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Did You Say... SINKHOLE?!

By Melinda (Mel) Peterson

Real Estate Broker/Owner with Grants Pass, OR 199909023

May 22, 2013 01:52 AM

Don't Walk From This Home... RUN! It's rare when you hear those words roll off the lips of a trusted home inspector, but I knew he wasn't kidding.

After being in contract for 4 months on an Oregon Short Sale, the listing agent disclosed there was a sinkhole in the front yard that was filled in by the Seller. Did you say... SINKHOLE?! I'm sure what comes to mind when we hear that word, is the guy in Florida who was swallowed up in the middle of the night while sleeping in his bed.

When questioned about the details, the listing agent's answers were sketchy and less than forthcoming. When asked why he was being so cryptic, he got defensive and said... 'That's all you're going to get.' Huh?! So, I informed my buyers and they decided to proceed with the sale, knowing full well they would have the sinkhole investigated during the inspection period.

Fast forward to the present... when the inspector crawled out from under the home, he had a very disconcerting look on his face. He said... aside from the active rodent infestation, extensive dryrot, cracks in the drywall, floor, windows and sidewalk, a heavily leaning retaining wall in the back yard, not to mention the sinkhole in the front yard, this home's foundation was severly cracked and had already sunk 2-6 inches in various places (The Mother of all Short Sales... exactly the reason you should always opt for a home inspection folks!).

Needless to say, when we received the whopper inspection report... my Buyer's didn't walk from this home... they RAN! But here's the clincher (unbelievable, if you ask me)... I received an email from the listing agent that read... 'Do NOT send me the inspection report.' Wow! Curious me... I checked the MLS and saw that the house was PENDING again. Does he really think he's exempt from disclosing material facts about this property to potential buyers?! One can only imagine what I did next... yes indeed, I emailed him the report!

Did You Say... SINKHOLE?! ~ Melinda Peterson

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Jimmy Faulkner

Florida. Homes Realty & Mortgage - Wantagh, NY

The Best Of St. Augustine

Why do we have so many unprofessional liars & cheats in the real estate industry. NAR & the local boards cry out honesty, integrity & so on & pound the drum with it. All that tells me is what are you hiding. NAR even lied about the sales numbers by 15% in 2011.

May 22, 2013 12:30 PM

Chuck Mixon

The Keyes Company - Cutler Bay, FL

Cutler Bay Specialist, GRI, CDPE, BPOR

In Florida the Sellers Disclosure has some teeth. It can be used in a Court of Law if the Buyer find proof the the Seller was not 100% honest. Some cases have rule that the Seller much pay for repairs that they knew about be did not disclose.

May 22, 2013 12:33 PM

David Shamansky

US Mortgages - David Shamansky - Highlands Ranch, CO

Creative, Aggressive & 560 FICO - OK, Colorado Mtg

WOW I am sure you are glad you heeded that inspectors words! That's crazy and scary

May 22, 2013 01:15 PM

Sharon Alters

Coldwell Banker Vanguard Realty - 904-673-2308 - Fleming Island, FL

Realtor - Homes for Sale Fleming Island FL

I have heard this before where listing agents don't want a copy of the report. What kind of agent does that? Wow. Glad your buyer ran. Sharon

May 22, 2013 01:50 PM

Wanda Kubat-Nerdin - Wanda Can!

Red Rock Real Estate (435) 632-9374 - St. George, UT

St. George Utah Area Residential Sales Agent

Mel, That listing agent will be held liable for what he knows...disclose, disclose, disclose! Sheesh. Sounds like the inspector's advice was righteous!

May 22, 2013 02:36 PM

Bill Reddington

Re/max By The Sea - Destin, FL

Destin Florida Real Estate

There is always a fix for everything but lack of disclosure is a great reason to have your license taken away. Can't play dumb anymore. Doesn't work.

May 22, 2013 02:48 PM

Aaron Hofmann

Atlanta Communities - Smyrna, GA

aka Mr. Smyrna Vinings

I would definitely agree with the running part. Sounds like there were way too many issues with the house. I probably would have copied the broker on the email with the inspection report as well. Sketchy.

May 22, 2013 03:42 PM

Rosemary Brooks

BMC Real Estate - 209-910-3706 - Stockton, CA

The Mother & Daughter Realty Team

Sinkhole definition is RUN FOREST RUN! Great post. Sinkholes are becoming more frequent and should be something that is disclosed really before you even suggest going to see the property. Might save yourself and your client a trip!

May 22, 2013 04:23 PM

Lise Howe

Keller Williams Capital Properties - Washington, DC

Assoc. Broker in DC, MD, VA and attorney in DC

Wow = I got a sinking feeling just reading this post! Another good reason to do due diligence when a house has been under contract several times and keeps coming back on the market! Sometimes the neighbors know what is going on and can be a good source of information!

May 22, 2013 08:37 PM

Sandy Padula & Norm Padula, JD, GRI

HomeSmart Realty West & Florida Realty Investments - , CA

Presence, Persistence & Perseverance

Melinda, the listing agent needs to find a new line of work. It is agents of this sort that give our industry a bad rap. You might even take this up with the local board if the property disclosures have not been updated to reveal these now known deficiencies.

