Brava closed yesterday, after a whirlwind of activity – here are the MLS stats:
We received 13 cash offers, and went through five escrows to get one to stick. Each time one would fall out, I went back to all of the other contenders to give them another chance to buy it.
Buyers would say that they had reviewed what’s needed (new kitchen, 3 bathrooms, windows, flooring, etc.), and were comfortable with the project.
Of the four that cancelled, three dropped out altogether once they did more extensive research.
Only one tied up the property, and then, after a few days, tried to work me down on price. They are looking for the desperate sellers and agents, and hope to convince you to drop another $20,000+ just get it over with.
It was Mr. T who tried to get me to cave, and he had agreed to pay $665,000. After further review, he wanted to drop the price down to $645,000.
But instead of just taking it, I went back around to all the other contenders and offered them another opportunity.
A different buyer agreed to pay $655,000, and Mr. T. held his ground, and backed out. But then the $655,000 guy cancelled, and in the next round Mr. T wanted to drop again, this time down to $635,000.
I got another buyer to do better.
We closed at $650,000.
It’s more work to keep all the contenders engaged, and keep tempting them to buy the house during our five-week adventure. But this is what I do for my sellers – I’m going to everything I can to get you that extra $15,000.
And that’s why you’re the best around, JtR!
PS Mele Kalikimaka to you and your beautiful family.
Tell us how your move turned out – all settled now?
Are we going to do a video?
You need a tag line. The good ones are taken.
Make it so.
When the going is tough…
Anyway. You should check out your posts on different platforms. On my iPhone 6 the mobile version makes this house look like a zero lot line single garage house. It’s funny. It’s a trivial glitch but if it makes a prospect skip over…
Thanks for the feedback – I have a revamp in the works, and I’ll add that to the list.
The mobile app and the mobile-friendly are two different things, and then they keep making new devices!
Tom T sent me this note privately when he first saw Brava:
With what I see here you got 200k in remodeling. Flippers usually want to get in and out, with the City involved now that’s not possible. If Solano sold this summer for 975k redone with views, maybe with the slowdown we need to knock off 25k. You have the culdesac here that offsets the view a bit though but we need to be careful on exit price predicting.
For discussion sake, lets say its safely a 950,000 house done, 50k in selling costs, 200k repairs, holding costs because everyone uses financing to leverage, I would guess an investor buy price is around 590k.
If you get in the 6’s the seller should be very happy. Most local investors in San Diego shoot for 8-10% on a regular easy flip, this is more work so maybe they are going to want 12% profit. This is my take from an investor standpoint, hope it provides value to the discussion!