my home is in Redwood Heights...

In 1999, my husband and I purchased a major fixer in Redwood Heights.  At the time my daughter Nia was 2 1/2and my son was 8 months old.  I was so excited about moving into the neighborhood that I lived in during my elementary and middle school years.  I visited Redwood Heights Elementary as soon as I was in contract on my house and found several teachers from my youth in the hallways.  There was an immediate warmth that embraced me with this neighborhood.  The reasons I bought in this community was the elementary school, the recreation center, the diverse community and it was a true neighborhood that fit my budget.  I didn't want to compromise and purchase a small house that I would outgrow, I wanteda three bedroom, 2 bathroom home with a yard and a sidewalk out front.  For my husband and I, it was not important to walk to BART or a high-end restaurant, as we just loved being a quick 5 minute car ride to almost anywhere we needed to be. 13 years later I am still in my 1951 Redwood Heights horseshoe shaped rancher and I have no intentions of moving.  I have restored many aspects of the property, I know all of my neighbors and it is comforting and familiar like your favorite down throw.  Over the past 3 years my neighboring houses are selling for less,  making Redwood Heights a great place to invest.  Here you can get a larger home in one of Oakland's stand out communities.  Check out the newest neighborhood video visioned by and created for Red Oak Realty, Redwood Heights.  (continue on below to view market stats.)

SalesPriceRH

Keep in mind the prices above are averages and will vary based up, size, condition, lay-out and upgrades.

Buyer Beware - all that sparkles does not shine

Last month, I showed some clients an attractive house in one of our solid Oakland neighborhoods. The marketing campaign advertising this home as “all new” was an asset to my clients. They have good jobs and credit but, like most new homeowners, they can’t absorb the cost of any major repairs right now. The house had all the sparkle of a fresh remodeling project: fresh paint, granite counters, stainless steel appliances, new landscaping etc. It was the right house, in the right location, in apparently superb condition.  My clients were excited and, after two visits to make sure, wrote an offer that was accepted. Next came the inspection period. Although everything looked perfect on the surface, it was still important to have reputable professionals give their independent opinions. The back story on this house is that it was purchased at a foreclosure sale, all cash, by a group of investors. They prepared it for resale and marketed it as having $80,000 worth of improvements.

Our inspections began with a three hour examination of all systems by my favorite home inspector. He checked the roof, the crawl space, and everywhere in between. What he found was substantial pest damage to the structure, an outdated electrical system with glass fuses, potential drainage problems, and a sewer connection that was inaccessible for video inspection. Based on this we got a drainage consultation from an expert who advised us that the house some of the work done to improve the house was not done to building code standards, that it needed $40,000 to $50,000 worth of structural work, and that we should get an engineering inspection, at an additional cost of $500, to confirm that this work would be enough.

Sadly, I sent my clients’ cancellation notice to the seller today. They spent several hundred dollars on inspections and had their hopes raised and crushed by the entire incident. But that is a much better outcome than they would have had if they had relied on superficial impressions given by the remodeling work. All buyers should have inspections on their properties. Whether it’s old, new, or “flipped” like this one.

What to Inspect When You’re Inspecting

Tips On Home Inspections

All home inspection should be done by an ASHI (American Society of Home Inspectors) certified inspector. These guys will look at everything from the foundation to the roof. They’ll inspect the electrical, plumbing, roof condition, foundation and everything in between. An inspection can cost anywhere from $585 to $ 650, depending on the size of the home.

Pest inspection of termites or beetles and all water damage. Approximately $235

Sewer – buyers are responsible for sewer lines until they hit the city main. For $75 your inspector can take a video camera into the pipe to check the condition of the pipes.

When to Get a Second Opinion:

Pest/Termite Inspections:

Recently a seller supplied an inspection report that had been done by an out-of-area pest inspection company. The report stated that there was no pest damage to the seller’s property.

I encouraged my buyers to get a second opinion.  My clients employed a highly respected local company to do another inspection. The local company found $6500 worth of pest damage. Ultimately, I was able to negotiate a $6500 credit for this discrepancy.

Sometimes home inspectors will call for a second inspection. It could be for anything from electrical wiring follow up to having a structural engineer come to look at the foundation.

Anytime that this is suggested it is recommended that you have professionals look before removing your inspection contingency. (An inspection contingency is a period of time during an escrow that a buyer is allowed to investigate the condition of a home and neighborhood.)

