Question: I'm selling my home and know that there is a problem with flooding in one of the bedrooms. In the disclosure statement it only asked if the basement flooded (we do not have a basement). If this room floods will I be liable after the fact? The buyers did have a home inspector in and he did not notice it. I am worried that a year from now they may come back and sue, but I also don't want to lose my buyer (we are closing in two weeks!)
The problem would be up to the condo association to fix since the water is coming from an outside wall.
Answer: This is a condo association problem, but it's also your problem as a seller.
Suppose you bought a property and there was leakage in one of the bedrooms. Would that be okay with you? Is that fair?
If the leakage is the responsibility of the condo association then why was the problem not fixed prior to offering the property for sale? You could then say a repair had been made by the condo association, an example of how well it works.
If the problem is the responsibility of the condo association, they know about it and repairs have not been made then you have the start of a festering problem.
Given that closing is two weeks away, you have an obligation to disclose the problem. Speak with an attorney for details.
Question: My grandmother left me her house in her will. What is the process of switching the home's title to my name?
Answer: It depends on the jurisdiction where the property is located. Speak with whoever is in charge of your grandmother's estate. They will convey title to you -- however, be certain to understand if you are inheriting the property free and clear of all debt, if you are required to assume existing liens or if court approval is required. A probate attorney in your jurisdiction can provide details.
Question: If there's a pending contract on a property that hasn't gone through, can you still approach a seller or put in your own contract? Is this just etiquette or are there rules for holding the property for the first buyer?
Answer: You don't know that the first contract has not gone through. It may be that a certain amount of time is needed before closing or that tests and requirements must be met.
That said, you have the right to submit a written back-up offer. If the first agreement falls through, the owners may then want to accept your offer. Your buyer broker can tell you more.
Question: I own land off a major state road. How do I find a real estate broker who knows about an outdoor billboard advertising company?
Answer: Go to other local land owners with billboards and ask if they can recommend a broker to help you.
Question: My parents have fallen onto hard times and they have let their mortgage lapse. I just found out that they have three weeks to pay $40,000 or they will lose their house.
My husband and I want to help, but we're not sure how to go about it. We are US military personnel currently stationed in Guam, and retire in June -- so we will need a house in Texas also. What are our options to help our parents?
Answer: You have to take the three-week deadline seriously. Have your parents contact a local real estate attorney and have the attorney contact the lender to see if any form of forbearance is possible. Local brokers may be able to quickly sell the home -- but because it's a distressed property expect a foreclosure discount.
What might make the most sense would be for you to buy the property from your parents or to co-sign a loan. However, there's a limited time frame here so you need to act immediately.
Question: We live in southwest Florida. Why are we paying more in taxes and insurance than in principal and interest on our homes?
Answer: Because you have a small mortgage relative to other costs.
Given recent hurricane damage in Florida, it follows that insurance rates are steep as a consequence of past claims and the potential for future claims. Moreover, a lot of money is required for public facilities which too can be damaged by storms.
The insurance problem can be moderated by purchasing homes built to the latest anti-hurricane standards. Builders and brokers can tell you more.
Question: I'm a commercial broker and have several promising undeveloped property listing. What's the best way to get bigger investors interested?
Answer: There's an interesting "problem" with many investors: They need large projects because they want to show strong results for an entire portfolio of activities, something which cannot happen with small projects.
To find large investors -- however one may define "large" -- one needs to determine the highest and best use for each property. To put this another way, what would it take to create a "trophy" property, something the biggest investors in your area would want to own? Or -- thinking bigger -- a property that major national investors would want to consider?
Question: If you don't have a calculator or computer handy, how do you hand calculate a real estate loan payment?
Answer: Not being a math major -- and refusing to ignore the benefits of modern technology -- I use an online amortization calculator. They are quick, accurate and widely available online.
However, if you really want to do such calculations by hand, then go to the explanation offered by Hugh Chou, an online calculator pioneer and long the source of many website calculators. You can also find dozens of different calculators on his site .
Question: My parent's first home cost them $14,000. When they sold it (free and clear) they walked away with a little over $450,000. When my son and daughter are ready to purchase their first home in 15 to 20 years, it may cost around $400,000 to $600,000 or more for a 1200-1500 sq. ft. home, depending on the region of the county where they live. Even the lowest price home in America will be $200,000 at that time. Homes in southwest Florida will have a median price of $500,000. Can we as a nation afford such increases? Is it really better to rent than to buy?
Answer: Let's take these one at a time.
First, your parents did wonderfully well and their story is not uncommon, especially on the coasts. That said, we don't know what will happen in the future.
Second, part of your parent's "profit" was not profit at all, it was merely a result of inflated dollars. Inflation dollars buy less so it takes more of them to purchase a given object. Real profits mean increases in buying power above the rate of inflation. The good news is that your parents also had real profits -- in other words, through real estate they became richer.
Third, future prices may also reflect inflated dollars rather than higher real costs. This is because the country has a massive national debt, one that has increased $1.5 trillion in the past six years as well as unprecedented balance-of-payments shortfall. In 2006, as an example, we had an $857 billion export shortfall -- that is, we spent $857 billion more than we sold to foreign countries.
While there is no single factor which creates inflation, the budget and balance of payments are huge accounts and cannot be overlooked.
Fourth, the question of whether renting or buying is a better choice is invariably tinged with assumptions. We don't know where rental rates and home values will be in 15 or 20 years and without such data we can only guess. Moreover, the question is intensely local -- what happens in one area may not be true in another.
Most people in most places -- like your parents -- have historically done well with ownership. But history tells us what happened in the past, not what will surely happen in the future. If I had to guess, and I can only guess, I would rather be an owner than a renter because I will have greater control over where I live and what I can do with my property.
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