Lack of disclosure can create problems for sale of home

Q: My neighbors' home is for sale. Are they obligated to tell the real estate agent and possible buyers that they have a problem with squirrels in the aluminum siding along their roofline? The squirrels built nests there and could be seen and heard running around all winter. You can see debris that they carried back and forth. -- Just Curious

A: Whenever the question is "should it be disclosed?" the answer is just about always "yes." That's the standard advice, both to act in an ethical manner and to avoid future problems. The general rule is that sellers must disclose any known (major) material defect buyers couldn't see for themselves in a normally prudent inspection.

I'm just curious, too: Are you planning on telling that to your neighbors?

Buyer's remorse can

be difficult to resolve

Q: I have a buyer/client who is scheduled to close in three days but wants to get out of the deal. They don't like the house anymore. I don't know what to do at this point. -- L.R., real estate agent

A: Sounds like a classic case of buyer's remorse. One symptom is that it usually strikes at the last minute in the middle of the night. The first remedy is to arrange a re-visit to the house (with the sellers not there) in hopes the place will appeal as it previously did.

If that fails, don't try to give legal advice. Tell your clients to consult a lawyer right away. If they don't have one, don't take the responsibility of recommending an attorney. Instead, suggest the names of several lawyers who handle real estate.

If you are under the supervision of a broker, he or she should be alerted to the situation right away.

Broker can help

with rental purchase

Q: The real estate agent representing my landlord called to say the landlord has decided to renovate my house and put it on the market. I have to move by next month so work can start. They will sell the house to me if I qualify for a mortgage. How do I know what amount to ask for in a mortgage, or does the mortgage company determine that? I would like to be able to negotiate on price.

I like the house and the neighborhood, and the location is close to where I work. -- via e-mail

A: You could use help from a real estate broker. Walk into a nearby real estate office and ask for advice. A broker could analyze your finances, analyze the property's market value, help negotiate a contract and guide you in securing a loan. As you don't need help with house hunting, see whether you can find someone who'll work for an hourly fee or a discounted commission on the services you do need.

Whatever happened to

'location, location, location?'

Q: My husband and I are thinking of selling in the next year or so. We met with a few local brokers to get opinions, and they all priced it about the same amount by comparing ours to other Cape Cods in our town. Two had even prepared the numbers before viewing the inside of our home.

The range we were given is significantly less than other homes in our neighborhood. I realize our house is smaller, but this seems like a large gap. Our house is in good condition, has a great floor plan and a nicer yard than many of the other homes nearby.

The brokers all said they would not price our home in relation to others on our street because all comparables must be of the same style. With all the talk about "location, location, location," why does it appear the location has no relevance to the asking price? -- Confused Sellers

A: You're right in thinking the modest house in a more expensive neighborhood should get marked up somewhat. The fact that all three brokers suggested prices in the same range, though, does seem significant.

The two who took the time to research before even visiting your house were doing their job properly. They were trying to anticipate the reactions of house hunters, who won't choose to visit your house if the asking price seems too high in comparison with competing properties. After all, you've got to get buyers in before they can see how great the place is.

That being said, any estimate, no matter how skillful, is simply a guess. In the end, you won't set the value of your home, and neither will those agents. Buyers determine what a house is really worth.

As it appears you have the luxury of time, you always can start by putting the house on the market at a higher price simply to test the reaction of the buying public.

Edith Lank will respond personally to any questions sent to her at 240 Hemingway Dr., Rochester, NY 14620 (please include a stamped return envelope), or readers may e-mail her at ehlank@aol.com.