Answers and QUESTIONS

SEND ME YOUR QUESTIONS... and I will publish my answers right here!

Sometimes we all have questions we are afraid to ask or have asked and not received the response we need. This page is specifically designed for anyone to post their question, with regard to anonymity and have their question answered honestly, then posted for the benefit of others.

To post your question...

Send your questions to jr@jrcollinsrealtor.com
Call me at 317-2770 for an immediate response

Q: Almost two years ago I purchased a home "for sale by owner" from a real nice couple in Joplin. After we moved in, the central heat and air went out and I had to replace it. During that replacement, our contractor found termites in the seal plates of our foundation and mold around the central air unit underneath our house. I thought that was the end of our problems until our neighbor sold their house last month and their survey found that our detached garage sits 10 feet onto the neighbors property. Where do I begin to fix this issue with the garage and is it possible to make the people who sold me the property pay for some of these expensive repairs? KC, Joplin

A: I feel so sorry for you and the situation you are in, please see a real estate attorney immediately to review all of your paperwork (I will send you the names of several good attorneys in our area who specialize in real estate law). You did not mention whether you had a survey or home inspection done before you signed the final papers. I cannot stress enough to buyers the importance of having a survey. The surveyor provides you with orange stakes that show you exactly where your property begins and ends and writes a binding legal description of the property. At that time, the surveyor also assumes legal responsibility for those boundaries being absolutely correct. As for the termites and mold, it is a state law that all residences have a mold disclosure (and a lead base paint disclosure) signed by the seller prior to the property being sold, that would make them liable for any pre-existing mold that was found. As a licensed Realtor, I am required by law, to have all of these documents signed by both parties. You did not say what you paid for your house, but I would imagine that a $200 survey, a $25 termite inspection and a $400 home inspection would have been a very wise investment prior to you assuming ownership of that property. A Licensed Real Estate Agent is specially trained for preventing these types of fraud from happening to anyone! I certainly hope the attorney can help you, please let me know how it turns out!

Q: Our mortgage payment recently increased from $857 a month to $1204 per month. We knew we had an adjustable rate loan however, at the time our loan agent said we could refinance to a fixed rate mortgage in a few years because our house would be worth more. I called my mortgage broker only to find out that I don't qualify for a new loan. Do you have any suggestions for me at this point, I simply cannot keep making these higher payments much longer? JK, Joplin

A: I am so sorry for your situation, I also have a family member in the same situation. He too purchased his home and got an adjustable rate mortgage. The initial rate was 4.9% and now it has grown to 10%, doubling his payment. He was told the same thing, that in a few years he could refinance and based on the growth in the value of his home over that time, he would qualify for a fixed rate loan. Unfortunately, the value of his home did not increase very much and due to being late on these higher payments a new loan is not an option for him either. In his situation, I have suggested he contact his lender immediately and explain to them that he is not going to be able to keep making the payments, and his house is currently appraised at the value of the loan, in other words he has acquired no equity yet. Lenders do not want to foreclose on your house, especially right now, they are over loaded with foreclosures and most of these homes have been trashed and sell way below their loan amount. Call your lender and ask them about selling your home, perhaps get them to approve a "short sale". A "Short Sale" is when the lender agrees to let you live there with a payment arrangement and lists your house with a licensed Realtor. The Realtor puts a note on your listing that this is a short sale, so negotiations must be approved by the lender. This note also indicates to other Realtors that this home will only be on the market a short time so they must move quickly to get their buyers in to look. Some lenders will even approve an offer for less than the amount owed on the property, because going through the foreclosure procedure is very costly and time consuming. This "short sale"procedure is becoming more popular and most Realtors review new listings looking for short sale properties for their buyers, it is a good deal for both the homeowner, the lender and the new buyer. Please let me know if I can explain this further as you negotiate this strategy with your lender, I would be glad to help.

