Are we doing enough for the consumer?

With all the addendums and disclosures that they and the seller have to sign, I think they're OK.

Hi Russ, an excellent article, thank you for sharing it with us.

John Pusa

I think there needs to be a balance.  But buyers have all the leverage to do the homework, hire inspectors, and consult top rated realtors.  The times where a seller "pulls a fast one" and does not acknowledge a prior insurance claim or needed repair usually involve FSBO's or blind investors.  The Moran Team with Remax here in San Antonio do a wonderful job of screening homes for their clients.  This usually will make for easier negotiations.  I think HGTV has done more damage by giving buyers the false sense of security in doing themselves.  Afterall, if you don't like it, just list if for $100K more than what you bought it for... it is easy... next on HGTV!

Scott

Are you advocating listing agents are responsible for a certain amount of research and discovery before listing a property?

Here in Alabama it is a Buyer Beware state.  Some offices require that sellers fill out a property disclosure, but many do not. When dealing with an office that does not use a disclosure, my office's offer to purchase is contingent upon the seller filling out a seller disclosure and returning it with a counter or an acceptance. 

But, in the case of bank owned properties, no such luck.  You are correct, as I feel that if a REO listing agent has SEEN questionable elements of a house, this ought to be made known as a warning to have such items inspected by a buyer. The bank may have an 'out' as far as known problems, but you can't tell me the listing agent who signed on to list the house doesn't know about a few issues they question.  Plus, at the closing table is NOT the time to have a buyer sign off on a hold harmless document concerning a remediated problem that was not disclosed prior to closing.

Hi Russ,

The buyers receive a disclosure from the seller, plus the broker is required to disclose anything else that they KNOW in terms of property disclosure. 

Then there is the inspection period.. so even if it's a foreclosure, the buyer has time to have a licensed home inspector or anhyone else that they deem qualified to inspect the home for defects.  if they want, they can get out of the contract.  Part of the offer has the time period for inspections specified so I believe if we use contracts similar to the standard ones that Oklahoma has in place, the buyer has ample opportunity to make sure that they know about the property. 

We always encourage our buyers to INSPECT, INSPECT, INSPECT.