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My First Real Estate Transaction Cost Me Money

By
Real Estate Agent with Brown Realty, 210-789-4216, TREC #0492321

How could I ever forget my very first real estate transaction? It took money out of my pocket. Yes, that was a learning experience which I will always remember. Back in the spring of 2002, I had left my laboratory technology profession at Lab Corporation of America, and began my new career in real estate. I was absolutely thrilled and excited that two of my co-workers were looking to purchase their first home, and wanted me to assist them in the process by being their agent.

 

After looking at several homes, we finally found the perfect home for this couple. It had all the space they wanted for a growing family, and the yard was very large with lots of fruit trees. They loved the fact that is was on a corner lot, and the home had lots of potential that only needed some cosmetic repairs. However, the inspection report pointed out a lot of other issues with the property.  But, the seller wasn’t able to make any of the requested repairs, so we negotiated to reduce the sales price, and my buyers were satisfied with the deal.

 

Hot Water HeaterShortly after moving into their new home, I got this phone call complaining that the water heater was leaking. No big deal I thought. Just call the residential home warranty company, which the seller had paid for in the contract. The plumber showed up to fix the water heater, but discovered some rust, and noted that it had a pre-existing problem, and it would not be covered under the residential home warranty. WOW! Now, What?

 

These were not just first time home buyers with very little money saved up for emergencies, but they were my very first clients from my old job, and I certainly didn’t want, or need any problems that would hinder any future referrals from them. Therefore, I offered to purchase a new hot water heater for them, and they had a family member who could install it to save on the labor charges from any plumber.

 

Yes, my first real estate transaction cost me money, but I had some very satisfied clients, and they did refer more business to me, and even bought another home 4 years later. Since that first transaction, I have learned some valuable lessons about pre-existing conditions. Some of the home warranties today do cover these conditions, but only if you purchase the upgraded residential home warranty. Finding out about them during the home inspections can save the buyers and their agents money.

 

If you are thinking about buying or selling a home anytime soon, Call Jerry Today at 210-789-4216. To quote my Active Rain friend, Karen Kruschka, “Experience Isn’t Expensive, It’s Priceless”. Let my real estate knowledge and experience work for you, and save you money. Search for homes on my website, Homes For Sale in San Antonio.

Comments(89)

Maria Gilda Racelis
Home Buyers Realty, LLC-Manchester, Bolton. Vernon,Ellington - Manchester, CT
Home Ownership is w/in Reach. We Make it Happen!

Jerry: Wow. That is so generous of you. But I do believe that it will come back, ten fold.

 

Apr 24, 2014 07:03 AM
Gloria Todor
Premier Property Sales & Rentals - Springfield, PA
& Doug Durren (484) 431-3686 in SE PA

Hi Jerry, Gosh what a hard way to find out about home warranties....but a lesson you have never forgotten.  Lucky you were able to do what you did as it has proven to ensure more business over the years. 

Thanks for sharing!
Gloria

Apr 24, 2014 11:04 AM
Jerry Newman
Brown Realty, 210-789-4216, - San Antonio, TX
Texas REALTOR, San Antonio Military Relocation

Yes, Maria, They were a good couple, and I have been rewarded my efforts.

Apr 24, 2014 02:40 PM
Jerry Newman
Brown Realty, 210-789-4216, - San Antonio, TX
Texas REALTOR, San Antonio Military Relocation

Yes, Gloria, I have learned a lot about what these warranties will cover, and will NOT cover over the years. Glad to step up and help this young couple.

Apr 24, 2014 02:41 PM
Gary Raphael
The Property Shop Realty and Investments,LLC - Peoria, AZ
Realtor

You did the right thing Jerry. As everyone has said it will come back to you in good ways. I always put my clients first.

Apr 28, 2014 01:25 AM
Karen Crowson
Coldwell Banker Residential Brokerage - Rancho Bernardo, CA
Your Agent for Change

Doing the right thing isn't always easy, but it pays off in the long run. Good for you. Thanks for entering the April Contest!

Apr 28, 2014 02:56 AM
Jerry Newman
Brown Realty, 210-789-4216, - San Antonio, TX
Texas REALTOR, San Antonio Military Relocation

Yes, Gary. Putting clients First has always been top priority with me all these years, and it does pay off.