Jason - Harry Clark 

Paul

what's behind there

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Shower Pans and Real Estate Transactions

This happened last year.... I woke up abruptly at 2 am worried about the shower pan at a Montclair property my client was purchasing.  In the disclosure reports the seller noted that a licensed contractor replaced the shower pan prior to listing the home.  Yes, that’s a good thing but, since no one lived in the house since the replacement, the new shower pan had never been tested. Inspection reports often call for the replacement of leaky shower pans.  To test one, the inspector stops the drain, runs water a few inches high, and then inspects the crawl space, garage, or room below it, (if there is not a nice finished room below). After tossing and turning from 2 am on, I left my home early the next day with towels in hand to test the shower pan.  I put several towels in the shower drain and ran the shower until the water rose several inches high.  I then went downstairs to the garage below the bathroom and waited.  No water, great!  The next day, I stopped by the house and the ceiling below the shower was soaking wet, we had a problem.  I immediately called the listing agent, who in turn called the licensed contractor who had replaced the shower.  We negotiated with the seller, and the shower pan was completely replaced for my buyer.

What happened? It turned out that when the contractor initially replaced the pan, he was trying to preserve the marble walls and did not bring the waterproofing membrane up high enough on the wall.  When he replaced the shower pan for the second time, the original marble walls could not be saved and also had to be replaced.  This situation could have been messy, but the agent representing the sellers was helpful and cooperative.  He even sent me photos of the shower reconstruction progress.  Below is a picture of the shower pan replacement in progress and the black paper is the water proofing membrane that was needed.

Shower replacement in progress

New Listing - Live/Work Inspired Home in the Laurel

I am really digging my new listing in the Laurel district of Oakland. It is part private yacht meets live/work space.  The previous owner was a contractor who created a huge space for his large projects.  Barbara Tapp created this great aerial view sketch for me. Click here for more info www.3901LomaVista.com

12 month Oakland and Berkeley Real Estate Market Recap

We are now in our Fall real estate season.  Homeowners who have waited all summer to list their properties and are now trying to sell, before winter. .  I am seeing “cream-puff” properties, (homes that have it all: vintage details in tact, great flow, structurally sound, lush landscaping, stable neighborhoods and are priced right) sell quickly.  Other homes that need work, are over-priced and that are not presented well to the market seem to sit on the market.Buyers can be very cautious about neighborhood, property condition and their future space needs. Beyond that unless a buyer has all cash, a home needs to appraise.  An appraiser is an independent person who analyzes a property, neighborhood and recently sold homes to determine if a home is worth the purchase price.  They are the eyes to the bank who is providing the loan to the buyer. As a seller it can be difficult realizing your home is not worth what it was 1,2,or 5 years ago, but you have to price it carefully to gain the attention it deserves.  Speaking of pricing and analyzing comparable sold data, Red Oak has proprietary data for our clients.  My sellers are also able to study custom graphs scrutinize number of units sold, median pricing, average days on market and more.  What makes the data available to me different from my competitors is: neighborhoods are broken down into real neighborhoods, not just zip codes. I can access data on various square footage, bathroom count, select time or just one Thomas Brother Map Code. The possibilities are endless. Red Oak as a company scored a great coup, with the addition of Aman Daro, our Director of  Media.  I am fortunate enough to partner with him on all of my listings.  See my Bay Area recap on the next page, but please call or email me with your questions, I am happy to chat with you about your property.   - Deidre 510.693.4253

Are you up for a short sale?

The chart above illustrates the active conforming, (regular sales) and short sales by zip code in Oakland and Berkeley as of three days ago.  Short sales are here and we are all affected by them.  You as a seller might owe more than your home is currently worth and need to sell your property due to a life change; you could be a home-buyer and are in love with a property that is being sold as a short sale; or if there are multiple properties being sold as short sales in your neighborhood, (they are often being sold slightly under market price) and are affecting your home's value.  To learn more about short sales email me at,  deidre@redoakrealty.com.

How Graphs Can Help Buyers

Often times people know what they want, but have no idea what it costs. I would love to live in Upper Rockridge for $600,000, but I know that is not feasible. A client came to me looking to buy a home in three specific neighborhoods - Rockridge, Claremont and Crocker Highlands.

