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Monday, January 10, 2005

Ask the Realtor®

If you have a question relating to real estate, you may ask it by using the 'Comments' below.  Keep in mind that anything you post in the 'Comments' will become a permanent part of this blog.  If you have a more personal question that you do not want published, you may email me your question instead.

Your question will be answered within 48 hours.  If you email your question, the answer will be emailed to you.  If you post your question in the Comments, the answer will be posted in the Comments.

You are always welcome to call me with any questions or concerns.  My contact information is below.  Have a great day!

     Shannon Hubbard
     Realtor-Investor
     Great American Realty, Inc.
     Cell: (480) 695-6672  (Email me)

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Posted by Shannon Hubbard, Arizona Real Estate Agent on January 10, 2005 | Permalink

Comments

Where can I find listings of all commercial
real estate recently sold and to who in AZ.

Posted by: Dale M | Oct 19, 2005 3:06:40 PM

Dale - I'm not aware of anywhere the public can obtain that information without perhaps purchasing a mailing list.

You may be able to obtain some of the information you are looking for from the County Assessor's Office. The Maricopa County Assessor's website is http://www.maricopa.gov/Assessor/ParcelApplication/Default.aspx and Pinal County Assessor's website is http://co.pinal.az.us/Assessor.

As a Realtor, I am able to search Arizona MLS for recent commercial solds by sold date, and then pull the tax info on the results I get. I will email you an Excel file for your review. Hopefully, it will be helpful to you.

Posted by: Shannon Hubbard | Oct 19, 2005 4:27:24 PM

Hello Shannon, I recently posted a blog on the home inspection site- This being my first blog ever I 'am sure that I should have directed those questions to this blog site instead. I am definatly feeling a loss after purchasing a home 15 months ago.

Posted by: Tori | Oct 23, 2005 2:57:20 PM

Sorry I needed to add this question? If a home was put on the market then taken off the market and about 6 to 8 months later put back on the market by a different agency and the price was upped 10k. Would I be able to find out who the 1st agency was that listed this home? Is there a chance that this agency was provided with the sellers disclosure statement? And If so would this have had transferred to the the 2nd agency that recently sold this property for their records?

Posted by: Tori | Oct 23, 2005 3:11:41 PM

Yes, if it was less than 2 or 3 years ago, the first listing should be in MLS and the listing agency could be looked up. There is a chance that the sellers filled out a Seller's Property Disclosure Statement (SPDS) for the first listing agency. Most brokerages in Arizona require sellers to complete a SPDS when they list the home, but that doesn't mean all sellers are willing to fill them out. Chances are, the first agency probably didn't even know that the house was re-listed, so I doubt they provided any of their paperwork to the second agency.

Remember, I am not an attorney...just a real estate agent! Hope this helps and good luck.

Posted by: Shannon | Oct 23, 2005 4:38:24 PM

Dear Shannon,
Hello again, well since the last blog I have been advised to submit a "Demand Letter" to the realestate brokerage as well as the seller. I have not been able to find an attorney to take my case probably because I have no money to work with. I don't know realestate law and I feel now they are preying that my knowledge of the law is no so good, they again having the upper hand and a deep pocket to top it all. Please help if you can I really need some advice.

Posted by: Tori | Nov 12, 2005 5:10:50 PM

Hi again Tori,
Unfortunately you are right - it takes alot of money to pursue damages, regardless of who's right or wrong. And since I am not an attorney, I'm afraid I can't help much either. I agree that sending a demand letter should probably be your first step. If that doesn't help and you're short on money, you can always make your own case in small claims/justice court. I think most cities are less than $50 to file, but you are limited on how much you can collect in damages. Even then, you would probably be wise to spend some money consulting an attorney to review and help you prepare your case. If you feel that your Real Estate Agent violated the law or the Real Estate Commissioner's Rules, you can file a complaint with the AZ Dept. of Real Estate - although I don't think they will help you collect any money in damages (unless you've already won a civil suit, and are unable to collect on the judgement). Sometimes just the threat of a complaint can make a Real Estate Agent or Broker do the right thing. If your Agent did not break the law but you feel he/she did not act ethically in representing you, there may be a similar complaint process through his/her Realtor Association (assuming he/she is a Realtor, which means he/she belongs to the National Association of Realtors).

Sorry I cannot be more help, but again, this is lawyer territory and I am not one! Good luck.