Apr 28, 2014 04:16 AM
Jerry Newman
Brown Realty, 210-789-4216, - San Antonio, TX
Texas REALTOR, San Antonio Military Relocation

You're Welcome, Karen. I have enjoyed sharing, and participating in this month's contest.

Apr 28, 2014 04:17 AM
Chris Ann Cleland
Long and Foster Real Estate - Gainesville, VA
Associate Broker, Bristow, VA

I still fight with home warranty companies.  It's aggravating.  Had one that touted seller and buyer coverage.  Buyer moved in pre-settlement, washer was busted and leaked all over basement floor (BTW...not something that happened during inspection.)  Warranty company said they would cover it when the home transferred to ownership with the buyer, but not before.  They wanted to make the buyer wait one week to get the thing replaced.  Crappy customer service.  But ran it up the chain of that company and finally found someone who understood that it was going to cost the same whether it was now or later....in fact, if it was later, the warranty would NOT be purchased. 

Apr 29, 2014 02:52 AM
Travis "the SOLD man" Parker; Broker/Owner
Travis Realty - Enterprise, AL
email: Travis@theSOLDman.me / cell: 334-494-7846

I learned a LONG time ago in my Retail Businesses, that sometimes taking a loss will pay off in GREAT P.R. later on!! Glad it worked out for you!

Apr 29, 2014 07:12 AM
Jerry Newman
Brown Realty, 210-789-4216, - San Antonio, TX
Texas REALTOR, San Antonio Military Relocation

WOW! Chris Ann. That's some story, and it doesn't speak highly of that Home Warranty company, especially when they wanted you to get the Seller's Coverage too. I thought the whole idea was to have coverage during the listing period, just in case something happened.

Apr 29, 2014 11:54 AM
Jerry Newman
Brown Realty, 210-789-4216, - San Antonio, TX
Texas REALTOR, San Antonio Military Relocation

Yes, Travis. It was good P.R. all right. Keeping the clients happy and satisfied should be our first priority.

Apr 29, 2014 11:55 AM
Graziella Bruner
NCS Premier Real Estate - Detroit, MI
Associate Broker - Serving Wayne & Oakland County

Good lesson to learn.  The cost of a water heater gained you future deals.  It's really about making our clients happy and satisfied and when you give in return it does come back to you, 30, 60, and even a 100 fold.  Best wishes to you.  

Thanks for sharing.

Apr 29, 2014 12:01 PM
Jerry Newman
Brown Realty, 210-789-4216, - San Antonio, TX
Texas REALTOR, San Antonio Military Relocation

Yes, Graziella. That turned out to be a very rewarding water heater. Great Customer Service Matters!

Apr 29, 2014 12:04 PM
Pete Xavier
Investments to Luxury - Pacific Palisades, CA
Outstanding Agent Referrals-Nationwide

Provided you a quick learning lesson in home warranties along with referrals down the road, I call that a fair deal!

May 01, 2014 01:05 PM
Bill Dean
Haggerty Team St. Louis, Mo. - Fenton, MO
William Dean - Broker, Salesperson

Jerry,

I have never been a fan of Home warranty companies.  Far to often they manage to use the weasel clause of saying it is pre-existing.

May 03, 2014 01:39 PM
Brian Quigley - 720-524-3215
The Mortgage Network NMLS#244003 - Denver, CO
COBROKER1 - NMLS#2085418 Beacon Lending

You learned from it! Good article!

May 05, 2014 05:37 AM
Arlow Real Estate Group in Savannah, Pooler & Richmond Hill
Keller Williams - Richmond Hill, GA

Yep, not all home warranties are equal, thanks for the post and gald it worked out well for you. 

May 05, 2014 05:47 AM
Mike Cooper, Broker VA,WV
Cornerstone Business Group Inc - Winchester, VA
Your Neighborhood Real Estate Sales Pro


Expensive lessons, Jerry, but you won over your clients for life. It was an investment. 8=)

May 05, 2014 06:18 AM
Jerry Newman
Brown Realty, 210-789-4216, - San Antonio, TX
Texas REALTOR, San Antonio Military Relocation

Yes, Pete. It was a very fair deal indeed. Have a Great Day!

Bill, I have more than my share of bad experiences with some home warranties too.

Yes, Brian. Every real estate transaction is an education all within itself.

Thanks, Mark. We love to hear about good ending stories. Have a Great Day!

Yes, Mike. I would say it was a nice investment, and those clients were GREAT!

 

 

 

May 06, 2014 11:26 AM