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Thanks Bill. Wouldn't the seller and listing agent be extra motivated to make things right here so it closes as a short sale and not as a foreclosure? I mean, they both have plenty to lose if the latter happens. I'm very reluctuant to start dumping money into inspections on a place I know has issues before the inspectors even get there. That pool is gone! It has to be drained. I'd rather swim in the ocean than that biohazzard of a pool. I would think the seller would much rather have a short sale on his credit report than a foreclosure. He seemed like a normal, reasonable guy, not an apathetic deadbeat. And he did leave the inside super clean, which makes me wonder if he's truly abandoned it. He left a very nice LG washer and dryer in there. Surely, he's coming back for them.
The seller probably doesn't care anymore. That's why he turned the power off and stopped maintaining the pool.
The listing agent is not going to put money into the pool. That would be foolish. All he can do is ask the bank to do it.
Here are my suggestions:
Get Gambusia into the pool immediately. You don't want to breed thousands of mosquitos. Either call Vector Control and report it, or go get them yourself. Whether you buy the house or not, you'll save the community from a lot of grief. If you look very closely into the pool you'll see the tiny mosquito larvae swimming around. At any day they will spread their wings and fly. They might be flying the next time you go there.
You are buying a short sale property (as is) at a distressed price, which is less than the market value for an arms length sale. Any time you buy a distressed property, you must expect there are issues that you will have to pay for.
Request your agent to request the listing agent to request the bank to turn the utilities on and get the pool cleaned so it can be inspected.The bank can turn utilities on in their name, or you can, no matter who owns it. The utility companies don't care who owns it; they care who is going to pay the bills.
If the bank won't turn it on, and you don't want to go to that expense, then you have some choices:
Estimate your cost of repairing the pool. First you have to dump chemicals into the pool to kill the algae and clear the water. Then you must drain the pool and do an acid wash. Then you fill it back up and get the water stabilized while inspecting it.
Figure about $5-700 up to this point, plus water costs. Plug in about $2000 for repairs, assuming you saw no visible repairs needed before the pool was drained. If it has pop-up clean outs, they may need replacing and they will cost you around $90 each, installed. You will need to have the filters cleaned. That could run a couple hundred dollars depending on the type filter.
You then negotiate with the bank for a lower price of $3-5k in order to accept the pool without an inspection.
If that doesn't work, and you're not happy, then look for another property. You would cancel this contract based on not being able to complete an inspection.
Just remember, you're dealing in the discount market, not the normal arms length move-in ready, seller provides the standard AZ contract warranty. In the discount market you are going to deal with As Is problems. It comes with the territory.
The other option is to consider buying homes in the regular arms length market and pay the price for move in ready homes with the standard AZ contract warranties.
Request your agent to request the listing agent to request the bank to turn the utilities on and get the pool cleaned so it can be inspected.The bank can turn utilities on in their name, or you can, no matter who owns it. The utility companies don't care who owns it; they care who is going to pay the bills.
how can a bank turn on utilities if they don't own the property
Tenant has to show lease agreement what would bank show?
My tenants don't have to show a lease agreement. My client/tenants whom I've placed in rentals never had to show a lease agreement.
I turn power on in my name for banks who are the owners of the bank owned properties that I list. The utilitiy companies are only interested in my ability to pay for the utilities, not who owns the property.
My tenants don't have to show a lease agreement. My client/tenants whom I've placed in rentals never had to show a lease agreement.
I turn power on in my name for banks who are the owners of the bank owned properties that I list. The utilitiy companies are only interested in my ability to pay for the utilities, not who owns the property.
Hypothetical, but suppose the owner leaves the water on in the washroom, or worse, saws a hole through the pipes or even takes them out for the copper. Who is liable for the damages to the property? You? As a realtor, you have a key to get in, but a guy interested in buying the house does not and can't check that turning something or other on is not causing damage.
My tenants don't have to show a lease agreement. My client/tenants whom I've placed in rentals never had to show a lease agreement.
I turn power on in my name for banks who are the owners of the bank owned properties that I list. The utilitiy companies are only interested in my ability to pay for the utilities, not who owns the property.
To my original point listing agent turns on utilities not the bank.
Until bank becomes owner of that property they have 0 vested interest in turning on utilities.
We both agree that seller will not put a single penny into this property.
Which leaves listing agent as the only possible person who can turn on power and water. Base on the information provided he is going to lose this listing within next 30 days when bank takes over via trustee sale.
That listing agent invested his time and money already into this property and base on a comments commission is quite large on this property (6000 to 9000 range) and if he feels that bank is very close to agreeing to accept the offer and buyer wants to walk away because of the condition of a pool if I were the listing agent I would get the pool clean and have power and water turn on.
If listing agent feels he is getting no where with a bank on getting approval I wouldn't do this.
My tenants don't have to show a lease agreement. My client/tenants whom I've placed in rentals never had to show a lease agreement.
