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Author: Monty

  • Is real estate agency law working?

    today’s reliance on agency over caveat emptor does not appear to have had much of an effect. It feels like industry leaders are painting the ceiling when the roof leaks.

  • Ten flashpoints in real estate contracts

    The ten flashpoints in real estate contracts are contract subjects to make certain you understand.

  • Are real estate agents allowed to share our offer with other buyers?

    Reader Question: Our agent is suggesting that we write an offer on a home we like to include a contingency that we are willing to pay more for the house if another buyer makes an offer at the same time. They would word the contingency so the seller shares a better offer with us and…

  • Two appraisals miles apart; What should I do?

    Reader Question: I ​am purchasing a home. Lender appraisal (A) value came back $48,000 lower than the contract price. Sellers disagreed and argued it was a bad appraisal. I agreed to get a second opinion. Appraisal (B) came back $5,000 over contract price. The two appraisals are miles apart. I was shocked because I was…

  • In real estate, what is procuring cause?

      Reader Question: One of the agents we are interviewing to help us find a home mentioned something called “procuring cause” which is a term unfamiliar to us. Apparently, we have to be careful about talking with other real estate agents because other agents can get the commission if they mention a potential match that…

  • Flip or hold real estate? A comparison

    Reader Question: I am interested in starting a career as a real estate investor. Both remodeling to flip or hold homes for the long-term interest me. I do not have any construction experience, nor have I any actual real estate experience. I am quick to pick up on training, and I’m people orientated so I…

  •  A partnership agreement needed with inherited property

      Reader Question: ​My wife and her three siblings inherited the family home when their mother died. My wife was 20 years old at that time, the eldest, and invested 10k in keeping the house. It is now 39 years later, and the siblings want their share. My wife is the only one who has…

  • Buy an existing new home vs. build from scratch?

    Reader Question: We bought a lot several years ago to build a home, and we are now ready to go forward. I have gathered some general information, but I’d like to have more of a general idea before we decide between buy new existing home or build from scratch? . Where can I find information…

  • Selling packaged real estate investment vs. individual pricing

    Reader Question: I have packaged a duplex and three single-family homes together and listed them for sale as a packaged real estate investment. These are C+ to B- cash flow homes in the midwest which are attractive to out of state investors. All currently have tenants in them with rental history available and are priced…

  • Six tips when buying a home warranty

    Reader Question: We are buying a home, and the agent suggested a home warranty to replace or repair things that wear out. The warranty covers such items for a year, after which time we can renew the contract or let it lapse. The cost of the coverage is over four hundred dollars. We have asked…

  • Picking a real estate agent for the wrong reasons

    Reader Question: ​I have a friend who is a real estate broker. She wants to be my agent for a home I currently own and the home I buy when I relocate. She has another job and appears overwhelmed. She lives two hours from where I am buying, and the house I am selling is…

  • Should I buy a home with a standing water problem? 



      Reader Question: The house I am buying has a sump pump because of a standing water problem. ​I have looked at the home three times and each time I saw standing water in the next door neighbor’s yard. They had dug a long trench which runs along the side of their house facing my…

  • Neighborhood Due Diligence Checklist

    Reader Question: We found a home we are very interested in buying. We hear a lot of different opinions about how to check out the neighborhood. Do you have a neighborhood due diligence checklist? Monty’s Answer: Consider a conversation over a checklist. The reason you hear so many opinions is that people’s circumstances and life…

  • Inheritance creates multiple choice decision

    Reader Question: ​My wife is selling a home she inherited. It has been shown multiple time with no results. The house needs updating, and it has a bowed basement wall. It was listed for $69,900 which was below the market value. We’ve had several offers, but they are flippers who have offered $20 – $25…

  • Buyer lost a dream home and seller loses equity

      Reader Comment: ​We lost a dream home when we didn’t understand the significance of what you recently wrote that there are “…no standardized rules in the industry” and that “the nature of the real estate transaction and how the sales develop is very fluid.” We had first made a written offer on the house…