When homebuyers hear the phrase “investor owned property”, they typically react poorly because most people perceive investors to be emotionally detached from their investment properties and solely reliant on computer-generated matrixes to select the highest and best offer.
But what if I said that this is not always the case? That, as we discussed in my prior blog post entitled “Getting Home Buyer’s Offers Accepted and Not Just Noticed“, a handful of investors care about the buyers who they sell their real estate investments to. That some even deliberately try hard to serve their constituents by performing additional improvements, above the cosmetic, like installing new windows or insulation to the home.
The above scenario seems rare but it isn’t. But, the recent real estate transaction that I want to tell you about is even more noteworthy. So, here goes:
Just last month I represented John and Stephanie – a young family with two children and a third on the way. Our offer wasn’t the highest, nor was it the best. In fact, the investor/seller (Benevolent Bob) received numerous offers within 24 hours of listing the home. After a little bit of negotiating and discovery, he chose my buyers and we opened escrow. John and Stephanie were ecstatic and very grateful for it.
At the time, Stephanie was just 30 days short of her delivery due date and, providentially, their apartment rental lease was also about to expire. We needed to close on the property as quickly as possible so our game plan was to use a direct lender to secure financing speedily.
Seventeen days into the contract, we learned that the home did not appraise for our contracted sales price and the termination of lease notice that the buyers had submitted to their landlord was not received well by the leasing company. In fact, it spun into a malicious attack by the management company (full story about where not to rent coming soon) to increase the rent immediately by 30%.
What should have been a quick and easy transaction had now turned into a potentially difficult one. As we awaited the appraiser to revisit the property (we submitted additional comparable sales showing that the home was in fact worth what we offered on it) and hopefully increase the appraisal value, John and Stephanie had to find a new place to live – and quick. So, they asked Benevolent Bob if they could just move in right away.
They hadn’t realized that they were asking for a lot! Like Benevolent Bob overlooking the fact that we hadn’t received any type of final underwriting approval from the lender; that many conditions remained uncertain like the appraisal, and that maybe even, due to today’s lending climate, the loan would not fund.
So what did Benevolent Bob decide? He gave them the keys right then and there and told them to enjoy the place! It was a very humbling and surprising turn of events and my buyers are eternally grateful for the kindness of an investor.