Re: Working with realtors… - Posted by Sean
Posted by Sean on May 20, 2005 at 13:51:40:
Since the listing agent showed you the house, technically I believe they have a claim on you as a buyer, as they were materially involved in your interest in the home… however, there is obviously a conflict being both the buying and selling agent, and often (at least in my limited experience with this) the listing agent, even if they showed you the home, will refer you to another agent in their office to represent you as the buyer when you want to put an offer in. (I assume they give this buddy a smaller commission than they would a 50/50 split should someone else have brought the buyer, but don’t know for a fact, to handle your side of things and avoid appearance of conflict.)
I will say this, 115k needing completely rehabbed and worth 180k-200k after may not be as good of a deal as you think.
Putting a hundred year old victorian into TIP TOP (quasi restored) SHAPE is not remotely the same as taking some 50s or 70s ranch and updating it. Most of the “GURU’S” down in florida don’t know their butts from a whole in the ground when it comes to Victorian type rehabbing let alone restoration.) 65k may sound like a large margin, but I can tell you, closing costs on tbe buy and sell can easily eat up 10k of it… and 55k for a complete restoration of a Large Victorian is not nearly as much as you think it is. Particularly if your goal is Quasi or Complete Restoration, which is generally (other than modern functional upgrades… second bathrooms, whirlpool tubs, etc etc) what makes an old victorian a Tip Top Condition.
The fact its been on the market for over 18 months shows me that the sales price is not what it needs to be… and my gut tells me as well that you need to get it cheaper to get the payday you think you are.
Not saying you won’t get a payday at that price point, just saying I don’t think it will be as much as you expect it to be, particularly if you are relatively new to rehabbing.
Best of luck to you.