Q & A with Dottie Herman

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Q1 - My wife and I are looking to buy a home in Pennsylvania. We are working with a broker and finally found a house we love. We negotiated a price with the seller and they accepted our offer but we get a strange feeling from their agent. Can they sell the house to someone else and still have it on the market even though they have accepted our offer?

A - While the laws vary from state to state, it is generally a rule of thumb that until a contract is signed a deal is not consummated.  The seller's agent has an obligation to represent the interests of the seller.  That means if another offer comes in that is superior to your offer, that agent has a fiduciary responsibility with presenting the information to the seller.  Having an accepted offer is a step towards a deal, but it is by no means yet a done deal.   

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Q2 - My husband and I are thinking of listing our house. We are trying to decide if we should do so now or wait until after the New Year. We know the first time homebuyer tax credit will expire in April, so do you think we should list now?

A - The first time home buyers tax credit has been a wonderful program that has spurred many buyers into owners since its inception.  If you feel your home is ideal for a first-time home buyer, it may be advantageous to put it on the market shortly.  Now would be a great time to meet with a professional agent familiar with your area to learn about other comparable listings currently on the market. This will allow you and your agent to put your home on the market at a fair market price which is aggressive enough to sell your home as soon as possible.  If you start now, you have enough time to capture the basket of buyers that fall into that tax credit.  While the tax credit is great, you may also find seasoned buyers interested in your home, which of course will be attractive to them at the right price before and after April 30th.  

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Q3 - My sister and I are selling the home we grew up in as our parents moved down to Florida. We are wondering if it is best to list with a real estate agent in that town or can we use someone we know from a few towns over? They won't be as familiar with the area but does that matter when you are just listing the house?

A - Knowledge counts and competency is key.  You certainly can use someone you know even if they are based nearby but not in that exact town.  However, as a caveat, that agent must have specific knowledge as to the market in your town and have a high degree of competence.  Talk with that agent about the market and get a sense for their knowledge base.  Then meet with an agent whose specialty is your town.  Compare and contrast their answers to your questions.  It's important that you be sure the agent you select - be it your contact or someone new - be knowledgeable about your market so they will be able to get you the highest possible price for the home.

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Q4 - What is a loan modification?

A - A loan modification is when the bank is willing to reduce your loan balance or interest rate so that you can better afford to keep your payments on time and not default on your mortgage. This is becoming more and more popular with homeowners who are having trouble maintaining their current loan obligations and are in risk of becoming in default and possible foreclosure.

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Q5 - I recently listed my home with an agent in New Jersey--I signed a 6 month agreement and we are entering week 9 of the agreement and I do not like working with this agent. Is there a way I can transfer the listing to another broker? How can I get out of this agreement?

A - Without knowing the full contours of the agreement I can't say for sure what your rights are in the agreement.  However, if you are really unhappy, speak with the broker or the broker's manager and explain the situation. If you are very unhappy perhaps they will release you from your obligation. Sometimes relationships just don't work and it's best to part ways.   

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