Market Update

Brief update on the market:

Showings on homes are way down.

Most Realtors are reporting the same thing and we all agree it has to do with all that snow and cold out there.

The good news is Internet views are up, so the interest is there.

Now we just need some better weather.

We still expect a strong Spring market. We know Spring will come soon.

I think.

I feel I have an accepted offer on a home but....

Question: I recently put an offer on a house and gave a $1,000 deposit. I signed all the contracts. I never received a signed copy from the owner because he was away on business. His agent overnighted him the contracts and the owner of the house is now saying he does not want to sell. Do I have a right to that house? The agent did refund my money, but I feel the owner signed the contracts and the house should be mine. 

Answer: Entire libraries are devoted to the question of what is or is not a contract. In general terms, you need an offer (a bid to purchase), acceptance (an owner who says "great" and signs the offer) and consideration (such as a deposit). A signed document is awfully good evidence that something was accepted, but based on your note you don't have any proof that the seller actually signed the offer.

Moreover, you did not sign a "contract." You did sign an "offer." To have a contract you would need the seller's signature and acceptance of all terms. Sellers are not required to accept offers, even full-price offers.

That the owner was "away" does not mean a signed agreement could not be sent overnight or electronically transmitted.  Your deposit has been promptly returned -- that's good news and a credit to the broker.

The question to ask is this: If you really want the property would it make sense to submit another offer?  Maybe the first offer can be modified to gain acceptance from the owner.

When is the Right time to sell and buy?

Question: How can I be sure that now is the time to sell and buy?

Answer: You can't. There's no way to time the market, to buy at the low point and to sell at the high. What you can do is buy or sell in response to your needs and preferences.

If you think about the most-successful real estate "investors" it often turns out that they're simply people who needed shelter, lived in their home for many years, paid down their mortgage and then had significant equity when they sold. It's an old formula -- and one which has largely worked for most owners, most of the time and in most markets.

Buyer has a Home Inspection Issue

Question: I'm trying to buy a home for the first time, did the usual contract, had the inspection done and found out the roof had four layers of shingles. The inspection report came out and stated the roof was not leaking, but structurally it was dangerous.

The sellers came back and said they will fix the roof, but increase the price of the house. That was a verbal, and we stated no because we did not expect to pay more for the house. To make a long story short, the sellers are two attorneys and they are now threatening us with legal action because they said nothing is wrong with the roof and they agreed to fix it anyway.

Answer: You need to get your own attorney and have him or her look at the purchase agreement and all disclosure statements. Most likely the building code requires that no more than two layers of roofing material can be used. The reason for this is to limit weight on the roof.  Too much weight could cause structural problems.

As to the seller's offer, it's a counter offer to fix the roof at your cost in the form of a higher price to which you have not agreed. What, exactly, is attractive about that?