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Recently remodeled and hey look we covered up a fire are two different things!

By
Real Estate Agent with eXp Realty LLC 200311024

You read the MLS and it says "REMODELED". It has an amazing price and you call your buyers who get excited and head over to meet you before anyone else has a chance to put an offer in. Now, things get exciting. The house looks amazing, so you put in an offer, it gets accepted and then you order the inspection.

photo courtesy of happidog

It turns out that remodel was only cosmetic! As the inspector is climbing in and around the kitchen, and the attic above the kitchen, he finds beams burnt through that weren't replaced, and cabinets that still have water damage from the fire department on them. It looks like this family took the insurance money and only covered the damage and kept the rest of the money!

No where does it mention in the disclosures that there has been a fire, heck there is no place to put something like that in the disclosures. But, calling a place remodeled because you tried to burn it down just doesn't cut it for my buyers and me. I think you will find yourself in court so they can get their money back for the inspection that you were wrong not have disclosed this upfront!

Please, if you know something about a house, it is better to disclose it up front than let the buyer find out later and have to take you to court for not disclosing it.


Comments(18)

No longer
Altavista, VA

Todd I couldn't agree more I sold a home that had fire damage however, it was well disclosed and the builder did take the time to replace burnt beams.  Ironically the purchaser was a fireman so he was absolutely okay with the purchase and the disclosure.

Oct 25, 2008 12:17 AM
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Todd I absolutely agree with you. The three most important words in real estate today are "disclose, disclose, disclose".

Oct 25, 2008 12:21 AM
Carol Swain
Keller Williams Real Estate - Langhorne, PA
Realtor, -www.swainsells.com- Bucks County, Pa

Wow I have never ran into that thankfully.  That definitely should have been in the disclosure!

Oct 25, 2008 12:28 AM
Richard Riley
RE/MAX Properties SW - Orlando, FL
CDPE, I.R.E.S.

Todd, I also agree with you.  Full disclosure will never get you into trouble.

Oct 25, 2008 12:31 AM
Steve Hall
RE/MAX United - San Marcos, CA
Make the Call to Hankins and Hall

The reason that we have so many lawsuits and 30+ pages of contract are due to sellers like this.

Oct 25, 2008 12:31 AM
Gayle Balaban
The Best Spot Realty/Waterfront Real Estate/Ooltewah Real E - Chattanooga, TN
E. TN Waterfront Real Estate

The Sellers often keep things from me and when I question or find out about it they become defensive yet they wouldn't accept the same things if I were showing them something to buy.

Oct 25, 2008 12:36 AM
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Real Estate Agents - Luxury - Divorce

Oh yicks....there seem to be a number of things that are left to inspection that aren't asked directly on a condition report...and oh surprise, not volunteered by the sellers....gotta work toward revisions...what about the not so adroit inspector who will MISS those things ?

Oct 25, 2008 12:39 AM
Jason Crouch
Austin Texas Homes, LLC - Austin, TX
Broker - Austin Texas Real Estate (512-796-7653)

Todd - This is deplorable behavior, and it's a sad commentary on today's world, frankly.  I hope your client gets their money back for that inspection, which was essentially a waste of everyone's time.

Oct 25, 2008 01:38 AM
Missy Caulk
Missy Caulk TEAM - Ann Arbor, MI
Savvy Realtor - Ann Arbor Real Estate

Todd, there is a insurance web site, can't remember the name where you can have your buyers go and check all the insurance claims filed on a house. If I remember what it is called I'll come back.

Oct 25, 2008 01:40 AM
Mary Strang
Viroqua, WI

Another reason why you always have inspections, until the inspector crawls around in the attic and basement what do you really know about the house? It looks nice and clean on the surface.

Oct 25, 2008 01:57 AM
Gary Woltal
Keller Williams Realty - Flower Mound, TX
Assoc. Broker Realtor SFR Dallas Ft. Worth

Todd, covering up a former fire is pretty tricky I must admit.

Oct 25, 2008 02:57 AM
Pat Fenn
Marketing Specialist for CJ Realty Group/Cindy Jones Broker - Springfield, VA

Missy that would be a CLUE report.  When you call to get a quote on a new home you they have access to a database that will tell you if they home has any claims against it. 

Oct 25, 2008 04:23 AM
Tom Braatz Waukesha County Real Estate 262-377-1459
Coldwell Banker - Oconomowoc, WI
Waukesha County Realtor Real Estate agent. SOLD!

Todd

The term "remodeled" some times is a loaded canon waiting to go off.

Sincerely

Tom Braatz

Oct 25, 2008 04:36 AM
Brian Lee Burke
Kenna Real Estate - Lone Tree, CO
Broker & Advising Expert-Kenna Luxury Real Estate

Todd - we ran into something similar, fire wasn't disclosed, and neither was the fact that there was an insurance claim (large sum). The small area that was damaged in the fire was totally redone and the home looked better than new. Yet, no disclosure, no buyers. ~Rita

Oct 25, 2008 06:41 AM
Fran Gatti
RE/MAX Integrity - Medford, OR
Managing Principal Broker - RE/MAX Integrity

These sellers sound as skanky as it gets.  I recently sold a home that had a fire.  It was disclosed, inspections were done, everything went well.  Thankfully your clients had an inspection. 

Oct 25, 2008 06:49 AM
Shirley Parks
Sands Realty 210-414-0966 - San Antonio, TX
Broker, 210-414-0966, San Antonio TX Real Estate

Todd, I always give buyers information on the CLUE report.  It is too bad some sellers try to be dishonest.

Oct 25, 2008 07:29 AM
Paul S. Henderson, REALTOR®, CRS
Fathom Realty Washington LLC - Tacoma, WA
South Puget Sound Washington Agent/Broker!

Todd, That is like running the odometer back on a used car. The disclosure form is made to take care of this type of deception. Make an example out of them Todd for wasting your time and the cost of the inspection...

Oct 25, 2008 09:25 AM
Linda Scanlan
A Consumer's View - Burleson, TX

Todd, kinda takes the trust out of that agent's hands. I would have a hard time showing their listings again.

Oct 25, 2008 11:27 PM