Q: I recently made an offer (through another office in Joplin) on a house in Carl Junction, however 2 weeks after my offer was made, the neighbor of that property told me the house had sold to another buyer. I called my agent only to find out he was on vacation... it took another 3 days for him to return my calls. He told me simply that I did not get that house and wanted me to look at one of his listings. Why was my offer ignored and why didn't they come back to see if I was willing to increase my price? JW, Carterville

A: I am sorry you are confused and feel your agent did not represent your interests in this transaction. I had you fax me a copy of your offer and I did see some problems. After review, I noticed that your offer on your dream house had no expiration date on it, clearly a very important part of any contract, no offer is good forever! That date is determined by you at the time that you sign the offer. It can be 24 hours, 48 hours, or a week or more. This date is a time frame in which the seller has to respond to your offer. The Seller also has to "sign" an acceptance or rejection (in other words, put it in writing) to your offer within that time frame. You can also ask in writing that you be present at the time the offer is submitted! In doing this, you guarrantee that your agent represents you to the fullest ability allowed by law regarding your offer! I also noted that your agent had you sign on the wrong line, another costly mistake! I would say that the buyers read over your contract and immediately thought your offer was not legitimate because it had two major mistakes. Unfortunately I do see this happen from time to time on offers sent to me by other agents. I immediately call them and make them aware of the problems and ask them to correct them before I present the offer to my sellers. If they do not respond within a reasonable amount of time, I present their offer "as is, mistakes and all" to my sellers. I hate doing this, as I want everyone invloved to be fully represented and I want my clients to fully understand what their options are! I suggest you make an appointment with the broker of the firm that handled your offer. Sit down with him or her, explain your problem and see what they have to say. If you are still not satisifed after that meeting, call the Joplin Board of Realtors and file a greivance. The Board will review your complaint and see that you are heard! I must say to all buyers to read their contracts thoroughly, ask all the questions you want, if your agent is not willing to fully explain your options, get another agent! If that agent does not return your calls in a timely manner, call his or her broker and let them know!

Q: I am recently divorced and I moved into an affordable apartment. My exhusband kept the house but I signed a quit claim deed as part of our divorce proceedings. I would like to purchase a home for myself but when I tried to get pre-qualified I was told his mortgage was on my credit report even though I am no longer responsible for the payments. Why didn't my lawyer explain that to me? RS. Carthage

A: I am sorry you had to find out in this manner, just because you signed a quit claim deed to the property does not mean you are removed from the mortgage. I am sad to say, I have had more than one client find this out the same way you did. Divorce is a difficult thing to go through but protecting your credit is just as important as who gets the furniture or car. You need to contact a good credit counselor and see what procedure is best for you to get that done as soon as possible. It is not impossible to fix this problem but it will take time and persistence on your part. If you have any friends or a support group, please advise them to make sure if they encounter the same situation as you did, to make sure refinancing the mortgage to remove the ex-spouses name is very important and should be part of the original divorce proceedings. That also applies to all joint accounts including credit cards, charge accounts and car loans. I am going to send you several names of good credit counselors that I have had good experiences with in dealing with this matter, I know they will help you.

Q: My husband and I are thinking about selling our home and buying a larger house, but with all of the news about the market and economy right now, we are afraid to do it. I have heard that it is a good time to buy, but what about selling our home in order to buy another one? JC, Duenweg

A: I am glad to answer this question, everyone is talking about the market and our economy right now and I cetainly know that my grocery bill has changed the budget at my house. Yes, it is a great time to purchase a home right now, interest rates are at an all time low and there are many houses to choose from that are priced competitively. Since you are "selling up" you are in a good position to do both, sell and purchase. "Selling up" is a good move, even in a buyers market, and refinancing to a better interest rate will save you a lot of money! First, get a current market analysis of your home to determine it's market. Let's assume you have a 3 bedroom, 1 bath, 1 car garage in Duenweg, priced below $75,000. That type of house is in a sellers market, that means that the inventory for a "3 bedroom, ready to move in" home for sale in that range is minimal, so you should get top dollar for it. You could be one of the lucky ones that sells in a "sellers market" and buys in a "buyers market"!!!! You will also get a better interest rate on your new mortgage, which will save you thousands of dollars over time. I am going to send you a 10% off Lowes Home Improvement Store Coupon so you can get your home in top condition to sell for top dollar!

