Our house on 48th St in Laveen, a neighborhood of Phoenix, was shot up while in escrow.
DECISION MEETING on the House in Laveen
Should we go ahead with the deal?
Drop out immediately? What are the issues/criteria?
On Tuesday evening we (Michelle, Jeff, Sherman, Jim) gathered at Sherman’s “Crest Premier Properties” place to discuss the issues and make a decision: terminate the deal or go forward? Before we get the decision discussion, let’s fill in some more information.
DECISION MEETING on the House in Laveen – Sherman’s Experience
Sherman first discovered the damage to the house and had an interaction with agents of the seller. This was a Zillow house which they had bought and fixed up for sale. We were extremely impressed by how well Zillow had refurbished the house; new appliances and all.
We were also impressed by Zillow’s agent, Michael, who was thoroughly professional before, during and after the incident. Whether we make a deal here or not, we would like to see more Zillow houses and deal with Michael again.
Sherman recounts his discovery of the situation:
DECISION MEETING on the House in Laveen – Jeff’s Observation
After that, Jeff had an observation on the deal with regards to extending the “inspection period”:
DECISION MEETING on the House in Laveen – Michelle’s Investigation
Jim and Michelle visited the property on Saturday, May 11th to do some investigation by talking to the neighbors. Michelle talked to two “new” neighbors and one that we had talked to previously.
Two heard the shots, but both thought they were “firecrackers”. The woman immediately across from the house got her gun and was going to confront the shooter! “You, can’t do that in my neighborhood!” Fortunately for her, he was gone when she opened her door. She advised us to pray about the decision to go forward with the purchase. We agree and we had already done so.
DECISION MEETING on the House in Laveen – Disclosure Notes
Jeff and Sherman had some good comments on the legal and ethical requirements for ‘disclosure’ of these types of incidents; whether you are reselling the house or leasing it.
First, you are only responsible for disclosing incidents or conditions for when you owned the property. What happened before is not your responsibility to disclose.
Jeff also points out that there are several conditions (e.g., a murder, an HIV infection, a felony) that are protected by law. You cannot disclose these occurrences.
As far as renting, Sherman cautions, “If you don’t disclose it, the neighbors will!”
DECISION MEETING on the House in Laveen – Our Final Decision
Finally, we come to the decision meeting.
The guiding principle is that we go forward with the deal financially if we get the house at a discount. If not, we could just go down the street and buy an equivalent house that doesn’t have stigma and risks (e.g., it happens again during escrow, or after we have bought it, or after we have rented it).
How much of a discount? Down to $150,000, $170,000?
OUR DECISION: go ahead at an offer of $150,000 and wait for the seller response.
DECISION MEETING on the House in Laveen – Post Decision Planning
Afterwards we do some immediate planning for the offer explanation especially in light of Jeff’s planned trip to Israel in connection with his vicarage. He has arranged to have one of his eXp Realty colleagues, Rayven, fill in for him while he is in Israel.
And Jim and Michelle are scheduled to be in France for the 75th anniversary of D Day.