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I wonder if the buyers got what they wanted?

As many of you remember a couple of months ago, a buyer initiated a lawsuit against her real estate agent for fraud due to misrepresentation.

On Friday the trial ended and in less than two hours the jury came back with a unanimous verdict that vindicated the real estate agent, Mike Little.

Ms. Ummel had stated on her Today Show interview prior to the trial that she was a trailblazer and wanted to change the real estate industry. While they lost their case, she was successful in getting discussion going about what clients should and should not expect real estate agents to do.

What I found interesting about this situation was that the buyers had looked at over 80 homes with Mr. Little. I have had clients that I have shown many homes to, and what happens is that the buyers start to value properties themselves. "The gray house was a much better deal" they might say or "the view isn't worth the premium they want for that lot."

So, after firing one agent and backing out of two other offers, they decided that they were willing to pay a certain amount for this home. Homes have an emotional value to them. There are just some things that appraisers and real estate agents can't compensate for. No two properties are exactly alike, and the fact remains a house is worth what someone is willing to pay for it.

One of the jurors commented that she would be fortunate to have a real estate agent as good as Mr. Little represent her during a purchase or sale of a home. Sour grapes for a declining market...I'm not sure what type of dialogue Ms. Ummel was hoping to get. Somehow I don't think this was it...

If you are thinking about relocating to Salem-Keizer Metro area and need more information about what our city is like, please call or email me for more information. If you are considering a purchase or sale of a home, I'd like to discuss your real estate needs with you.

Melina Tomson, MS

call: 503-371-6515

email: melina@tomsonburnham.com

http://www.tomsonburnham.com

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Posted by Melina Tomson, M.S. Salem Oregon Real Estate Specialist on 04/13/2008 06:52 PM

Comments (35)

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35 Comments on I wonder if the buyers got what they wanted?

APR

2008

Don't ya love it when the good guy wins? Was she on the national Today show? I hope they do a followup.

Yes, I wonder if they will do a follow up on this and vindicate us. It would be important that they do.

I remember that case. Thank you very much for this report. The verdict is welcomed but there's no justice until and unless the plaintiff has to compensate the agent for lost money, time, reputation and agrivation.

I like the English system where the plaintiff pays the defendant's costs when they file suit and lose.

I am glad that the jury actual had good judgement on this case. Mike should counter for lawyer fees and personal damages to his character if that bepossibale.

Glad to hear the outcome of that situation. We are truly an overly litigious nation.

I completely agree. Market Value as defined is the lowest price a seller is WILLING to sell for and the highest price a buyer is WILLING to buy for. Standards cannot attach themselves when qualitative measurements are involved and you have to move away from the raw facts, which is just that, actual sales. Which again runs us in a circle as to what an individual is WILLING to pay for a home given ANY and ALL market conditions.

No doubt about litigation. We need to close all law schools for a bout forty years and disbar most of the other lawyers.

Karen-yes she was on the national Today show. The lawyer consultant Today brought on the show, said she didn't think they stood a chance.

Miriam-I do feel bad for Mike Little. I would hope it would make the front page for him.

Lenn, Matthew, John-Considering that Ms. Ummel PICKETED outside his office for 18 months, I'd say he should sue for damages. I do agree that it should be mandated that if you sue someone and lose, you pay their legal bills. I think it would stop many a frivolous lawsuit.

Angela-I just had some clients overpay for a house BUT they knew they were doing it. It needed a lot of work, the seller wanted too much, and they still wanted to buy it. So despite that the data told me the house was overpriced, they buyers were willing to pay that much, therefore it was worth that much.

What makes me sad about this particuluar situation is that it seems like they got really good representation. There are many buyers out there who had bad agents. Those are the ones that need to be brought to justice...

Mrs. Ummel should have to pay more than his legal bills. What she did was malicious. Picketing, hitting the talk show circuit (I think she was on more than the Today show). She seemed to actually ENJOY what she was doing.

There are always people out there that are looking to make their fortune by suing someone. It really makes it hard on the people doing the job and the next clients, because we are very careful what is said and somtimes we don't say enough for fear of being sued.

Melina, I can't believe this is the third time I've posted this...and then, no AR. Anyway, thank heaven this guy was exonerated despite - I'm sure - many sleepless nights and a stressful and costly situation.

I totally agree with Jackie, Mrs. Ummel should have to pay for his legal bills and also for damages. Picketing was totally uncalled for. I am so happy for Mike that the jury made this decision. But look at what this has done to him, the time away from working, the legal fees, the constant stress of it all; all because of our sue happy society. It is way too easy to bring law suits and then the defendant bears the burden. Katerina

Thanks for posting this. I don't catch too much tv news. It seemed like there were some pretty big holes in her case just from the little I had read on line. I hope she doesn't appeal and drag it out more.

