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$290k OFFER! | DrCliffAuD VLOG 003

By: Dr Cliff Olson
December 30, 2019
Video Transcript

- All right guys, welcome back to the vlog, this is vlog number three. If you missed the first two vlogs, you can go ahead and check those out on my YouTube channel, Doctor Cliff, AuD, but for today's vlog I'm actually gonna talk about the offer process that I went through for this gray shell space that I'm standing in right now. If you happened to catch the first couple of vlogs in this series, you'll know that I actually bought this space in order to move my clinic here in Phoenix and basically I wanna go ahead and talk to you about that process that I went through, how much they were asking, how much we ended up offering, what we ended up agreeing upon. So basically, this space was being offered for around $135 per square foot, the square footage of the place that I'm standing in is 2265, so 2265 square foot, and I'm gonna go ahead and put the numbers up on the screen here so you can keep track of this. So like I said, it was around $135 per square foot, which approximately comes out to just shy of $306,000. And I kind of even wanted to spend the full asking price before even actually looking at the space, but the realtor that I was working with basically recommended against that, she said "You know what, you really wanna go in and tour the space, "that way the seller knows that you're serious "about the space, and it can make negotiation "a little bit easier." So I went ahead and complied. Me, my wife, my realtor, and then the owner's realtor actually came in and looked at the space, and there's really not a whole lot to look at, I mean, basically it's just an open shell. There's no build out, there's nothing really to check out. In terms of going back to the numbers, the asking price was around that $306,000, and like I said, I would've been more than happy to spend the full asking price, but we decided to come in at around $128 a square foot, and when you work out the numbers, that comes out to around $290,000. And so that's the offer that we essentially put together initially, and actually sent off to the owner's realtor, and within, I think it was a couple days, they actually got back to us and accepted the offer price that we gave them, so right then and there, we're like "Holy cow, this whole process "is gonna be extremely smooth, "this seller is definitely motivated to move this space." A little bit of information about this shell we're standing in, it's been here, I think around since 2004, and it's 2019 right now, so about 15 years have gone by with this space not being built out at all, and it's been basically vacant the entire time except for a brief stint of when a photographer was in here and just used it as-is, but there's no lighting in here, there is no air conditioning or anything like that, and so it's basically been sitting here this whole time, and we just assumed that, well the seller's been having the carrying costs for this the entire time, and he's definitely motivated, so, we were extremely happy to get our initial offer accepted, which was around $290,000, which is not cheap, I mean that's a good amount of money, but, if you heard me in my first couple of vlogs, I mean, that is significantly less than what we would've spent up in Anthem area, and then basically nothing else in the greater Phoenix area, could we get for that low of a price. Some of the spaces we were looking at were upwards of $185 a square foot, that space that I was talking about a couple vlogs ago up in Anthem would've cost us around $560,000 at that cost, which would've been more than what we'll actually spend to do the purchasing of the property, and the entire build-out of this whole space here. And so yeah, we were super happy, and then we had the inspection. So the inspection happened fairly quickly after the offer was accepted. The inspector came in, took a look at the place, did a detailed look at the roof, the walls, the tresses that you can see up here, these wood beams, basically, and he came back with some minor issues, there's actually some gaps inside of the cinder block walls, and you can actually see out into the parking lot, so that's something that would have to be fixed. One of the tresses up here is actually broken, so that's something that they would have to repair. Didn't seem like too major of a repair. And then there was the roof. So the roof, and I'm a little bit sensitive to water damage because my clinic in Anthem actually flooded about a year ago, and so that's something I definitely pay closer attention to. But the inspector actually said that there's a couple soft spots on the roof, there's some pooling of water from when it rains, it didn't have really good drainage, and he was concerned that there's potentially some issues with leaking, and so when we went back to the seller and we're like "Hey, we're concerned about the roof, "and then here's the inspection report, "here's a couple of the issues "that we would like you to fix." He actually ended up coming back, saying "Well, I don't wanna fix those areas "'cause it would cost me more to have a crew in "than it would to actually do the repairs." And so he's like "We'll give you a $200 credit." So we went back to our general contractor, and we're like "Hey, here's all the things "that are wrong with the space. "Would $200 cover the cost or what would, "essentially, your estimate be?" And she came back at 600,000. And so, we're like "Okay, we'll submit a $600 repair cost "or credit for us at closing." And the owner basically came back and said "Nope, not gonna do it, I'm sticking with $200." So we're like "Ah, okay, whatever, it's $200." But where things got a little bit interesting was when we were talking about the potential issues with the roof. And so we actually submitted a request to the seller to have a roof inspector come out and actually make sure that there's nothing wrong with the roof, and he's like "Okay, but I wanna have "an actual phone call with you guys." So the owner, instead of going through his realtor and then our realtor, he's like, he wants to talk directly to me and my wife Ashley, who's working with me on this, and so we're like "That's kinda weird, but I guess okay." And so we actually scheduled a phone call, and to be honest with you, he was probably the most rude person that I have ever interacted with in my life, and I'm a very, I try to be as nice to people as I possibly can, I try to see the good in people as much as I can, but this guy was just nasty on the phone, basically criticizing us for even inquiring about the roof, and I'm like "Well, I just wanna make sure it's okay. "And if you have an inspector come out and they say, ""Nope, everything's looking good here," "then I'm fine. "If he comes out and says there's something "massively wrong here, then I want you to fix it." I mean it's not like it's rocket science, this is real estate 101, we just wanna make sure that we're protected. But he was personally offended by that, apparently, and was very mean on the phone, to the point where even his realtor was chuckling at how ridiculous this guy was being. Nonetheless, he begrudgingly was willing to actually have an inspector come out, and have the roof inspected. It turns out that there was no issues with the roof, there's no leaking going on. Everything was fine, so that was a breath of fresh air. We actually thought that there was gonna be some major issues and that the seller was gonna be like "Eh, I'm not fixing it, you can take it or leave it." Fortunately, there was no issues, and if there was, I'd be really surprised if the sale would've went through, so that just gives you an idea, and that wasn't the first time that the seller actually tried to correspond with us directly. That being said, I will talk about that in a different vlog, and in the next vlog, I'm gonna actually go through the process of borrowing money to get this place, and that was just a whole debacle in and of itself, of going through that entire loan process, and getting that locked up in order to be able to close on this space. But hopefully you guys enjoyed this vlog. If you haven't seen the other vlogs, of course you can go back and check those out. I'm having this on my YouTube channel right here, so make sure that you go ahead and subscribe. Check out my other pages, so you can go to my Facebook page, which is Doctor Cliff, AuD. You can go to LinkedIn and find me on there. Please feel free to reach out, and make sure that you subscribe, so hit that subscribe button here, and I will see you guys next week.

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