Dear Michael: I am contemplating purchasing a home which is a “historical landmark.” What defines a home as a “historical Landmark”?
Answer: A home is recognized for its history when certain criteria are met. Even when a home meets all the requirements to be considered historic it may take a registry several years before making a final decision on the home’s status. Here are some of the requirements needed in order to qualify for a historical landmark Age: Most registries will not consider a home less than 50 years old. When looking at the age of the house, consideration is also given to the appearance; does the home retain its original characteristics? Historical Events: The home’s past plays a major part in its consideration for historic status. Homes located in areas known for their parts in history, such as Gettysburg, Pennsylvania, are easily researched and often played key roles within the community. Persons from History: Important people from history give status to a home’s claim. Presidents, actors, artists, writers and architects are just some of the historical figures that give credibility to a house’s history, whether their residence was for a night or for a lifetime. Path to Knowledge: Homes are given consideration for historic status if they can bring forth new information about the past. The information can be counted in several categories including science and religion. Distinction: Homes can also achieve a historical rating based on architecture, even if the architecture is out of place. Entire homes have been relocated in order to preserve them. This does not take away from the historical or architectural significance. Purchasing a historical landmark has pros and cons. You are limited to the amount of remodeling and upgrades you will be allowed to complete on the home so check with the city the home is located in to make sure you know what you are up against before you buy this home.
Dear Michael: If I purchase a home that appraises for less then the sale price can I still buy the house?
Answer: Yes, as long as you make up the difference between the appraised price and the sale price. Lending institutions will not lend money on a home they cannot re-sell if the buyer cannot make the payments. This decision is strictly up to you. If you love this home and the appraised price is not much lower then the sale price then you may want to consider proceeding with the purchase. It is important for you to know that the seller can also lower his price to meet the appraised value. If not, you can try negotiating and meet at a price you can agree. If you and the seller cannot come to an agreement you can always cancel the purchase, please read your purchase contract for contingency periods. There is a clause that allows the buyer to cancel the purchase if the property appraises at less then the sale price.
Dear Michael: My home was in escrow for only 4 days when the buyer decided to cancel for no apparent reason. Her agent said that her children talked her out of it. Is the buyer allowed to cancel a purchase for a reason other then stated in the purchase agreement?
Answer: Buyers are on the fence. Purchases are being canceled all the time in this real estate market. No deal is solid until buyers have removed all their contingencies. Buyers have 17 days to remove all their contingencies unless otherwise specified in the purchase agreement. The buyer’s investigation of property condition and approval of all report is the contingency that allowed this particular buyer to cancel the sale of your home. If for any reason the buyer disapproves of a report or finds anything wrong with the property then they can cancel. The fact that this particular buyer canceled for no apparent logical reason to you does not mean that they are not within their rights. Their reason for cancellation may not make any sense to you but is enough for them to cancel and get their earnest deposit back.
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 email them to him at: homes@agentmichael.com
