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Accuracy Matters on Listings

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Real Estate Broker/Owner

I recently had a buyer who put a bid in on a co-op.  A really lovely apartment walk to Hartsdale Village, the train to the city and shops.  It was a tudor apartment with high ceilings and renovated beautifully.  The owner has great taste and did a great job.

My buyer is relocating from out of the area.  The listing state that this co-op was a certain square footage. When my buyer's and I first walked into the apartment we looked at each other and questioned that it was this amount of square feet.  It just couldn't be I said.  I have sold hundreds of apartments and know that this couldn't be true.  My buyer put in an offer based on it being this amount of square feet because when they looked at the comparables this was one of the criteria they reviewed, 2 bedrooms, 2 baths and such and such square feet.

My buyer also needed a building where they can rent down the road.  Job insecurities and other stuff made it more comfortable that renting is a possibility.  So I called the listing agent who told me that renting is allowed after one year.

My buyer got an acceptance.  We went back to the apartment to measure so they could decide which furniture they would bring with them.  We measured every room, closet, bathroom and the kitchen.  We sat down and computed the square footage and guess what, it was a little over 800 square feet.  I then got the co-op board application which very clearly states that they will NOT consider renting any unit until after two years.

I called the listing agent and asked her where she got the square footage.  She explains that she took it off an old listing and didn't verify it in any way and that my buyer and I must be wrong because it looks like such and such square feet to her.  I say, but we did the measurements!  No, no you are wrong.  And what about the renting - oh I will look into it she says.  I asked her why she didn't look into it before answering me and giving me the wrong answer!

My buyer has now signed a contract for a listing that is actually the square footaage it claims to be and where the other answers to the questions have been correct as well.  The listing agent on this new co-op says I don't know, I will check for you.

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New Orleans Property Lady, LLC

Broker/Owner and REALTOR (r) 

New Orleans, LA 70125

504-908-2268 (C)            

 Licensed in the State of Louisiana, USA

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Copyright 2012, Miriam Bernstein, All Rights Reserved

Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

My advice to home buyers is always "Don't rely on anything you hear, read or learn from the seller or listing agent".  That sounds tough, but buyers have to verify their own information.  That's why we have rescission periods for co-ops and condos. 

Too many negligent agents taking too many listings.  Good thing the buyer had a good agent or it could have turned ugly.

Jun 27, 2008 11:58 PM
Gary McAdams
GMAC Schwartz Property Sales - Key West, FL

Can your buyer get out of the deal if he wants to?  Each state is different.  In Florida the buyer can back out during inspections for any reason.  I know that doesn't help your sale but it will help your buyer and most likely make him more loyal to you for getting him out of a bad deal.

Jun 28, 2008 12:01 AM
Stanton Homes
Stanton Homes - New Home Builder - Raleigh, NC
Design/Build Custom Home Builder in North Carolina

Miriam - good for you helping to measure personally.  Important for buyers to have representation who will verify all information.

Jun 28, 2008 12:13 AM
Anthon Pang
iPro Realty Ltd., Brokerage - Mississauga, ON
Broker

Sadly, miscommunication, non-disclosure, and measurement errors are some of the leading causes of E&O claims.

You should consult a real estate lawyer.  I'm aware of a couple of cases in Ontario re: measurement errors, and the judges applied several tests (including the magnitude of the error and degree of impairment to the buyer) in rendering their decisions.

If you proceed with an E&O claim, you may have to bring in a qualified professional to determine the square footage as there are no standards and local practices evolve (e.g., from usable area to exterior measurement).

 

Jun 28, 2008 01:06 AM
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

This seems like a case where the listing agent didn't do their homework before putting it back on the market. Did your Buyer have a Due Diligence period in the offer? If so, there shouldn't have been any problem getting out of the contract.

As a side note, the MLS system I belong to has a disclaimer on every listing printout stating, "Information is believed to accurate, but should not be relied upon without verification. Accuracy of square footage, lot size and other information is not guaranteed." The puts it on the Buyer to do their due diligence prior to closing on a property.

Good Post!

Jun 28, 2008 01:19 AM
Bob Cumiskey
A1 Connection Realty, Inc. - Sun City Center, FL
US Army Retired, Your Sun City Center, Florida ~ Realtor

I don't know if all MLS sytems work like ours, but when I pull a listing, I have the option of pulling the tax records with on simple click.  Almost makes it impossible to be innacurate....unless the tax records are wrong.  But, I've always been told to use the tax records as your source for square footage.  I could be wrong too?  Naaaahhhhh.  LOL.

Jun 28, 2008 03:23 PM
AJ Heidmann ~ CRS
McEnearney Associates, Inc. - Alexandria, VA
YOUR Alexandria & Arlington, VA Real Estate Expert

Unfortunately, I'm sure this situation has been repeated in every board in the country, to one extent or another, I know it has in mine.  It appears that some people just aren't detailed oriented in this detail oriented business... maybe that agent needs an assistant to enter her listings and verify the appropriate data beforehand.

Jun 28, 2008 03:40 PM
Georgie Hunter R(S) 58089
Hawai'i Life Real Estate Brokers - Haiku, HI
Maui Real Estate sales and lifestyle info

We have to be our own police when it comes to bad information in the MLS - who else knows it better than us?

Jul 26, 2008 03:10 PM