Dear Michael: I am selling my home and have received multiple offers. How do I choose the best offer?
Answer: There are many factors to consider when choosing one of multiple offers. A) Price: how much is the buyer willing to pay for your property. Obviously, it is easy to choose the highest offer but the terms of the offer are also a crucial factor. B) Terms of the offer: How much is the buyer putting down? A higher down payment means a stronger qualified buyer and a better chance of getting loan approval. A higher down payment also is an indication that the buyer could step-up if the property fails to appraise at the sales price. C) Contingencies: Are the buyer’s contingencies (conditions) in place within a reasonable period of time. It is imperative that the buyer performs within a reasonable time period. If not, you could find yourself with a long escrow and possibly one that does not close. D) Emotional aspect: This is strictly up to you. You may just like a buyer and want to accept their offer because of a personal letter they wrote, or meeting them and trusting that they will take good care of your home once you are gone. If their offer is a good, solid and you are willing to accept it knowing that they will take good care of your home for years to come, then no one can argue your decision. Unless you are a sophisticated seller, all these factors should be carefully reviewed with the help of an experienced Realtor.
Dear Michael: I am purchasing a condo and noticed a crack at the ceiling. I am concerned that this could be from a leak. How can I make sure that the crack is not a recurring leak?
Answer: When purchasing a property, you have the right to an inspection. Your home inspector will determine the cause of the ceiling crack and look for a leak if one is present. If he finds that there was no leak and it is a simple crack from settling, then your concern has been answered. If your home inspector finds that there is an active leak present, then you can request to have the seller repair the ceiling and all matters associated with this leak. You can also request that the seller credit you the cost amount of the repairs so you can fix it after the close of escrow. The seller can also deny your request for repair. Leaks can be very costly, especially if they have not been attended too over a long period of time. If the seller refuses to repair or credit the leak, then it is up to you to decide if you are willing to proceed forward with the purchase of this condo.
Dear Michael: Why am I paying more in property taxes than some of my neighbors who have similar houses?
Answer: Your taxes are not based on your neighbor’s house, but are based on the price you voluntarily agreed to pay for your home when you purchased it. Before Proposition 13 the average property tax rate in California was 3% of the assessed value and there was no limit on annual increases. In those days, if a house on your block sold for much more than what you paid for yours, you trembled in fear when you received your next property tax bill. Chances are, your new taxes would be based on what your new neighbor was willing to pay for his home. Things got so bad in the late 1970s that people were actually losing their homes because of uncontrolled tax increases. Due to Prop 13, the assessment rate cannot exceed 1.00% of your purchased value for all California property. Annual tax increases are limited to no more than 2%. When property is sold it is then reassessed at market value, the rate remains at 1.00% and the new owner is then protected by the 2% cap on annual increases.
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
