Ask to See Homeowners Association Books!

Here is a new one for me; a while back I had a client that bought a lot to build his home.  The subdivision was a nice upscale area that was only partially completed with most lots not sold.  My client built the home and has been there for two years now. 

Not many of the lots have sold as they are one acre and economy probably had much to do with that.  My client asked to see the books for the subdivision (which has CCNR’s) and he was told no!  So he is doing a hold back on monthly dues until they show the books.

The person in charge and owner has stated the doesn’t have any books to show! (Red flag).  I have never been across this before as a realtor.  The law requires that everything is separate from personal accounts just like realty brokerages.  I guess my warning would be before closings ask to see the books of the Association to see if they are solvent or just collecting money for the cruise they are going to take.

Apathetic Sellers will waste your time!

I had a gentleman call me the other day; the first thing he said was that he was looking for a realtor to sell his crappy house! (His words not mine).  My response was to ask why his house is crappy.  His answer was: well I really don’t care if it sells or not, I am going to be foreclosed on in the next couple of months and I just want to know if this selling short thing really works!

Now as a Buyer agent I have written a couple of contracts with other agents that have had sellers that really don’t know what it takes on both sides to get a deal on a short sale.  I would not waste the time of my buyer customers to even show such a home.  Most are not this blatant when they tell you that I am going to waste your time as this gentleman was, but you can also get a hint by asking a couple of questions from the start:

1.       Are you willing to gather all of the documentation such as tax returns bank accounts etc.?

2.       Will you allow agents to show the house under normal circumstances?

If they balk at either of these two questions then I can’t help them.  This of course was one of those times when I told him no, and that I don’t have a referral to anyone else.