Overcoming Property Condition Challenges: A Successful Real Estate Transaction in Swanville, Maine
A Successful Real Estate Transaction in Swanville, Maine
Introduction
In the challenging world of real estate, sometimes a property's condition can pose a significant obstacle to closing a successful deal. This was precisely the case for a transaction that we had in Swanville, Maine. Despite the house's poor condition and a few setbacks along the way, we were able to navigate the situation and close the deal. In this case study, I'll share with you how we overcame the property condition challenges and achieved a successful outcome for both the buyers and sellers.
The Story
Let me tell you about a challenging transaction that I had in Swanville, Maine. The property condition was a massive problem for us. The house had no flooring, and it had tons of mold and peeling paint. When we asked the homeowner to do repairs, she didn't want to come out to Maine due to the cold winter to fix these issues, so we settled and listed the house as is.
But we didn't let the condition of the house discourage us. We did a great job taking professional photos, making the house look as good as possible despite its defects. To our surprise, the house got a ton of showings, and we actually got four or five offers, all of which were FHA and VA loans.
We knew that the FHA and VA loans might be an issue, but since it was the only offer we had, we made arrangements with the buyers that they would do some repairs, and we did repairs. We went forward with the contract and thought that the flooring would not be an issue since it was just ripped up.
However, during the home-Selling process, the appraiser said that the house failed because of the flooring. The lender had initially said that the flooring would not be an issue and that the VA lender would not mind as long as the paint was done. But it turns out the lender was wrong, and both the buyer and seller could not get the flooring done. We were at a bit of a standstill, and on top of that, a water test came back, and we had some coliform in the water.
The seller was out of state and did not want to come back to Maine to do any of the work. As the agent, I recommended that the seller allow me to hire someone to get the work done before the closing. Ultimately the seller agreed, and we did all the work to get the house up to standards for the VA loan.
Finally, we got everything done, and the appraiser approved the VA loan for the amount we needed. We got to the closing, and the seller had to close virtually because she was out of state. Everything worked out in the end, and the buyers were super happy. The sellers were thrilled that they got the house sold at the price they wanted, despite their peers.
Even though I paid for the repairs to be made to the house, it was still well worth it. I was happy that the client had gotten the amount that they needed, and I was more than happy to sacrifice and take a little hit on the commission on the house, just to get the deal closed and to make everybody happy.
Case Study
In this case study, we will explore how a real estate agent overcame property condition challenges during a transaction in Swan Ville, Maine. The property was inherited by the homeowner and was not fully finished, with tons of mold, peeling paint, and no flooring. Despite these challenges, the agent managed to get multiple offers, but the FHA and VA loans faced difficulties due to the property's condition.
Challenges Faced:
The property's condition was the biggest challenge in this transaction. The homeowner did not want to invest any money into the property and listed it as is, with tons of defects like mold, peeling paint, and no flooring. While the agent did professional photos and made the property look as good as possible, potential buyers were concerned about the property's condition.
The FHA and VA loans faced even more challenges. The lender initially said that the flooring would not be an issue, but the appraiser failed the house due to the lack of flooring. Additionally, a water test came back positive for coliform in the water, requiring the well to be shocked.
Solutions Implemented:
As the agent, the first solution implemented was to recommend repairs to the homeowner. However, she was out of state and did not want to come back to fix the issues. As a result, the agent recommended to the seller to allow them to hire a contractor to get the work done before closing. The seller agreed, and the agent made all the necessary repairs to get the house up to standards for the VA loan.
Another solution implemented was to have the well shocked to resolve the water test issue. The agent took care of this by hiring a contractor to do the work.
Results Achieved:
After all the repairs were completed, the appraiser approved the VA loan for the amount needed. The transaction proceeded smoothly, and the seller closed virtually due to COVID-19 restrictions. Despite the agent paying for the repairs, the seller was thrilled to have sold the house at the desired price, and the buyer was happy to get the house in good condition.
Conclusion:
Overcoming property condition challenges in a real estate transaction requires creativity and problem-solving skills. As demonstrated in this case study, the agent was able to navigate the situation, find solutions, and ensure a successful outcome for all parties involved.
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Here's a little bit about me:
Mike Weisman
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