He came to me with no real knowledge of the market or what these neighborhoods typically sell for. So as a way to help familiarize him with the market and the prices that these neighborhoods typically command, I had these graphs made for him. After he reviewed them, he was able to determine if these neighborhoods would in fact fit in his budget.

Below are some samples of the graphs I prepared for him: (Elmwood, Crocker Highlands, Claremont 1st quarter 2008 - April  2011)

Sewers, the Dirty Truth

Within in the last decade having a sewer lateral inspection has become standard during the home buying and selling process.  Many Bay Area cities require that a sewer line be in compliance, (working order, not made out of terracotta and having no major cracks) prior to close of escrow.  Oakland and Piedmont, cities that currently do not have this ordinance soon will. Since homeowners are responsible for their sewer lines until it connects to the city main; home buyers want to know the condition of the sewer line before they buy a home.  Depending upon your property, a sewer line can cost anywhere from $3000 to over $10,000 to replace.   I recently found out that if I need to replace my sewer line in the future,  I could not do it in a trench-less fashion.  (Trench-less sewer replacement is when a a plastic material is inserted into your existing sewer-line.) Jason, from Harry Clark, told me that my lot has no slope to insert the plastic, so my concrete walk-way will need to be removed and the old sewer line dug up to make this improvement. Exterior Clean-outs: Some homes do not have an exterior clean out. (sewer clean outs are often situated near the house, providing a point of access.) What does it mean to have an exterior clean-out?  1. If your sewer line backs up, it will typically back sewage into your home.  Possibly through the shower or laundry sink.  This can be a gross mess to clean up!  2.  Often sewer-lines have many bends and turns, so without a clean-out it is often difficult to video and examine a sewer-line.  The cost to install an exterior clean- out is typically under $1000.

I recently represented a buyer as she purchased a home in the Redwood Heights district of Oakland.  There was no clean-out at the property in question, so there was no way to view the entire sewer line without installing a clean-out.  My client decided that she was definitely going to purchase the property, so she was willing to invest the $885 into installing the clean out before close of escrow. (We had to obtain the permission of the seller first.)  Once the clean-out was installed the line was able to be scoped and videoed, and it was determined that the line was made of terracotta and it was in satisfactory condition.  My client also understood that there was no need to replace the sewer-line as it was in good shape, but if she sells her house in the future and the line will need to be replaced as Oakland will soon have a sewer line ordinance passed. (requiring that all clay/terracotta be removed.)

At the end of the day, it is my goal that my clients understand the overall health of their home and that includes the waste pipe.  There is so much more to that flush!

Online Real Estate Tools for Home Buyers and Home Sellers

I was reading an article on 1000 Watts Consulting's blog about using online real estate tools.  Brian had a great point.  Zillow and Redfin are technology websites,  they have tons of information, but should not replace a local Realtor.  Keep in mind the following:

• There could be errors, such as a property showing up as active that is actually sold
• The Realtors shown as experts along the sides of websites such as Zillow may be paying for their exposure and might not necessarily be a local Realtor or your area expert
• Often times when looking at any website, you might not know until further investigation about any major deficiencies such as foundation, electrical or more
• A good local Realtor has their finger on the pulse of market.  Pretty web-tours do not necessarily equate to a sound investment and conversely, some properties with awful photos and filthy carpet maybe the best investments!

Read an excerpt from this Brian Botero's article posted on 1000 Watts Consulting :

We have some work to do

I was going through email on my iPad the other day when for whatever reason I decided to look around my neighborhood using the Zillow iPad app.

This app, you should know, is a marvel. It’s elegant, intuitive, and lights up a ton of possibilities for improving how we look for a place to live.

But I ran into a problem right away. A big one.

The first “for sale” home I came across – a cute little place I see every morning walking my daughter to school – was, well ” not really for sale.

It sold over a year ago in fact – on October 1, 2009. I know this because I’ve met the woman who bought it. And because Zillow itself displays this information below the listing!

Here it is, in case you want to make an unsolicited offer on a place in Oakland:

What if my fictional couple fell in love with this place?

Aspirational whiplash.

But hey, they’re grown-ups. It’s OK. They’ll just select one of the “buyers agents” suggested on this listing to help them find another home in the neighborhood. They look like good folks. And they have lots of “contributions.” Contributions sound good.

Right?

But then there’s problem #2: None of these agents truly knows this neighborhood.

I pay attention to the real estate activity around my home more than most people. There are good agents that know this neighborhood inside and out. Diane, Deidre, or Dana come to mind.