Posted by: Shannon | Nov 13, 2005 12:41:48 PM

Shannon,
Thank You once again. The broker and agent told me write this demand letter to them and to the seller. Does this action on their part indicate that they may have some responsibilty in this situation?? I have called many attorneys and have had no luck in retaining one. They all seem to be pretty busy with all the new construction going on in the valley, ya know!!!

Posted by: Tori | Nov 13, 2005 1:06:09 PM

Hi Tori,
Hopefully they just asked for a demand letter so they have a starting point to resolve your issue, but it's hard to say. Or they might want something in writing for their files that they can use against you later on. I can't stress enough that I would definitely find an attorney to review anything you write before giving it to the other party. Below is the web address to a real estate attorney. If his office cannot help you, they should be able to point you in the right direction at least. Good Luck!

http://www.eckleylaw.com

Posted by: Shannon Hubbard | Nov 14, 2005 2:22:55 PM

I recently sold a house and in the closing comments I remarked that I would attempt to fix a leak around the chimeny. The chimeny was caulked by a licenced contractor but the buyer insists on hiring someone to redo the work and make me pay for it. We closed on the house yesterday so my question to you would be;Can I still be held responsible for this even though I don't own the house any more and can she make me pay for it if she wants it redone. I made an effert to fix it and that is exactly what I told them I would do.

Posted by: Brent | Aug 3, 2006 9:32:57 AM

Hi Brent,
I don't know what state you are in and while some general real estate practices may apply to this situation, be aware that laws vary by state. However, I will assume it's Arizona since that's where I am licensed to practice real estate. In Arizona, you are not off the hook just because you no longer own the house. However, it sounds like your offer to fix the chimney was verbal rather than in writing. Verbal agreements in a real estate transaction do not generally hold water in Arizona. Either way, if you had the work done by a licensed contractor and the buyer is not satisfied that it was done properly, then perhaps the licensed contractor who did the work could come back out to address her concerns and remedy whatever the problem is. You should ask the contractor if there is a warranty on his work. If she is complaining about the quality of the work and you disagree there is a problem, she could contact the licensing Board (Registrar of Contractors in AZ) and they will usually do a courtesy inspection to determine whether the contractor performed the work properly or not. This may take a long time to get scheduled however.

If you did legally obligate yourself to make this repair in the contract or other transaction documents, you would want to look to the wording to determine what your obligation was and whether or not you met it. You would also want to look at the contract to see what her rights were as far as approving the repairs (i.e. did she have a walk-through period to inspect the work prior to close of escrow, etc.). Since you have already closed, the time may have passed for her to disapprove of the repairs. On the other had, you also have to realize that some problems cannot be determined just by looking at a repair during a one time inspection, and problems may arise after she occupied the house that she could not have reasonably foreseen prior to close of escrow. If those problems are due to an item you agreed to repair and the repair was not done properly, you are not necessarily off the hook.

I hate to give you this vague answer, but as always in real estate...it really depends on what your contract says! It sounds like you made a reasonable effort to make the repair by hiring a licensed contractor. If she is a reasonable person and just wants the chimney repaired, there should be a simple way to resolve the issue by meeting with both her and the contractor, and finding out what it will take to make her happy. If she is one of those people who is just looking for someone else to pay for her problems, the issue may not be so easy to resolve. Please keep in mind that I am an Arizona licensed real estate agent, not an attorney. I hope this info is helpful. However, it should not be considered as legal advice. Good luck and I hope you are able to get this resolved quickly and easily.

Posted by: Shannon Hubbard | Aug 5, 2006 11:53:27 AM

Hi!
I’m TRYING to buy a home – but the listing agent has other ideas – we’re not one of her clients – in fact – we’re working with a different agency all together! We currently have a back up offer on a home pending acceptance. The home is listed with a different agency than the agency our Realtor is from. The listing agent has a buyer with the 'first-up' offer on the home and they have the sellers jumping through hoops to meet their demands and the deal may still go south. Meanwhile, the listing agent has been very difficult to contact (per our Realtor) and has made it very complicated for us to put offers in, etc. We are currently $2000 over the primary offer with a full price bid in and it's been 3 days and we've heard nothing from the listing agent. I suspect she's attempting to make the deal with her customer to grab a full commission for herself - but I can't 'prove' that. She brought a customer to the seller who is less able than we are to buy the home, yet she continues to put up road blocks to our offer. Why would she do that other than she hopes to grab the commission all for herself and her agency which seems to fly in the face of the Realtor’s code, no? Can you give me some suggestions as to how to approach this situation - We're frustrated and getting a little angry with the listing agent - her greed is doing a disservice to her seller.
Thanks!

