Advice needed, please help me, no experience. - Posted by Lawrence

Posted by Andrew Graham on November 16, 1998 at 24:43:48:

First of all, if you are going to do fire restoration, make sure you know of an expert in your own area or nearby…do not plan to do work on your own, unless you have prior experience. Next, do your due diligence, make sure you know what it is really worth first before you buy. Finally, unless you have experience, get an attorney to review any contract for your protection.
Remember just because other houses in the area sell in a certain price range, that does not mean this house will. Get a real comp.

Advice needed, please help me, no experience. - Posted by Lawrence

Posted by Lawrence on November 15, 1998 at 23:20:18:

I met a man who’s house has been fire damaged. Houses in the area sell for 200,000. He wants to sell the house for 30,000 after he gets the insurance money. He seems like a motivated seller. He’s an older man who doesn’t want to go through the process of restoration. I’ve been in the house and want to restore the house and live in it my self. There are a few other people interested in the house including a contractor. But I want to be the one to buy this house. How can I get him to sell the house to me? I was thinking about writing him a good faith check for $1,000. Should I write him a good faith check? How do I do this? I could come up with the 30,000 right away if necessary. What should I do?

Re: Advice needed, please help me, no experience. - Posted by Bill Gatten

Posted by Bill Gatten on November 16, 1998 at 21:43:53:


I don’t answer these posts until I’ve reviewed what others are saying, and feel that I can offer something different (and hopefully of value), so take the following with a grain of salt. The other answers you got are excellent, but it appears to me that you may have already done your homework and know what you want.

If you’ve determined for sure that you want the house (the way you handle the remodeling is another issue), I would suggest going to the seller and letting him know that you’re ready to open a silent Escrow now, which will be set to close only after he’s gotten his insurance payout. Then give him the $1,000 good faith deposit you mentioned, and place the other $29,000 into the Escrow (so he knows you mean business… and so that he’s locked in). I might personally take the guy and his wife to dinner to discuss the plans, and at that time, offer to pay their moving expenses (if that’s an issue at all). I can pretty much guarantee you that your competition isn’t thinking too much about the seller’s welfare after the fire: they’re likely thinking more about you edging them out.

My experience with older folks (a proud group into which I’m rapidly moving, myself)is that they want to be assured that you care as much about their plight and welfare, as you do your own, and that you’re plans involve helping them as well as yourself.

The best of luck.


Re: Advice needed, please help me, no experience. - Posted by Rob FL

Posted by Rob FL on November 16, 1998 at 20:30:14:

How much damage does it have? Most of the one’s I have seen need to be bulldozed. Is the land alone worth 30K?
If fixed up it’s worth 200K and he is selling for 30K it sounds like a bunch of burnt toothpicks to me.