I turn power on in my name for banks who are the owners of the bank owned properties that I list. The utilitiy companies are only interested in my ability to pay for the utilities, not who owns the property.
To my original point listing agent turns on utilities not the bank.
Until bank becomes owner of that property they have 0 vested interest in turning on utilities.
We both agree that seller will not put a single penny into this property.
Which leaves listing agent as the only possible person who can turn on power and water. Base on the information provided he is going to lose this listing within next 30 days when bank takes over via trustee sale.
That listing agent invested his time and money already into this property and base on a comments commission is quite large on this property (6000 to 9000 range) and if he feels that bank is very close to agreeing to accept the offer and buyer wants to walk away because of the condition of a pool if I were the listing agent I would get the pool clean and have power and water turn on.
If listing agent feels he is getting no where with a bank on getting approval I wouldn't do this.
To my original point listing agent turns on utilities not the bank.
Until bank becomes owner of that property they have 0 vested interest in turning on utilities.
We both agree that seller will not put a single penny into this property.
Which leaves listing agent as the only possible person who can turn on power and water. Base on the information provided he is going to lose this listing within next 30 days when bank takes over via trustee sale.
That listing agent invested his time and money already into this property and base on a comments commission is quite large on this property (6000 to 9000 range) and if he feels that bank is very close to agreeing to accept the offer and buyer wants to walk away because of the condition of a pool if I were the listing agent I would get the pool clean and have power and water turn on.
If listing agent feels he is getting no where with a bank on getting approval I wouldn't do this.
There is never a guarantee that a short sale will close, no matter how close it seems. There are too many people in the chain that have to approve the sale.
If I have a short sale listed, there is no way that I will invest my money into getting a pool cleaned. The listing agents job is to market the property and negotiate the short sale with the bank. It is not his job to pay for pool cleaning.
The buyer is getting a bargain in the first place, and if he wants the house badly enough and the bank refuses to get the pool clean, then the buyer is going to have to pay for it, or walk.
The buyers agent job is to help the buyer find a property, determine the current market value, negotiate the best price, and keep the buyer out of legal trouble through the escrow process.
It is not the buyers agent's job or the listing agents job to pay for pool cleaning.
Too many people are quick to want to get into the realtors pocket. All they see is an imaginary 6-9k commission, when that is usually not what the agent ends up getting after paying the office split, and any transaction coordinators and assistant. Also, they do not see all of the expenses and overhead that agents have.
Agents get paid for doing their job, and many times they work with a listing and a buyer and they don't get paid at all. So it is very inconsiderate for people to ask agents to pay for expenses that belong to the buyer and/or seller.
Hypothetical, but suppose the owner leaves the water on in the washroom, or worse, saws a hole through the pipes or even takes them out for the copper. Who is liable for the damages to the property? You? As a realtor, you have a key to get in, but a guy interested in buying the house does not and can't check that turning something or other on is not causing damage.
Good question.
A buyer is not going to get into the house without their agent. If he does, then he is trespassing. The buyers agent does not have authority to give the buyer the lockbox code or a key.
The listing agent knows the condition of the house because he will have been through it.
When SRP turns on the electricity, they first turn the master breaker off, and they leave it off.
When the utility company turns the water on, they first turn the main water valve off so that no water can flow into the house.
If I am the listing agent on a house that has a dirty pool, first of all I'm going to ask the owners to keep it clean. If they don't, then I am going to inform the bank that the pool is green and must be cleaned in order to prevent mosquitos. Also, that by leaving the water and filtration system off that more damage will be caused to the pool, and that prospective buyers will not be able to inspect it, and there is the possibility that buyers will all walk.
If the owner refuses or has disappeared, and the bank refuses, then I will report the green pool to Maricopa Vector Control, and let them do their job. I would also report the situation to the HOA so they can know what's happening if neighbors complain about mosquitos.
Now, if the bank simply refuses to put on the power or water, then the buyer has some options.
Walk away
Turn utilities on in their name so they can have the inspection done.
Buy the house, and inspect later. After all, it is an AS-IS sale; a distressed sale at less than market value.
If they turn utilities on in their name, there is still no power or water into the house.
The buyer and her agent should meet the inspector at the property for the inspection. The agent is there solely to let them in. S/he is not there to do the inspection, nor take any part in it. S/he is simply there to accompany the buyer.
The inspector is authorized to go there by himself, but the buyer should be there to learn about the property. The inspector gets the lockbox code from the listing agent, who is usually not present at the inspection. If he is there, then he must stay out of the way because the inspector is working for the buyer.
It is up to the buyer and the inspector to check that it is safe to turn on the master breaker and the water. It would be their responsibility if there is any damage. The responsibility may fall heavier on the inspector because he is licensed and must know what to check for before turning on any master electrical breaker, or water main.
That is my opinion. It is not a legal opinion. A judge may determine otherwise.
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