Oh no! After being under contract to purchase our first flip, we had to back out of the deal after the general inspection brought to light some serious issues!
I mentioned in a previous blog post that trying to buy a home in the winter is miserable. With foreclosures, typically the heat and power are switched off, the driveway is covered with a foot of snow and the overall condition of the home is questionable. Aside from those physical unpleasantries, the snow in particular makes inspecting the exterior of a home problematic. If I can’t see the driveway, roof or enter the garage, how will I know if they’re in need of repair? I do rely on Google Maps satellite view to a certain extent, but even that is only somewhat helpful given that the photos may be a few years old.
To ease our minds, we hired a general inspector (as any homebuyer should) to get their take on any major issues with the home. And wouldn’t you know, there were quite a few big ticket items! The biggest of which was the $14,000 needed to build a brand new garage – something we didn’t get to inspect ourselves due to a large mound of snow blocking entry into the structure. A slight oversight on our part, but alas that’s what inspectors are for.
Regardless of these issues, the home was still a great opportunity – but not at our initial offering price. So, we went back with a meaningfully reduced offer, which they didn’t even consider. The search continues!
We put in our sixth offer in the last three months on a beautiful two-family property earlier this week. It’s a short sale, so it may take some time to close, but negotiations have been going well thus far. It needs quite a bit of work, but we’re excited by the opportunity to restore the home to its former glory.
