Could This Be You?
I attended Kimberlee’s 2 day boot camp. I found it to be very informative and fun. I was so excited when I finished the course I spent the next 3 weeks straight trying to find a deal. I was hot on the trail for that diamond in the rough.
During the third week of checking daily, the Multiple Listing Service, I came across a bank owned property that interested me. It was listed as a handyman special for $47,900. It was a 2 bedroom, 1 bath, and 2 1/2 garage house with 1000 square feet of living area.
The house smelled like a really dirty dog pee – yew! Which by the way I remembered Kimberlee telling us during our house tour was the smell of money! The house also had a huge room off the back it measured 16 x 28! Another great feature was an attic which has a nice staircase going up to it and it had 7 1/2 foot ceilings. I measured the living area of house to include a 14 x 12 bedroom upstairs and came up with 1262 square feet of living area. The listing agent didn’t measure the lower level of the home correctly. He was shy about 50 square feet.
I estimated the repairs and added the cost of a bedroom upstairs and came up with about $20,000. I offered the bank $35,000 cash for the house. The bank came back with a counter offer at $47,900 (the list price!). I was a bit upset because it looked like the bank was in no way motivated to sell this house at all.
I called Kimberlee for advice. She told me to counter back at $35,500 and give it right back to them. I told a realtor friend of mine what Kimberlee had said (to submit $35,500). She told me that she did not agree with that kind of advice and that kind of counter would tick the bank off. My realtor friend also told me that the listing agent thought the bank might take $38,000. I was prepared to offer $38,000 because that was the maximum I could offer and I did not want to lose the deal.
I called Kimberlee back and asked her what I should do. Kimberlee said matter of fact, “Well, my advice hasn’t changed.” Man this woman is tough!!! I love it!!! I figured I paid her for expertise so I probably should take her advice. So I called my agent and told her to submit $35,500. I got a call half an hour later – my agent was in shock and said the bank took the deal.
Wow! I was in shock too.
That phone call to Kimberlee saved me $2,500 – pretty cool eh. The comparables on the 3 bedroom homes that size in that neighborhood that have sold is between $90,000 – $99,000. I will price it at $85,900 for a quick sale. My cost is $35,500 + $20,000. = $55,500.
That’s $30,400 profit!