deal gone bad - Posted by tbone
Posted by tbone on September 03, 2004 at 08:32:43:
I would like to know how other investors would have handled this situation! I have closed several successful deals, but still relatively new to investing, (about 1.5years)
I had a lady call that wanted to sell her house. Her husband past away several years ago and she thought the house was too much to take care of. She wanted to live in an assisted living condo in the area. She has no family and is very old, but seemed to have sound mind. She called and asked if I could look at her house and possibly buy it quickly if we agreed on a price, because she had to let the condo owner know because there is a waiting list to get in those places.
The home was very nice but outdated, it had a mother-in-law quarters next to the house that was completely furnished and ready for a renter. The home was well taken care of, but very 70?s.
I found out later that she had the home listed 3 months prior, but realtor left the key in the door and she went nuts and took it off the market.
The house would retail for about $129,000.00 if it were update and that is what she was wanting for the home. I told her that I buy under market value and sell for a profit, so I could not help her because the house was priced to high. She called me back the next day and asked what I would give for the house because it was paid for and she wanted out. I told her $85,000.00, then she said I cannot give it away my neighbors house just sold for $139,000.00 and it I need close to that for this house. Again I asked then why did you call me back.
The next day I spoke to a real estate agent who is a friend of mine, and he informed me that he showed the house when it was listed and had a couple that wanted it but they would only give $112,000.00. I called the lady back and we agreed on $95,000.00 after 2 hours of convincing her she would not make much more if she wanted out quickly. She hounded me for the next week to get the paper work signed so the deal would not fall through. I was waiting on the agent to get in contact with the party to make sure they still wanted it for $112,000.00. They agree and we had the date set for closing, so the owner was contacting her attorney for the paper work, she insisted on dealing with her attorney.
The next day she call and said I lied to her and the deal was off, she reconized the couple from when she had her house on the market and my friend the agent was the one who left the key in the door, so the fate of the agent cost me around $14,000.00 after closing cost.
Sorry for the lengthy story but I am sick that deal went sour, so this has helped me deal with it!