Eyeing the Recouped Cost

It's always interesting to see Remodeling magazine's "Cost vs. Value Report" on the increase in home values due to remodeling projects (December 2008, page 22).

 Next year, you might interview some appraisers and get their opinion of the added value of projects. Among my colleagues, the consensus is that the opinion of the recouped cost is way out of line most of the time.

Alan G. McElwain, GRI, McElwain Real Estate, Paso Robles, Calif.

Keeping Faith Personal

I must take exception to your article "Distressed Homes Get a Feng Shui Lift" (November 2008, page 20). It seems in your article an important element of feng shui has to do with spiritual or supernatural elements. This is evidenced by such phrases in the article as "energy from objects," and "spiritual," "blessings," "chants," "ghosts," "astrology," and "numerology." I am a person of faith. However, I don't let my personal faith crowd into my professional reality.

Peter Jensen, Metropolitan Homes, Albuquerque, N.M.

More Words Make It Clearer

The headline for the "Real Life" court case in the November issue ("Brokerage Can Represent Competing Buyers," page 18) should have read "Brokerage Can Represent Both (Without Disclosure to Either)." Designated agency, where the same company can represent two parties on the same transaction, is legal in many states, including my state of North Carolina. The difference here, however, is that the brokerage must disclose to and get permission from both parties when representing both in the same transaction.

In North Carolina, designated agency is still considered dual agency, and the brokerage is bound by statute to inform both parties when the brokerage represents two clients on the same property. I suspect that the second buyer, who made a full-price offer two days after the first buyer made an offer, knew that the first buyer's offer was less than full price. But the first buyer was not aware the company was also representing the second buyer.

If both parties had known that each was making an offer on the same property, then at least both buyers would have had equal opportunity to adjust their offers accordingly. And chances are the seller could have gotten even more than the asking price.

Julie Tuggle, ABR®, e-PRO®, Carolina Buyer's Agent, Charlotte, N.C.

Get in Step on Short Sales

Your recent Editor's column ("Are You Sidestepping Short Sales?" August 2008, page 6) hit the nail on the head with regard to the difficulties of short sales. My last two short sale transactions went like this:

1. An offer of $185,000 came in on my short sale listing. The bank said it was too low and ordered a broker's price opinion, which came back at $135,000. Nevertheless, the bank did not approve the offer for over two months, by which time the buyers had moved on to a new house. Eventually, the bank foreclosed on the house.

2. I placed an offer for $660,000 on behalf of my clients on a short sale. The bank turned it down. A few months later the home went into foreclosure. Six months after that, the home sold for $610,000.

Until the powers that be at the banks realize they are losing millions of dollars by delaying short sales, the process will remain arduous, with little satisfaction for anyone.

Matthew Corsaut, Realty World Greater Sacramento Properties, Rancho Murieta, Calif.

Letters are edited for space and clarity. Publication of a letter doesn't constitute an endorsement of the writer's views by the NATIONAL ASSOCIATION OF REALTORS® or REALTOR® magazine.