Posted by: Barry | Aug 25, 2006 12:21:58 PM

Hi Barry -

It definitely sounds like you are in a frustrating situation. Buying a home is not supposed to be so stressful and I'm sorry to hear the listing agent may be part of the problem. Without seeing your offer and knowing all the details, it would be hard for me to advise you. Also, since you are already represented by a REALTOR, it would be improper for me to advise you on how to handle this transaction. The best advice I can offer would be to work closely with your REALTOR to make the deal go through if you really want the house.

However, here's some general information I can provide. The listing agent has an obligation to present ALL offers to the seller. If the listing agent is simply not being honest or is not presenting your offer, your REALTOR may need to contact the listing agent's Broker. In very extreme cases I have seen the buyer's REALTOR bypass the listing agency altogether and communicate directly with the sellers, but it is generally improper to do so. This listing agent would probably be violating both the REALTOR's Code of Ethics, as well as the Arizona Real Estate Commissioner's Rules if she was acting in her own best interest instead of acting in the best interest of her clients (although I'm sad to say it still happens). Also be aware that some listing agents don't care whether or not their listing sells. The longer a house is on the market, the more potential buyers it brings to the listing agent.

On the other hand, since you are making a backup offer, the sellers have already accepted the first offer and as a dual agent (assuming she is acting as a dual agent), the listing agent has a duty both to the sellers AND to her buyers. While her first duty was to the sellers, by also taking on the buyer's agent role, she now also has a duty to her buyers, but no fiduciary duty to you. So don't take this the wrong way, but you are the last one she cares about pleasing, and rightly so. However, she does have an obligation to be truthful with all parties involved, regardless of who she represents. As you can see, dual agency is tricky and sometimes as a result, neither client gets the representation they deserve.

I will also give you some other general thoughts to consider...
1. How badly do you want this house?
2. If the listing agent is not being straight with you about your offer, what else is she not telling you and what unwelcome surprises might come up during escrow?
3. Is your offer even still valid after 3 days of not hearing anything? Usually, I only give sellers 24-48 hours to make a decision when I write an offer. That is just my practice, so you should check your contract or ask your REALTOR how long they have to accept your offer before it expires. If it's already expired, you can always give the sellers more time to accept your offer. If you decide to move on and make an offer on a different house though, make sure that your backup offer on this house is expired or revoked first!
4. You are correct - it's hard to believe that a seller would jump through hoops for $2000 less and a less qualified buyer unless the sellers either didn't know about the higher offer or were being misguided by their agent. But then who knows, there could be other terms in the "first-up" buyer's offer that are more attractive to the seller than your higher purchase price and qualification (I'm not sure what terms those might be, but to each his own!).
5. This listing agent is lucky to have multiple offers. While it was common this time last year, it is rare these days. And with real estate inventories as high as they are, there are plenty of other fish in the sea!
6. If you do go through with this contract or any other contract, be sure to get it inspected! (In the spirit of full disclosure, I also am part-owner of Homewerx Home Inspections, so I had to throw in #6!)

Hope this information is somewhat helpful to you. Good luck with your real estate purchase and sorry I can't be of more help.

Posted by: Shannon Hubbard | Aug 25, 2006 8:32:58 PM

Shannon - Thank You for your reply! The information you offered has helped at least settle my mind on what is transpiring. We now have an accepted 'back-up' offer for the home we're interested in - the seller's agent FINALLY contacted our agent the afternoon I sent you the above message and said they accept - now - the listing agent has advised us that it will be 'at least' another week or two until we know if we're in the running or not. It just seems too sticky. The 'first up' offer was accepted within 2 days (Aug 11th) and now it will be another week or more before we know if we are up?? I still suspect the first offer is sketchy as far as their ability to get the financing and we have already been approved - now, we're considering bagging the whole deal and looking elsewhere because, as you mentioned - there are more homes than buyers currently in the market so we feel we may be able to get a better deal - and a better Realtor to work with! We do really love the home we're struggling with - but - the deal is making it less appealing by the day.
Thanks again - I hope to report good news someday very soon!
Barry O

Posted by: Barry O | Aug 28, 2006 10:14:45 AM

Shannon - Well, as we suspected - the First-up buyers financing imploded and we have been advised that, if we are still interested, we are now the primary offer on the home. I still smell a turd in all of this, however. It seems real convenient that we started off bidding a secondary offer that was within $500 of the primary and were rejected and countered with a full price offer - which we agreed to. Now, we are the only possibility the seller has currently to purchase the property. Is it still possible to re-negotiate our offer - or - by accepting the seller's counter offer to the back-up offer we had in place - are we 'locked' in to that contract? We do have a 3 day opt out clause in place as part of the secondary offer becoming primary. Please advise.
Thanks again!
Barry O

Posted by: Barry O | Sep 1, 2006 6:51:03 AM

Hi again Barry!

