Question: We currently have our home listed for sale. The most our broker has done is list it on our local MLS, we have had only two people interested in looking at it and both times other brokers entered with the lockbox and our broker was not there.
Our situation is somewhat unique, we found the perfect house and decided to throw caution to the wind and buy it prior to selling our other home. It is already becoming a bit of a financial strain to carry the two mortgages. We are thinking about advertising out of state on our own dime, if we do sell would we "split" the commission as if we were the other agent? We are only three months into our six-month contract with this agent -- and if she continues doing little for another three months we'll have lost over $8,000 in mortgage payments alone!
Answer: What about like houses in your community? How long do they take to sell? How do they compare with your property in terms of price, size and condition?
I have often been at listed homes where the listing broker is not present. Instead, the buyer broker uses the lockbox to enter the property. Personally, I prefer to have neither the owner nor the listing broker present so that I can have a more "honest" discussion of the property without hurting anyone's feelings.
Long-distance advertising is unlikely to be successful given that most buyers purchase near where they now live. Unilaterally changing the listing terms is simply a contractual no-no -- neither party has the right to do so.
You have a contract with your broker. It cannot be unilaterally modified. Instead, if you are displeased you need to speak with the salesperson and broker to determine what was promised and what more can be done. It may be that both you and the broker will want to end the listing early.
Question: My husband and I signed a contract to purchase a home in Florida before hurricane Wilma hit. Due to this, the title company and other businesses were closed for over a week. Can we extend the closing date without losing our deposit money?
Answer: The sellers may be grateful for more time. They have an obligation to convey the property to you in the same condition as which it was purchased.
Alternatively, with interest rates rising, you might want to stick with the original closing date.
Neither buyer nor seller is responsible for the havoc wrought by a hurricane. Instead, both parties should seek to work out a reasonable compromise.
Question: How long should you hold onto a house in order to make your money back?
I bought in July and because of personal issues am thinking of selling. However, I don't want to lose money on my investment. I live outside of Philadelphia, where the market is quite good. Should I try to hold onto it for another year or so?
Answer: Here's what counts: Take a look at the HUD-1 form you got at closing when you purchased the property. That shows the cost of the home including the purchase price and closing expenses less any credits from the sellers. To break even you need to get as much as you paid -- plus the costs of marketing and closing when you sell. Given the way some markets have gone up in the past few years, it may be possible to quickly buy, sell and break even -- or it may take years to recover your investment if the market slows.
For specifics, speak with local brokers about community trends.
Question: My husband and I own a half of a lake cottage. The other owners have decided to sell their half. We have offered them half the fair market appraised value. They have now said that if we cannot agree on a price, then the property will have to be sold at auction. We own the property free and clear. Can they force us to sell at auction if we do not want to sell and have offered them a fair and reasonable price?
Answer: When two parties own a property and one wants to sell and the other does not, there can be a suit for "partition" to force a sale. However, there are costs to this process -- so perhaps it would be worthwhile to tell your co-owners that your offer would save a bunch of expenses. For details, please contact an attorney where the property is located and see if you can bid on the property. If you win you will effectively have bought out your co-owners.
Question: After foreclosure, once your house has been auctioned by the courts, if money is still owed for the mortgage can the owners be sued for that money?
Answer: Depends where you live.
In some areas, if you have a "purchase money mortgage" the lender cannot seek damages in a foreclosure beyond the value of the property -- in other words the lender cannot chase the owner for the difference by seeking a deficiency judgment. However even in such jurisdictions if the home was refinanced the financing is no longer a "purchase money mortgage" so the lender can come after the owner if money is owed following a foreclosure sale.
In most states if a foreclosure sale does not pay off the entire mortgage debt the lender can sue for the balance. For details, speak with an attorney.
Question I bought a house in October. We were told the heat was electric and on the listing is says the heat is electric. After we closed and started moving in we discovered the heat is really gas. I do not like gas and am afraid of it. What are my options, if any, in getting this resolved? Can I request they convert the gas to electric?
Answer: Gas is both safe and efficient -- many people prefer it to electric heat.
The real problem here is not the source of heat; rather it's your personal preference, an error in the listing form and a failure to see the problem long before closing. This could have been avoided with a professional home inspection, a check of the furnace, a look at the utility bills or the use of a buyer broker.
It may be that the listing broker did little more than check the wrong box on a form -- a matter that a buyer could easily detect and correct with minimal due diligence. You or your attorney can certainly speak with the sellers and their broker -- but I doubt that you'll get a new heating and cooking system from the past owners.
Question: I am currently building a home and about to sell my current house (in which I have about 40-50K equity built up). However, I am contemplating investing in the current home by renting it out.
I know that it would be better to sell it and not mess with renters. Also, selling would help me have on-hand cash money for the closing of the house I'm building. But, what do you think would be a good idea with my situation. My family income is about 105K annually and the house I am building cost about 177K. I have about 35K saved up in the bank.
My current house payment is about $535 a month with 17 years left on it. Rentals around my neighborhood go at about $900 a month for the same floor plan, more or less.
Answer: If you sell a prime residence you could likely shelter all profits from taxes in this case. If you rent, the house can be used to generate depreciation that could be used to reduce income taxes.
You have the ability to rent a property with immediate cashflow, the house you're buying is well within the realm of affordability -- and rent from the first home can be used to off-set ownership costs for the second.
On paper (and on online), this sounds like a reasonable, conservative plan. The numbers work and you are not dependent on strange financing. Run it by local brokers to see what they think of the area rental market and future trends. Among other issues, ask about lead paint regulations and local rent control, if any.
Question: There is a home on the market that had a disclosed grow-op in the basement. They are asking $680,000 and it has been on the market for two months with no offers.
What measures need to be taken to review all health risks. Who do you call for clean up?
Answer: By "grow op" do you mean the owners were growing marijuana under heat lamps or do you mean they were producing methamphetamine? In the first case you have people growing plants, in the second you have a chemical laboratory -- some of which have been known to explode.
Contact your state health department for specifics. As a place to start, read Clifford Hockley's piece on Meth Lab Blues .
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