While Hick was in Realtor's office asking to tour the $35,000 house, he learned some interesting information.
"I could sell that little house of yours. People call all the time asking about it. Because it's so small. Then I have to tell them that it can't be bought separately."
Good to know! There's a lot of interest. I suppose they see the sign in the front yard of the Beauty Shop, walk around and take a peek inside, and then call the number on the sign to ask about the price.
"That's a good thing. I would have thought the big house would have more people wanting it. They can see through the shades that the Beauty Shop is really small. Probably single people, old people, or a young couple."
"The problem is the loan. Because it's more than one house, and considered an investment property, they have to put 20 percent down. They can't get a VA loan or something else like that."
"She's not going to make much off this $35,000 sale, is she. What, a few hundred dollars? Because it's a split listing."
"No. She'll get two-and-a-half percent."
"I know. That's what I'm saying. Ten percent would be $3,500. Five would be $1,750. And two-and-a-half would be $875."
"Yeah. Just for taking 15 minutes to drive across town and walk through it with me, and then do the paperwork. That's pretty good money for that effort."
I suppose so, since that's what you've done for years, and know how it works. Not as glamourous as selling the $999,999 property, but still worthwhile, with it not even being her listing. Hick said some of his buddies saw it on Zillow. Realtor said she had thought about getting on Zillow, but she didn't know if it was worth it to pay their fee. She said she relies on word-of-mouth to steer people to her. Hick agreed. That's how his SUS2.5 (Storage Unit Store 2.5) business runs.
"I could get ads on the radio, but I don't think it would bring me no more business than my customers telling their friends."
"So now that you know people want the Beauty Shop, are you going to talk to the city people again about splitting the flip houses?"
"I'm going up there anyway to talk to them about getting the water left on. So I'll ask more specifically what I need to do."
Hate to leave you with another cliffhanger... but that's a story for another day.
Hi Val, I'm surprised to hear that people want to buy that little beauty shop house but aren't interested when they hear that the bigger house is part of the deal. Maybe they want to be part of the tiny house movement:) It's a neat little house to have for guests and I would love to have a small separate dwelling for guests right next door to my own house or even a short distance away.
ReplyDeleteI'm not so sure it's a lack of interest in getting two houses. I think they can't come up with a bigger down payment that Hick says is required for a commercial property, rather than a single-family home. Hick DID say, back when he was working on the Double Hovel, that people would stop and ask him about buying the Beauty Shop. I think that red door sets it off, and it's so cute, that people wanting to downsize are attracted to it.
DeleteI think it might be worthwhile for the council to agree to splitting the double hovel deal, because then they can get taxes paid for two homes instead of one. If they are anything like our politicians, dangle the money and they will snap. Just like fishing.
ReplyDeleteThat's what Hick said! Your mind is working just like his, heh, heh!
DeleteI always think it is a shame to keep two properties tied to one another. There were two homes behind me that could not be separated. Those houses rent separately, but the value and appearance go down all the time.
ReplyDeleteAfter Hick's visit to city headquarters, I am cautiously optimistic that there is a long and winding path to separation.
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