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Talk me Down - realtor wants us to spend 76K on our house


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Princessmommy, can I just sympathize with you for a moment about real estate woes? We are starting to look for a house. Yesterday we found out from the bank that we can afford only a MUCH less expensive home that I had calculated... I mean, the houses we have been driving by and looking at, turn out to be out of our league... way out, and we were not looking at top of the market. We can not afford to fix anything up after moving in, so it's going to have to be as-is.

DH argues that we can afford a higher monthly payment, but I'm the one who does the bills and I know. I need to be lovingly firm!

 

I hope you can stand your ground too. 76K is ridiculous!!!

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I just thought I'd follow up. We had a meeting at the house with one of the contractors...he's the main contractor. He went over everything that was asked to do. I'm rather miffed at my realtor.

 

For instance: in master bath she asked him to replace our tile floor with new tile... in the kids bath she asked to replace the vinyl (old and ucky) with new ceramic tile flooring!! Ack! What the heck? First the master bath tile is fine. It just needs some elbow grease. The kids bath does not need to be replaced with tile! Just put a sheet of vinyl down! She told him to price out replacing a 5yr old shower stall that just needs a good cleaning. :mad:

 

When we went over the list with her originally she wanted me to replace our brand new counter top because she didn't like the color. I told her categorically "no." and she had him price up for new counters!! Not only is she costing us time and money, but she's also wasting the contractors time by having him price stuff I told her I wouldn't do.

 

The problem with firing her is that in our state the realtors are very protected. We would have to pay her a back-out fee if done before the contract expires. We tried to get rid of this clause but, of course, she wouldn't do it (neither would the other realtor we interviewed), I think we were able to lower the % a bit... but not enough to fire her yet. We just have to know where we stand with her and play hard-ball. But this really opens my eyes that even the selling realtor isn't working for the customer. Sigh.

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I just thought I'd follow up. We had a meeting at the house with one of the contractors...he's the main contractor. He went over everything that was asked to do. I'm rather miffed at my realtor.

 

For instance: in master bath she asked him to replace our tile floor with new tile... in the kids bath she asked to replace the vinyl (old and ucky) with new ceramic tile flooring!! Ack! What the heck? First the master bath tile is fine. It just needs some elbow grease. The kids bath does not need to be replaced with tile! Just put a sheet of vinyl down! She told him to price out replacing a 5yr old shower stall that just needs a good cleaning. :mad:

 

When we went over the list with her originally she wanted me to replace our brand new counter top because she didn't like the color. I told her categorically "no." and she had him price up for new counters!! Not only is she costing us time and money, but she's also wasting the contractors time by having him price stuff I told her I wouldn't do.

 

The problem with firing her is that in our state the realtors are very protected. We would have to pay her a back-out fee if done before the contract expires. We tried to get rid of this clause but, of course, she wouldn't do it (neither would the other realtor we interviewed), I think we were able to lower the % a bit... but not enough to fire her yet. We just have to know where we stand with her and play hard-ball. But this really opens my eyes that even the selling realtor isn't working for the customer. Sigh.

 

As the wife of a former contractor I'd be very cautious. Dh always worked to have a few Realtors that would refer him, but the estimates were always done face-to-face with the HOMEOWNER. The Realtor was only a referral source, not the one calling the shots. He received no compensation from them.at.all. He also wouldn't kowtow to the Realtor or do estimates based upon her opinion. The above sounds shady at least.

 

If you decide to do any of the work, get estimates from other sources. My dh always recommended people get at least three estimates on any job.

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We spent three long days looking at over 40 houses in Georgia about a month ago. Our realtor was fantastic, and never pushed a house unless she felt like it was something we really liked - that really met our needs, wants, and priorities. The house we eventually chose has the lowest commission I've ever seen on a property - 2.5% to both listing and selling agents; most of the houses we looked at had commissions of 3-3.5% for each agent. I mention this because when we sold our house five years ago, adding a bonus for the selling agent didn't really matter then, and I'm sure I wouldn't offer one now. Maybe my experiences were anomalies and offering that incentive does help. What we did do was offer $5K as an incentive to the buyer - for repairs and/or closing costs. That, and staging, made all the difference, I think.

