1006 E. Weber Drive, Tempe, AZ 85281
1500 sf / 3 bedroom / 2 bath
The seller, McCara U., was new to the business of real estate investing and rehabbing properties for resale. This was the second property she had purchased and started work on, but with little experience, after approximately 6 months, she quickly found that she was dealing with a property that was in far worse shape than she had anticipated – or knew how to deal with. She had managed to tear out the interior and strip old siding from most of the house, but by the time we saw it, it was a raw shell with no bathrooms or kitchen, and construction debris filled both yards.
1006 Weber was an old home, built in 1958, and poorly maintained. This meant that not only were there significant cosmetic problems both inside and out, the house was structurally unsound. As more and more of the house was dismantled, it was discovered that there were issues with the actual foundation, and that the plumbing and electrical were not just outdated, they needed to be completely re-done to be brought up to code. Every part of the home was in worse shape than had been anticipated, and the rehab was going to be far more difficult than originally thought. These weren’t the only obstacles the home faced, however. The condition of the house was bad enough, and the layout was worse, but the final coup de grâce was that it had a “tandem” garage. In a region where temperatures soar to 118° in the sun, and the interior of a car can go over 150°, a garage where you have to park one car behind another can literally mean the difference between selling – and not selling.
What Fair Property Buyers Did
McCara had actually consulted a couple of other advisors and potential buyers before she contacted us, and had been given a number of possible scenarios. She found herself confused at the different information she was getting. After we talked, we met her at the site, and did a complete walk-through with her, so we could discuss exactly what we were looking at together. After taking pictures, we did a complete market analysis of the neighborhood, the home, it’s condition, and the comps in the area. Because we have a lot of experience in the field of construction, we were also able to give her an honest appraisal of what actually needed to be done to make the home marketable, as well as an estimate of what it would cost. When we made a cash offer to purchase the house based on this evaluation, completely “as-is,” McCara rejected it, disagreed with our assessment, and decided that she wanted to continue with her own plans instead.
The End Result
After approximately 6 more weeks, with no real progress, no end in sight, and – by that time – hemorrhaging money, McCara contacted us again. By then she had gotten to a point in the rehab process where she finally understood that we had given her an accurate and honest appraisal, and that she was in far worse shape than she would have been if she had listened to us 6 weeks ago. She asked if we were still willing to work with her, and of course, we were. If a client decides they don’t want to work with us, it’s never a problem, we’re happy to help. We want our customers to have the best information possible, whether they work with us or not. Our property appraisals and consultations are always complimentary, and we strive to give the best and most accurate evaluations we can. No matter what a seller decides to do after our evaluation, we always part with a handshake, and are happy to work with them later if they change their mind. We were able to make McCara a cash offer on the spot, with no inspection, no appraisal, and no waiting – plus – we paid the closing costs. In 2 weeks, McCara was relieved of what had turned into a painful – and expensive – entrepreneurial lesson. Rehabbing a property isn’t as easy as they make it look on TV; it’s a tough business to thrive in. McCara came back to work with us because she realized that – in a business where it can be difficult to find people you can trust – not only were we honest, fair and accurate, we are able to work quickly and – even more importantly – easily. And by the time McCara came back to us – “easy” was what she needed.