I guess realtors do earn their money! (agents, contract, agreement)

[cvap]

A neighbor who lives out of state wanted to sell his camp. I new someone in town that wanted a first home. So I offered to take care of everything so the sellers wouldn't have to drive the four hours to get here. What a joke!!! Between the 25000 dollar septic, smoke/CO detectors, bank inspections, appraisals, this fee that fee, letting in electricians for the septic pump, letting in the buyers to show their friends, etc., not only am I losing money, selling this 50k camp turned into a 90k headache for the seller.
I've asked this question on here before without response, why don't you get all the costs straight before the buyer and seller agree on a price? How could a real estate lawyer or Realtor for that matter, let his client sign a PSA to sell a house without advising them to nail down all of the costs associated with selling?
Also, shouldn't it be up to the buyer to bring the house up to code anyway? I think too much liability is put on the seller. He just wants to leave.

[berniekosar19]

Originally Posted by cvap

A neighbor who lives out of state wanted to sell his camp. I new someone in town that wanted a first home. So I offered to take care of everything so the sellers wouldn't have to drive the four hours to get here. What a joke!!! Between the 25000 dollar septic, smoke/CO detectors, bank inspections, appraisals, this fee that fee, letting in electricians for the septic pump, letting in the buyers to show their friends, etc., not only am I losing money, selling this 50k camp turned into a 90k headache for the seller.
I've asked this question on here before without response, why don't you get all the costs straight before the buyer and seller agree on a price? How could a real estate lawyer or Realtor for that matter, let his client sign a PSA to sell a house without advising them to nail down all of the costs associated with selling?
Also, shouldn't it be up to the buyer to bring the house up to code anyway? I think too much liability is put on the seller. He just wants to leave.

I'm confused; how are you losing money on the deal? You're not the seller; are you the agent?
Are you personally paying for inspections/fees/etc?

You can't advise a seller to nail down all related selling costs prior to listing because there's almost no way to accurately predict every single little thing. How can buyer and seller figure out all the various transaction fees before agreeing on a price? Are you advocating a seller letting a buyer conduct inspections before agreeing to sell the house to them? That doesn't make much sense; for a seller, you're negotiating with someone, who may end up discovering faults with the property that now have to be disclosed to all future purchasers, that can walk away with no penalty. You've just wasted valuable time on the market with someone who's not committed to purchasing your home. as for the buyer, it likewise makes no sense, since inspections/appraisals costs money; why waste hundreds of dollars on a property you're not under contract for? You spend $400-700 on a house that could be sold to someone else.

As to the deal itself, seems like your friend had let an out-of-state property deteriorate poorly (a $25K septic fix generally means complete failure); why should that be the buyer's responsibility? Aside from the fact that it's not feasible for a buyer to be responsible, as a lender won't finance a loan on such a property, it's the seller's responsibility to maintain a house in good working order. You wouldn't expect to purchase a car from a dealership, for example, and be responsible for the brakes working. If the seller wants to leave and sell their house, it's their responsibility to ensure the house is safe and habitable.

[thedwightguy]

Originally Posted by cvap

A neighbor who lives out of state wanted to sell his camp. I new someone in town that wanted a first home. So I offered to take care of everything so the sellers wouldn't have to drive the four hours to get here. What a joke!!! Between the 25000 dollar septic, smoke/CO detectors, bank inspections, appraisals, this fee that fee, letting in electricians for the septic pump, letting in the buyers to show their friends, etc., not only am I losing money, selling this 50k camp turned into a 90k headache for the seller.
I've asked this question on here before without response, why don't you get all the costs straight before the buyer and seller agree on a price? How could a real estate lawyer or Realtor for that matter, let his client sign a PSA to sell a house without advising them to nail down all of the costs associated with selling?
Also, shouldn't it be up to the buyer to bring the house up to code anyway? I think too much liability is put on the seller. He just wants to leave.

Real estate people in some places just about have to be lawyers, now.
California liability, if a realtor sells and forgets the wife is in rehab, for instance, can get them in big trouble.
Here in B.C. I am in the process of helping a friend list, and things have really changed in five years. Electrical is the big thing, now, and one realtor explained that non-disclosure of an electrical issue is a ten thousand dollar fine for her. There are now two electrical issues and they're related to a setback permit as well. But a new buyer may not even WANT the hottub or small garden shop, and may want to REMOVE the overhang that has the conduit running through it, so declare it and wait for a new buyer to decide.

My friends now deceased husband was one of those many B.C. (bring cash) people whose entire life revolved around "under the table" deals to "save money". Now, the wife has to pick up the pieces. Fortunately, the issues are solvable, and the electrical may even be free (from the govt.!!, no less) because govt. wants these issues addressed. It's at sale that this catches up.