 

You've already gotten great advice, so there's not much to say, but I do have to agree with those who have stated or implied your realtor is not giving you advice that is in your best interest. I'm not someone who would want a fixer-upper, and looking at so many foreclosures really drove that point home for me (:tongue_smilie:), but if I wanted a specific area, I'd have been willing to take on some work if it meant I might not otherwise be able to buy in that neighborhood (or that otherwise met our needs - in our case, we wanted two acres, preferably zoned agricultural, so that we could have a few chickens, which was harder than we thought - at least in our price range!).

 

One thing you might consider doing is going onto Zillow.com and looking at comparable "for sale" and "sold" properties near your house. You can see photos of what's selling in there, for what price, and in what condition; sometimes, photos are still included on homes that have sold, too.

 

I have to agree with those who advised you on what repairs to consider (like the bathroom and the porch), and what repairs to ignore (and honestly, I especially have to agree with those who said not to use ANY of your realtor's recommended contractors - for those, ask around among your local friends and go from there). I think the roof is iffy, honestly; if it looks bad, then consider replacing (we looked at a house that had a 30-year old roof, and no mention at all of offering to replace, or provide funds for replacement, in the listing; the roof looked terrible, so that figured prominently in our decision to keep looking, though of course, we could have asked for it if we'd really been interested).

 

Good luck to you!

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We just have to know where we stand with her and play hard-ball. But this really opens my eyes that even the selling realtor isn't working for the customer. Sigh.

 

Find your own contractor. Say NO often and loudly to the realtor. Stand your ground. Do not trust her. at. all. This is about inflating her commission, no matter what the cost is to you. She sounds very unethical.

 

I wonder if there is an agency to report unethical realtor behavior? If so, perhaps by threatening to do so, she may let you out of the contract.

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This is really stressful. Our house is 30 yrs old. It wasn't built in 2011!! Why do realtors (and buyers!) want us to make our house look brand-new! If they want a brand new house go down the street and spend 200K more for a 2012 edition.

 

Yes, some of the stuff definitely needs to be done. We have a bathroom in serious need of attention and tile work. Our front stoop has come away from the house and sunk. Our HVAC died the week after we moved out and we're replacing the entire system (30yrs old anyway). These will not be cheap.

 

But, we had our college boys paint all the "simple" rooms (rooms where there were no major flaws in the walls). Sure they didn't do a perfect job, but I can go back and fix some of their oopies. But she wants a professional to come through and repaint the entire house to the tune of 11K!!!! :confused: Our roof is nearly 15yrs old. It isn't perfect, of course, but it's fine... She wants us to install a new roof (15K). Anyway, that's just part of the list. Of course, she said "I'm giving you the worst case scenario prices" but then she wants us to do ALL of it. That isn't worst case, IMHO.

 

And those prices don't include new carpet in some rooms and landscaping!!

 

That's ridiculous. I spent 10 years as a broker and I wouldn't expect a buyer to spend that kind of money. BUT, your price must match your home's condition.

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As the wife of a former contractor I'd be very cautious. Dh always worked to have a few Realtors that would refer him, but the estimates were always done face-to-face with the HOMEOWNER. The Realtor was only a referral source, not the one calling the shots. He received no compensation from them.at.all. He also wouldn't kowtow to the Realtor or do estimates based upon her opinion. The above sounds shady at least.

 

If you decide to do any of the work, get estimates from other sources. My dh always recommended people get at least three estimates on any job.

 

I agree.

 

And I will say this baldly now: It sounds like the fix is in and the good ol boys are circling the prey. Dig in and get stubborn, in the nicest possible way, but stand your ground.

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Debbie, Whoa!!!!!!!!!! We are fixing up our home to sell.

 

Those figures don't sound right. Our current house was built in 1964 or 1967...it is one or the other, but I never remember which one. That's going on 45-50 years.

 

Roof: We had one replaced 2 months ago, but it was less than 3K.

Painting: Yes, it is pricey and precisely why we ALWAYS do it ourselves (interior and exterior).

 

Regarding paint, it may be your real estate agent is suggesting a redo due to a lack of neutral color.

 

HVAC: Yes, that can be pricey, but it WILL depend on "brand name" and other factors. Still a unit will run several thousand $$.

