The consumer speaks. Do we listen?

Bryant:

Regarding the bedroom being official,....a quick check to the tax assessor's database will disclose whether the property is being taxed for 4 bedrooms.  The closet issue is not relevant.

I'd strongly recommend that you stay away from any advice to the consumer on this situation.  You can always represent them after this deal goes in the tank....

BB - Im with John Novak and Lenn Harley on this one.  An existing relationship in place with another agent would limit completely the advice that can be given to this consumer.  I like what John wrote in his comment above - that's great wording to use.

Happy 2 days after!  And Happy Easter to all!
Ann
                                                          

BB - I get notes from people working with other agents all the time and end up asking them to talk to their agent.  Kind of bugs me like I am running a free online felp service or something.

The real estate Gods will certainly reimburse you for your advice if you give it. 

First and foremost they are working with another agent.  End of story. 

Thoughts about the whole thing....  First, the 4th "bedroom" wouldn't qualify here, but it's easily modifiable.  We routinely get "4th bedroom has closet modification, can be changed".  This doesn't affect value in many cases.  The "extra room" adds value to, and obviously can easily be changed into a fourth bedroom.  With aging boomers we are seeing more demand for office spaces as opposed to bedrooms anyway.

The "central vac" is a mistake and they shuld be able to press that one a bit.  There isn't much value in them, but it's a nice amenity.

1.5 stories....I believe that anyone that isn't sight impared could have figured that out on their own BEFORE submitting the offer.

This to me sounds like someone that is trying to eek out a bit more value from the listing, along with a listing agent that is walking on the wild side and a buyers agent that isn't doing their job either.  A winning group!!!!!!!!!!

First I would agree with Lenn and not give any advice. However for discussion purposes:

Was the central vac listed as an inclusion in the signed negotiated sales contract? If not..shame on buyer and agent. (Was there a clause in the contract that stated "inclusions..all items listed on mls# xxxxxx ?"

There was a closet.." the recess in the wall was changed into a large bookcase."  The shelves can be removed and a door added...you now have a closet again.

1.5 story listed. How many were there? 1, 2, 3? Could this not be seen when they viewed the house?

Are these really BIG issues?  We have all found that when a buyer wants out; they will find a way out! Move on ..for all parties involved. Sounds like they have lost confidence in the house and the agent.

This buyer is clearly stating that there is NO trust in their present agent... "some pretty big issues have come up and I need some advice from someone I trust....you.' Now I know you are a fabulous agent but why is this buyer asking an Internet agent these questions?

Look forward to your wonderful words of wisdom and how you responded. Do you now have a new buyer client for Veronica? :)

 

There's hardly anything new to add to the above comments. I liked John Novak's until I read Linda Davis's - I'll score that #1 response. Good litigation protection. Not in the transaction? Don't give advise - especially if you're a REALTOR.

Thesa raised a good point. Even though the buyer is out of state, he should have asked you to refer him to a good agent.

Margaret raised a good point - was the Central Vac specified in the Sales Offer/Contract? It's good practice to always repeat all the included items rather than depending on the MLS. I even include "reclaimed water sprinkler system" not because they might remove it, but to protect the buyer in case the seller never paid for the hookup.

Apart from not giving advice, my opinion is: closet "restoration" can be added; central vac could be IF it was included in the contract, certainly both can be negotiated. If the buyer couldn't tell the house wasn't 1.5 story before he bought it - he either didn't care, or didn't look at what he was buying.  Too bad for him.

So my letter would be Linda's, with the addition of a comment that in the future, you'd be happy to refer this person to a qualified agent. 

Dear consumer,

Now that you're aware of the discrepancies and inaccuracies do you still want to buy the house you chose?

If you're unhappy with some parts of your transaction you need to discuss those items with your agent. If you're agent cannot give you a satisfactory answer you need to talk to your agent's broker.

Good luck with your home purchase.

Fascinating discussion. Not sure I can add anything to what has been said. As far as giving advice...well, this is a public post and the advice has already been given, in spades, whether folks feel the buyer should have it from other agents or not.

Jeff

CBB: Of course we can’t comment with any creditability on this, but we can wish you & yours:

 

 

 

Jay, Med & the usual suspects!

