Posted on Friday, 4th June 2010 by Anna Kulbinski

This is just about one listing I came across that made me wonder if home sellers as well as home buyers qualify their real estate agent.

Below is verbatim (and, yes it was written in all caps) what was written in the public remarks- you know, that section that normally has a description of the property to get you- the buyer- to want to see the property? It’s that paragraph you read about the home that makes you pick up the phone to call your real estate agent and request to show you the house.  So, instead of the enticing description that is what was written:

“SHORT SALE!! SUBJECT TO LIEN HOLDER’S APPROVAL  BUYER TO VERIFY ALL FACTS AND FIGURES. OWNER CANNOT MAKE ANY REPAIRS, WARRANTIES, OR DISCLOSURES. LENDER HAS NEVER OCCUPIED THE PROPERTY AND IS UNFAMILIAR WITH THE PROPERTY. PROPERTY IS BEING SOLD IN ITS ”AS-IS” ”WHERE-IS” CONDITION. BUYER IS URGED TO OBTAIN INDEPENDENT INSPECTION TO INSURE THE PROPERTY IS SUITABLE FOR BUYER’S INTENDED USE”

Wow!!! Really? A disclaimer!? What about the house? I emailed this listing to my client, and guess what, my client’s list of homes to see did not include this one, hmm- I wonder why? Not to mention, the pictures were not exactly impressive either.

Okay, let me break it up in pieces to see what I think about this “disclaimer”:

  1. SHORT SALE- ok, good to know. A short sale addendum will accompany the offer.
  2. SUBJECT TO LIEN HOLDER’S APPROVAL- if it is a short sale it always is subject to lender’s approval.
  3. OWNER CANNOT MAKE ANY REPAIRS, WARRANTIES, OR DISCLOSURES- I understand the repairs part. The seller is in financial distress and will not make any repairs. But why not disclosures? The house was occupied by the owner. Why sellers who occupy the property refuse to provide disclosures? Do they think “no disclosure, no liability?” If so, perhaps they should read my previous post about the Seller Property Disclosure Statement.
  4. LENDER HAS NEVER OCCUPIED THE PROPERTY AND IS UNFAMILIAR WITH THE PROPERTY- what? What does the lender have to do with this?? It’s a short sale. The lender is just a “contingency” in the contract. The lender approves the contract only. The house is still owned by the seller.
  5. PROPERTY IS BEING SOLD IN ITS ”AS-IS” ”WHERE-IS” CONDITION- okay, I get it, we will include an “As Is” Addendum.
  6. BUYER IS URGED TO OBTAIN INDEPENDENT INSPECTION TO INSURE THE PROPERTY IS SUITABLE FOR BUYER’S INTENDED USE- It’s always the buyer’s responsibility to conduct all inspections of the property, but the seller is responsible for disclosing all known defects of the property. But “to insure the property is suitable for buyer’s intended use”- huh? It’s a house, right?

This listing rubbed me the wrong way, that’s why I needed to post it. Of course, the house ended up foreclosing after being on the market over 100 days. Now, you think about it: “Would you want to see the house after reading the description?” I don’t think I would, it’s too scary!!! Wouldn’t it sound better this way (of course I haven’t seen the house so this is just an example but am familiar with the subdivision): “Stunning single level home! This home boasts vaulted ceilings throughout, upgraded maple cabinets, granite countertops and tile in all the right places. Beautifully landscaped backyard. The subdivision is one of the more popular ones in the area featuring a golf course, tennis courts and a community swimming pool.” 

Yes, it is important to qualify your agent and remember just because your brother, aunt or friend is a real estate agent, does not mean they are qualified, especially when short sales are concerned.

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Posted in Buyers, Sellers, Short Sales, Various | Comments (0)

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