A week ago I wrote about a transaction that was just barely Hanging On by a Thread. The seller had not 
disclosed certain defects and was hard to get in touch with, let alone act responsible to getting repairs done in a timely manner. The listing agent was no better! This transaction was for a Lancaster City multi-unit investment property.
This transaction is no longer hanging on by a thread, but by now has completely unravelled! You know how you find a thread hanging loose, and then you pull it? And keep pulling it? And it doesn't end... it will just eventually cause the cloth to unravel completely while you're feeling like you're getting tied up in knots? That's what this entire transaction was like!
Not only were there a number of code violations and repairs that needed attention, but the listing description had a number of errors regarding whether the tenant or the landlord pay for certain utlities. This is important stuff when you are evaluating an investment property! To believe that the tenants pay for their own heat, and then to find out that in reality the landlord pays to the tune of over $3,700 per year, is quite disturbing! To believe there is additional income from the included coin-op laundry machines, then to learn the tenants have been allowed to install their own washers in their apartments -- with no increase to cover the costs of water -- is quite disturbing! The list goes on...
Just as I expected, the seller is downplaying the majority of these necessary repairs and errors in the listing description. My buyer is backing out and refusing to purchase the property. I can't say I blame him. But who wants to purchase a property with a leaky main sewer line that the seller did not disclose and does not want to repair? Or a property where the majority of the drainpipes from the bathrooms and tubs are completely clogged? Was there really a need to wash all of the paint rollers and dump the remaining paint in the tub drain while working on some other repairs?
Anyway, it was suppose to close today, but it's a dead deal. It's too bad that I spent so much time on this transaction, and that my buyer spent good money on the inspections and loan applications, etc. But, it's better that he walked away. I actually encouraged him to do so! I just can't feel good about a transaction if I truly don't feel it's in the buyer's best interest.
So, while I am waiting for the Release to the Agreement of Sale form to come back signed from the seller, I notice this property has already been placed as Active on the Lancaster MLS. Just as I suspected, the corrections to the MLS regarding who pays for what (which would severely affect the net return on investment) have not been corrected. I haven't checked the Sellers Disclosure form to see if the certain defaults were disclosed yet, but something tells me they probably have NOT been changed.
You win some, you lose some. I definitely feel the buyer is the winner in this case. Nobody needs to purchase someone else's problems if they aren't going to be forthcoming and disclose the material defects or fess up to the incorrect MLS data.
If you are looking for a Lancaster City investment property, this is a fine example of why you must work with a Buyer's Agent to look out for your best interests. I know of one property in particular that you should stay away from!
For Lancaster Real Estate -- Investment Properties and Residential Homes for Sale --
contact Jeannie Kontis, Realtor at 717-330-5137 or
email at Jeannie@JeannieSellsLancaster.com
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For more information on Homes for Sale in Lancaster, or questions and/or concerns about buying or selling a home in Lancaster County PA, please contact Jeannie Kontis at (717) 330-5137 or email at Jeannie@JeannieSellsLancaster.com.
Search for Lancaster Homes for Sale at www.JeannieSellsLancaster.com
Jeannie Kontis, RealtorⓇ, is a member of the award-winning Bob Wells Realty Group of Long & Foster Real Estate, Inc, and serves buyers and sellers of real estate throughout Lancaster County.
All content Copyright â“’ 2008 Jeannie Kontis Homes in Lancaster PA - Real Estate in Lancaster County
