The so called real estate experts and evaluators

The so called real estate experts and evaluators !!

Few months ago I sold for someone a 50 years old huge house in a central location. The client was a she lawyer who invested 180,000 Euros in that house with the intention of reselling it 1 year later when the real estate prices in Bucharest will go up.

The prices did go up, almost doubled.

When she bought the house she asked the expert advice of renowned real estate and Evaluation Company from Bucharest. They evaluated the house at around 300,000 Euros in 2006, so in their opinion it was a more than a bargain.

The year passed by, and the lawyer decided to sell. She told me about the location of that house and immediately I had a bad feeling, because many of the Bucharest’s central area old buildings have been gravely affected by the 1977 earthquake. In fact I was almost sure that this particular house was one of them.

I went to see the house and I realized that I was right about my guessing.

Yep, that house was rubbish, and no sane person will want to live in it because is a hazard.

Simply put, that house had no market value, unless some crazy rich individual would like to buy it because he likes the location and is ready to invest another 300,000 Euros to rebuild it

I told her about my conclusions regarding the state of the house but she was in denial, so she came with an architect who told her the same thing.

However I didn’t give up trying to sell the house but I did not hide the truth from the potential buyers.

I got lucky and so did she; in 3 months I found that crazy and rich buyer I told you about who paid 220,000 Euros for that central located wreckage.  

The lawyer made an unexpected 40,000 Euros profit and I took the 2% commission

The most important thing is that she got rid of that bad investment.

The bottom line is: don’t buy a property unless you have asked the opinion of at least 3 experts,or you may end up with a bad investment.