Q: My house has been listed for more than 6 months with very few showings, can you tell me why no one wants to look at my house? JK, Carl Junction

A: Thank you for a question that everyone seems to be having right now. In most cases, we are in a buyers market, which simply means there is a large inventory of homes availabe for buyers to look at now. In your price range ($125,900) for a 3 bedroom, 2 bath home in the Carl Junction School District there are more than 26 homes availabe for a buyer to choose to drive out and look at. I pulled your listing up on the mls service for review and discovered some problems. Number one, your agent has your home in the wrong area. Local real estate is divided up into areas, such as Carl Junction, Webb City, Carthage, Joplin Northeast, Joplin Southeast, etc and that is input into the computer using a code number. Your home is located in Carl Junction but your agent has it in the Carthage area, probably a typo when inputting the data, however a very costly mistake. Your home is not even being found by anyone looking in the Carl Junction area. Also, your listing has just one photo, of the view from the street. When an agent sits with buyers at a computer screen and looks over approximately 25-30 homes, the more photos to show them the better. The more photos of your home they can see from the computer, the more they will want to see your house in person They can immediately see all of the features, such as a big back yard or a beautiful brick fireplace. Call your realtor immediately and have them bring the listing by for you to review and point out these changes, I am sure you will have showings right away!

Q: I take a lot of pride in my home and feel it has great curb appeal, however my neighbor doesn't. Is there anything I can do to get my neighbor to clean his place up so my house will sell faster and for more money? JK, Joplin

A: I drove by your house and you are correct, your neighbor is a slob. The City of Joplin does have nuisance and abatement codes that apply in your situation, call them and file a formal complaint. That will begin the process but may take some time. I suggest the best and quickest solution is to spend $300 and build a wooden or vinyl privacy fence to hide his mess, that will add value to your home and will yield a 100% return when your home sells, I'd call that money well spent!

Q: I am currently renting a nice home in a nice neighborhood but sometimes wonder if I am paying for someone else's investment. Would I be better off investing in my own home? TW, Webb City

A: You need a rent verses mortgage analysis. Any real estate agent can run the numbers and print you an easy to understand comparison. Yes, you are paying on someone else's investment! Real estate is a great investment, especially in the long term. We are in a buyers market and there are some real bargains out there so now is a great time to begin looking at what you can do to better yourself financially and invest your money wisely. Call and set up an appointment, it costs nothing to find out!

Q: My house has been on the market for more than a year, we have made 2 price reductions for more than $8000. We have had numerous showings but no offers, what is wrong? RS, Carthage

A: I took a look at your listing and viewed the original price then the "dom" (days on market). Then I came by to see your home. Your home is quite large and is in a great location but needs some tlc. It is very important to determine the right price right from the start. When buyers look at your listing and see these price reductions, the first thing they think is "what's wrong with that house, why hasn't anyone else bought it yet?". I suggest you take it off the market now, and go to Lowe's (I will send you a 10% off coupon) and get some neutral paint. Paint your interior walls so that they sparkle and look brand new. When you get it done, re-list your home (this will reset your original list price on the listing data sheet and reveal a new starting day for your dom (days on market). This will cost you about $225 and will give you a return of thousands!

Q: I have had my house for sale by owner for about 6 months but only received phone calls but no real interest. Can you explain why no one is interested? RW, Joplin

A: FSBO's sometimes work in a sellers market, when buyers are lined up to look at houses, but we are in a buyers market right now. Your home would benefit from a full and professional marketing plan from an experienced real estate agent. That agent knows the market and spends marketing money wisely, remember if they don't sell your home, they do not get paid! Take a look at my page titled "SELLERS - Why use a Realtor?" for more information pertaining to this subject. But I must also advise you to the risks you may be taking. NEVER show your home to a stranger. Realtors have a bulletin board in which they post notices, and just yesterday an alert was noted about a robbery that took place when a seller showed their home to a stranger who just "happened" to be in the neighborhood! The burglar convinced the seller that he was a very interested but didn't have time to schedule an appointment. While he was looking, he asked to use the bathroom. After he left, her medicine cabinet had been ransacked and her jewelry box was gone. Not to mention what else could have happened then or maybe later! NEVER, EVER do that!!! A licensed realtor sets an appointment, gathers pertienent information about that person prior to showing your home, thiefs and scroundles hate this and stay away. Please list your home with a professional. I know I will sleep better at night knowing that you are safe!

J.R. Collins Realtor

Call me at (417) 317-2770!