A new one for me, possible deal here? - Posted by Jim FL
Posted by Jim FL on July 19, 2001 at 17:55:34:
Well, as you know, I am now in Florida, and things are a little different here. I am learning new things daily, and seeing some problems that sellers have that I have never encountered. This does not scare me, it just makes me excited to learn something new.
So, my marketing is almost in full swing, and the calls are coming in.
I also have my website still active, and it has my new FL contact info on it.
I got a call yesterday while I was out, and my wife took a message. I called the seller back and we talked.
I am not at all sure how to deal with this one, or what my next step is.
So, I’d like to run the situation by you all and see of anyone out there has any ideas.
I “think” there may be a possible deal here, but not totally sure.
Anyone ever here of “Sink holes”? I had, but hav never dealt with them before.
I know that typical things from up north that scared most sellers only thrilled me, but this is different, because I am so new here.
Here is the situation:
Seller has a home in Florida, 3300 sq/ft, bought in 1999 for $188k. Comps show it valued (in good shape, no problems) at about $220k.
The seller says that the home was built in 1974, 2600 sq/ft, and an addition of 600 sq/ft or so was added in the eighties. The addition has tested postive for “Sink hole”, and also had termites. The termites have since been erradicated, and the addition torn down to studs. It needs to be finished.
The seller filed an insurance claim, and is about to settle it, via a lawsuit, and will pay off the mortgage on the home, owning it free and clear.
He does not want to stay in the home any longer than he has to. (cannot blame him, just hearing “Tested postive for sink holes” makes me shudder.)
The seller wants $10k for the home, and will walk away. This will be AFTER he gets his settlement and pays off the existing loan on the home.
I have no idea what it would cost to fix a sink hole problem.
I know I can get contractors to re-finish the addition to being liveable again, that is not a problem. I just do not want to do that, and then have it cave into the earth.
I’m sure this is not cheap, and will gather info as fast as I can to see what it will cost to fix, and keep safe.
Heck, if I can get everything done, purchase, rehab, and fixing the sink hole, for 50% of FMV, there could be a good deal here.
I also have already called my insurance guy, and he says the home could be insured, as long we are okay with excluding any future sink hole problems from coverage.
This does not make me feel too good, but even if I had to eat the cost again, at 50% of FMV, it may be worth it…or not?
The addition has not dropped at all, just tested postive for sink hole.
Getting the cash to do the deal, if it makes sense is not a problem.
Any guidance here would be appreciated.
Lord knows, I’ve seen some homes with BIG problems before, but nothing like this. I know this is common here in Florida, because it is on the news all the time.
So there HAS to be a way to deal with it, right?
thanks in advance, and sorry this was so long,