It Pays to Be Assertive
When Selling Your Home

Question: I'm selling a horse farm and newer large home in the upper-$300,000 price range. I'm mailing a four-page detailed flyer with photos to more than 100 people in the horse business in my state. Is it proper for me to send the flyer to some real-estate agents in my area?

Also, I read in your book, "The For Sale by Owner Kit" (Dearborn, 1998), that if an agent comes to me and says he has an interested party, it wouldn't be uncommon for me to tell that agent, "Sure, and if they purchase, I'll pay you a 50% commission." If I send my flyer to some agents and include a note about the 50% commission, will the result be positive, or will the agents laugh at me?

Burt: Let them laugh! An agent typically makes only 50% of the real-estate commission on a sale -- half to the agent representing the seller, the other half to the agent representing the buyer. When you offer "half" of a commission to a buyer's agent, you're actually offering a "full half," which is what they would normally get. Just make it clear that you're representing yourself as the seller. Why would any reasonable agent with a buyer in hand refuse that? Send your flyer to agents. For those who don't respond, you've only lost postage and a few cents for the paper. But if only one responds, you could have a deal.

Secure a Permit Before Construction

Question: I'm thinking about buying a house from a seller who basically doubled the size of the house without getting any inspections or building permits. The county tax rolls indicate a 1,900-square-foot house, but the house actually is 4,600 square feet. Having done construction in the past, I feel the workmanship is worthy, though I haven't had an inspection done or even made an offer. Should I make the seller secure the necessary permits, or submit a low offer and assume the risks associated with getting the permits cleared myself?

My thinking is that the tax collector doesn't care if the house is 200 square feet or 10,000 square feet as long as he's getting top dollar on property taxes after the sale and transfer. I realize that you may not know all the nuances of San Diego County, but do you have any experience with this kind of situation?

-- Donald, San Diego

Donald: You're right -- the tax collector won't care a whit whether there's a permit or not, as long as the taxes are paid and the structure was declared habitable by the building department when the original work was done. Taxes in California are based on the sales price.

But the building department will care. If you've had experience with construction, you should realize that getting a permit after the work is done is one of the most difficult tasks there is. Building inspectors look at construction each step of the way because later tasks often cover up earlier work. How will the inspector, for example, know if the wood used was df, if the studs are 16 inches on center or if there is adequate diagonal bracing once the wallboard is up? What about the strength of the cement in the foundation or slab or the depth of the footings after pouring? What about wiring and plumbing hidden in walls? If you try to get the building permitted, you might find the building department demanding that you virtually tear it down and start over.

If you can get the seller to dump the house at close to half price, it might be worth the risk. At least you'd have a solid margin to play with in getting the work redone. However, since the addition was apparently done in a workmanlike manner, the seller is unlikely to acquiesce. More likely, the seller will want to sell "as is" after disclosing the lack of permits. In that case, expect the seller to want close to full price, hoping a future buyer will simply live in the property and not worry about permits. The great danger is that a neighbor will get upset for one reason or another and report an illegal addition. The building department may then be obligated to investigate.

If you're going to end up paying near full price, I suggest you demand that the seller get the property permitted. Let him worry about it. This will make it much easier for you, especially when it's time to resell. If the seller refuses, keep looking for another house.

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Mr. Irwin has more than 25 years' experience as a Los Angeles-area real-estate broker. He is the author of more than two dozen books about real estate and is recognized as one of the most knowledgeable writers in the real-estate field. Mr. Irwin's most recent book is "Irwin's Power Tips for Buying a Home for Less," (McGraw-Hill, 2000).

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Burt, city withheld

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