Dear Michael: We closed escrow on our new home and the seller did not replace the electrical panel as agreed by our request for repair. When we approached him he said that it worked fine. This was after he agreed to replace it. This will cost us $3,000 to replace. How can we collect the funds?
Answer: Your seller is at fault particularly if he/she signed the “Request for Repair” form. I assume you had a verification of property condition (walk-through) prior to the close of escrow. This would have been the time to put pressure on the seller and question him/her as to why it was not replaced as agreed. You could have opted to have escrow hold the close until your dispute was resolved. Most buyers have a set schedule to move into their new home, so postponing the close is not always an option.
This could be a matter for small claims court. If you decide to go this route, it will be essential to be prepared on the date of your hearing. You’ll want to bring all your documents showing proof and what you are suing for. More often than not, when the defendant is served, he/she will opt to settle out of court. You may want to contact a real estate attorney for more details.
Dear Michael: What is the difference between a listing agent and a buyer’s agent?
Answer: Basically, a listing agent represents the seller and the buyer’s agent represents the buyer. However, any real estate agent can serve in either role depending on the client’s needs, or they can serve in both roles under dual agency.
Many agents specialize in working with sellers or working with buyers and there may be some benefit to that. If you hire an agent to list your home, make sure he or she has knowledge of the area and has done some listing sales in the past.
Dear Michael: I recently made an offer on a house with what the agent called a short sale. Could you explain this and also tell me why I can’t seem to get an answer on my offer? It’s been over a month. I am ready to move on to another property.
Answer: To answer your first question: A short sale is when the bank holding the mortgage must agree to accept less money than what is owed on the property (value of the mortgage).
Your second question, regarding the time it is taking to get an approval on your offer – in light of all the foreclosures and short sales, loss mitigation departments are overwhelmed with requests, are unaccustomed to the volume and have procedures in place they must follow. This can take from one week to as many as six months to review.
There are also supplementary parties that may be involved, such as private mortgage insurance companies (PMI) that insure the loan against default. My advice is that if you really love the home, wait. The banks do not want these homes in their foreclosure inventory. They will work with the sellers and buyers to get the home sold rather than go through the foreclosure process.
Dear Michael: My agent angered a buyer who walked away from negotiations by asking his for a copy of his credit report. Was that wrong for the agent to do?
Answer: Your agent stepped over the line. We are not licensed mortgage professionals and an agent has no business asking for a buyer’s credit report. However, it is entirely reasonable for the agent to ask the buyer’s lender or mortgage broker for a pre-approval or pre-qualification letter indicating he/she has sufficient credit score, debt-income ratio, savings, income, etc.
If a buyer is paying cash, it’s reasonable to ask for proof of funds. I am not sure how serious this buyer was. In my experience, when a buyer loves a home so much that he/she is ready to make an offer on it, asking for a credit report should not be a substantial enough reason to walk away from the home.
Michael Kayem is a Realtor with Re/max/Execs, serving Culver City and the Westside since 2001. Contact him with at (310) 390-3337 or homes@agentmichael.com.