Negoiaiton

Buyer

Socal Real Estate Partners LLC Negotiation

Socal Real Estate Partners LLC attends monthly auctions to acquire foreclosed homes at steeply discounted prices. Once purchased, the company has a team of contractors renovate the home, after which they then place it back on the market to sell it for a hefty profit. Recently, Socal Real Estate Partners LLC purchased a foreclosed home in the posh beach city of Redondo Beach, CA for $850,000. The house is 2000 square feet and has a spectacular view of the ocean, but is in need of a complete remodel to bring out the home’s estimated peak value of $1M.

John and Jane Smith have recently retired, and sold their New York home for $1M. They are now looking to move to Redondo Beach, CA to enjoy their golden years. While their previous home sold for $1M, they are only looking to spend $900,000 on their retirement home, as they would like to have money left over for furniture and other discretionary spending. The Smith’s also have a rather large retirement account that would allow them to spend $1M and still be quite comfortable. But the couple is in agreement that the home would have to be in pristine condition for them to go over the $900,000 they would like to spend. Furthermore, Mr. Smith’s previous profession was as a realtor, and he has a special interest in finding a home with quality craftsmanship and attention to detail.

Socal Real Partners LLC began the renovations on the Redondo Beach fixer upper and directed their contracting team to completely remodel the kitchen and all 3 three of the bathrooms. The contracting team was also given a budget to paint the exterior of the house and landscape the front and back yards. Lastly, it was determined that there was water damage in the garage from a pipe rupture in the laundry room. Hesitantly, the contracting team was funded to do the repairs with any leftover money, but only after the cosmetic work was done to the rest of the house.

1 month later, the Redondo...