But I have never heard of the Realtors promoted on this listing. Never seen a for sale sign with their name on it. Never seen their card at an open.

My couple? They are directed out of a home search dead-end and toward a path that could land them in a ditch.

Yes, those agents are there because they paid to be there. And Zillow’s a media company. All’s fair.

But is all good?

I like Zillow because they have challenged real estate on many fronts. I have said many nice things about them here. And though they are responsible for this particular example, this is hardly just a Zillow problem. This game of real estate roulette is played on many sites.

But let me be clear: this has got to stop.

These are homes, folks, not sweaters. Having your inventory shit together matters. It carries consequences. People don’t want to be messed with. Not people like my buyers. Not the single mother with two kids who bought the home above a year ago and probably has no idea it’s being offered for sale on a site visited by millions of people every month...

Thanks Brian for your article. You are right, use online tools  such as Zillow to get a general idea of what is happening in the marketplace, but call a Realtor for personalize service and in depth data.

Insurance Stories

True Insurance stories by Byron Taylor of AIS Insurance in Oakland (names were altered to protect clients identities, you can contact Byron at btaylor@aisinsurance.com for superior service.)

John K.* was resting comfortably in the bedroom of his Lakeshore Avenue apartment when the methodic sound of dripping water caused him to stir.  Thinking he had left the faucet on in his master bathroom, John rolled out of bed and trekked through familiar darkness toward the intermittent plopping sound.  He was only able to make it half way across the room before it hit him; a drop of water on his head, and then another.  At first he thought it was something else until his bare foot sloshed into a puddle where dry shag carpet used to be.  John quickly flipped on the light and soon discovered the water was dripping from the fire sprinkler nozzle on the ceiling.  Amused, John chuckled to himself and casually hopped on his dry foot toward the bedroom door en route to the kitchen for a bucket and a paper towel.  John opened the door and uttered a string of expletives not fit for print after seeing the threshold to his bedroom was now a make shift shore to the easily one inch deep water that had accumulated over the course of 4 hours in his living room, hallway and kitchen.  John had officially suffered his first insurance loss.

Let’s be honest, it's no secret that most people hate insurance.  Over the years the concept of personal coverage has been co-opted by the image of greedy businessmen working in a windowless back room of Evil Incorporated.  More often than not, the average American seems to think insurance is a scam, a scheme or any other euphemism associated with separating you from your money and getting nothing but a big fat bill in return.  And while it may be true that most of us will go through life without ever experiencing property damage or loss, isn’t it good, not to mention smart, to have coverage in place just in case you do?  Let's go back to the example of John K. who is still standing at his bedroom doorway, mouth agape like one of those Scream Halloween masks.  The following day John would learn the unit upstairs had sprung a leak in the wee hours of the morning and it would be an indefinite length of time before an at-fault party could be determined and the resulting losses addressed.  In the meantime John was stuck with thousands of dollars in personal property damage and no one was stepping up to help.  It was then John remembered he had bought renters insurance months earlier as a way to help reduce his auto insurance premium.  John made one call and his insurance company sent a team of adjusters that very same day.  John was even further relieved he had coverage once it was discovered that his hip 1970's era apartment was an asbestos playground and it would now have to be gutted to the studs.  John dodged a very expensive bullet because his insurance carrier packed his family up, paid for his temporary living expenses and he was soon able to move into a new place and carry on with his life.  That's the happy ending we all want.  Now let's look at the flipside.  Dick M.* purchased a new house and went to see his insurance agent hoping to keep a few bucks in his pocket.  More concerned with money instead of his client’s best interest, his agent offered George a landlord policy which only covers the house itself and pretty much nothing else.  Thinking the chances of a total loss were slim to none, Dick agreed and signed on the dotted line.  Over the years to follow, Dick would pat himself on the back over the thought of saving so much money and beating the system, that is until the day an electrical short in the garage caused his beloved home to burn to the ground with everything in it.  Dick filed a claim and was able to get his home rebuilt, but when he inquired about the over $150,000.00 in personal property lost in the fire, his agent broke the terrible news that there was no replacement coverage because he didn’t have the right kind of policy.  Dick was left with only a house and not enough money to fill it with the things that make it a home.  The expensive lesson to be learned here: don’t be a Dick.