May 22, 2013 09:18 PM

Lisa Von Domek

Lisa Von Domek Team - Dallas, TX

....Experience Isn't Expensive.... It's Priceless!

Hello Mel,

Depending on the price of the home, coupled with the extensive repair costs, running could have been the right option for the buyer...(Yikes!) It would be interesting to see what the final sales price is compared to other homes in the area that did not have these severe problems.

May 22, 2013 10:19 PM

Amanda Christiansen

Christiansen Group Realty (260)704-0843 - Fort Wayne, IN

Christiansen Group Realty

That's so wrong that the listing agent didn't want the inspection delivered. This home will never sell. Sounds like a frustrating issue.

May 22, 2013 10:52 PM

Susan Haughton

Long and Foster REALTORS (703) 470-4545 - Alexandria, VA

Susan & Mindy Team...Honesty. Integrity. Results.

I never cease to be dismayed at the lack of ethics among some agents; "don't send me the inspection report." Wow.

Good for your clients in deciding this was one house not worth waiting for.

May 23, 2013 06:34 AM

Melinda (Mel) Peterson

Grants Pass, OR - Bend, OR

The Savvy Broker - ABR, CRS

I wouldn't think of buying any where near a 'karst'... Fred ;-)

I wish I could answer that... Jimmy, but sadly, I think they're in every line of work.

I like laws that have teeth... Chuck ;-)

Indeed David. Certainly, the 3rd party Inspector has nothing to gain in advising them to RUN!

It's crazy to think that he put it in writing... Sharon!

I love the word... Righteous... Wanda! You're a cool chicky!!!

Rolling over and playing dead or dumb isn't the kind of professionalism I would hope to expect from a fellow Agent/Realtor... Bill ;-)

Most of the other items noted on the report would've been doable given the acceptance price. However, the cracked foundation, sinkhole and slipping hillside is a huge unknown RISK my Buyer wasn't willing to accept... Aaron.

May 23, 2013 07:25 AM

Melinda (Mel) Peterson

Grants Pass, OR - Bend, OR

The Savvy Broker - ABR, CRS

I would agree Rosemary! Had we been informed of the BIG picture in the beginning, perhaps my Buyers wouldn't have wasted 7 months waiting for Short Sale approval.

It was a hellava deal (without the sinkhole and slipping hillside)... Valerie. The home inspection was a small price to pay for waiting and running from this potential nightmare ;-)

Good point... Lise! Neighbors can be a great resource for discovering things that aren't disclosed!

I don't know how anyone could live with themselves, concealing information that could potentially be harmful to one's health and/or financial investment... Norman!

This home was priced significantly lower than competing homes in the neighborhood Lisa, but we surmised it was due to the home being a Short Sale with a lot of deferred maintenance.

Suprisingly, it's in contract again Amanda & Jared. Frankly, it would never pass traditional financing... but an all cash Buyer could scoop it up... if they're willing to accept the risk.

I hear ya... Susan! Although, for every bad apple in the bunch... there's a whole lotta good apples out there ;-)

May 23, 2013 07:25 AM

Kathleen Daniels, Probate & Trust Specialist

KD Realty - 408.972.1822 - San Jose, CA

Probate Real Estate Services

Mel, Oh what tangled webs we weave when first we practice to deceive! Of course you mailed him the inspection report. It he does not disclose it ... he is a fool! Talk about a lawsuit waiting to happen.

May 23, 2013 08:07 AM

Debb Janes

Nature As Neighbors - Camas, WA

Put My Love of Nature At Work for You

Wow, that's a doozy. Can you believe that agents attitude? He ought to lose his license. And yes, he'd better disclose of that information you so generously sent to him. Lol.

(Have fun in Colorado - and yes, come back this way - you have a place to stay. Or, we'll meet you in Portland ) xxxooo

May 23, 2013 08:53 AM

Bob Crane

Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI

Forestland Experts! 715-204-9671

This agent sounds kind of desperate, he should be running from this listing as well rather than engaging in risky behavior to get it sold.

May 23, 2013 06:25 PM

Gary Woltal

Keller Williams Realty - Flower Mound, TX

Assoc. Broker Realtor SFR Dallas Ft. Worth

Mel, maybe this poor condition home needs to fall INTO the sinkhole and on that piece of land start all over again. Wow such rotten condition the listing agent has to work with.

May 24, 2013 09:38 AM

Nick T Pappas

Assoc. Broker ABR, CRS, SFR, e-Pro, @Homes Realty Group, Broker/Providence Property Mgmnt, LLC Huntsville AL - Huntsville, AL

Madison & Huntsville Alabama Real Estate Resource

Mel, if you didn't send him the email or at least have a little talk with his broker then you wouldn't be the "Naked Blogger" that I've come to know! That's the kind of agent that needs to be driven out of the business.

May 27, 2013 07:10 AM

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