Listed at $799,000, sold at $908,315!

That sounds like a great outcome but let me tell you how we got there…

We had ten offers. We accepted an all cash offer for $920,000 with all contingencies removed. Buyer was an experienced investor who had done his due diligence, including talking to the City regarding the extra historical overlay of being in a Landmark District. However the day after acceptance his architect said he thought the process would take six months to complete. The experienced investor didn’t like that and refused to put his deposit into escrow.

So we went on to Buyer #2 who had offered $925,000 but with a conventional loan. I had spoken with the lender and had even sent him the 3D video to watch to make sure he was fully aware of the condition of this major fixer. I mean the home has no working heat, no appliances, no water heater, visible termite damage inside & out etc. He guaranteed that the loan was no problem even given the condition. Somehow this 2nd buyer then got acceptance for an offer that he had put on another home and decided that he wasn’t able to buy two homes and didn’t want to proceed.  Now of course that is no reason to cancel a valid, signed contract and could have been pursued legally, especially since the next highest offer was for less money. I discussed it with the seller who decided that the juice wasn’t worth the squeeze, and we moved on to offer #3.

Offer #3  was for $908,315. This was from another experienced investor, who was using a hard-money loan. Everything went smoothly. He removed all contingencies in 2 days and put the deposit into Escrow in one day! Then two days before closing, the hard money lender wanted to recast the loan due to insurance concerns, imposing new loan conditions. The buyer switched to another lender who would do the deal but only if the investor bought the property in his personal name and not in the name of his corporation. So the contract needed to be assigned. We agreed to an extension with a $100 per Diem penalty.

Today we finally closed. The Seller was happy. The backstory here was that several months ago, before his attorney referred him to me, the Trustee was about to sign a contract from a friendly Realtor who was buying the home for herself and her family for $750,000.

Built in 1938, this home is in the coveted neighborhood of Bungalow Heaven.. The worst house on the block in the BEST neighborhood with a deep backyard.  Surrounded by beautifully
restored homes, this is a true opportunity. Bungalow Heaven is Pasadena’s first historic Landmark District.
Filled with possibilities, this home is a dream project.

Click to see 3D Matterport, pictures & floor plans.