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Missed Property #5

January 3, 2016

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Val and I recently missed a property that is next door to one of my current properties. I will summarize the events as this all went down over a couple of months with numerous talks and discussions with the seller(s).

The property is in a Class C neighborhood and was built in the 50’s. 2 bedroom, 1 bath, 1 car detached garage. For the last 30 years an older lady has lived there by herself (actually w her husband before he passed over 10 years ago). Long story, but she was ill and family moved her to an elder care facility. I talked to my current tenants (next door) and other neighbors and was able to get the phone number to the family. I called them and they were interested in selling but were not in a hurry and working on the title.
I was talking to an aunt, but one of the closest relatives that did have full power of attorney.  I viewed the home with her and understood all of her concerns. She essentially wanted top dollar, wanted to get family heirlooms and belongings, and wanted cash.
None of this was a problem for me so I put an offer together. There was some discussion around the offer amount and we were not that far apart. Things were coming together smoothly. One issue that kept coming up was the belongings in the house. There was a lot of collectibles, old furniture, all kinds of nick nacks, etc. Every closet and room was full of stuff, two storage sheds were completely full, and the detached one car garage was full as well.
Fast forward again… I offered to pay them for all the belongings. My plan was to take it all, and then hold an estate sale – have a salvage company come in at the end, etc.  This just opened up another issue of what was it all worth . I really didn’t care about making money on the belongings – I just wanted the house.  We kept hitting road blocks with the belongings – I offered to move all of the belongings to a storage unit and pay for the storage unit for up to 6 months. Still no go… I offered for them to host an estate sale and keep all the money – Here again I stressed I just wanted the house. All of this talk about these belongings really stretched things out. All this time they have not listed the house or even put a FSBO sign up. There never really was a sense of urgency.
Fast forward some more – I actually had a text message agreeing on the purchase price – and we had a plan of action on  the belongings. I immediately sent her a sales contract.  Then 2 days after that text the older lady that lived in the house passes away.
Now the Power or Attorney is dead – the ownership switched to a trust – NOW I have 3 parties to deal with. The deal just went upside down from there…. I pushed through for a while and had 2 of the 3 parties on my side. The last holdout just wanted more money. I could not keep him from putting it out on the market. He wanted 40% more than my offer – he got almost 30% more.
This was a frustrating process and loss. However,  I did offer the absolute most I was wiling to pay. I wanted to be sure I did not regret offering more as I have lived this scenario before.

First offer  $62,500

Second agreed offer $68,000

Final offer $75,000

 

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