You selling a "camp" of some kind, not a res. dwelling??
Costs would depend on what use the buyer had for it: some things you'd upgrade the buyer may not even need. They may bulldoze some buildings, build new, and want a different use. Who would know but the buyer??

[cvap]

Bernie, I am losing money because I feel guilty charging the old guy for the hours I spent screwing around going to the house waiting for inspectors and such.
As to the process, If I am buying a used car or a used house, I would make sure I knew what I was buying before I offered a price. If I am interested enough, I would spend the money to get it done and not expect the seller to do it. Then make an offer. Any faults discovered would have to be fixed anyway, so it can't hurt the seller or the bank.
The septic worked fine, some health board member took a sand sample and it didn't sift good enough.= Replace whole system with a pumping station. "Safe and habitable" is adjustable, it shouldn't be mandated, making the state take care of buyers like babys. That's what keeps the masses so ignorant.

[jackmichigan]

Originally Posted by cvap

Between the 25000 dollar septic, smoke/CO detectors, bank inspections, appraisals, this fee that fee, letting in electricians for the septic pump, letting in the buyers to show their friends, etc., not only am I losing money, selling this 50k camp turned into a 90k headache for the seller.

Originally Posted by cvap

Bernie, I am losing money because I feel guilty charging the old guy for the hours I spent screwing around going to the house waiting for inspectors and such.

Well, since you're not a licensed real estate agent, it would probably be illegal for you to charge for your "services". Are you providing legal advice to him, too?

[cvap]

No Jack, he does have a lawyer, but I provided the lawyer's phone number. I've spent the last five years doing worthless tasks for neighbors.

[berniekosar19]

Originally Posted by cvap

Bernie, I am losing money because I feel guilty charging the old guy for the hours I spent screwing around going to the house waiting for inspectors and such.
As to the process, If I am buying a used car or a used house, I would make sure I knew what I was buying before I offered a price. If I am interested enough, I would spend the money to get it done and not expect the seller to do it. Then make an offer. Any faults discovered would have to be fixed anyway, so it can't hurt the seller or the bank.
The septic worked fine, some health board member took a sand sample and it didn't sift good enough.= Replace whole system with a pumping station. "Safe and habitable" is adjustable, it shouldn't be mandated, making the state take care of buyers like babys. That's what keeps the masses so ignorant.

Are you a licensed real estate agent? Because otherwise, charging someone for those services without a license is illegal; can't think of a state where it's not.

As to the process, you're assuming someone would just grant you access to their house to conduct whatever inspections and due diligence you require, without having talked about price. That just makes no sense for a seller; great for a buyer, sure, but I can't envision a scenario where someone would allow strangers to do all that to their home without some kind of agreement in place beforehand.

As to the septic, can't really speak with any authority on the matter, but considering how all that sewage could leech through and contaminate the surrounding ground, thus affecting neighbors, I can understand why it's a big deal. Safe and habitable shouldn't be an arbitrary matter determined by a seller; if you kept up a dangerous hovel that eventually caught fire and burned down the houses surrounding it, would you be ok with paying for all the damages you caused? I highly doubt it. It's not the state enforcing a nanny state, it's the state fulfilling it's role in the social compact by ensuring all it's citizens are able to enjoy their god-given right of life, liberty and the pursuit of happiness. I shouldn't have my health and safety infringed upon because you're too lazy to take care of your own house.

[DMenscha]

No good deed goes unpunished. I agree that you may have run afoul of the real estate law in your good deed doing.

[casper324]

Buyers now want a complete move in ready dream home and use the inspection process to get it. I can't decide of realtors are not doing their job by educating buyers that homes are sold "as is". Buying a home doesn't guarantee that the seller make the home a dream home for a buyer or if the realtors are doing right by their buyers by renegotiating after a contract. Septics are a HUGE issue in NJ right now. Every home over 20 years old with a septic will fail inspection due to changes in the code. The sellers realtor should price the property accordingly knowing that there is a 95% chance on an older home that there will be septic work needed and buyers realtors should educate their buyers to be more realistic.

[Brandon Hoffman]

I believe the rest was covered but I do provide sellers a net sheet at the beginning of the transaction that shows expected expenses and the bottom line after those expenses. The only thing I can't account for are unexpected expenses such as repairs. If the seller will get an inspection on the front side and make repairs prior to listing I can even pretty much nail that down. Of course sometimes you do have surprises but they are the exception. Most good agents do this, not just me.

Lawyers on the other hand go over contracts, not expenses. I suggest you ask the attorney about that if you have questions for him.

The contract covers who's responsible for what. If seller wanted as-is that should have been put in the contract or he could have said no to repair requests.

I appreciate the sentiment expressed in your post. Most people never see this side of the transaction but it's a lot work, stress, and time that goes into the contract to close portion of real estate.