Sellers beware: Devil’s in the defects

 

 

DEAR BARRY: We bought our house about six months ago. Since then, we’ve learned that someone else nearly bought the property and that those buyers hired a home inspector. The sellers were given a copy of the inspection report, but they never mentioned it to us or gave us a copy when we were the buyers. Shouldn’t they have disclosed the information in that report? –Vince

DEAR VINCE: Questions about who should have disclosed what and when they should have disclosed it never cease to arise. There seem to be no limits to the doubts and reservations surrounding real estate disclosure. At the root of the confusion is one basic question: How does a seller or an agent know what to disclose and what not to disclose?

Fortunately, the answer is simple and straightforward: Disclose all that you know: without exception, without compromise. When in doubt, disclose. The worst that can happen when everything is disclosed is that another buyer might have to be found.

On the other hand, the consequences of abridged disclosure may include financial loss, needless litigation, and in the very worst cases, injury or death due to undisclosed safety problems.

With this criterion in mind, no seller should wonder or ask if an old home inspection report should be disclosed. If the report itself is withheld from disclosure, then the particular defects that are listed in the report should all be included in the sellers’ disclosure statement.

Failure to disclose those defects can be regarded as deliberate concealment, and in most states, that is a violation of law. If you have concerns regarding possible nondisclosure, you should demand to see a copy of the old report.

Hopefully, you hired a home inspector of your own before buying your home. If your inspector was qualified, experienced and conducted a thorough review of the property, you should already be aware of the significant defects that were disclosed in the older report.

DEAR BARRY: My home inspector reported a problem with a gas water heater, but the seller’s plumber disagrees with the inspector. The water heater is installed in a utility closet, directly in front of the forced-air furnace. The inspector says the workspace in front of the furnace is restricted, but the plumber says this violates no provision of the plumbing code. If this condition is a problem, I’d like to have it repaired. How do we determine whose evaluation is correct? –Shannon

DEAR SHANNON: Everyone is correct, but the home inspector is more correct. The plumber is correct when stating the water heater placement violates no provision of the plumbing code. However, the problem involves a violation of the mechanical code, governing the installation of the forced-air furnace, not the water heater.

A minimum workspace of 30 inches is required in front of the furnace. If the water heater is installed within that specified workspace, then it will need to be moved to enable contractors and other persons to adequately service the equipment. Moving the fixture will entail modification and adjustment of the water and fuel connections, as well as the exhaust flue.

To write to Barry Stone, please visit him on the Web at www.housedetective.com.

 

 

  

 

Perspective: Share your local, hyperlocal market knowledge

 

 

Editor’s note: The following is a guest perspective.

People are interested in real estate. For many homeowners, the equity in their home is their greatest asset. Some parents, who would not lend their children money for anything else, will lend them money for a home purchase.

When people know that you are in real estate and they trust you, they will turn to you with questions about real estate. If they don’t know you, they will ask you about real estate to evaluate whether they can place their trust in you.

1. Engage in real estate Q-and-A

So the first easy way to make another sale in the next 30 days is to answer those questions in a way that elicits trust for you and allows you to discover whether they are asking because there is a need.

They may ask you, “How’s the market?” “What’s happening to prices?” “Will (X) or (Y) affect real estate?” (X or Y may be the price of oil, the weather, interest rates, conflicts and disasters around the world, etc.)

Much of the time they are asking the question or questions because there is a need. So the best way to answer is to point out that real estate markets are local. Provide some information about the local market or the hyperlocal subdivision, town, suburb, etc.

Add your own take on the real estate opportunities in that market. Be sincere and honest. That is more important than unrealistic or unfounded optimism.

Your answer matters less than the question you ask next. Always follow your answer with a question that takes you where you want to go.

You may ask, “Are you thinking about doing something, or maybe you know someone who is?” “Often people ask me because they have something in mind or know someone who does. Do you?” Or, “Why do you ask? Are you considering making a move or do you know someone that may be?”

2. Go where people gather

People tend to ask real estate questions anywhere that you engage them when they know you are in real estate. So the second easy way to make another sale in the next 30 days is to be sure to be in those situations more often.

Go to parties and meetings. Participate in organizations. Drop in on people at their places of work with coffee or pastries. Go to community events and events at places of worship. In other words, look for and attend anything where people are gathered.

As long as they know that you are in real estate or there are others to introduce you as a real estate person, you are very likely to get those questions.

Even if you are not comfortable in that situation or you are not that interested in going … go anyway. You are building a networking skill. There are better and more tactful networking skills. This one is very direct, yet subtle in that it is prompted by the questions of others.

Here’s the most important networking skill that will lead to real estate questions: Ask the other person about what they do for a living or what type of work they are looking for, or what other interests they have.

Take a sincere interest in them and what is important to them. Think of people you know and ways you might help them. Focus on that. Then, when the conversation turns to you, if you get a real estate question you know what to do.

Make sure, when you are attending gatherings, that people know you are in real estate, or that there are people there to introduce you as a real estate person.

3. Direct mail

That leads to the third easy way to make another sale in the next 30 days: Marketing gurus Dan S. Kennedy and Murray Raphel both agree that “dollar for dollar, nothing will return as much to your business as direct mail.” (Though there are some Internet exceptions.)

Send a postcard that lists houses you have sold and includes your photo and a message that states what is going on in the local and hyperlocal markets, the risks and opportunities, and how this is a time to choose a real estate agent who understands how to navigate a tricky market. End with a call to action to call, text or e-mail you.

Put these three things in your calendar. Consider them as important as any other activity or appointment. Look for opportunities to be with groups of people who know that you are in real estate because of your marketing.

Most importantly, practice the above script that shows an interest in the other person as it shows your ability to recognize opportunity.

Rich Levin is a real estate coach and productivity expert. He conducts a free, live webinar every weekday morning for real estate agents. To register for the webinars, visit www.FreeCoachingWebinars.com. For coaching or speaking opportunities contact Levin at (585) 244-2700 or e-mail Rich@RichLevin.com.

      

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