Question: We recently placed a bid for a home. Our broker knew the seller's agent and said she tended to underprice her homes. Our broker recommended that we bid $30,000 over the asking price, but we bid just over instead and got the property.

Our broker said there was a contract higher than ours, but that we got it because the selling agent knew our agent and knew our agent's contracts were solid ones. Why would a seller take a lower offer?

Answer: Price is just one element of an offer. An owner must also consider such factors as whether a buyer will readily qualify for financing, any required concessions, a closing date, etc. And, your broker may be right in believing that other local agents know how she conducts business and that an offer from her is likely to settle.

Question: Can you buy a home with really bad credit? I mean an ugly credit report, something with a credit score in the 500 range?

Answer: Lenders are certain to be unthrilled by such a description, but let's give this a try:

Why do you have such lousy credit? If the reason is beyond your control -- say an accident or illness that left steep medical bills or the loss of a job in an economically depressed area -- that's different in lender eyes than a massive shopping spree.

Have you spent any time re-building your credit? It can take two or three years to overcome a truly awful credit report.

Have you looked at alternatives to commercial loans -- say owner financing or a lease purchase? What about help from a strong co-signer?

If your credit is as woeful as you suggest, your best strategy is to develop a budget, start saving, make full and timely payments on all debts, live below your means and wait for your credit report to reflect your new financial profile.

Question: We are purchasing a condo. Closing is supposed to be in 60 days. Now the seller's agent is saying escrow should close by 30 days later because he just got approved for a loan to purchase a replacement house. Do we have to wait the extra 30 days?

Answer: You have a sale agreement which outlines certain terms. Those terms can only change with the agreement of both parties. For example, if closing is delayed 30 days you may lose the lock-in on your loan, you may have to pay additional rent at your current location, you may have higher moving and storage costs, etc.

You need to speak with your buyer broker or an attorney immediately, today, to see exactly what the sale agreement requires. If it does not allow the seller to unilaterally extend the closing period, then you need to consider the options best for you.

Question: We recently bought a mobile home on a large lot in Florida. We noticed what appears to be a growing sinkhole after putting in a fence post. We also noticed another one about 100 yards behind the first one. Scary! We're not sure what we should do or who to contact. We have noticed that the entire side of the property where we first noticed it is a lot lower. We are so lost on our rights. What should we do?

Answer: Every so often you see news stories of sink holes that grow to huge proportions. It doesn't happen often, but sinkholes need to be watched with care.

SinkHole.org provides useful information for Florida homeowners. It first suggests contacting your insurance company to have an adjuster examine the problem. The insurance firm may then want an engineer to examine the site and provide a report.

If there is a depression where people can be hurt, be sure to mark off the area with protective tape so people will be aware of the problem.

Question: I recently signed a sales contract on my home. The buyers had 10 days to do the home inspection. They did not have the inspection done until one day past the required date. When I asked the broker, he said that because there was an addendum to the contract, about three days into the signing (buyers wanted to change the way they were financing), the buyer had from the addendum date to complete the inspection. When does the 10 days begin? Is it business days or calendar days?

Answer: Sale agreements are often lengthy and complex documents, and to some extent your question explains why.

An agreement should include a variety of definitions so that everyone understands what has been accepted. A good form will often have a section called "definitions" which explains what's a "day," whether or not Saturdays, Sundays and holidays are included, and related information.

As to whether the buyers could have an inspection after the 10th day, you need to look at the definition material. You also need to ask whether another buyer is readily available, should that become necessary.

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Published: June 25, 2004

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