From Ezilon.com
Prevention helps reduce after-the-sale problems for real estate professionals
By Ezilon.com Articles
Jan 24, 2006, 09:04
Prevention helps reduce after-the-sale problems for real estate professionals
In today's litigious society, home sellers and real estate professionals should take preventative steps to avoid after-the-sale problems which are experienced statewide in the real estate industry, according to leading industry professionals.
Learning about a home and its surrounding areas, disclosing all factors affecting a home's value and obtaining a thorough inspection as well as a warranty plan are among the steps which can help reduce potential law suits.
Real estate professionals and home sellers should be aware of a neighborhood's zoning -- one of the factors which can affect a home's value in the future.
It is important to be informed about certain residential properties which can also be zoned for other uses such as commercial or multifamily housing. In a residential neighborhood for example, an adjacent lot which is later converted into an automobile body repair shop will most likely lower the value of surrounding single-family homes.
Other factors which can affect a home's value include nearby projects in the planning stages and environmental hazards. Real estate professionals should check with local officials about future projects such as a new freeway or re-routing of streets which can increase traffic and noise.
'Real estate professionals and sellers should always disclose to the buyer this type of information about the area as well as any known environmental hazards such as a nearby landfill.
At the time a seller lists a home for sale, the real estate professional should be thoroughly aware of its condition and any problems to avoid future surprises during negotiations or after the close of the sale.
Termite and home inspection should be used in every transaction. A home inspection not only reveals defects in a home that can be addressed before closing the sale, but it can give buyers a comfort level, knowing what they're getting and reinforcing their decision to buy.
Another important tool to help reduce after-the-sale problems is a home warranty plan. Home warranties are a good perk and give real estate professionals an opportunity to follow up with the homeowner who has had a positive experience and is usually happy.
Most litigation arises from anger caused by resentment building up from smaller problems. Home warranties help keep anger down, so if a larger problem occurs, the home buyer is more likely to call the seller and real estate professional to discuss the problem rather than file a lawsuit.
Before home warranties, most real estate professionals and sellers received calls within the first six months about broken dishwashers, disposals, water heaters and leaking roofs on rainy days. Now, however, most calls are regarding problems about zoning issues and non-permitted add-on rooms.
The following points which are perhaps more important than price when selecting a home warranty company and plan:
1. Consider the financial stability of the company.
2. Read the contract carefully and note what items are covered.
3. Check how fast the company services calls.
4. Check how the company handles claims which are in dispute.
Be knowledgeable about the condition of the property, disclose any known problems to the buyer and provide a warranty plan for unexpected mechanical breakdowns after the close of escrow. Taking these necessary steps will prevent after-the-sale problems and help limit future liability.
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