 

Our real estate agent is advising us on what to do based on buyer interest/want and our budget. So, yes, it would be nice to level our backyard, but are we going to do it. NO!

 

Our roof is new. We are in the midst of painting the interior. Exterior was done 2 years ago...it will need to be pressure washed.

 

Hired to have tree limbs taken down. We have BIG oak trees and it needed to be professionally done.

 

We are going to lay down granite in place of our old, worn tile.

 

We will replace dishwasher, but will have to "consider" if we "need" to replace stove and refrig.

 

Carpet should come up in the 2 bedrooms....we have hardwoods underneath. Cost will be about the same b/t "finishing" hardwoods OR laying carpet.

 

There are a few other little things. We will probably spend 5-7K, but some of these things we had to do anyway. If we get another HVAC which is 20 years old, that will go up to about 10-15K.

 

HTH!

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Do you mind posting what state you are in? I am completely baffled by not being able to fire your realtor. If someone is unhappy with me, I am more than thrilled to back away and let someone else have at it. Especially before I have a buyer! If I bring a buyer, I want to get paid. If I'm your realtor and you don't like my advice, let's go our separate ways and decrease the stress.

As for the repairs...you probably need to go over the paint job. Don't replace any tile that is not broken, if it is outdated then the price will reflect it. No big deal. Go ahead and clean the grout and do it yourself if you're able. Take a look at the contract and see if you can go ahead and fire her if you don't put your house on the market. See how long you have before you can put it on the market and find a realtor with another company. Ask around, find the busiest realtor you can find. They are usually busy for a reason. She didn't hire you, you hired her. Get legal advice if need be. This relationship is not going to go well. Good luck!

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What the heck? I have bought and sold a bunch of houses and I can tell you I would never have the realtor being the one to hire or deal with the contractor. Not in a million years.

 

Start from scratch with estimates only for the things YOU want to fix. Get several estimates, from contractors YOU select.

 

Sounds like your realtor is trying to make your house look like the brand new ones she feels you are competing with. Makes me think she has most of her experience with selling new properties and doesn't know how to properly market a house the age of yours.

 

I can tell you one more thing - in your shoes, I'd be digging in my heels so hard and deep that *she'd* be the one trying to get out of the contract. And I might also be getting nosy about the broker she's working under - is this the way the agency owner would deal with you? If you are getting the complete run around, it might be worth it to sit it out doing nothing until the listing agreement expires. Three months from now is the ideal time for spring home sales, anyway.

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:iagree:

What the heck? I have bought and sold a bunch of houses and I can tell you I would never have the realtor being the one to hire or deal with the contractor. Not in a million years.

 

Start from scratch with estimates only for the things YOU want to fix. Get several estimates, from contractors YOU select.

 

Sounds like your realtor is trying to make your house look like the brand new ones she feels you are competing with. Makes me think she has most of her experience with selling new properties and doesn't know how to properly market a house the age of yours.

 

I can tell you one more thing - in your shoes, I'd be digging in my heels so hard and deep that *she'd* be the one trying to get out of the contract. And I might also be getting nosy about the broker she's working under - is this the way the agency owner would deal with you? If you are getting the complete run around, it might be worth it to sit it out doing nothing until the listing agreement expires. Three months from now is the ideal time for spring home sales, anyway.

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Do you mind posting what state you are in?

 

I'm in MD. The way the contracts are written here the realtor gets their 6% commission if you break the contract. We negotiated her down to 1.5%. My husband really liked that she would be doing a lot of leg work for us to get the house ready. Believe it or not, it was one of her selling points. Now it's biting us. But, she said she would bring us three bids and she hasn't... not to mention the prices and the fact that she is adding things on there we never agreed to do in the first place.

 

The last time we sold a house we had the opposite problem... our realtor barely did anything besides putting us on the MRS listings. We were very concerned that something like that would happen again so we were looking for someone who *worked* for us. Sigh. We can't win.

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What the heck? I have bought and sold a bunch of houses and I can tell you I would never have the realtor being the one to hire or deal with the contractor. Not in a million years.

 

Start from scratch with estimates only for the things YOU want to fix. Get several estimates, from contractors YOU select.

