The Deal Fell and I am Feeling Bad for the Listing Agent....
One of my new team members has been working with some first time home buyers. They negotiated a good price on a 3 bedroom home in Carmel, Indiana and everything seemed to be going smoothly. I try to stay out of the way unless my advice or help is needed. Today I had to step in.
The listing agent is also the seller. We did our research and quickly learned that the home is an investment property he purchased October, 2010 as a bank owned and put back on the market in November. Hmmmmm, must have worked really hard to get a home renovated that quickly.
Having never seen the house, I was anxious to see the inspection report. It quickly became obvious to me that this is the agent’s first attempt at ‘flipping’ a home. Among the items listed on the inspection report:
· Copper tubing in an electrical box and many other electrical problems.
· All of the exterior soffits are rotted.
· The roof is questionable.
· The furnace is not working properly, has no filter and has no place for a filter.
· Lots of plumbing issues.
· Peeling lead based paint on the exterior.
· The crawl space has been filled with water for an extended period of time and mold is now present in addition to damage and deterioration.
· Radon level over 15pCi/L.
As gently as possible I told the listing agent that it was obvious he had not had the home inspected when he purchased it. He said his contractor assured him that he knew exactly what it would take to get a home move-in ready. Now he is thinking maybe not so much. He is going to make all of the repairs and put the home back on the market at a higher price.
I feel bad for the buyers who are new and inexperienced. I feel bad for my team member who knows less than I thought and I feel bad for the listing agent/seller.
Had I shown the home, I may have noticed many of these items and might have even talked the buyers out of making the offer. To make it right:
· I will be taking over and will pay for the inspection on the next house we find and I will pay for the appraisal.
· My team member will still get 50% of whatever commission is left.
· I gave the listing agent the name of someone to take to lunch and talk about what it takes to be successful at investment properties.
The moral of this story is haste makes waste!
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