My neighbor doesn’t keep his property up … will that affect my sale?

In this Market of 2007 all things come in to play when you are looking for an edge in the market place. Neighbors are an important consideration for most Buyers, especially when the homes are positioned close to one another. A good neighbor is something worth disclosing for added value while a bad neighbor should be disclosed to prevent any ensuing litigation for non-disclosure.

Good neighbors are worth their weight in gold. Lasting friendships for parents and children are created by living next to one another and having a great neighbor relationship. That doesn’t mean having dinner together every Saturday night, but it does involve watching over one another’s children, property and pets. It can involve giving a lending hand when needed, and exchanging pleasantries when you see one another. A united and strong neighborhood is a safer environment that creates a harmonious living standard. That doesn’t include an overbearing Homeowner’s Association group which can actually have the opposite result on the neighborhood. There are some such HOA’s in our area that have a detrimental effect on their neighborhood in their zeal to protect it. As with anything in life, balance is needed to be a good neighbor. Don’t snoop or pry, and don’t shutter yourself out of existence.

We know of a circumstance where the neighbor’s children had friends with motorcycles that came roaring in to the neighborhood all hours of the day and night to listen to the band practice in the garage. The Sellers of the house next door were going out of their minds from the continual invasion of their quiet enjoyment of their property, but, despite numerous police reports and visits, the problem persisted. They felt trapped – emotionally and financially. They were concerned that they could not ever sell and that was in a good market! Fortunately, they sold, with a proper disclosure, and made their move to the tranquility of the Carson Valley.

Bad neighbors can have a negative impact in different ways. The above is not obvious unless you are around when the invasive sound is occurring. More obvious are unkempt properties, i.e. - dead lawn, overgrown with weeds, and junk or debris strewn about the property. Such properties bring down the overall value of the neighborhood and can undoubtedly have a detrimental impact on a potential Buyer of your property.

Our Advice: If your neighbor has let his property go there are some things you can do about it … carefully. The first is to understand what is happening in the household, i.e. - are they facing foreclosure or bankruptcy? You can offer, gently, to pay for the cleanup as it would greatly benefit you in your selling efforts. If they are uncooperative, or vindictive, call the County Code Enforcement Officer. That process takes longer, but will resolve the problem for the benefit of the entire neighborhood. If you don’t take action on their property you will have to on yours … by a major price reduction.

Neighbors and neighborhoods are a big reason why people move to the Carson Valley. Let’s keep it a place where people can still talk over the fence, or bring dinner to the sick person next door … your neighbor.

Experience is Priceless! Lisa Wetzel & Jim Valentine, RE/MAX Realty Affiliates, www.carsonvalleyland.com, 775-781-5472.

Physical Condition of Foreclosure Properties

I’m going to bid on a foreclosure property … how do I know its physical condition?

That is one of the inherent risks of buying property at foreclosure auctions … you generally don’t know the condition – especially the interior. If the property owner still occupies the property you can’t access it unless it is listed for sale and you can set up a showing. If it is vacant you might be able to peek through the windows, but you are technically trespassing. Generally, you are buying the proverbial “pig in a poke”.

The Lender doesn’t own the property until after the foreclosure, and then only if there are no bids to match their minimum bid amount and they end up receiving the property. That situation presented a dilemma for the Nevada Legislature with the Seller’s Real Property Disclosure form they require for all residential transactions. In a foreclosure sale the Owner isn’t selling the property, and the Lender never lived in it. How could the Buyer be protected from known defects? Who is responsible for disclosing them?

Recognizing that the Owner isn’t involved in a foreclosure sale, the State added a clause in 2005 that requires the Trustee or Beneficiary to disclose any defects of which they are aware. The situation is still problematic for the Trustees or Beneficiaries usually have not been in the property – ever. They might, however, know of problems related to the property and are now compelled by law to disclose those before the property is conveyed. Such problems can be a neighborhood issue, something like all the windows having been vandalized, or the roof being blown off. Any defect required by a law to be disclosed must be disclosed if they have knowledge of it. Perhaps, there was correspondence from the Owner to the Lender relating the need for a new roof and a request for relief from payments so they could afford it. This type of knowledge must be related to a new Buyer by the Lender.

Our Advice: Despite the legal requirement for disclosure, proceed with caution. The Lender most likely has no knowledge of the condition of the home. If the Owner wrecks havoc as they vacate the property just prior to or subsequent to the sale the Lender would have no knowledge of the damage. Lenders usually want to sell ‘As Is”, and may ask that you waive the SRPD requirements. If you are to waive the requirements remember that you must sign the waiver document and have it notarized to be valid. A Buyer can waive the SRPD requirement in any transaction as long as it is notarized.

Be smart in your foreclosure acquisition. Your successful bid might seem like a good deal until you walk through the front door, or when you get a physical inspection to ascertain the condition of the home. Build a cushion in your bid for the unexpected … you can expect it.

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.