Catherine Gacad

Finances & Retirement

Real Estate Update: We’re Moving to…

home-158089_640We’re going nowhere. Neither of our offers were successful and we can’t compete with irrational buyers/investors who are submitting bids that remove all contingencies. That means if your offer is chosen and you find out, through an inspection, that your new home is built on quicksand, well then you are f*ing screwed.

In the past, we have lost out to multiple sky-high, all-cash offers, but this is a first for us—to compete with zero contingencies that places the investment at serious risk.

We had our hearts set on both properties I posted below, but oh well. Onward and upward. Or maybe onward and downward.

We took a look at a home in beautiful Miraloma Park yesterday. It was in complete disrepair, an absolute fixer-upper listed at $700k. I could barely walk through it without gagging. It gave me the creeps, not to mention the owner’s suicide in the home last year. $700k and it was like a gazillion fraternities had partied in the home for years without bothering to clean up. Dean said, “Think of the potential!” And I quipped, “I’ll be in the car.”

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  1. Catherine, by the time we bought our current house, we had contracts on 2 others that we lost, 1 because the family never wanted to sell and dragged their feet, and eventually we let them out of the contract, and the other because the house did not appraise for the asking price. It was a really, really, really, frustrating experience, but it helped prepare us for the house we wound up buying. But you are so right to trust your instincts. Not everyone’s good deal is your good deal. We went to one house that was a great price for the neighborhood, but the inside was TRASHED because the wife of the family had lost the house to the husband in their upcoming divorce, so she and her kids trashed it before they had to leave. Out agent, who we loved, talked about what a fixer-upper it would be, but the place skeeved me out. I am glad you know what you can handle, Blessings!

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    • lynne, after almost a year of looking, i’ve got some good news coming. perseverance prevails and i feel like we got exactly what we were looking for.

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  2. So sorry Catherine that neither panned out and just hoping that you will find something even better and perfect for your growing family now. Saying prayers and sending good vibes your way now!! 🙂

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    • thank you janine. your prayers worked! we are in the process of closing on a place. i will be posting about it soon. hope you’re having a great holiday weekend.

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  3. This reminds me of when we were apartment hunting only (just rental!) and we walked into a house that literally…had a basement full of dog excrement. (not the word we used)
    My husband saw potential (but not much) and I ran out of the house and into the car. Now whenever we drive by it, even years later, we call it the “excrement house.” (not the word we use)

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    • that is too funny tamara. the shit house! despite the potential, i think we all have good instincts on what we can call home. i actually have good news that i’ll be posting about soon.

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  4. So frustrating! Keep your chin up! I can’t imagine how delusional people are to put a price that high on a house that is a wreck. Ridiculous.

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  5. I am sorry to hear that. I know that you will find your dream place soon.

    There is a plan in place for your house.

    It took me a while also to find my house. I am so happy that I waited. You will be also.

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    • i agree, you’re right! just be patient and the house will come. it did! i will be posting about it soon. hope you’re having a great holiday weekend, patrick!

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  6. That stinks! I’m sorry. Getting excited about moving and then finding out that it won’t go as planned is such a bummer. Hang in there, getting rest while you can. You will get into a great home in due time.

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  8. Aww I’m not a home owner but I hope you have better luck soon finding your dream home. Things happen for a reason so maybe it’s for the best that those homes didn’t turn out – although, I’m sure it doesn’t make it any less frustrating! Best of luck to you two!! -Iva

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    • iva, i totally agree with you that things happen for a reason. there’s always something positive coming down the pike!

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  9. No contingencies is crazy. Ugh. I’m frustrated for you! But… perhaps your baby is meant to start his/her life in your current home. 🙂

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      • I had a little health issue on Thanksgiving weekend that kept me out of commission until last week. It was hard to keep up while I was recovering so I just focused on my health. I’ll be back at it soon. Nice that someone noticed! 🙂

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  10. I think that the hardest part of the home buying experience is to resist getting caught up in the emotional part of the transaction – letting reason give way to emotion. Good for you and Dean for not letting that happen. I’ve never even heard of a home sale that didn’t include an inspection contingency! And I’ve bought and sold A LOT of houses! That is insane. Hold firm your ground! The right place for you and your family will appear. And you will be ready for it.

