Q-I recently received a mailing and a follow-up phone call from a woman who calls herself a ”property tax consultant.” She claims to have been successful helping homeowners reduce their property taxes. Her fee is 50 percent of the first year`s tax savings if she is successful. However, she wants a $150 ”good faith consultation fee” to show we are serious about having our tax reduced and to show we will cooperate by showing up at the tax appeal hearing. Do you think we should hire this consultant?
A-Ask for names of at least five homeowners in your area who have had their property tax reduced with the help of the property tax consultant. I`ll be very surprised if she can produce that many names, but if she does, phone them to find out what they thought of the consultant`s services. As for paying the $150 advance fee, I would be very skeptical about this. You should be aware there are many so-called property tax consultant franchisees and very few of them are successful. Be careful.
Time to switch agents
Q-Several months ago we signed a six-month listing with an agent for a large realty brokerage for the sale of our home. At the time of signing the listing agent said our asking price was high, but he agreed to the price and accepted the listing. Two days later he wrote to ask us to lower the price. About two weeks later another agent brought a purchase offer far below our asking price. We countered at $4,000 less than our asking price, but our agent said it would be a waste of time to write up our counteroffer.
During the negotiations, in front of the buyer`s agent, he was arguing in favor of the buyer and against me, his client. He also emphasized the comparable sales below our asking price, but never mentioned several comps that sold above our asking price. Adding insult to injury, the picture of our house in the multiple listing service book was not our house. I had to argue with my own agent to get the photo corrected. I told the agent since he doesn`t think he can get our asking price for the house, he should cancel the listing, but he replied ”absolutely not.” How can I cancel this contract, so I can list with a more professional and ethical agent?
A-Apparently you are not a regular reader of this column. If you were, you would have known not to sign a listing for longer than 90 days. Also, you would have known to interview at least three successful local agents and check their references of previous sellers before listing your home with the best agent. Each agent would have given you a ”competitive market analysis” form showing recent sales prices of comparable neighborhood homes, so you would know the correct asking price for your home.
Although you made all these mistakes and hired the wrong agent, the situation can be corrected. Phone the owner or manager of the real estate brokerage to arrange an appointment to transfer your listing to a better agent with the same firm. Point out to the manager how your current agent has breached his fiduciary duty to you, especially for refusing to write up that counteroffer and terminate negotiations. That was inexcusable.
But be sure to carefully interview the new agent and select one who has been successful selling homes in your neighborhood. It is hard enough selling a home in the current buyer`s market without having to fight with your own negative-thinking real estate agent.
Who pays for fixup?
Q-After searching for more than a year, we finally located an affordable home. However, we are having trouble financing this foreclosure, which was taken back by its builder. The previous buyers were so upset about losing their home they removed the fixtures from the kitchen and bathroom. We took this into account when we made our purchase offer, which the foreclosing builder accepted. But when we applied for a mortgage, we were told the lender won`t approve the loan until the house is put into livable condition. The builder is unwilling to put additional money into the house for the repairs. Should we consider a lease-option?
A-The foreclosing builder is foolish not to repair the kitchen and bathroom. But I am puzzled how you thought you would live in this house without necessary plumbing fixtures. The lender is wisely refusing to make the loan until the house is put into habitable condition.
Because you don`t own the house yet, you can`t borrow against it to pay for the required repairs. The best solution is to talk again with the seller to point out the benefits of making the repairs, perhaps adding the cost to your purchase price. If the seller refuses, then a lease with option to purchase will give you control of the house, so you can make the repairs. However, the work should be done quickly before interest rates go up, so you don`t miss out on the current home buying opportunity.
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Please note: Real estate laws differ from place to place, and laws of your area should be checked before making decisions on real estate problems. Address questions to Robert Bruss, Tribune Real Estate Features Service, P.O. Box 280038, San Francisco, Calif. 94128.
The new special report ”How to Earn Your Profit When You Buy Your Home” by Robert J. Bruss is available for $4 from NewspaperBooks, 64 E. Concord St., Orlando, Fla. 32801.