 

Sounds like your realtor is trying to make your house look like the brand new ones she feels you are competing with. Makes me think she has most of her experience with selling new properties and doesn't know how to properly market a house the age of yours.

 

I can tell you one more thing - in your shoes, I'd be digging in my heels so hard and deep that *she'd* be the one trying to get out of the contract. And I might also be getting nosy about the broker she's working under - is this the way the agency owner would deal with you? If you are getting the complete run around, it might be worth it to sit it out doing nothing until the listing agreement expires. Three months from now is the ideal time for spring home sales, anyway.

 

Yes, she's trying to make a Ford look like a Cadillac. We don't live in a pristine ego house. None of the houses in our neighborhood are like that. They're very middle-income homes with a little acreage. I used to have chickens for goodness sakes! This isn't a McMansion neighborhood.

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Ask her to write the check and pay for it herself. When does your contract expire? I know when we went to sell if we took it off the market and didn't list it for 6 months, we could sell it with someone else and she got no commission off of it.

 

LOl - yes we could just not put it on the market since we own the house outright, but my husband wants to get it done.

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Well, whatever happens with the contract, you DON'T have to use her contractor and you DON'T have to do repairs you don't want to do. My advice is always to make it look clean and crisp. If the walls are beige, make them all beige with no smudges or marks. Crisp corners, patch everything and sand till smoothe...:D Shiny is great! No clutter, no big rugs ( they make the room look tiny in pictures) and generally clean off every single counter. Enjoy! Maybe start over with the realtor? She may need your help selling it? Maybe she needs a glass of wine? I know I could use one sometimes.

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Of course she wants you to spend $ on your house. The more you get for it, the higher her commission. Don't spend what you don't want to spend. I'd do the roof, but beyond that -- it is what it is.

 

I haven't read all of the pages on this thread, but I totally agree with this. My dad always taught me, " of course, the realtor wants you to spend a ton of money because they make more that way on the final price."

 

It's a scam.

 

We sold a house two years ago when the market had started it's downturn and we did very basic white paining, put up on new gutter thingy (needed it), spruced up the yard a bit and did some maintenance stuff that legally had to be done.

 

It's bad times for the realtors. . . they're doing whatever is necessary to survive and make income. Good for you for asking on this board before committing big bucks.

 

 

Alley

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What the heck? I have bought and sold a bunch of houses and I can tell you I would never have the realtor being the one to hire or deal with the contractor. Not in a million years.

 

Start from scratch with estimates only for the things YOU want to fix. Get several estimates, from contractors YOU select.

 

Sounds like your realtor is trying to make your house look like the brand new ones she feels you are competing with. Makes me think she has most of her experience with selling new properties and doesn't know how to properly market a house the age of yours.

 

I can tell you one more thing - in your shoes, I'd be digging in my heels so hard and deep that *she'd* be the one trying to get out of the contract. And I might also be getting nosy about the broker she's working under - is this the way the agency owner would deal with you? If you are getting the complete run around, it might be worth it to sit it out doing nothing until the listing agreement expires. Three months from now is the ideal time for spring home sales, anyway.

 

:iagree::iagree::iagree:

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  • 1 month later...

I just thought I'd update this.

 

I took over the general contracting, joined Angie's List, and went to town getting things done. Unfortunately, there were some pretty pricey items that HAD to be addressed. Our HVAC broke. We had tile falling off in one bathroom and the other bathroom had a issues that needed addressing too. Also, our chimney had a large crack going down about 1/3 of the way (from the top of course :001_huh:), and our stoop was coming away from the house. We only had professionals paint three areas in the house because there was damage from water in one ceiling and then old 70's type of wallpaper that had been taken off in two other areas.

 

Anyway, the realtor's original estimate of $76K didn't include painting, landscaping (we did miminal), or the HVAC system. So it could have easily gotten up towards 100K. Isn't that insane!! I'm still shocked when I think about it. Anyway, we finally finished and I'm going to come in just under $20K!! Woohoo!

 

I know to some that will seem like a lot, but we live in an expensive area too. Before I even saw the realtor's estimate I had told my husband that I thought we should budget $20k to get the house on the market. I guess I was right.

