Address SOLD TO FPB: 9023 S. 3rd Street, AZ 85042
2346 sqft / 3 BD / 2.5 Bth / 2 CG / Office
ADDRESS BOUGHT: 7016 S. 30TH Avenue, AZ 85041
3771 sqft / 5 BD / 3.5 Bth / 2.5 CG
When Justine S. and her husband moved into their home, it was the perfect size for the young family. Years later, now with 4 young children heading into adolescence, they had outgrown the home; it was simply too small for a family of 6. But the final straw that forced the family to look for a new home was when Justine’s mother developed cancer, and had to be moved into the home for full time care. Her medical equipment required a great deal of room, which meant that she needed to be in the living room, so the family lost a good deal of space in a home that was already too small. In addition, due to her poor health, it was clear that Justine’s mother would need to live with them indefinitely.
This family was facing a number of challenges – and they were in a classic “Catch-22” situation no matter what they did. They knew they needed to move into a bigger home. They had enough equity tied up in their home to qualify them for another mortgage, but they couldn’t use it – unless they could sell their house and get that equity in cash. So they knew they needed to sell their home. But here, they were at a complete loss.
Between their 4 young children, expenses, and the critical illness they had been dealing with for months, their home was in disastrous condition; selling it seemed like an impossibility. Justine had to become a stay-at-home mome so she could care for her mother, which meant their income had taken a hit; the extra cash for repairs and cosmetic upgrades that would sell the house wasn’t there. Plus – the family was struggling just to stay afloat; Justine and her husband simply no time to put into the home to make improvements. The family was falling farther and farther behind on every front.
So – this family had not one big problem, they had two big problems: the first was how to sell their home, and the second was how to buy a home.
Problem # 1 How to Sell the Home?
In terms of trying to put their home on the market to sell – their house was simply unmarketable in it’s current condition. Why?
The real estate market is still a buyers market, and that means a home needs to be in great – or at least good condition to attract any kind of interest at all. Even though Justine’s home had good bones, it looked terrible at the moment. The hard truth is that most people can’t see beyond the cosmetic problems a house may have, and there are so many homes on the market now that they can take their pick. And when buyers are looking for a home, they are remarkably picky. Justine’s house couldn’t compete because:
- Basic maintenance on all levels had been neglected, and needed repairs hadn’t been made.
- The house was crammed with possessions from two households, children’s toys, and medical equipment.
- The back yard was nothing but dirt, with no landscaping whatsoever; children’s sports equipment and an oversize trampoline were the only items it contained.
- There was a pool that had turned green and become a health hazard.
- The carpeting was shot and needed to be completely replaced.
- Every bedroom in the home had been painted a deep primary color; purple, blue, green, or yellow, and the 4 children had covered these walls with stickers, magic marker drawings, and colored paint.
The final strike against trying to sell the house was that – even if the home had been ready to showcase – the mother was so ill that it was impossible to have an agent bring people through to look at it or hold an open house.
Problem # 2 How to Buy a Home?
In terms of trying to buy a new home to move into – Justine’s family didn’t have the working capital in hand or in cash; it was all tied up in the equity of their current home, and could not be used until after their home was sold.
However – if they sold their home to get their equity – it would leave them homeless for a period of time while they searched for and went through the process of buying a new home. This wasn’t an option given the mother’s health; she couldn’t even walk at that point. Even if they could somehow manage to come up with a down payment and buy another home to move into immediately – it would mean they would be paying two mortgages as they waited for their old home to sell. This wasn’t an option either; they simply didn’t have the working capital to handle two mortgages.
What Fair Property Buyers Did
When Justine called us, she and her husband literally had no idea how to handle any of this. They had found our website, and they saw that we offered complimentary consultations, education, and advice to distressed homeowners. The original reason she called us was simply to try and find information of any kind, because she literally had no idea how to sell their house, how to find a house, who to talk to, or what could possibly be done. They simply had no clue about where to even start.
We went to see Justine’s home the same day she called us. Carefully, so as not to disturb her mother, we walked through her home as she explained the details of their dilemma. After evaluating her home, and her very unusual – and very difficult – situation, we were able to make Justine’s family a fair cash offer for her house that same day, an offer that would protect their equity in the home so they could use it to buy another home. Not only that – we told her she and her family didn’t have to do a thing to the home except pack and leave. That’s right, Fair Property Buyers will buy any property for cash– no matter what condition it’s in – without any inspections, appraisals, repairs, or cleaning whatsoever. She accepted, and we agreed to buy her home – for cash. But we didn’t stop there, because this family needed more help. A lot more help.
Setting Up a “Synchronized Transaction” – Selling and Buying on the Same Day
There’s an extremely rare real estate negotiation known as a “Synchronized Transaction,” which doesn’t happen often, because it’s very difficult to arrange, there are few situations that call for it, and even fewer homeowners that qualify for it. Plus, Fair Property Buyers is one of the only companies that will handle them, because we know how to do it successfully. A synchronized transaction means using the proceeds from one home to buy another home – and setting up both the sale and purchase so it can happen in one day. It requires a great deal of planning, negotiation, timing, and making sure the details happen in the correct order, or it can’t be done. Justine’s family was a candidate for this kind of transaction. In fact, a synchronized transaction was about the only hope they had of getting into another home.
Basically, a Synchronized Transaction entails a single party selling one house, and then using that money to buy another house within a 24-hour period of time.
We explained the details for her, clearly laid out the plan, and offered to stand by and wait to purchase her home while we helped her through the necessary steps. There wasn’t any kind of fee or commission for this, all we wanted to do was to buy her house – for cash. But in order to do that so that she would come out ahead, we needed to help her get there.
Synchronized Transactions – We’re the Only Ones Who Can
In effect, Fair Property Buyers became Justine’s families “quarterback.” We helped her plan the plays, call the plays, and carry though for the touchdown – and a win-win, for both of us.
In a period of 6 weeks, we helped Justine and her family find a beautiful new home that fit their budget, was in a great neighborhood, had a huge landscaped yard for the kids, and 2 more bedrooms, 1.5 more bathrooms, and almost 1500 more square feet.
Next, we walked them through the entire buying process for this home – we helped them set up the inspections, appraisals, assessments, termite evaluation, etc. In short, helped them every step of the way – from their first viewing to the day they put the home in escrow.
The End Result
We spent six weeks organizing and coordinating the details of buying and selling both homes simultaneously, so that everything could happen in the correct order, in a 24-hour window of time.
On Friday morning, March 20th, we bought Justine’s home for the agreed-on price – in cash. She deposited and verified that cash with her bank, and made the offer on their new home. The mortgage broker for the new home confirmed their money was available for a down payment, approved their mortgage, and they closed on it that afternoon – by 5:00 PM. This meant that on Friday evening, Justine’s family, along with her mother, moved out of the old home and into their new home.
Justine and her family sold a house, moved out of it, bought a new house, and moved into it – the same day! Fair Property Buyers was happy to help this family move through this difficult period in their lives, and into a new – and brighter – chapter.