Apparently we have not been following the original situation and lawsuit, but 80 houses! Wow, the agent showed them 80 houses and they still sued him. Got to go and read up about this case.

I had been paying attention to this a little bit. The agent wasn't much of a prize, but it was the right decision.

80 houses....I didn't know that before! That's INSANE...She should have to pay after all of that work and the trouble she caused.

APR

2008

Yeah i agree she should pay him!!! I say, people are willing to sue for ANYTHING these days

This is great news!! Thanks for the update. I hope this is broadcasted as much as the original lawsuit.

Again - 80 homes. And it was appraised at that value! Sounds like the appraiser should have more to answer for than the agent. And the appraiser wasn't the one that was picketed!

I hadn't read the results of this trial. Thanks for posting this. I'm so glad to see the agent vindicated. The public has some funny perceptions, sometimes, about what our job is. Yesterday, I locked my keys in my car and FORTUNATELY my clients were driving separately. They were very nice but did say something about "doing my job for me", by driving to the various houses. Forget the 18 hours or so that I spent preparing for this appointment (extensive research on 200 waterfront properties to narrow the list down to 5 appointments, the binder with color photos of the semi-finalists mapped out, the water-depth chart I consulted... that wasn't important, because they were driving the car 'til my husband came from 75 minutes away with another set of keys.

I followed this story. Katerina wrote an interesting article about a call from a local reporter who wanted an expose on the high rise of foreclosures, replete with abandoned or run-down homes. Almost like the reporter was looking for the physical evidence to support an already preconceived notion.

People want to blame somebody for this falling real estate mess. I'm glad the realtor didn't take the fall. the buyer ultimately makes the home choice all the time.

Thanks so much for the update, I'm glad the Realtor won, wonder if the news will carry it? Buyers Remorse.

First of all aren't we supposed to protect the public? Then why did they rule in the agents favor? Probably because it wasn't his fault even if he gave them a report of the values in the neighborhood...the buyer was not forced with a gun to their head and quite frankly if the property appraised then how is the agents fault? Maybe they need to call the bank that qualified them or the appraiser. Back in 2005 we all know what happened. Buyers never want to be the highest price in the neighborhood. No one can predict the market and anyone who lost will blame us.

How can they have possibly paid 150K too much and the agent tkae the fall without the financing part being an issue? I bet they wanted to go after the bank but they probably used that same lame excuse they always use ...they aren't a party to the contract which to me is bull...they are in our contracts or they shouldn't be allowed to be mentioned anywhere in it. I'm sorry for the consumer but they should have done their homework as well. There are probably many many other agents who could take the fall during that time...there are many homes that are losing equity and it's not due to the fault.

If I went to buy a Mercedes today for 40K and tommorrow its worth 15K...can I file a lawsuit against the salesman? I could but I wouldn't win.

Thank you for posting the follow up. It's been a very interesting story to follow and one that sure had us all on the edge of our seats!

Well the truth prevails. Maybe she should have done her due diligence prior to. I do counsel my clients there are things they have to do in the process. They think at times that we are the sole purveyor of information. And sometimes we aren't. Use some common sense.

I read about this earlier on another forum. It's a consumer forum, so it was interesting to read their responses.

Most problems that happen after the closing the buyer always wants to look for a reason it was our fault and if they can't find one for that reason they continue to look at the transaction to find something to be upset with. Too bad we have buyers like that but a great result.

How did they ever think they had a case? Are we going to now start suing our Stock Broker because of stocks that were recommended? and the list goes on......at some point we all must be accountable for our own decisions. 80 homes? Would never, will never.....

As the saying goes--The Cream Always Rises to the top. Truth prevails

Everyone is always looking to put blame on anyone they can. Yet it was her that had to sign the contract and I am sure no one put a gun to her head to do it.

I don't know much about this case, but it sounds like the plaintiff has too much time on her hands. 80 houses, followed by 18 months of picketing? Yikes!

WOW all...thanks for all of the comments!

Lane-I do wonder if there was some personality conflict or something. I have had buyers that I probably showed that many houses to and they bought ME a really nice gift at closing. I think the fact that the jury was unanimous in their decision and it was very fast makes me think there was little to no dissent in the case.

It is always a good reminder that we need to inform our clients to the best of our abilities so they can make informed choices. I also think the fact that the agent was the loan officer and ordered the appraisal is another reminder to us that separate is often good.

I really think there are certain people out there just looking for a reason to file a lawsuit. I am so happy for the agent! We work hard and sometimes the client has to be responsible for knowing what they see too. We can give and give them facts but they still come up to a different conclusion than we do.

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