A poll of nearly 500 recent home sellers found that 94% admit that they didn’t disclose at least one flaw in their home to their buyers.
DEAR DAVE: We made an offer to buy a house and made it contingent upon first getting a satisfactory report from a professional home inspector. The sellers made a written counteroffer that accepted our offering price but rejected our request for an inspection. Are we legally obligated to go through with the deal because the sellers accepted our full-price offer, or can we cancel the transaction and get our deposit back because the sellers refused the inspection request?
ANSWER: Real estate laws in all 50 states say that a seller who makes a written counteroffer automatically rejects the buyer’s earlier proposal. So, you have no legal obligation to complete the deal and can now demand that the sellers return your deposit.
The fact that the sellers don’t want the property to be inspected raises a big caution flag. Perhaps they are hiding defects in their home they don’t want you to know about or are simply afraid that the inspector might discover some unknown problems that they might have to disclose to a future buyer and thus lower their asking price.
Homebuyers who don’t insist on getting an inspection before closing a sale must rely heavily on seller disclosures to be informed about any potential problems with the property.
Yet, a new survey conducted by home warranty provider Cinch Home Services found that more than 90% of buyers say that they found at least one issue with their home after the transaction was finished that the seller didn’t disclose. And — perhaps more alarming — a staggering 94% of sellers admit to selling their homes without disclosing a problem they knew about.
The results were based on feedback from about 500 buyers and another 500 sellers. The most common problems that buyers discovered after closing involved their home’s electrical system, followed by issues with their new abode’s fixtures and plumbing.
REAL ESTATE TRIVIA: A typical home warranty policy provides for the repair or replacement of most appliances, electrical and heating systems, the water heater, and a handful of other items that might break down or wear out within a year after the new buyer moves in. The annual first-year cost ranges from $300 to $600, according to home-improvement site thisoldhouse.com.
DEAR DAVE: We want to buy our first home, so we got “preapproved” for a mortgage loan in June. Now we have decided to postpone our plans until later this year or even until 2023, after our local housing market settles down. Will the preapproval that we no longer need hurt our credit score?
ANSWER: Yes, but not by much.
When you asked for preapproval of the loan, the bank made a “hard” request for your credit history rather than a “soft” request that you might make to personally check your own credit record.
Hard requests by a bank or other lender are reported to the nation’s largest credit bureaus. Soft requests that are made by you are not.
The hard inquiry that the lender made will stay on your record for about two years and likely reduce your credit score by five points or less, a spokesperson for credit rating giant Fair Isaac Corp. (www.fico.com) says. But, your score will rebound sooner and grow even stronger if you keep paying your monthly bills on time.
DEAR DAVE: My mother died last year, and my father passed away two months ago. They left behind a house with a mortgage that is fully paid and some other assets. The problem is that we never discussed their wishes for their estate because it made us uncomfortable, and I don’t even know if they had a written will. How can I find out what will happen to their home, bank account and the like?
ANSWER: I’m sorry for your loss.
If your parents had made a will, their executor (probably an attorney) would have been required to make an earnest effort to find you. Whether he did or he didn’t, the bottom line is that you have not been contacted even though you have the legal right to know what is happening with their home and other assets.
To find your parents’ executor or lawyer, start by talking with your relatives, their close friends and their neighbors. Your folks’ bank, accountant or financial advisor may also be able to help. Their doctors and even the funeral home that handled the burial arrangements might have some useful information, too.
Also, check with the probate court in the county where your parents lived. If a will or any other legal paperwork has been filed, the documents are now a matter of public record and you have a right to get copies.
If none of these efforts prove fruitful, you may need to hire a private investigator or attorney of your own.
Good luck on your search. I hope your letter will encourage others to talk about their final wishes with their loved ones, regardless of how difficult or uncomfortable such conversations can be.
The booklet, “Straight Talk About Living Trusts,” explains how low- and middle-income homeowners can now reap the same benefits that creating an inexpensive trust once provided only to the wealthiest families. For a copy, send $4 and a self-addressed, stamped envelope to D. Myers/Trust, P.O. Box 4405, Culver City, CA 90231-4405. Net proceeds will be donated to the American Red Cross.