Glad to hear you are done with the 'waiting game'! Generally, you cannot re-negotiate an accepted offer. On the other hand, your contract probably has some contingencies that would allow you to escape the contract and still keep your earnest money, such as the financing, inspection period, and it sounds like in your case a 3-day opt out clause. However, you would have to discuss this question with your REALTOR since the answer really depends on the specific terms of your contract. Sorry! I know people hate the 'it depends' answer, but each contract is different, and the contract rules the transaction. Good luck with your purchase and let me know how things work out!

Posted by: Shannon Hubbard | Sep 1, 2006 10:00:13 AM

I have a question for anyone reading this comment. I am trying to locate a Company that was located in Phoenix, Arizona in 1968, called American Contract Mortgage Exchange, formerly American Buyers Credit Company. It was located at 2612 Roosevelt, Phoenix, Arizona. If anyone knows the whereabouts of this Company, we would greatly appreciate hearing from you.
e-mail us at pbusch@the-cia.net
Thank You

Posted by: P Busch | Jan 2, 2007 12:37:19 AM

You can try searching the Maricopa County Recorder's office at this link:

http://recorder.maricopa.gov/recdocdata/GetRecDataSelect.asp

Three documents come up under "American Buyers Credit Company" and two more come up under "American Contract Mortgage Exchange". The documents are not available online because they are too old, but you can request them through the Recorder's Office for a fee. Recorded documents will usually have the address of the recorder, and this may or may not help you locate them. You may also search for current and old corporations on the AZ Corporation Commission's website at:

http://starpas.azcc.gov/scripts/cgiip.exe/WService=wsbroker1/main.p

However, I looked briefly and neither of the names you gave came up. Good luck in your search and sorry I cannot help more. Perhaps one of BlogArizona's readers will be able to help you more.

Posted by: Shannon Hubbard | Jan 2, 2007 10:23:14 AM

Hello,
I live in Flagstaff, AZ and am due to close on March 20. My contract Date was back on February 8. We had inspections and competed a BINSR. The seller agreed to some of the requests (most of them) and the whole BINSR process was completed on February 26. None of the items that were requested in the BINSR were of great monetary value. We conducted a final walk though yesterday (March 27) only to find that all of his belongings (including 2 broken down VWs and various engine parts) were still in the house/yard, most of the items on the BINSR had not been completed, some of the items that said they would be completed by a licensed plumber (sellers language) were not done by a licensed plumber, overall the place was a mess. We delivered a cure period notice of three days to complete the tasks. I honestly don't think he'll be able to get all his belongings out in 3 days (he isn't even packed). I am prepared to walk away--this isn't my dream house and by no means the only house for sale in Flagstaff. My real estate agent has suggested asking for monetary compensation in lieu of things being done--but honestly unless he pays all my closing costs I'm really not interested. This is the third time we've had to issue a cure period notice and I know that a previous offer on the house fell through after inspections because he didn't like the potential buyers (he said he liked us better). What are the consequences of walking away (other than the obvious fact of not getting the house)? And does he actually have three days from close of escrow to get everything done or is the final walk through date (the date of which was not set in the contract) sufficient?

Posted by: Marguerite Hendrie | Mar 28, 2007 10:38:25 AM

Hi Marguerite -
Sorry to hear you are not having a good AZ real estate experience. Unfortunately, I'm afraid I can't offer much advice for a few reasons. I haven't seen the contract, which determines the consequences of walking away from the deal. I also don't know the terms/wording of the other documents involved such as addendums, cure notices, BINSR (Buyer's Inspection Notice and Seller's Response). The BINSR and cure notices could affect how long the seller has before you can walk away with little or no consequences, so all of these documents are very important. I can't answer your questions without reviewing all the documents, and I really can't review your documents since you're working with a real estate agent already. That would be a violation of the ethical standards I adhere to as a Realtor. But your agent should be capable and willing to review/discuss your options with you.

