What the Listing Agent Will Not Tell You

Excellent post.it s agood idea to atten open house with your agent.The listing agent works for the seller and might not know about the changing flood zone.

Hi Ginny, even here in Central Florida that is great advice.  Since the FEMA 2008 flood plain assesment, a lot has changed.

Linda # 88  - I have been raked over the coals about "Dual Agency" on this and other forums.

YES, by golly, an honest agent discussing conflicts, full disclosure about everything and maintain the fiduciary requirements about confidentiality can handle dual agency just fine.

I think most of the flak comes those so-called, holier-than-thou, "exclusive buyer agents" upset because a dual agent limits their prospective properties and is more competition.

Since flood plains are public records, I have some doubts about strict liability on an agent for failure to disclose when the agent did not know. If the agent knew and concealed or did not disclose, the liability may become a real butt biter.

There has to be some reasonable limit as to what knowledge an agent must know about a property. The buyer has the same access to FEMA records as the agent. I think adults should be responsible for their errors and omissions and failure to do their due diligence. Or, are agents required to hold their hands and walk an adult thru life?

In 10 years, I have done ONE open house and will most likely never do another one. I have had sellers ask and I tell them the home must be spotless , perfect, shampoo or replace carpets and pay 50% of the open house advertising. And I tell them - statistically speaking - the house probably won't sell, but I will almost certainly meet some buyers and sell them something else. They shut up about it. How many of you tell your sellers the truth about open houses?

A professional agent would disclose all the possible consequences of purchasing a property including flood and fire zones or CC&R communities. 

Make's sence the floodplain is topo is moving with nature.  Holding open house's, when a guest indicates they have an agent, I do not Help them but will answer normal questions about the home or property.  Once you Help them, you have created an agency.  As a listing agent in CA, I represent the seller only and do not want to unduly create a buyers agency.

#91 Marvin- just funn'in, It's you hair cut, might scare off potential customer/clients.  In honesty, yes the future buyer or seller picked up at an open house may buy some other home...but they might buy the open house property, It's happened to me 10 or more times. Could be lack of experience on your part with only one open house under your belt, their is an art to it and experience plays a large role in a profitable open house.

Flood Insurance can bump the buyers out of their financing capacity.

On a different note, but it was years ago, my buyers were able to dispute having to pay the flood insurance by getting an elevation certificate. With the recent change in the FEMA regulation or zoning, not sure how to contest this these days.

Ginny, thank you for the post! The public is sometime clueless about what the cost of flood insurance can add to the expenses on a Coastal property. In Hawaii, many homes are located on flood zones so this is of outmost importance!

"In Texas you can be sued by "omission" or "co-mission" meaning you knew but didn't disclosure, or you didn't know but should have. " end of quote by #24. One house has white pipe in the basement and a shared septic and none is disclosed. About equal to walking through landmines in the middle east.

I'd feel pretty bad if I were a listing agent on a coastal property and a buyer asked me, directly or through her agent, whether the home required flood insurance and my answer were, "I don't know"!

There is a very good reason to have a buyers agent.  What you describe is one of them.

Michael - Your comment about my hair is absolutely uncalled for. I'll have you know that I have the same stylist that does the hair for Heidi Klum and Beyoncé fly in every month to attend to my 'do'.

I'll also have you know that I was voted 'Most handsome man in America" in 2009 by MAD Magazine! So there!

A professional agent, would try to hide anything.  They would disclose all necessary information, to help the buyer/seller to make an informative decision.

I sell land and homes on large acreage in a niche market where I live. I have the majority of the listings in the area and know it better than any buyers agent in the area. I sell the majority of my own listings representing the seller. Arizona law requires disclosure of any relevant information about the property to the buyer. I believe in being fair and honest with buyers even though I don't represent them in the transaction. When buying from me the buyer will know more about the property than they would choosing a buyers agent who is not familiar with the area. If a buyer has adequate information they can make an informed decision. That is something I provide to everyone.

An interesting question, is the buyer better off working with a buyers agent who doesn't know the area or have expertise selling vacant land or working with the listing agent who knows the area far better than anyone else and makes full fair disclosure. Buyers I have sold to become friends and continue doing business with me and referring their friends to me. They would not choose to do that if they didn't feel they were treated fairly. Though not always the case I think some buyers agents promise more than they can deliver often lacking knowledge about the properties they sell.

Jacqueline Drake CRS PMN

Cochise County AZ

Jacqueline # 103 - I had to check to make sure I had had not written your post. That's me!

"I know it better than any buyer's agent in the area."

I'm surprised most "buyers agents" do not get sued more often. They just do not know what they are doing when the city limits sign is in their rear view mirror.

About 99% of the time they tell buyers, "this is a year-round creek or spring", this is a corner or property line", "This is a good well". My question to them is, "HOW DO YOU KNOW"?

These agents who work 51.5 weeks a year in town and stumble into a rural listing, should refer it out. Most can not read and follow a map, do not know east from south, cannot follow directions, can not spot the property on the MLS map (I see property spotted as much as SIX miles away.) And they have no idea why so many 40s are only 39.8 or 39.6 acres. Uhhh, What's a 40?

If an agent has not educated themselves about the world of rural real estate, stay in town and refer it to someone who knows what they are doing. Someday, if the industry and occupation survives, we may have to have designations that mean something, like CCIM.

I think I'm talking to the trees here.

I do live along the coast and there are flood zones in each of the seven communities I serve.  Almost half of my transactions the last three years have been as a dual agent. My single goal is to do the best job possible for the house and for the buyers and sellers.  I think this as well when I represent just one side. It is not the commission, but the thrilled participants that drive your business, I keep that in mind. Full disclosure, even the parts that are scary, is how we build trust. The minute a client finds that you have withheld one piece of information they begin looking for that other shoe to drop.  Great post Ginny

Very informative blog ...  I'll bet you have seen some lovely coastal homes.  I would love to have a second home on the ocean!

I am of the opinion that if a buyer has an agent, they should be with them any time they look at a listing. I know that is not always possible, but you never know what the listing agent might be telling, or not telling, your buyer about their listing.

On the other hand, if buyers are going around looking at listings on their own, then they have no idea what they might get themselves into, and they should look for a buyer's agent to help them. Too many things can go wrong in a transaction.