Thursday, March 19, 2009

Short Sale Offers- More Confusion

Yesterday, in response to questions about the Purchase & Sale forms concerning an short sale offer, I submitted the following question to the Board of Realtor's attorney.

"I am confused about the 22SS Addendum relative to 'Offers from other Buyers.' Legal Bulletin 178 states, 'The parties must decide whether Seller will be permitted to accept offers from other Buyers.' However, NW MLS Form 22SS clearly states, 'This offer is contingent upon the Seller obtaining written consent from Seller(s) creditors for the Short Sale and Seller’s acceptance of any condition imposed by Seller’s Creditor(s).' Doesn’t that unambiguously and explicitly state that it doesn’t really matter what the Buyer and Seller agree upon, it’s ultimately the decision of the lender provided the seller agrees?

"Based on this, it would seem that the section 'Offers from other Buyers' is, at the very least, misleading and while it might seem to give an advantage to a Buyer, it’s still the lender who has the final say as to what the lender wants and is willing to accept. Don’t you agree?"

Hopefully others, including our lender friends, will speak out on this issue.

Friday, March 13, 2009

Assessed Value Differences

Concerning “improper tax inspections” by the Assessor’s Office, Madsen is correct, it does depend on what you mean by physical inspection. However, simply inspecting the outside physical appearance of a property misses the point. What about the new kitchen and bathrooms with granite slab countertops and the new stainless steel appliance or the remodeled interior where walls were moved or removed to make the space more open? Being a professional Realtor, I can tell you that such interior modifications and updates likely had more of an impact on value than did most exterior improvements.

As an example, when my neighbor’s home with interior updates sold, the assessed value of my similar home without updates was positively affected. Except the problem is, my house doesn’t have granite slab countertops or new kitchen cabinets and none of my interior walls have been adjusted or removed. Yet, despite those differences the assessed value of my home likely increased because of the sale of a nearby property, similar in style and size to my home. Yet no one took into consideration the interior differences between the two homes.

When market prices were accelerating and assessed values were typically less than a home’s market value, this situation probably wasn’t a problem. But, now that the assessed values of many properties is often more than what actual homes are being selling for, this could make for a devastating problem. Physical inspections of both the interior and exterior of a home is really the only way that true differences between otherwise similar homes can accurately be made. If I was the assessor, physical inspections including both an interior and exterior inspection would be mandatory. Let’s make the system fair for everyone.

Madsen’s comments were contained in a front page article written by David Wickert and published today in The News Tribune in Tacoma, Washington . The article was titled, “Assessor: County broke state law.”