Sorry I can't better answer your questions, and I wish you luck with your transaction.

Posted by: Shannon Hubbard | Mar 29, 2007 12:14:35 PM

I'm getting ready to have my shingle roof replaced and am receiving conflicting information regarding the shingle make up. I was told a 3 tab shingle was fine, but a now a contractor is telling me a laminated shingle roof is best, especially for resale value. Can you confirm this?

Posted by: Holly | May 10, 2007 6:10:30 PM

Hi. I need help. I am a Realtor in Arizona and I have a RV Park for sale. My seller is out of the country and I have received multiple offers on it. I was told by one of the buyers that I cannot "collect" offers on this property, and could be sued. I am trying vehemently to contact my seller on a cruise in Italy and all offers will be presented at the same time.All offerors know the seller is gone. What are the rules for this and am I wrong?

Posted by: Linda Reyes | May 14, 2007 5:12:54 PM

Hi Holly,

Sorry for the delay in answering your question - I had to consult my husband the Home Inspector for this question!

While real estate values are determined by many factors, a home's value is essentially determined by what someone is willing to pay for it. You would need an appraiser to tell you for sure what dollar amount they would add, if any for the different shingle type. But in my experience, to the average home buyer a new roof is a new roof. The laminate shingles may be a bonus, but most buyers I deal with are only concerned with the type of shingles to the extent that it affects the roof's longevity. In other words, they care how much life is left in the roof more than they care about the type of shingle. So if the laminate shingle is going to last twice as long, perhaps some buyers will perceive the home as being 'worth' more than if you used the other shingle. (I think 3-tab shingles come in 20-year, 30-year and 40-year). But the average homeowner moves approximately every 3-5 years, so realistically they probably won't be willing to pay much more for the longer roof life (since they probably won't own the house when the roof needs to be replaced anyway).

If one shingle type looks much nicer than the other, perhaps it could add some value due to increased curb appeal. Hope this helps. Good luck with your roof project!

Posted by: Shannon Hubbard | May 16, 2007 6:08:26 PM

Hi Linda,

Sorry to hear of your situation, and it sounds like you're doing all that can reasonably be expected of you. How frustrating it must be to have offers and not be able to present them. Did your seller give you any special instructions for presenting offers since he/she would be out of the country? I've never been in that situation so I really don't know what the answer is. I would consult your broker for guidance, or perhaps even contact your local Realtor Association or the AZ Dept of Real Estate for advice. In my opinion, you shouldn't be held accountable for 'collecting' offers if your seller hasn't given you an option.

Good luck and stop back by to let me know how things work out!

Posted by: Shannon Hubbard | May 16, 2007 6:23:30 PM

I own a home free and clear located in a neighborhood which originally had a homeowner's association and was one of the primary reasons I purchased the home 13 years ago. When the HOA disbanded a couple of years after I purchased my home, I was a bit worried and became more so as I saw original homeowners move. However, I was using every bit of energy I had working countless hours six and seven days a week to think about selling my home. A few years ago, while my neighborhood was still in pretty good shape, it seemed the best time to sell my home, but I was debilitated and unable to leave my bed most days as I attempted to recover from a disabling illness that continues to leave me with chronic pain 24 hours a day.

Now that I'm doing a bit better, I see that I should have sold my home earlier because the neighborhood is full of homes owned by people who take no pride in the appearance of their properties, along with rentals whose owners and/or tenants apparently don't care how run-down and worthless the properties become. Many of the rentals have windows that are boarded up and/or broken or both, yards full of broken glass, garbage, parts of broken-down vehicles, graffiti here and there and weeds and grass at least two feet high. I know that I cannot expect anyone to keep up homes that are empty due to foreclosure and/or those with signs in front that say they are for lease or for sale.

I have kept my home and yard in great shape, and have updated it and added many energy-saving features including extra attic insulation and sun screens to the doors and windows. I have spoken with the vice mayor and mayor (who I used to work with years ago) regarding the neighborhood and the violations of city ordinances, hoping the city would cite those violating ordinances and laws, to no avail. It is almost as though the city wants this area, which isn't that large, to become a slum, which it is quickly becoming. Meanwhile, after 20-plus years, city officials are spending quite a bit of money on rejuvenating and beautifying an area that used to be considered the worst neighborhood in the city. That area looks phenomenal while each day mine falls into decay and disrepair. I have talked with a few neighbors about re-establishing a homeowner's association, and they are opposed unless, they say, 100 percent of the people in the neighborhood agree.

