Real Es­tate 101: Moores Scary

Calhoun Times - - RELIGION -

that the buyer had put mul­ti­ple houses under con­tract and de­cided not to go with ours.

We put it back on mar­ket and got an­other full-price of­fer. This time, the buyer was trans­fer­ring from Cal­i­for­nia here for his job. Af­ter he got his mov­ing pack­age, how­ever, he no­ticed his salary would de­crease. The com­pany tried to ex­plain that mov­ing to Ge­or­gia meant the cost of liv­ing was much cheaper and that he would ac­tu­ally have more buy­ing power with his new salary.

He couldn’t wrap his mind around that con­cept and de­cided not to move. That gave us two can­celled con­tracts in a very short pe­riod of time.

We put the home back on mar­ket and heard meta­phoric crick­ets, which was not a good sign.

Af­ter a cou­ple of weeks with no ac­tiv­ity, we dropped the price. We im­me­di­ately got an of­fer. How­ever, it was re­tracted be­fore we could even an­swer it. We put the place back on mar­ket for a third time, and the si­lence of ac­tiv­ity be­came deaf­en­ing.

We dropped the price again and then again with no ef­fect. Af­ter a long time on mar­ket, and many price re­duc­tions, some­one fi­nally of­fered us $155,000. We ac­cepted … but the buy­ers’ fund­ing fell through.

We couldn’t fig­ure out why this house wouldn’t sell. It was a great house with a great re­hab at a great price. Af­ter see­ing how crazy this deal was, my pri­vate lender started re­fer­ring to this prop­erty, which was lo­cated on Moores Ferry Road, as “Moores Scary.”

We fi­nally sold it to a great cou­ple for $137,500. At the clos­ing ta­ble, I asked the buy­ers how they had done on the ap­praisal. The hus­band said that I’d never be­lieve it. I leaned for­ward and said, “Try me.” He said, “It ap­praised for $180,000.” With­out miss­ing a beat, I smiled and said, “You gotta love in­stant eq­uity.”

Boy that felt like a kick in the teeth. It had taken us a year and half to sell this house. The clos­ing disclosure states that af­ter pay­ing our mort­gage back, we re­ceived $5,258. What that num­ber rep­re­sents is some of the money re­couped. We ac­tu­ally lost money on that house.

So how did this home­run turn into a whiff? I don’t know. As we can tell from the buyer’s ap­praisal, our num­bers were cor­rect. But for what­ever rea­son, we couldn’t get that house sold for a profit.

The sale date for Moores Scary was Jan­uary 31, 2017.

Last week, I learned that the house re­cently sold for $203,000. Look­ing at the pic­tures on the list­ing, the house looked al­most iden­ti­cal to when we sold it a lit­tle over a year and a half ago. In other words, my buy­ers made $65,000 just by liv­ing in it. That was a sweet deal for them.

I phoned my pri­vate lender to give him the news. “That’s just got to make you mad, doesn’t it?” he asked.

I told him that it didn’t. You see, we pored over that deal try­ing to fig­ure out how we messed up. And this new sale con­firmed that our deal anal­y­sis was cor­rect. This was just one of those crazy deals that didn’t go right for us.

Joe and Ashley English buy houses and mo­bile homes in North­west Ge­or­gia. For more in­for­ma­tion or to ask a ques­tion, go to www. cash­flowwith­joe.com or call Joe at 678-986-6813.

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