed a few key items when we did our assessment like taking down paneling and replacing it with sheet-rock and also didn’t see the crawl space where their was a pretty big water leak.
So what to do? The good thing is we are still in the 2 week inspection period so we can easily get out of the contract for legitimate reasons. We did call the Realtor involved and are going to try and renegotiate our offer. We currently have a commitment from one buyer that if we can get the house for cheaper they will buy it.
We need to substantially lower our offer price (roughly $20k) in order to make this work so things aren’t looking to great for us. In the end though, this is exactly why you put an inspection period in your contracts for as long a time frame as you can get.
I’ll keep you posted on the outcome
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The organizer of my REIA meetings up here in MA has told numerous stories where inspection contingencies have “saved the day”. It’s not an ideal outcome, but at least it protects your deposit!
I have a general problem with a lot of weezle type clauses in contracts, but one I don’t have a problem with are inspection clauses.
wow! i’m excited to hear the outcome. Also, I agree wholeheartedly about extending the inspection contingency as far out as you can get it, totally makes sense.
Unfortunately the seller did not want to renegotiate and we had to cancel the contract. oh well!