Because I was not able to get the city to enforce its ordinances or laws nor was I able to convince the neighbors I spoke with that the answer is to establish an HOA, I have decided that my only option is to move.

Prior to the housing market collapse, I talked with a friend of mine who is a Realtor about selling my home. He said he didn't think my home would sell at any price now because of the market.

But he also said that even once the market improves, because the neighborhood will likely be more run-down by that time, my home won't sell.

Naturally, I am worried. My home has appraised at $200,000, and when the market was great, I was told it could be sold for $275,000. Since the market has collapsed, I have been told $195,000 and now $165,000. The market is one thing, but the neighborhood is another.

Can you advise me? Due to my conditions, my sole source of income is disability, although it comes from two sources. My hope several months ago was to be able to sell my home for $195,000 and buy my next home for about the same, with cash. Now I feel as though because of the state of the neighborhood, I'll be lucky to get $75,000 or $100,000 for my house even after the market returns to normal.

Can you advise me? I want to move to a neighborhood with an HOA that actually enforces rules and has been in existence for many, many years with no plans to dissolve, but by the time the housing market returns to normal, at the rate the neighborhood is declining, I will likely be living in a ghetto. Do you think I should stay where I am for the next 25 years or so and see if the city decides to put money into my neighborhood? Or should I try to sell when the market returns to normal despite how badly the other properties look? How important to potential buyers are other properties when they are looking to buy a house? And why is it that for whatever reason, so many people who buy a house based on its curb appeal ignore this very factor afterward?

Posted by: Kathleen Winstead | Feb 28, 2008 5:44:22 PM

Whether I stay in my home or sell it, do you know what form I would need to complete to have the deed or title to my home reflect the last name I have been using for more than 10 years? When I bought my house more than a decade ago, I was using an ex-husband's last name.

I asked both the county assessor and recorder's office but was told by both that they could not provide me with "legal" information. No one else I've spoken with seems to know what form I need to complete and have notarized nor what document associated with the house my name would appear on (the title or the deed).

I would appreciate your help with this since from the responses I get, you would think I am the only woman in the world who needed to change her name on a property.

Thank you.

Posted by: Kathleen Winstead | Feb 28, 2008 5:59:54 PM

Hi Kathleen - thanks for your questions. Your second question is easier to answer than your first question, so I'll start with the second one first!

Regarding your name on the title of your home, you should contact a title company. They should be able to help you out. There are many title companies - if you don't know of one already, you can try contacting Grand Canyon Title Agency:
http://activerain.com/aztitleguy

With regard to your first question, the answer is really up to you. If you move duing the slower market, you will get less than you want when you sell your home, but then you will likely be able to negotiate a pretty sweet deal on the home you're buying. If you wait and sell after the market picks up, you'll probably get closer to what you want for the home you sell, but will also probably have to pay more for the home you buy.

If you're not happy where you are now, you should obviously consider moving. Timing is important anytime you buy or sell real estate. But if you're buying a home to live in, not as an investment, and you plan to stay there for many years, you should think of your house more in terms of a home than an investment. Not that you should ignore the financial aspect, but just don't get too caught up in what your house is worth now COMPARED to a year ago. As I said, if you move now, whatever money you feel you are losing on the sale of your home will likely be made up on the purchase of your new home. Houses are about living in, so if you're that unhappy where you currently live, move now. The way I see it, life is way too short to live somewhere your unhappy. To me, it's not worth trying to convince the HOA and your neighbors that they should live differently - that's a fight that will likely make you even more unhappy.

It's impossible to predict what the future will bring for your neighborhood. But I will say "the neighborhood" is definitely something that most people care about and check out when they buy a home. But to say your home "won't sell" just because of the neighborhood is probably a stretch. If your neighbors' homes are in worse shape than yours, anyone looking in that neighborhood will likely prefer your home over the others that are for sale in the same area.

Sorry I can't give you the answer you are looking for. However, there's really no right or wrong answer to your question... it's what you want that matters.

Hope this information helps. Best of wishes, whatever you decide!

Posted by: Shannon Hubbard | Mar 2, 2008 1:49:02 PM

American Buyers Credit Company. P Busch posted a blog looking for them. I am looking for them too. I am not sure but this company may also have been called American Estate Life Insurance Company (1964) or American Industries Life Insurance Company (1966). I have found a reference at: www.tshaonline.org/handbook/online/articles/PP/djpvn.html. Perhaps this will help.

