Dear Michael: We closed escrow on our new home and the seller did not replace the electrical panel as agreed by our request for repair. When we approached him he said that it worked fine, this was after the fact that he agreed to replace it. How can we collect the funds? This will cost us $3,000 to replace.
Answer: Your seller is at fault particularly if he/she agreed to the “buyers request for repair.” I assumed you had a verification of property condition (walkthrough) prior to the close of escrow. This would have been the time to put pressure on the seller and question him/her as to why the panel was not replaced as agreed. You could have opted to have escrow hold the close until your dispute was resolved. Most buyers have a set schedule to move in to their new home, so postponing the close is not always an option. This possibly could be a matter for small claims court. If you decide to go this route, it will be essential to be prepared on the date of your hearing. You’ll want to bring all your documents showing proof with pictures of what you are suing for. Very often when the defendant is served, he/she will opt to settle out of court. You may want to contact a real estate attorney for more details.
Dear Michael: What is the difference between a listing agent and a buyer’s agent?
Answer: Basically, a listing agent represents the seller and the buyer’s agent represents the buyer. However, any real estate agent can serve in either role depending on the client’s needs, or they can serve in both roles under dual agency. Many agents specialize in working with sellers or working with buyers and there may be some benefit to that. Make sure that if you hire an agent to list your home, he or she has knowledge of the area and has done some listing sales in the past.
Dear Michael: I have recently made an offer on a house with what the agent called a short sale. Could you explain this and also tell me why I can’t seem to get an answer on my offer? It’s been over a month. I am ready to move on to another property.
Answer: There are still some who owe more on their mortgage then the value of their home, but for the most part short sales are scarce as homeowners now find themselves with equity in their homes. To answer your first question: a short sale is when the bank holding the mortgage must agree to accept less money than what is owed on the mortgage note for the property. To answer your second question, a short sale approval by the lender can take from one week to as many as 6 months. There are also supplementary parties that may be involved, such as 2nd mortgage holder and private mortgage insurance companies (PMI) that insure the loan against default. My best advice is that if you really love this home, then wait for the short sale approval. Banks do not want these homes in their foreclosure inventory. They will work with the sellers and buyers to get the home sold rather than go through the foreclosure process.
Dear Michael: My agent angered a buyer who walked away from negotiations by asking his for a copy of his credit report. Was that wrong for the agent to do?
Answer: We are not licensed mortgage professionals, and very few agents request a buyer’s credit report. However, it is entirely reasonable for the agent to ask the buyer’s lender or mortgage broker for a pre-approval or pre-qualification letter indicating he/she has sufficient credit score, debt-income ratio, savings, income, etc. If a buyer is paying cash, it’s reasonable to ask for proof of funds. I am not sure how serious this buyer was about purchasing your home. It is my experience that when a buyer loves a home and he/she is ready to make an offer on it, asking for a credit report should not be a substantial enough reason to walk away from the home.
Michael Kayem is a Realtor with Re/max Estate Properties serving Culver City and the Westside since 2001. You can contact Michael with your questions at 310-390-3337 or e-mail them to him at: homes@agentmichael.com
