Question (IL): My wife and I have a two story home which was originally built with 1728 sf over a full basement. An Architect designed the first floor addition that was constructed 10 years ago as a "Grand Parent's Suite" for my Mother. It is by far the gem of the house.
This addition is 460 sf over a crawl space. The home has four bedrooms on the second floor consisting of one large master bedroom with 1/2 bath, three medium size bedrooms, and a full bath. The original first floor has a large kitchen opening into the living room, a formal dining room and the entry with staircase.
The addition, "Grand Parent's Suite," has a full bath consisting of toilet, pedestal sink, shower stall and whirlpool tub. It also has a sitting room with enclosed fireplace, kitchenette, bedroom and walk-in closet.
The basement is 3/4 finished with a laundry/half bath, family room with fireplace and an unfinished workshop.
My wife and I are recent empty nesters and will probably sell the house to down size in two to four years. We have not modified the addition since my Mother passed away, and are in a quandary regarding our future use of that space. We are comfortable with the master bedroom on the second floor but the first floor suite could be transformed into a very nice "master suite" through the replacement of the kitchenette with a vanity area. The cove that the kitchenette is in is a 6 ft x 5 ft space and placed well to compliment the current sitting room doubling as a dressing area with the vanity; sink, cabinets, a knee drawer and wall mirror.
Our quandary is which will be a more desirable product on the market; a four bedroom house with the "Grand Parent's Suite" attached for a moderate size family with live-in parent(s) or a five bedroom house with the so described first floor master suite and four second floor bedrooms for a large family of 6-8? The other rooms of the house are spacious enough to serve a family of eight comfortably.
Answer: That is an interesting question, because both configurations could make sense. The main question here, however, is which configuration makes the most sense in your market and would therefore yield the highest selling price? Adding to the complexities, your wife and you intend (probably) to sell your home in 2 to 4 years, so whoever opines on your question will also need to be somewhat of an accurate predictor of future real estate markets in your area. Although we'd like to be experts in all markets, we're not. However, we do have two suggestions for you:
- Contact at least three Realtors in your market. Tell them up front that you are considering listing your home for sale and would like for each of them to provide a Competitive Market Analysis (CMA) on your property, one the way it is currently configured -- 4 BRs w/Grand Parent's Suite, and the second as a 5 BR home with 1st floor Master and 4 2nd floor BRs. The CMAs (you should end up with at least 6, 2 from each Realtor) should let you know which configuration will yield the highest selling price in the current market. So also ask each Realtor whether or not they see any changes in the current market in the next two to four years; and,
- Anticipate that whatever trend is established for your market area -- whether up, down, or no change, will continue until it changes direction. If the trend -- based upon sold prices, is either up or no change, then the gamble will be will it continue for the next 2 to 4 years? If the trend is down, however, you'll probably need to decide if you should sell right now or look at other alternatives.
Question (NY): When do you think is the best time to buy a condo on the east coast of Florida?
Answer: The east coast of Florida covers a lot of territory! One thing to consider is the Atlantic Hurricane Season. It officially runs from June 1st to November 30th.
We suggest that you get more specific about what you want. For example, are you looking for a condo as an investment property or to live in? What is the price range within which you want to stay? Or, if it is an investment property, what is the Return on Investment ("ROI") you are seeking? Be sure, however, to include the higher cost of insurance in your overall costs whether buying to live in or as an investment property.
If you are determined to buy a condo on Florida's east coast, we'd suggest that you select three or four major east coast areas and communicate with several real estate brokerage firms in those areas. Ask these firms whether or not it is a buyer's market -- defined as more than a six month inventory of homes available for sale. In a buyer's market, sellers are more willing to negotiate not only asking prices but also terms.
Question (PA): We are first time home buyers and our offer has been accepted on a home in Drexel Hill. The home is an estate being sold by the executor of the will. We are scheduled to settle on 5/24/07. When our mortgage company attempted the title search they found out the title file is with a judge. It seems the will has been contested and the judge is holding the file we need to complete our mortgage process. The hearing for that is scheduled in July. Do they have the right to put off or cancel the sale all together? And if so what are our rights? Interest rates have gone up and we have lost so much valuable time to find another home. I am so upset and scared.
Answer: The Executor of the decedent's estate obviously wants to sell you the home and would most likely prefer to abide by the terms of your purchase and sale agreement. However, when an heir or other party with an interest in the estate contests the will, your purchase and sale agreement is preempted by the Court. The Judge is going to hear the arguments in the case when the case is scheduled.
However, court hearings are constantly being re-scheduled, so even the July date is subject to change.
Unless you really want that specific property, we suggest that it may be less trouble to move on and find another home if the Seller (Executor) is amenable. However, if you are set on obtaining that specific property, then we suggest you hire a probate attorney to find out what is going on such as whether the will was actually probated, who the person or persons are that are contesting the will, what are they contesting, etc.
Question (WV): Can a mortgage lender sell my loan before I have even closed on it? This is what we are being told now that we have waited for several weeks to get a closing date. Please help me. The wait is driving me nuts!
Answer: If you have not closed, there is nothing to sell except your contractual agreement to purchase the property under the terms and conditions specified in the purchase and sale agreement which you agreed to when you submitted your loan application (usually called a Uniform Residential Loan Application or a Form 1003).
What may have happened is that you were dealing with a mortgage broker as a loan originator who "sold" your Form 1003 application together with the rest of your loan documents submitted with the 1003 or separately, to a primary lender (a bank, mortgage banker, or other investor) who agreed to provide you the purchase money mortgage (subject to no changes occurring to the elements that got you qualified for the mortgage loan).
However, there are a lot of variables involved. We suggest you contact the loan officer (or whoever your main contact is with your lender) and ask the loan officer the question you asked us. Did your lender really sell your loan or was your lender a mortgage broker who was simply brokering your loan to the primary lender?
