Dear Michael: We are in escrow on our first home. My brother has given us the funds for the down payment. The lender is making it difficult for us wanting a notarized document from my brother stating that he will not hold us responsible for any debt to him. We are thinking of switching lenders. Is this common practice from a lender?
Answer: Your lender is researching your financial savings in order to completely satisfy themselves and to reassure the fact that you will also not pose a risk at re-paying your loan. Your brother has given you a substantial sum of money for your down payment. This is common as many buyers need some financial assistance in order to buy their first home. The banks wants to make sure that you can meet your monthly mortgage payment. I suggest you follow every steps your lender request and you get the documents notarized. The last thing you want to do is start the loan process all over again! Who knows, the next lender may ask for the same notarized document and maybe more.
Dear Michael: We are closing escrow on our first house next week. The house is vacant so we’ve asked the seller if they would let us do some repairs before the close of escrow, and they said no! Can you please let us know why they refused? We are disappointed since this was such a pleasant transaction with them.
Answer: Pleasant or not… this is a question of liability. If you were to start repairs on the property before the close of escrow, and injured yourself because of matters you considered could have been prevented by the seller’s neglect, then it could make matters very complicated and ugly. Another legitimate reason is that you may unintentionally damage the property and this could create friction as to whom is to blame. There is also the possibility of hidden defects that the seller was unaware of, that you may uncover during your remodel. What if for some unforeseen reason you decide not to buy the house and leave unfinished repairs. The seller would then have to complete the repairs at their cost. Don’t take it personally, if the roles were reversed, I would advise you do the same.
Dear Michael: My neighbor saved a lot of money by selling her home herself. She mentioned that it took some time, but she thinks it was worth saving the commission. Can you let me know what are the benefits of hiring an agent?
Answer: Good for your neighbor! But let’s take a closer look at the process of selling before you make this decision. Many people aren’t aware of the advertising, marketing, leg-work, strategy and expenses that go along with selling a home in today’s market. In this fickle market, pricing your home is crucial! The longer the home sits, the less likely it will sell for what it’s worth. Agents are experienced in getting top dollars and in negotiations on behalf of the seller. You will also need an agent so that you don’t feel tied up by the contractual language and feel no-one is representing your interest. And don’t forget attorney fees if something should go wrong, a step every fiscally responsible seller or buyer should try to avoid. And by the way, your neighbor may have saved on the commission but ultimately got less for her home because she did not use a real estate agent. Hiring a real estate agent in this complicated real estate market day-in-age is a win-win for everyone.
Michael Kayem is a Realtor with Re/max Estate Properties 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.