Edited by PrincessMommy
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I just thought I'd update this. I took over the general contracting, joined Angie's List, and went to town getting things done. Unfortunately, there were some pretty pricey items that HAD to be addressed. Our HVAC broke. We had tile falling off in one bathroom and the other bathroom had a issues that needed addressing too. Also, our chimney had a large crack going down about 1/3 of the way (from the top of course :001_huh:), and our stoop was coming away from the house. We only had professionals paint three areas in the house because there was damage from water in one ceiling and then old 70's type of wallpaper that had been taken off in two other areas.

 

Anyway, the realtor's original estimate of $76K didn't include painting, landscaping (we did miminal), or the HVAC system. So it could have easily gotten up towards 100K. Isn't that insane!! I'm still shocked when I think about it. Anyway, we finally finished and I'm going to come in just under $20K!! Woohoo!

 

I know to some that will seem like a lot, but we live in an expensive area too. Before I even saw the realtor's estimate I had told my husband that I thought we should budget $20k to get the house on the market. I guess I was right.

 

Awesome savings! Hope it sells quickly. Are you staying with the same agent or going with a different one?

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Would $76K get you more than $76K increase in selling price in return?

 

To avoid the headache, I would take the price of a new house (comparable) and subtract $76K from that! :tongue_smilie:

 

And get 76k on the selling price, they come out even but the real estate agent comes out several thousand dollars better.

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Well done, Debbi! When does it go on the market? I think your timing is perfect.

 

When you see your realtor, try to use a nice voice when the I told ya so slips out. :lol:

 

I'm hoping in the next week.

 

Not to sound like an ad, but I really wouldn't sell or buy in DC again without hiring Frankly Realty.

 

I've never heard of that. What is it?

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we sold our first house about 10years ago, it was a 1950's house, and we sold it "as is" - I'm so glad our realtor seemed to "get it"...he advised us what to do cheaply. We painted/freshened a couple rooms, sanded and painted the trim, but not the whole outside of the house...though it could have used it, and put down cheap but new linoleum in the kitchen. He told us to neaten up the landscaping, cut down any big bushes that blocked seeing the house. this was all we did. We didn't even replace the rotting garage door. And it sold, very quickly for a good price. People came to look at it for the potential, everyone who seriously looked at it -were planning to remodel. No sense knocking ourselves out with stress and money when the buyers would just re-do it later.

 

I would do what you are comfortable with and not stress out.

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I'm hoping in the next week.

 

 

 

I've never heard of that. What is it?

 

It's an independent real estate company in Northern VA. Here's their website: http://franklyrealty.com/ . We used them to sell a home in Fairfax and buy a farmette in Culpeper County. The name is a play on the owner, Frank Llosa's name, but "frankness," honesty, and transparency is their thing. They have a very definite, very effective way of doing things. We sold our 1985 townhouse in just seven days in late 2008, when NOTHING was selling. It went for just barely under our asking price. Then they helped us play hardball on the buying end, and we got our current home for $50,000 less than asking price. Our realtor was Megan Buckley (I think she has a new last name now, though. She was engaged when we worked with her.) Seriously, the company and everyone they work with is wonderful. We were VERY satisfied.

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It's an independent real estate company in Northern VA. Here's their website: http://franklyrealty.com/ . We used them to sell a home in Fairfax and buy a farmette in Culpeper County. The name is a play on the owner, Frank Llosa's name, but "frankness," honesty, and transparency is their thing. They have a very definite, very effective way of doing things. We sold our 1985 townhouse in just seven days in late 2008, when NOTHING was selling. It went for just barely under our asking price. Then they helped us play hardball on the buying end, and we got our current home for $50,000 less than asking price. Our realtor was Megan Buckley (I think she has a new last name now, though. She was engaged when we worked with her.) Seriously, the company and everyone they work with is wonderful. We were VERY satisfied.

 

Thanks. Sounds like a fantastic company. Unfortunately, I'm in MD. We have our realtor until June and then we can switch. I'm so unhappy with her.