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    • mo, it really is insanity over here in the bay area. apparently what people do is that they put in for no contingencies in their offer, but then they do a mini-inspection prior to the offer being accepted. totally irrational. i don’t want any part of it.

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  11. Don’t lose heart, buying a house is a tough process. Even buying investment properties with no sentimental attachment is tough. But removing contingencies really isn’t as big a deal as one would imagine. Most of the purchase I make I remove contingencies (other than loan contingencies) mainly because it is possible to do quite a lot of the research on this bigger issues even before the contract is signed. i.e. talking to the neighbors about geological issues.

    If the house has major issues and the bank won’t lend after their own inspection and appraisal process, then you’ll just back out of the deal, no problem.

    At any rate, on’t worry, there is a house out there with your name on it.

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    • CK, it does sound crazy to me to remove all contingencies, but as you and others have mentioned, it actually isn’t too much of a big deal. so that’s good to hear. but we finally landed on a place that i’ll be posting about shortly. yay!

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    • ashely we did find something! i will post about it soon! the real estate market here is completely irrational so i feel like we won the lottery with this place we got. post coming shortly.

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  13. So sorry about those two places, Catherine. I definitely would not have wanted the third one you mentioned. Ugh! We keep on believing for the perfect place for you and Dean to show up. Hugs, Ali

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    • ali, i finally prayed that we would find the right place. when i say, ‘finally,’ i say that because i really try not to pray asking for favors. i only ask God to keep my baby and family safe. other that, i’m mum when it comes to requests. but i did ask, and He has answered our call. i can’t wait to share the news soon!

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  14. It’s pretty much the same in our city. Regular people cannot compete with cash offers and no contingencies and they are everywhere! It’s a rough market. We ended up buying new construction or else I don’t know how we would have. Keep putting those offers in. It’s exhausting but something will work out eventually.

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    • cece, perseverance prevailed! we have finally landed on a place. i’m so excited and can’t wait to share. i’m glad, too, that you understand the irrational real estate market. it must be so weird to other parts of the country what we are going through just to buy a home!

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    • oh wow, holly, the real estate differences really are unbelievable! i wish homes around here were in that price range, but for $500k, you’ll be hard-pressed to find a 1-bedroom! ugh.

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  16. So sorry to hear about this. House hunting can be totally fun but more times than not it can be totally frustrating. Take it from me…. I’ve purchased literally hundreds of properties in the past.

    My philosophy is everything happens for a reason and at times I’ve been heart broken to lose out on a property but I’ve always found something better. And so will you.

    Good luck.

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  17. remember, this is a process. and you are right! without an inspection, you are taking a risk. Sometimes in fast markets, where I am, we have the seller do an inspection and make it available to buyers. another take is to make contact with an inspector, who will do a basic inspection, on short notice, for your “2nd showing”. for a home you are particularly interested in. Your realtor might be able to buy you 2-3 days to get a contractor to walk thru with you,.

    here is a beautiful home 20 min from downtown portland, or. http://www.felidahomes.com/Web/AR468237/ListingSearch/details/?mls_id=OR-RMLS&mls_no=14078587&from=ht

    PS. thanks for the follow on twitter: ggmatthews1

    gloria matthews

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    • gloria, i’ve definitely heard that about doing a mini-inspection for homes we are really interested in. i guess there are lots of different options for submitting a successful offer.

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  18. Sorry to hear that both didn’t work out for you. Buying a home is like an emotional roller-coaster especially when you can already picture yourself living there and how to decorate even before the ink dries on the offer letter. But hang in there! The perfect home will come up on the market eventually. 🙂

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    • yes, gracielle, i actually have good news to report. looking forward to sharing on my blog soon. hope you’re enjoying the holiday weekend.

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    • i know, joi, isn’t it insane? someone sent me a listing in virginia for a 5 bedroom for $500k. i was like, $500k barely gets you a 1 bedroom in the city. the high cost of living here is truly unbelievable.

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    • thanks nellie. i’m sure you understand living in nyc how hard it must be. it’s us coastal folk! but i do have some good news i will be sharing soon.

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    • yes, i’m a big proponent of renting! but in the bay area, rents are more expensive than mortgages, that’s why people are so desperate to buy.

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    • michelle, it all worked out. we are closing on a place soon and i will blog about all the happy details once we have our keys in hand…so we don’t jinx it!

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