Dear Michael: We are purchasing a new home and closing escrow next week. We have found issues with the home that were not disclosed to us by the seller. What is the latest time during the escrow period when we can we stop the sale from recording?
Answer: If you have removed all contingencies and decide to cancel the transaction you could jeopardize your earnest deposit. To answer your question, once the loan funds: which is the process of having the buyers lender fund the loan by depositing the money to escrow via Title Company. The funding is executed in order to pay the seller for the property and any and all existing liens. This process is called payoff. A buyer can stop the closing from recording by approximately 2 p.m. on the day prior to the close of escrow. Be aware of that additionally to the earnest deposit being jeopardize, penalties may also be incurred. Please consult a real estate attorney for further recommendations.
Dear Michael: We are in escrow on an older home in which space restricts the possibility to have the furnace vents duct fixed up to code. Therefore a new furnace will need to be installed in the attic instead of the basement where it currently is. We requested to have the seller pay for half of a new furnace and were told that only a partial credit will be credited to us. We are not happy with the seller’s response, can we keep on requesting? And at which point do we settle?
Answer: You don’t settle for anything else than what you have requested and insist that the seller pay for half of the furnace. This is a legitimate request. It is not your fault that the furnace is not up to code. If your request was illegitimate then I would understand the seller’s decision but this is not the case. Tell your agent to resubmit your request insisting that you get credit for half of the furnace. It is worth a try. I doubt that the seller will risk having the purchase cancelled for the cost of half a furnace.
Dear Michael: My neighbor and I have comparable condos. He just listed his condo for sale at a lower price than mine. I am not sure how this will affect my condo. Can you please let me know what I can do to compete with him?
Answer: Unfortunately there is only one thing you can do. Price your home at a lower value than his…You may not like my suggestion but this is the only honest recommendation I can give you. A slow real estate market has no guarantees; this is why most sellers will not opt to put their homes on the market unless they absolutely have too. If you don’t want to lower your price you can hope that your neighbor sells quickly so you no longer have to compete. Only problem is that if a prospective buyer looks at the comparables he/she may conclude that your condo is overpriced. Your other option is to take your property off the market and realize that it may not be his property that is underpriced but more like yours that is overpriced…
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