Rules of Real Estate Disclosure? (sale, foreclosure, brokers)

[jmarkey]

We were advised by our agent to sell our house with a home warranty, along with pricing it realistically. The house was in great shape, but it was 110 years old.

I think it was a good thing to offer. The buyers did have an inspection done and it passed with no problems. But knowing they had recourse if anything went wrong later was something that appealed to the buyers. The house sold in a week.

In a market that's slowing down for sellers, I'd advise it to anyone who wants to attract a buyer.

[Obrero]

Slightly o/t but in TN how common is it for sellers of houses to require prospective buyers to have a letter of approval for a mortgage before they will even allow them to view the house. I have been told there are some houses will can't see unless we present that letter first. Are they kidding?

[Angelrocks]

Originally Posted by UKOK

Slightly o/t but in TN how common is it for sellers of houses to require prospective buyers to have a letter of approval for a mortgage before they will even allow them to view the house. I have been told there are some houses will can't see unless we present that letter first. Are they kidding?

That's the way it goes in South Florida, at least in my part of Florida. I am 100% completely sure that my next door neighbor, who was selling her home, wouldn't even let a propsective buyer walk through her door unless she got something in writing that said that they were pre-approved for the type of mortgage in the price range of the home she was selling. As far as Tennessee goes, I really don't have any information regarding the rules that apply to that type of situation.

[wellkids]

Originally Posted by mrradio

I stand by my comments. I worked in commercial real estate-shopping centers, hotels, strip malls (as well as the occasional house)- for over 40 years. But when it comes to residential, I saw too much of the "Get the sucker's offer written up and signed" attitude.

So are you a licensed Realtor in the State of TN? What type of firm did you work for that employed individuals with this "get the sucker's offer written up and signed" attitude? I don't see that attitude in my firm, and certainly wouldn't associate with anyone who did, or work for any firm that allowed it.

Further, real estate agents, dealing with poorly-informed and naive clients, utilize their agents' association forms with language guaranteeing their commission no matter what. I've seen plenty of them over and over.

I think most of my clients are well educated and very informed. It is my job to make sure that ALL of their bases are covered. I don't perceive the average real estate client as "poorly-informed and naive" nor to I consider them "suckers" as you referred earlier. I think you discredit the intelligence of the average American consumer just like you assume all Realtors are dishonest.

People don't realize that there are THREE parties in a transaction involving an agent and each party looks out for themselves, as is to be expected. BUT here is an inherent conflict of interest when a party (the agent) who will get paid in the transaction draws up the paperwork for another of the three parties, be it the seller or buyer, and then ostensibly presents this paperwork as in the "best" interest of one or the other.

Actually, there should be FOUR parties and there should be no conflict of interest at all! There should be a seller, a seller's agent (listing agent), a buyer, and a buyer's agent (selling agent) involved in each transaction. I personally, never default to a "facilitator" on my listings. I always represent the buyer OR the seller but not both. My job is to protect my client whether it is the buyer or the seller. I don't understand your analogy. I will get paid whether I negotiate a great offer for my client, or a bad offer for my client. However, if I want to earn their repeat business and referrals, I know it better be an excellent offer. The only conflict of interest I see would be when an agent tries to work both sides of the deal and represents both parties. Again, this is why anyone buying a home needs their OWN buyer's agent and should never go through the listing agent! However, this is a choice made by the consumer and I do see THAT happen all the time. People will walk in a model home and purchase new construction from the on-site builder's agent, or call off of a sign and make an offer through the seller's agent.



In real estate it's "Buyer beware".

I agree! Buyer's should ALWAYS use a qualified Buyer's Agent, hire a qualified home inspector, and close with a reputable Real Estate Attorney.

[mbmouse]

Originally Posted by UKOK

Slightly o/t but in TN how common is it for sellers of houses to require prospective buyers to have a letter of approval for a mortgage before they will even allow them to view the house. I have been told there are some houses will can't see unless we present that letter first. Are they kidding?

This is rare in East TN to look at a house, however if you want a Realtor to represent you, they prefer to see a pre approval letter before they drive you around showing you many houses and such without knowing if you are qualified to purchase a house.

[hoosier07]

Having a signed letter proving that you're pre-approved...this is ridiculous....with the market going down, those kind of requirements will easily go away after the house is sitting for months without a prospect buyer. I would not consider seeing a house if the seller is requesting such a letter, that for me is offensive. My 2 cents.

[wellkids]

Originally Posted by UKOK

Slightly o/t but in TN how common is it for sellers of houses to require prospective buyers to have a letter of approval for a mortgage before they will even allow them to view the house. I have been told there are some houses will can't see unless we present that letter first. Are they kidding?

Proof of being a "qualified buyer" is usually only asked for in the high-end luxury market before previewing a home. Even then, if the Realtor gives their assurance that the client is a solid candidate, most seller's will gladly approve the showing. Proof of funds or an actual preapproval letter is often requested when submitting an offer, regardless of price range.

[cabel]

I have been in real estate for 12 years now and it is law and common sense that all offers must be in writting. As a buyer or seller you need to see all offers and counter offers in black and white so everyone knows where all the parties stand. Verbal offers can be misunderstood And it is too easy for someone to try and change the offer. If you have to go to court (hopefully this will never happen), you are in a he said she said situation. an experienced, good, and trustworthy agent will not take a vebal offer. Two big reasons is to protect the client and to protect them self from miscommuncation or out right lie.

[Obrero]

Originally Posted by hoosier07

Having a signed letter proving that you're pre-approved...this is ridiculous....with the market going down, those kind of requirements will easily go away after the house is sitting for months without a prospect buyer. I would not consider seeing a house if the seller is requesting such a letter, that for me is offensive. My 2 cents.

My thoughts exactly!

[hiknapster]

There are a lot of homes on the Knoxville area MLS that require the letter in order for folks to view the home. A LOT of them are owned by banks.

That was why I was so thrilled to get a pre-approval letter. After the sub-prime market tanked, I imagine my letter was pretty worthless. Who knows.