I saw a short sale condo that I took a liking to even though the condition of the apt is practically decrepit for a new development that was built about 5 years ago. The sheet rock around all the windows had cracks from opening and closing the windows, the door hinge that led to the balcony/fire escape was rusty, the fire alarm was cut off, the small yard was not taken care of so massive weeds... [more]
I saw a short sale condo that I took a liking to even though the condition of the apt is practically decrepit for a new development that was built about 5 years ago. The sheet rock around all the windows had cracks from opening and closing the windows, the door hinge that led to the balcony/fire escape was rusty, the fire alarm was cut off, the small yard was not taken care of so massive weeds which I am sure there's some dead rats in the mix, the casing to the front door peep hole was broken, the toilet ceramic had a crack on the top, the bathroom wall which was all tiles had some shelves put up- when and if the tenant moves out and takes them out would leave massive holes in the tiles, and the walls were dirty which a fresh paint won't fix but all these will not be taken care of since this is a short sale.
I am thinking hard and probably will be bringing in a building inspector to have them check out the place but the place is listed already under what it's worth (supposedly) but I am having second thoughts to if this is all worth it or not. I wanted to get some opinions in regards of short sales that's still in the high 400s for under 1000 sq ft apt in brooklyn with all these touch ups I would have to be responsible of.
Thanks in advance!
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Response by saiyar1
about 16 years ago
Posts: 182
Member since: Jun 2010
As far as the price per sq foot analysis, maybe you can provide the rough neighborhood? It varies drastically if its in Brooklyn Heights vs Crown Heights.
I don't have experience in this, but I would say bring in an inspector and maybe even a contractor. I assume doing a great job at estimating the costs of the renovation is key to making this profitable.
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Response by callalexfurst
about 16 years ago
Posts: 2
Member since: Jun 2010
I'm RE broker that just relocated from Miami, which is the land of distressed properties. Over 50% the active market are short sales and foreclosures. THE BAD NEWS: First and foremost: AS-IS! Don't expect those repairs to be anyone's responsibility except your own. The Seller won't put money into it, because they're already walking away with nothing. Their bank won't entertain repairs because they are not equipped to deal with hiring contractors, permits, etc. All this being said, if you are financing this purchase be prepared for YOUR bank to say no once the appraiser notes the condition (especially structural issues). If you're paying cash, it will be much easier. If the sheet rock is cracking and it's only 5 years old, it might be "Chinese Dry Wall". Bad news - google it and talk to your inspector about it. It was commonly used in new construction during the boom years. Total bio-hazard. Lastly, be prepared to wait anywhere from 3 months to a year for the sale to be approved. Get a good lawyer too. THE GOOD NEWS: When and if you finalize this purchase, CONGRATS! You probably got it at an amazing, unbeatable price. That will be your reward for putting up with all the drama leading up to the closing. Good Luck!
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Response by ab_11218
about 16 years ago
Posts: 2017
Member since: May 2009
i'm in contract for a short sale and i'm at month 6. finally had the bank reply and, due to the price being so low, increased my offer. i hope to close one of these days.... when is another story.
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Response by w67thstreet
about 16 years ago
Posts: 9003
Member since: Dec 2008
ab... let me get this straight.
The bank wanted more money in a short sale and you bent over and self lubed?
FLMAO..... go you! let me know when you wanna play poker...
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Response by hysteryck
about 16 years ago
Posts: 16
Member since: Jul 2008
saiyar1 - It's in East Williamsburg at $519 per ft².
As far as the price per sq foot analysis, maybe you can provide the rough neighborhood? It varies drastically if its in Brooklyn Heights vs Crown Heights.
I don't have experience in this, but I would say bring in an inspector and maybe even a contractor. I assume doing a great job at estimating the costs of the renovation is key to making this profitable.
I'm RE broker that just relocated from Miami, which is the land of distressed properties. Over 50% the active market are short sales and foreclosures. THE BAD NEWS: First and foremost: AS-IS! Don't expect those repairs to be anyone's responsibility except your own. The Seller won't put money into it, because they're already walking away with nothing. Their bank won't entertain repairs because they are not equipped to deal with hiring contractors, permits, etc. All this being said, if you are financing this purchase be prepared for YOUR bank to say no once the appraiser notes the condition (especially structural issues). If you're paying cash, it will be much easier. If the sheet rock is cracking and it's only 5 years old, it might be "Chinese Dry Wall". Bad news - google it and talk to your inspector about it. It was commonly used in new construction during the boom years. Total bio-hazard. Lastly, be prepared to wait anywhere from 3 months to a year for the sale to be approved. Get a good lawyer too. THE GOOD NEWS: When and if you finalize this purchase, CONGRATS! You probably got it at an amazing, unbeatable price. That will be your reward for putting up with all the drama leading up to the closing. Good Luck!
i'm in contract for a short sale and i'm at month 6. finally had the bank reply and, due to the price being so low, increased my offer. i hope to close one of these days.... when is another story.
ab... let me get this straight.
The bank wanted more money in a short sale and you bent over and self lubed?
FLMAO..... go you! let me know when you wanna play poker...
saiyar1 - It's in East Williamsburg at $519 per ft².
callalexfurst - Thanks for the input.