Real Estate*April 14, 2017
Apr 14, 2017
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When an agent, or Broker who has no experience or experience, takes a House listing for sale knowing there is an illegal apartment or two, they are definitely wasting their time period. If we are talking about a Multi -Family home for sale, the price could be $1 million to $1.5 million in asking price.
However, how can a buyer buy a home, get a mortgage with illegal apartments?
EXAMPLE: YOU SEE A SIGN ON A LARGE 2 OR 3 FAMILY HOME FOR SALE.
So you call up the agent on the sign, find out the price, then make an appointment to go see the home. For example purposes lets say it is supposed to be a 3 family, 6rms. 6rms. a walk in apartment basement.
Except you get there and 2nd.floor and 3rd.floor apartments are chopped in half making it two 3 rm. apartments per floor.
Not only is it illegal, but even if the buyer gets an accepted offer, how is the buyer going to get a mortgage on the house? The buyer will not be able to.
Yet the house is signed up exclusively by a Real Estate Broker, proving either it is time for him or her to retire, or is having another sign up in the Community that important to him or her?
Further collateral damage is if the house needs work besides.
The only way the owner can sell this type of home is putting the apartments back the way they were. But of course that may take another $25,000 dollars to do so. And if the owners home needs work besides, how can the owner ever sell the home at top dollar numbers?
If this is the case, to me as a Broker for 37 years in the Community, my advice to everyone is, if you have a homeowner who wants big balloons, with illegal apartments, a house that need big renovations, then you are better off walking away and not take this type of listing.
If you do, shame on you! Buyers who see homes like this, should tell the broker or agent off.
It is the job of the Broker to point all these things out to the owner. If the owner does not want to restore the home to its legal description, then at least you tried.