I Really Want To Buy A House But Can’t Do It By Myself … What Can I Do?

The good news is that you are aware of what a great time this is to buy a home. Interest rates just went down again and prices are still very low. So what can you do to buy a house? The traditional source of assistance was family. Your parents might be happy to assist you, but there are other options with broader thinking.

If you need additional income to qualify, another way to buy a home is to partner up with somebody. Are you living with a roommate now – why not own together? How about your college friends or co-workers? Is there somebody you really get along with that is responsible? Is your brother/sister renting in the same town? You lived together for many years up to this point, why not do it again and have a business investment together? Your good income with your partner’s good credit, or vice-versa, is the combination your are seeking. With the low interest rates and prices it is amazing how low monthly payments are … and the income needed to qualify for them. Check it out – you will be amazed at what you can buy.

Our youngest son recently closed escrow on a wonderful home with two friends. They put 3.5% down, got a new FHA loan and their total payment, including taxes and insurance, is just about equal to what they’d have to pay in rent! Plus … they will share the $8,000 first time homebuyer’s tax credit. Their anticipated holding period is 5-8 years, enough time to get done with schooling, and establish careers. What will the market do during that time? We think it will be kind to them and give them a good financial start in life with this initial real estate investment.

The mechanics are important when buying with a partner … be sure you get along. Not only is this a business venture, you will be living together. Select carefully. Determine in advance who will get the master bedroom, use of the garage, etc. Have a pet policy … cats, dogs okay? Snakes? Be sure you have a household account with reserves. Our son and friends set up a household bank account titled “Three Amigos”. That makes for easy record keeping and assurance that there will always be funds available when needed for a common expense.

It is important to memorialize your agreements in writing. A Memorandum of Understanding should include responsibilities, and how future decisions will be made. What if one of you wants out? What if one doesn’t make their share of the monthly payment? What is one gets married and another person is suddenly involved (hint - get a Quitclaim Deed). Do this in advance when everybody is getting along.

Our Advice: Understand, the statement “partnerships were made in Hades” is very true, but they can work well with the right preparation and circumstances. There are 100% loan programs available in some of our communities. You can buy with nothing down and get an $8,000 tax credit for doing it. These are the good old days. Look at your options … these and others.
While the present economic situation is causing heartache and pain for many … there are some silver linings to these dark clouds. This is a wonderful opportunity for young American entering the work force to partake in the American Dream. When it comes to choosing professionals to assist you with your real estate needs… Experience is Priceless! Lisa Wetzel & Jim Valentine, RE/MAX Realty Affiliates, 775-781- 5472. carsonvalleyland@hotmail.com, www.carsonvalleyland.com

Agent Fiduciary Responsibility

The agent told me the Seller’s were broke and had to sell…can they do that?

It depends on what the agent’s relationship with the Seller is. If it is the Listing Agent then they may not say, or imply, anything of the sort without your permission. When a Seller signs a contract with an agent they form what is known as a fiduciary relationship. Webster defines fiduciary as “a: held or founded in trust or confidence b: holding in trust c: depending on public confidence for value or currency”. Compromising the Seller’s position by disclosing a negotiation weakness is a serious breach of trust or confidence, the fiduciary relationship, the essence of the contract relationship between the parties.

Further, one of the listing documents required by Nevada State law is Duties Owed by a Nevada Real Estate Licensee. The language in that document includes the following: A Nevada real estate licensee shall: 2. Not disclose, except the licensee’s broker, confidential information relating to a client for 1 year after the revocation or termination of the brokerage agreement unless licensee is required to do so by court order or the client gives written permission. 3. Promote the interest of the client by: a. Seeking a sale…at the price and terms stated in the brokerage agreement or at a price acceptable to the client. C. Disclosing to the client material facts of which the licensee has knowledge concerning the real estate transaction.

The Listing Agent can only talk about the price and terms the Seller has agreed to in the Listing Agreement, or any subsequent modifications thereof. Conversely, the Selling Agent, if other than the Listing Agent, actually has an obligation to tell a prospective Buyer anything they know or can learn about the Seller’s situation. It is common for a Selling Agent to ask the Listing Agent questions that they can’t answer without the Seller’s permission. Sadly, many respond with too much self-serving candor to the detriment of those they have contracted to serve.

Our Advice: If an agent would compromise you in one area, price, how well are they negotiating on your behalf in the many other aspects of the transaction such as: repairs to be completed, move out date, personal property included in the sale, etc. Such an agent has violated not just the law, but any moral and ethical standard of decency. If you know that you are in such a situation, you should demand an immediate cancellation of the listing contract so you can hire an agent that will work for you without compromise. If the agent won’t cancel then consider a complaint to the Board of Realtors and/or the Division of Real Estate. You should not be trapped by an unscrupulous agent that is working against you, not for you.

Good real estate agents are very valuable … especially if you have financial or other difficulties. What is a good agent? A good place to start is honesty and integrity. Fortunately, in the Carson Valley you will find that most agents possess those qualities.

When it comes to choosing professionals to assist you with your real estate needs… Experience is Priceless! Lisa Wetzel & Jim Valentine, RE/MAX Realty Affiliates, carsonvalleyland.com, 775-781- 5472.