I closed on the sale of The Crisis House on Tuesday. My profit is lower than I’d hoped for on this house because of three main reasons. First, I got screwed on the closing costs when I purchased the home. I never received a Good Faith Estimate from the lender until I was sitting at the closing table, and assumed the fees would be similar to the fees I payed for House #1 since they were both Fannie Mae/Homepath loans with similar rates and loan amounts. Boy was I wrong! I saw the GFE at closing and the lender fees were much higher than I expected, but I was sitting at the closing table at 5 pm on the day the contract was due to expire and couldn’t do anything about it at that point or I’d risk losing the $6,600 Earnest Money I’d already payed. Lesson learned: ALWAYS examine the GFE before closing. I don’t think it was an oversight or coincidence that I wasn’t given one until I got to the closing table. The second reason is because there were unforseen problems with the HVAC which cause me to spend about $1,300 I wasn’t planning on spending. Finally, I held the house longer than I had planned, so I paid about $1500 extra in mortgage payments, utilities and insurance.
Having said all of that, I’m still profiting on the deal and any profit is better than a loss.
Here is the financial recap of the deal:
I should be closing on House #3 within the next 3 weeks and the final numbers will hopefully look much better than these, so watch for updates!