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Don't do it! We are in MD as well. We live in a home that is just shy of 50 years old. It was an estate sale purchased after the death of the original owners. It was and is a fixer upper. The repairs needed for your home are not at all consistent with the prices you are being given. Our entire bathroom (only one in the house) we completely re-did (including ripping open walls, replacing/reinforcing studs, concrete backer board, green board, new tile, new fixtures) cost us $2,000. We have completely redone our basement from wood panel to drywall, laminate flooring, light fixtures, etc for under $2,000 as well. Each year we are picking a project and updating/fixing that issue. We are approaching these remodels as our family of 5 lives in this home and we want this home if/when we sell to be in good condition for any family that moves into this home.

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Don't do it! We are in MD as well. We live in a home that is just shy of 50 years old. It was an estate sale purchased after the death of the original owners. It was and is a fixer upper. The repairs needed for your home are not at all consistent with the prices you are being given. Our entire bathroom (only one in the house) we completely re-did (including ripping open walls, replacing/reinforcing studs, concrete backer board, green board, new tile, new fixtures) cost us $2,000. We have completely redone our basement from wood panel to drywall, laminate flooring, light fixtures, etc for under $2,000 as well. Each year we are picking a project and updating/fixing that issue. We are approaching these remodels as our family of 5 lives in this home and we want this home if/when we sell to be in good condition for any family that moves into this home.

 

Sparkygirl! Those are very good prices. Did you do most of it yourself? We have been able to do some stuff ourselves, but all things. Our bathrooms cost a little more to re-do..so you've done quite well. I don't know if you're in the DC area, but the Habitat for Humanity Restore was a great resource for some things.

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Absolutely!!!!!!:iagree:

 

We had a shady realtor try to convince us our house was worth $60,000.00 less than our recent bank appraisal and she made a HUGE deal about how she would grudgingly list our house but we would NEVER sell it.

 

After delivering this bad news, her broker called the very next day to offer us $60,000.00 less than the bank appraisal - citing the exact same spiel his employee made just about word for word. WE HAD NOT EVEN SIGNED A CONTRACT WITH THIS COMPANY!!!! The house was not on the market.

 

I did some calling around and found out he had a wonderful reputation for having his realtors "low-ball" market evaluations of mid-range homes (under $100,000.00) and he'd either make rentals out of the lower priced ones - which he apparently made a killing on because he would NEVER repair anything - or turn around and sell the house himself for somewhere near the asking price the original home owner thought he/she could get for it! The guy should have been in prison for fraud. However, despite having 100's of complaints on his record, the state has done nothing. He is now a multi-millionaire in real estate.

 

OP, you could be dealing with some very shady people. Since you already have a contract, it would be far less money to consult a real estate attorney then embark on $76,000.00 in repairs.

 

I vote for shoring up the front stoop and making the bathrooms nice. That's it!

 

Faith

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I agree.

 

And I will say this baldly now: It sounds like the fix is in and the good ol boys are circling the prey. Dig in and get stubborn, in the nicest possible way, but stand your ground.

 

 

:iagree: Having been a contractor and worked for contractors, you need to get more quotes. From experience, Carol in Cal is correct. Call your local home builders association to get referrals. Also, if you frequent a local lumber yard/building supply store (not a chain), call and ask for referrals from them. If a contractor is paying his bills to the supply store on time, he's usually a well-regarded contractor.

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I just thought I'd update this. I took over the general contracting, joined Angie's List, and went to town getting things done. Unfortunately, there were some pretty pricey items that HAD to be addressed. Our HVAC broke. We had tile falling off in one bathroom and the other bathroom had a issues that needed addressing too. Also, our chimney had a large crack going down about 1/3 of the way (from the top of course :001_huh:), and our stoop was coming away from the house. We only had professionals paint three areas in the house because there was damage from water in one ceiling and then old 70's type of wallpaper that had been taken off in two other areas.

 

Anyway, the realtor's original estimate of $76K didn't include painting, landscaping (we did miminal), or the HVAC system. So it could have easily gotten up towards 100K. Isn't that insane!! I'm still shocked when I think about it. Anyway, we finally finished and I'm going to come in just under $20K!! Woohoo!

 

I know to some that will seem like a lot, but we live in an expensive area too. Before I even saw the realtor's estimate I had told my husband that I thought we should budget $20k to get the house on the market. I guess I was right.

 

 

:hurray: Way to go, Debbi!!!!!!!!

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