The most important rule of thumb for any form of property insurance should always be coverage over price.  Saving a few hundred dollars every year will mean nothing if you don't have enough to repair or replace your home in the event of a covered loss.  If you absolutely have to save more money, consider a slightly higher deductible that will not cause a financial hardship should you suddenly need to pay it.  You will also want to avoid filing excessive property claims as this could potentially limit your options if you ever wanted to switch insurance companies in pursuit of a better rate.  Once you are ready to purchase property insurance, you should always shop around for the best coverage to premium combination.  You can also ask your family, friends, or even your realtor to refer you to a trustworthy insurance provider.

And for those of you who still think insurance is some kind of unholy rip off, think about that secure feeling you have every time you leave your home, or that deep relaxing breath you take right before drifting off to sleep at night.  That dear reader is called peace of mind.  And that is what property insurance buys you.  I suppose it would make you feel better if you could touch insurance or watch television while it curls up on your lap.  But insurance is not warm and fuzzy, and you shouldn't want it to be either.  Insurance should be formidable and serious and be able to protect you when you need it the most.  You should leave the cuddling to your cute puppy dog that is peeing on the power strip behind your new flat screen LCD TV which is now going up in flames as you read this.  But not to worry, your insurance will cover that too.

You're in escrow, now what?

Over the last two weeks, I have been actively working with four sets of home-buyers who have each had some pretty intricate files.  For example, a few weeks ago I had home inspections on a stellar mid-century home in the El Cerrito Hills, (photos coming soon.)  During the inspection contingency period, we had half a dozen inspectors through the property at the same time.  It was a revolving door coupled with a time crunch as we had to move quickly to investigate the condition in a short time period (By the time the inspectors were available, we only had a few days left in our inspection period). The roof inspector, the chimney inspector, structural engineer and seismic contractor were there at the same time, grabbing my client Susan or Greg to update them on their findings. A few days later and by the time my clients removed their inspection contingency, (the period of time agreed upon to fully investigate the property and neighborhood.) they felt completely comfortable with the property's condition. This is not to say they had a flawless property, but that they had a property whose flaws they understood. So what happens after you have a home inspection?: A few things. You can remove your inspection contingency, if you feel completely satisfied with the condition of the property and secure in moving forward with the purchase. You can remove it subject to a repairs or seller credits. You can cancel your contract if there are serious issues and you are uncertain about the value or condition of the property. With another client, we had a hiccup during the financing contingency period.  However in the end, after hours of strategizing with my clients and their lender, we were able to successfully resolve the problem and close escrow on time.

When it comes to financing it is always the buyers choice on who to use for financing the property, be it a mortgage broker, credit union or bank.  I strongly suggest working with someone with a proven track record of success who is local.  In the situation above, I was able to contact this professional after hours in emergency situations to resolve issues and set a game plan.  In this case, if the mortgage lender was out of the area  or in a different time zone, this task would have been extremely difficult.  Additionally, because of my on-going working relationship with this mortgage consultant, there was a huge incentive for her to resolve this file with a positive outcome. (She knows client satisfaction keeps her on my recommended service provider list.)

There are two finance contingencies: appraisal and loan. The appraisal contingency should always give a buyer ample time to have an appraiser in the house, write their report and submit it to the underwriting department at the financial institution that is funding the loan. For example, say you are offering $500,000 on a house and you are obtaining 20% down conventional financing. The house will need to appraise at $500,000 for the lending institution to agree to finance the property.  If the house does not appraise at the price your offered, you can either: renegotiate the purchase price so the 20% down ratios work with the appraised value, cancel your contract, (as long as you have an appraisal contingency), or bring extra money to the loan to satisfy the difference in value. The loan contingency is the time period allotted to obtain a satisfactory appraisal, get loan approval from the financial institution that is funding your loan after further review of your finances and the house.  When you get pre-approved for a loan before you write an offer, you are screened by the mortgage consultant or broker to see that you meet specific guidelines for a loan.  Once you place an offer and it is accepted, then both the borrower and property is scrutinized before you have loan approval.

I am so happy that my clients were able to purchase the homes that they really wanted.  I hope the above information gives you some clarity into the process. If you have more questions, I am happy to talk.

