Michael Delehanty

I think this is an extremely difficult question to answer in generic terms. For example, I once had a client buy a home in an "up and coming" neighborhood in Oakland, only to find out a few years later it was simply moving laterally, or perhaps even downward even though most of the economic factors were improving. It all had to do with the new residents that were replacing those that moved out. It also had to do with the local businesses and over time, some of them were closing with nothing new coming into the area and also, people started to focus on other neighborhoods which further hurt the neighborhood of my clients. They eventually sold and that was a good move for them. If I was trying to evaluate a new area, I might look at those established neighborhoods and try to identify which are overpriced and which are in line to get traction next. For example, in a nearby community named Pleasant Hill, the main focus is an area called Poets Corner but savvy buyers have known for years that it's much better to focus on the neighborhood a few blocks away called Gregory Gardens because the homes are the same (as well as schools) but prices are much more affordable.

This is one of my favorite topics to discuss because people can get so bogged down in the details of a home inspection. Although ever issue can be important to a buyer, i feel it's best to focus on those items called out as "health and safety" such as electrical violations, foundation damage, drainage problems, fire code violations, etc. Small items like broken windows or damaged doors can be fixed easily. The bigger questions are how those windows or doors were damaged as well as other things that directly affect your daily life in the home. It is also extremely important to use an inspector that is trusted so don't just hire anyone and typically, don't hire a company that does all inspections under one umbrella. Instead, ask your agent for inspection advice and make sure your agent is qualified to help you review the reports to determine just what should be considered and how to address those issues with the contract going forward.

It is important for your Real Estate agent to help guide you through this situation. He/she should have discussed this potential with you prior to getting into a bidding war on the home. Now that you are here, your agent needs to explain just what type of leverage you have in this situation. If I was on the listing side and the market is strong, I would not split the difference at all. Either you cover the additional costs or you cancel and we move on to the next buyer. If the market is not that strong, then your agent will understand if you can negotiate some sort of deal where the price is lowered - assuming your lender cannot find a way to absorb the extra costs into the deal. Your agent and lender need to have your back to help get this solved. I'm sure you have options.

I"m sure each area has it's own standard procedures but in my area (San Franscisco) the buyer will typically ask the seller to pay off any solar liens as part of the purchase, even if the system is nearly new. Few buyers will want to take on a solar lease and when I represent buyers, I almost always make sure the sellers pay off anything owing on a solar system. Of course, if the home is desirable and other buyers are writing offers at the same time, then the buyer might be forced to alter the demand to pay off the solar. On the seller side, if you are thinking of listing your home anytime in the near future, then please remember there is a chance you could be asked to pay off the lien if you decide to sell.

Unfortunately, it will be awkward no matter which direction you take. However, there is a good way to work through this issue and still save face with everyone around you. Hire a qualified Real Estate agent to sell your house but let that person know you have a close relative that you did not hire and that person is looking for a referral fee as part of the sale. I'm confident the agent you hire will be willing to pay a 25% referral to your SIL in order to secure the listing though it's possible that agent might want the higher side of fees typical for your area. Your SIL makes some income on the sale and can monitor how a great local Real Estate agent works to get your home sold. It's a win for everyone and I've done this several times myself when I'm hired to list a home but need to keep a family member happy along the way.

Buyers typically want two types of homes: Fully remodeled and nearly perfect. Or untouched for decades and needs literally everything. Unfortunately, your home falls in the middle of those two extremes so it likely feels very outdated with 25 year old fixtures but is still a somewhat newer property overall. Since I have not seen your home, I can only speculate that it needs flooring, paint and appliances at the minimum and I would suggest you consider those items to start. Of course, your local market will determine just how much your home can sell for so your agent needs to guide you in determining what your home will sell for when updated vs as is. I would think you are better off with a mild refresh but some areas just don't support that increase in value and comps in your area will give the best information as to how to proceed. Remember: spend a dollar to make two or three. Don't spend a dollar to make one.