Posted by: K Hill | Apr 20, 2008 9:19:06 AM

I am new to real estate world and working very hard to become a good agent. I have a question, which i could not get/find satisfying information. While putting an purchase offer, Is it legally allowed to put commission percentage.
For eg: If I am putting a offer for a house for myself, Can I put under additional Terms and condition "0% buyer commission?"

Is there any legal issue with it?. Or its not the normal practice?.
I am just wondering, if we want to reduce the commission in order to work out the deal, where and how can i put the info ???

Posted by: r dime | Apr 23, 2008 1:58:55 PM

I have one more question. What if seller's accepts the contract.And the price may be below the mortgage he owes, and the lender would not allow him to close?. What can be done in this situation?. If buyer would have already done inspection and spend money/time, is there any clause to get compensated from seller as a breach of contract ?

Posted by: r dime | Apr 23, 2008 5:43:04 PM

r dime -

Welcome to the real estate world! I don't know if you're in Arizona or another state, and I can only speak to how things work in AZ. I'm not an attorney, so I can't give you legal advice. My answer is based solely on my experience as a real estate agent.

I'm not sure if there's a legal issue with it, but the commission does not generally belong in the purchase contract. It's definitely not normal practice and any commission agreement should be a separate agreement. But in this case, it sounds like you are the client. It sounds like this is a transaction where you are both the buyer and the buyer's agent, and you are forgoing your commission in order to reduce the loan amount or possibly towards your downpayment?

There's more than one way to deal with that situation, but you should really speak with your Broker about it. The commission belongs to the broker, not to the agent so your Broker is the one who would have to tell you how to handle it. However you end up handling it with your Broker, just be sure it's fully disclosed to your lender.

Your second question sounds like it relates to a short sale (or one that didn't happen). Ideally, the seller should not accept a lower price than what he owes on the mortgage unless he discloses to the buyer that the acceptance is subject to lender approval. The buyer should then wait for lender approval before doing inspections, etc. If this situation has already happened to you, you would want to look to your contract to see what remedies you have. Again, this is where the attorney comes in, which I am not!

Best of wishes and thanks for visiting BlogArizona!

Posted by: Shannon Hubbard | Apr 25, 2008 9:22:09 PM

We wrote an offer to purchase a home that is directly owned by the bank. They counter offered us and we met those requirements and sent it back to the seller. A few days later we received a verbal acceptance of the offer. A few days after that we received another counter offer asking us to raise our price to the highest amount we are willing to pay because they received a higher offer. Is the verbal acceptance legally binding?

Posted by: stacy | May 28, 2008 12:47:22 PM

Hi Stacy,

Unfortunately, a verbal acceptance is generally not binding. Real estate contracts must be in writing. You would like to think they would honor their word when they say they are accepting the offer, but banks are notorious for taking forever to give a written acceptance and sometimes they get a higher offer in the mean time. It's all about getting the most they can for the house.

Thanks for stopping by BlogArizona, and best wishes!

Posted by: Shannon Hubbard | May 28, 2008 2:25:31 PM

My fiance and I found a house that we loved in the foothills in Yuma. We are first time home buyers. We have several issues or questions.

We were shown the house by a listing agent. He wants to be a dual agent for us and the seller. He disclosed to us that the seller of the house is his assistant at his real estate company. We went home and looked up dual agency on the internet. We also looked up the house at the county assessor website and googled the sellers. It turns out that both the husband and wife who are selling the house had real estate licenses in Arizona that expired this summer. Considering that they are experienced in real estate and that the agent has a relationship with them, we think it is in our best interests to find our own buyers agent. We called and informed the agent of this. We explained that it isn't personal, which it isn't. And we do believe that he would not act in an illegal manner to help his assistant. But the problem for us is that as a dual agent he is not really allowed to disclose any information or help us in anyway that hurts the seller. This limits how much advice he can give us as well as how much advice he can give the sellers. But since the sellers are former real estate agents, they are not as damaged by not getting advice as we are since we are newbies at this. He tried to convince us that the dual agency would be fine but we told him we want our own agent. We have had an agent recommended to us but she is on vacation for the next week and half. We might have to get started on this on our own.

1. Since he is not our agent by our choice, are we allowed to call him to inform him of offers or requests to inspect or get an appraisal? Or do all interactions have to go through a buyers agent? For example, can we call him and say that we want to have the house appraised before we make an offer and set up a time to do this?