Broker's Tour Find in Montclair, Oakland

Sometimes a house is just a house, you know, walls, floors, roof, etc...  Other times a house moves people.  6492 Ascot Drive moves me!  It was my favorite house on Broker's Tour this week.  Classic mid-century modernist design for the purist who relish preserved original  features.  This house appears to have original green slate floors, original floor to ceiling windows and sliding doors and huge open spaces.  The chrome vintage Frigidaire oven is a piece of art, the original built-in cabinetry in the entry makes organization easy and the rumpus room downstairs gives this house great separation of space.  Frankly, I want to sell this house to a buyer, so I can come back and visit.

This house is so much more that the mere details that I mentioned above.  It is also about the light, the privacy and the feeling that this house gives once you greet it.  The cantilever design of the house that Realtors, Linda Elkin and Art White from Red Oak Realty call quietude reminds me of the celebrated Dave Brubeck's home.

Photos below are courtesy of Scott Hargis.  6492 Ascot Drive is listed for $675,000, has 3 bedrooms and 2 bathrooms, circa 1963.

6492_Ascot_EXT

6492_Ascot_DECK

6492_Ascot_DR_LR

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ascot living

patio

September versus September

Here's looking at the Oakland and Berkeley real estate market September 2009 compared to September 2010:

September vs

This Old House! Vintage Oakland Home

I am so excited about my newest listing!   Every home has a story to tell and I found 3933 Maple Avenue to be a particularly interesting story. Built in 1923, this house is a store-front residence and was published in" Images of America, Oakland Hills".  87 years later the store front windows and redwood exterior is completely intact!  For more photos, click here!

Come Visit Aunt Judy's House

Coming Soon to Redwood Heights, Oakland

As you walk along the path to the front door of 3390 Guido you will enjoy the cool breeze and shelter of the pine tree above.  Once you cross the threshold of the front door the the large rooms,  easy floor-plan and cheery kitchen will capture your heart.  This house was rescued 8 years ago.  Once a victim of a fire and re-built with plain white cabinetry and ordinary vinyl flooring, Ellyn gave this house new life and made it a home.  In the last eight years this house has had updated bathrooms, updated kitchen, new furnace, new hot water heater, seismic strengthening,  new drainage, new landscaping, new interior and exterior paint and lots of love!  Open Sunday July 18th, 2010 from 2-4 - 2 bedrooms, 2 1/2 bathrooms, offered at $615,000

Redwood Heights, Worth a Second Look!

Wow, this week my son Miles is graduating from Redwood Heights Elementary School! Ten years ago, when my husband and I purchased our home in this neighborhood, I was so excited that my children would be attending my former school. I have been a Redwood Heights parent for the last nine years, kindergarten - 5th grade for both my daughter, Nia and son, Miles. I love my neighborhood, very down to earth, yet full of life.  Recently Redwood Heights home prices took a slight dip in price, making this a great time to consider a move to this neighborhood.

This charming neighborhood, with a neighborhood association established in 1944, is the perfect place to purchase a home. From storybook Tudors to mid-century ranch homes and prices currently ranging between $550,000 - $750,000, this neighborhood is full of value. Redwood Heights residences like myself appreciate this satisfying community with Redwood Heights Elementary School and Recreation Center at the heart. I really enjoy the social nature of the neighborhood -  it is common that folks wave to me as I am driving or walking during my daily chores.

Above you will see the newest addition to Redwood Heights Elementary, our retaining walls are now studded with a handcrafted mosaic mural the vision of neighbors and artists, Claudia Goodman - Hough and Pam Consear.

This summer enjoy the outdoors as the recreation center with “Movies in the Park” at dusk on select Fridays.  Grab a sweater and a lawn chair and head over to 3883 Aliso Ave.

June 25 - The Wizard of Oz

July 9 - The Princess Bride

July 24 - Bolt

Residents participate in an annual Oaktown Scavenger Hunt put on by parents of Redwood Heights Elementary, just one of many community events hosted by Redwood Heights Elementary School parents.

Are You The All Cash Buyer?

The other day, I showed this property...perfect neighborhood, fantastic price, (bank owned) and potential!  There was one big problem, water damage.  I emailed these pictures to one of my favorite lenders and she said this damage could make it difficult to obtain a home loan. (If a buyer purchases this property with a loan, the damage might need to be fixed before escrow can close.)  Perhaps this home is the perfect property for an all cash buyer, one who is up for some work and doesn't have to worry about an appraisal or loan.  (Remember, you might be pre-approved to buy a house, but the house also needs to be approved too!)