Q–We made a purchase offer to buy a house, and the seller counteroffered. While we were thinking about raising our offer price, our real estate agent obtained an offer on the same house from another buyer, who met the seller’s counteroffer price. As a result, the other buyer got “our house.”
Do you think this was kosher? We think it is highly dishonest of our agent to (1) disclose the counteroffer price while we were thinking it over and (2) to work with another buyer to purchase the same house. Your opinion please.
A–Unless you were taking an unreasonably long time to consider the seller’s counteroffer, your agent, in my opinion, should not have encouraged another client to make an offer on the same house, especially since the agent knew the price the seller would accept.
The counteroffer isn’t confidential information, since you were free to show it to anyone. But your realty agent shouldn’t have used “insider knowledge” to get another buyer; this action was probably a breach of fiduciary duty to you.
Were you damaged by the other party buying that house? That’s hard to prove since you were taking your time deciding about accepting or rejecting the counteroffer. Did you accept the counteroffer before the other buyer made a purchase offer? If so, then you may have a valid contract to buy the house. Consultation with an attorney is advised if you wish to pursue the matter.
Q–Some time ago you ran a letter from home sellers who weren’t happy with their novice real estate agent who, they later learned, was a new part-time agent and full-time school teacher. I agree the agent should have disclosed the fact that she was a new, part-time agent who just happened to have “floor time duty” when the sellers walked into the office.
I’ve been selling real estate for 24 years. At our firm, we match the old-timers like me with the new agents for their first six months; they get part of our earnings so they don’t starve. I enjoy mentoring the new agents because they are so enthusiastic and hard-working. Often they have new sales ideas that help keep me learning. I think you’re wrong to discourage home sellers from listing with new agents.
A–Once upon a time, every real estate salesperson was a new agent. But I can’t recommend that a home seller choose a new agent over a successful, established agent.
Although some established, successful agents take “floor-time duty,” answering phone calls and greeting walk-ins, it’s usually the inexperienced agents who use floor time to get new clients. The best approach for home buyers and sellers is to contact the brokerage manager, who can match them with the right agent — new or experienced — for their situation.
Q–We put our home on the market for sale the week after Super Bowl Sunday. Almost every weekend we advertise our open house. We’ve spent over $1,000 on signs and advertising. Many people say they like our house, but so far we’ve only had one firm offer, which was far too low. The house next door sold last year, so we’re asking the same price. But most of the people who come through our home are realty agents looking for listings.
How can we get our home sold fast so we can get our cash out? My husband has already started work in our new city, where I’ll join him when the house is sold.
A–It sounds like you’re doing everything you can to keep your home from selling. Being objective on the sale of your own home is extremely difficult. Also, if you’re expecting an all-cash sale, you may be dreaming. If you haven’t let local realty agents know you’ll pay at least 50 percent of a full commission, don’t expect any agent to show your home to prospective buyers.
Your asking price might be too high if your home doesn’t have all the features of the one next door that sold last year, or if prices have declined in your area.
Of course, your biggest disadvantage is that you don’t have access to the powerful multiple listing service (MLS), where most homes are sold. Agents have hundreds of homes to show buyers through the MLS, whereas you have only one home to sell. By not having the local real estate agent network working for you, you’re on your own.
Please interview at least three successful local realty agents about listing your home for sale. You’ll hear their listing presentations and receive a comparative market analysis from each agent, along with their estimate of your home’s market value. After you check each agent’s references of recent sellers, list your home with the best one.
Since your home hasn’t sold within the last three months — during the best time of year for home sales — it’s clear you need professional help.
Q–I moved out of my apartment about six weeks ago, after giving proper notice. The resident manager inspected my apartment and we agreed there was no damage. She said I would be receiving my security deposit from the owner in the mail.
After a month, I phoned the manager to report I hadn’t received the deposit refund. I asked for the owner’s name and address. She refused to give it to me. I wrote her a certified letter demanding my deposit refund, but I haven’t heard back. What can I do?
A–Landlords who don’t promptly refund deposits make the rest of us landlords look bad. Most states have laws requiring refunds within a certain number of days and imposing penalties for failure to do so.
To find the owner’s name and mailing address, call the local tax collector’s office. When you find the owner, send him a letter demanding a full refund within 10 days, with a copy to your attorney. If the refund doesn’t arrive promptly, take the landlord to Small Claims, Housing, or other local court.
Q–My wife and I made an offer to buy a house, and it was accepted within a few hours. Now we’re worried we paid too much and want to get out of the contract.
We included contingencies for getting a mortgage (we are already preapproved) and for a professional inspection. The lender’s appraisal came in slightly above our offer price. But the professional inspector found some minor problems, such as leaky gutters, a possibly cracked furnace and the need for a chimney spark arrester.
The seller says she will take care of these problems. But we have decided we really don’t want to buy this house. How can we get out of the contract without losing our $2,500 deposit?
A–When you and your wife signed your purchase offer, it was not to practice your penmanship. The seller accepted your offer in good faith and is relying upon you to complete the purchase as agreed.
Making a home purchase offer is serious business, not a contract you should even think of not completing. If you didn’t want the house, you shouldn’t have made a purchase offer.
From your description of the situation, it appears you have no loopholes or escape clauses. I realize it is a terrible feeling to have your first purchase offer accepted by the seller without any negotiation. But it happens. I admit I’ve sold some of my rental houses that way with no haggling after the buyer made a decent purchase offer.
Since the lender’s appraisal justified your purchase price and the seller will have the defects corrected, there’s no valid reason why you shouldn’t complete your purchase as agreed.
Somehow, home buyers have gotten the idea that making a purchase offer is just for fun. It isn’t. When you have a binding home purchase contract, getting out of it can be expensive. Please consult your attorney for further details.
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PLEASE NOTE: Real estate laws vary from place to place. Be sure to check the laws of your state and municipality before making decisions on real estate matters.
Write to Robert Bruss at Tribune Media Services, 435 N. Michigan Ave., Chicago, Ill. 60611.
