There is a piece of unique property for sale that is non-conforming in nature meaning that it is in a situation where it does not have a common value with the neighborhood. It was grandfathered in 100 years ago when it was the only thing for miles around. Now, it is surrounded by tract homes worth about $400k. They are asking close to $1,000,000.00 for this home
THE SUBJECT
It is being represented as a part of some distant long ago history for the area. Presented on a one acre parcel with stunning views and a long driveway, this is a adobe house with no pool or garage, under HOA and historical society rules with strict building codes for the area
THIS AGAIN?
Anyone wishing to research this property past, present and future can do so assuming they have the skills & the want to. I had an occasion to investigate this home years ago by accident. I had a client who was buying single family homes as an investment using all cash. I ran into a company that owned this
BOUGHT SIGHT UNSEEN
At the then time, this investment company bought this sight unseen at a foreclosure auction. On paper, it was too good to be true. Beautiful area, stunning views on a acre two story landscaped etc that when it came up for auction, they overbid thinking they got a jewel. Later on, they found out it was a lemon
OH NO
The lemon was the price they paid. The house without the hype was only worth what the market said it was worth which included all the restrictions that came with it. The investors woke-up after the fact and wanted to unload this at any price.
BUY THIS PLEASE
They bought this thinking it was worth a million dollars and paid $600,000.00 in cash for it. When I was talking to them about some other product, they pitched to me to buy this white elephant. I did my homework and then I said I am not interested. They pursued me aggressively as my client had cash
NOT SO FAST....
We will pay you more commission. We will take any offer and on and on. I said you have a property that is not worth what you paid. In fact, it has so many problems that you would need an exact buyer for this which come along when they come along. My research showed the following...
WHATS GOING ON HERE?
It had a long history of being bought and sold including foreclosure and short sale. Someone always bought it for low and then tried to sell it for high. I analyzed the ten year history and discovered this pattern. What made people buy and regret over and over again?
LACK of DILIGENCE
This property came across to me as a type of Venus Fly Trap where it lures you in with its pluses and when you land, sinks its teeth right into you and your done! Many buyers and banks have fallen for it. How can this be? Now to the title of the post....THE AGENT THAT DOESN'T KNOW...
NEED ANSWERS
A buyer for the property contacted me and asked me what I thought. He was the next "fly" in line for the "fly trap". He had just left the agents open house handling this property. They couldn't answer a multitude of questions but were very supportive in trying to help anyone buy this place What?
TALK TO ME
Is there an HOA here? The neighborhood is under HOA rules. How much? Any restrictions? How did you get your pricing? What can be built here? How come there are no garages? Add about 20 more valid questions and here is the amazing part.....
DON'T KNOW & I THINK SO?
The agents in charge did not know any of this. They were more like hosts and tour guides of this once famous property leaving all relevant data up to the buyer to research. When they were pressed for data, the answers they gave were false and full of error. I was shocked that a Broker would allow this
YOU DO THE WORK
In California, there are standard clauses in Real Estate documents that literally speak of caveat emptor, doing diligence and buyer buys to their own satisfaction. Seller does not warrant to represent anything type of language. Many agents lean on that when they have no answers. It holds but up to a point
THE LISTING
If you as agent have a material fact, they must divulge it. Just stating that buyers are on their own is not sufficient to ward off a lawsuit and errors & omissions insurance are quick to pull-back for those that travel too close or over this disclosure line in the sand. If you list it, you are involved with it
WHERES THE PROFESSIONISM?
Currently, my diligence on this house says it is worth about $500-600k tops not the million they are asking and for many substantial reasons. Those reasons should have been known by the listing agent but instead, they passed that responsibility to buyers. What a waste of time & misrepresentation too
POOR SHOWING
It is interesting to note that days on market for this white elephant from past transactions come close to a year with pricing declining every month. That is the history and the listing agents have nothing to say about any of this. Perhaps they are following their clients instruction? Brokers instruction?
STATE THE OBVIOUS
I beg to differ. I believe the BRE rules should take precedence over the clients instruction and with no conflict either. The current owner purchased it in foreclosure 3 years ago and had to put 35% down to get a loan for the balance. The lender required that much equity or no-go based on...their diligence!
FOOLING AROUND?
Agents: the buck stops with you! Credibility, character and service is what drives our industry and not waiving of rights, pretending not to know and wanting a sale at all costs without regard to the players. That's why we have a statute of limitations that provides for four years. Fool me now, I wake up later?
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