I didn't real through all the responses, so sorry if this has already been said:  "As a buyer, do you like the home?  Is the cost of the home reasonable and what you are comfotable paying for?"  That would problably be my response to the buyer (not in that exact language of course, but you get the point).  In terms of developing an informed buyer, I would confirm that the number of bedrooms certainly will impact on price, however, I don't know whether the absence of a closet means the room is not a bedroom (perhaps it's a New York City thing).  I once lived in an amazing apartment, where the owner converted what was once a walk-in closet into ' a third bedroom' and marketed the home as such...not illegal. 

Lastly, lots of MLS's and realty sites have a disclaimer (read the small print...lol) regarding errors and ommissions and occasionally errors are made.  As a result, don't think filing a complaint will lead anywhere.  Also don't think it is justified.  If there is that much concern around how these things will effect value, then the buyer can walk away and forgo the $100, no?

This is the information I would give to the buyer (in a nutshell).

As an aside, buying a home is a huge decision.  Buyers can find any number of things to become anxious about.  Seems like this buyer was interested in the home enough to submit an offer.  As an agent, I find that information will help "calm one down" a bit.  Anxious buyers can and will talk themselves out of transactions over and over again.  So, is it about the ommisions or about the impact on value?  An appraisal will confirm value and the prospective buyer hopefully will have some solace at that time.

This is how i would approach this as an agent working with the buyer.  As an agent being consulted about this particular situation, I don't know enough of the details, how relyable of a reporter of information this buyer is, how he is interpreting information he is being given and whether he is 'looking for a spoiler' so this deal wont go forward.  I would be inclined to recommend he become as informed as possible as a consumer using some of the resources available to him (i.e the internet, state laws, local assessor's office, his current agent) and become an informed buyer so as to avoid a situation where there are too many hands in the pot stirring what could have yet been a good stew.

Bryant,

You have touched a hot little nerve here, yes? Your friend will have more than their moneys' worth of advice when they see these responses. In the end, it should come down to whether the new info makes this home less attractive than the others available. What is their Plan B? Negotiating "damages" is an option, but left to the agents who have made these elementary mistakes does not give one comfort in that path. Could you be sure to let us know what the buyer chose to do?

Thanks!

Bryant, In my experience a closet not being in the bedroom doesn't affect value that much because it is finished footage, however, calling it a bedroom when it is indeed not a bedroom is not right. It seems there were too many issues that rose that made this intelligent buyer think twice about this transaction.  I have been a big promotor of education, integrity and honesty in our profession. I would not blame this consumer at all for rescinding this sale and his Realtor should have a good long talk with the listing Realtors broker.  We all need to step up our level of professionalism. Take care.

I hope the people who wrote to your are reading all of these responses.

Buyers are hard to come by, if this buyer still likes the house I'd say re negotiate!  In Colorado you can leave a set of drawers or install a hanging rod and call it a closet. Ask the listing agent to have a central vacuum installed if possible.  

I don't know what I would tell them. Too many issues for my head to get wrapped around. I need more sleep before I answer.

I see you've posted your response.  Before I click to see what you said, I'll post my answer.  By the way, good topic for discussion!

I guess I would agree with Lenn Harley and the other people that felt they would not give advise because this person was already working with an agent.  I would encourage this person to contact their agent to try and work things out and if that wasn't happening, then I would suggest they speak with the agent's broker. 

Now I'll go and see what you said.  Thanks for the post!

 

The responses were quite detailed and long.  I only read a few so I hope I am not repeating.  I would sit down and decide how much I want the house.  Then decide what it is worth in the current condition and try to renegotiate.  If they are not, will then it is time to walk. 

I would also challenge any money going to the seller, since they misrepresented the property,  If it were my client, I would ask the seller or their agent to cover my client's expenses.

IMO we don't know enough about the deal to give good advice. That said i do think they have a problem with the listing agent trying to make a house sound better than it is. The 4th bedroom As laong as its big enough its good closet or not, 1.5 stories accident maybe. Central Vac it either does or it it doesn't how can you misrepresent that. I personally would be turning in a complaint if I was the buyers agent to the mLS board or ethics committee whoever I thought should know about.  JUST MY 2 CENTS WORTH

Your call on all the above.  Will you be bringing a criminal to justice or will you be wasting your time trying to solve a problem no one thinks exists.

It appears it was unethical and may even have been illegal - or a rules violation.  But no one went forward with a purchase, so no one appears to have been harmed.  It will be hard to process a complaint without a de facto victim - at least in my non-leagal opinion.

Make a note, tell the agent you were displeased and will be wary in the future, and stay clear.  Stupid or clever - that agent is bad news.  Bring your snake bite kit to the next Board of Realtors meeting in case you are seated near that one...