2. Are we allowed to contact the sellers directly legally or are we restricted to contacting their agent? Is our agent allowed to contact the sellers directly?

3. The asking price for the home is $279,000. We suspect that the home is about $60,000 overpriced (believe it or not) because of the usual sales prices of similar homes in the area. But we aren't experts so we looked up the only information that we know how to access--the county assessor's appraisal on itax. The county assessor's office records the assessed value of the land at $70,000 and the assessed value of the house at $147,000 for 2007. We are pretty sure that they originally paid $30,000 for the lot. How closely do these county assessments for tax purposes usually match actual value? Are they generally low, right on, or high?

4. Are there other ways that we can try to figure out what the house is really worth? Can we find out how much the house cost to build anywhere?

5. We have been pre-approved for up to $300,000 but we do not feel we could really afford that mortgage. Do we have to tell them our pre-approval amount. We think it might make them think we can easily afford to pay $289,000 when we really can't. Can their agent ask us if we have been pre-approved or the amount?

6. What exactly would our own agent do for us that we can't do on our own? Is having an agent a rip-off? We read that an agent can't recommend to us how much to offer on the house? So what good is an agent? (Not trying to be rude or snotty in asking that question. It is a serious question.) The reason I am wondering this is because the agent we have been told is great in town is not around so we are doing all of the research and such on our own right now. We may have to find and appraiser on our own and make an offer on our own. So I am wondering what the heck I would want to pay the agent several thousand dollars for when we could ask for it to be taken off of the price of the house instead. Thank you!!!!

Posted by: Noelle Benson | Jul 2, 2008 2:32:58 AM

Hi Noelle,

Thanks for visiting BlogArizona.com. You are smart to avoid dual agency. I totally agree that you should have your own Realtor to represent you in the transaction. Some real estate agents think dual agency is fine, while others avoid it due to the inherent conflict of interest which exists when one real estate agent represents both parties in the same transaction. Arizona allows dual agency, but I believe it's illegal in some states, and I personally think it should be avoided.

However, if you want someone to represent you in the transaction, I don't understand why you would hire an agent who isn't available to do so. I don't know all the specifics of your situation and I cannot advise you since you already have an agent. However, I'll try to address some of your questions in a general sense.

If a buyer or seller is represented by a real estate agent, all communications should generally go through those real estate agents. This is just one of the many reasons people hire real estate agents. And a real estate agent should absolutely help the buyer to determine how much to offer on a property. While the price offered is ultimately the buyer's decision to make, a real estate agent can and should be providing comps and other information that would assist the buyer in making that decision. Assessed value is rarely the same as market value and should not be relied upon to determine a property's market value.

Usually, a commission is paid to the real estate agent who is the "procuring cause" in the sale. In other words, the sellers may not be willing to pay a real estate agent if the buyers decided to hire that agent after they already found the house and decided to make an offer. Perhaps you're aware of this and are planning to pay a real estate agent yourself, but I'm not sure since your comment asked, why would "I want to pay the agent several thousand dollars when we could ask for it to be taken off of the price of the house instead?" In reality, a buyer without an agent may not be able to take the commission off the price of the house instead. When a buyer doesn't have an agent, the listing agent generally earns the entire commission (usually 6%) and a buyer without an agent is not entitled to 3%. Often times, the seller/selling agent are willing to do this, but it's not something the buyer is entitled to. Here is some more info you may want to read regarding 'procurring cause':
http://www.aaronline.com/EthSpk/Feb04Ard.aspx

As far as letting the seller know you're approved for more than your offer, that's easy to avoid and you should discuss this concern with your real estate agent and mortgage company before providing a Conditional Loan Approval to the seller. In fact, you really should address all these questions to your real estate agent... answering your questions, addressing your concerns, communicating with the sellers/seller's agent, preparing and submitting your offer, providing expert knowledge... these are all reasons people hire real estate agents. Eliminating the unknowns and the stress/worries like you are currently experiencing is another reason to hire a real estate agent. Making a mistake during a real estate transaction can be very costly, both now and in the future. If a buyer's agent helps you to avoid just one mistake during negotiations or during escrow, that agent's commission was worth every penny...especially if it's being paid by the sellers.

Hope this info was helpful, but again, please realize I am providing you with general information only and you should not consider this information as advice. I don't know the details of your specific situation and these are all questions you need to discuss with your real estate agent. Best of wishes on your real estate purchase!

Posted by: Shannon Hubbard | Jul 3, 2008 8:28:46 AM

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