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WHICH RED FLAG WOULD HAVE KILLED THE DEAL FOR YOU?

By
Real Estate Agent with Dunnigan, Realtors, Sacramento (916) 425-9715 CalBRE # 01188158
  • the electrical cable was supported from a shed to the house by a tree...doesn't seem quite right
  • the buyer purchased her next door neighbors house directly...and thought she was getting a deal
  • the buyer was an insurance agent and held her real estate license...a presumption of knowledge
  • the purchased home was built without any permits whatsoever...like zero, nil, zip
  • the normal sales process typically includes a home inspection and extensive disclosures...this one couldn't have
  • the seller was a real estate agent... which was not disclosed
  • it was evident that there were 2 large air ducts resting on a metal roof to a backyard walkway, exposed...hmmmm
  • rather than the required 1500 gallon septic tank, this house has a 500 gallon septic tank...an inspection would have revealed this
  • there is no electrical meter....really...no one noticed?

 

This is an actual situation making the news in Placer County, California.  The buyer of this house is suing the seller because it is quite possibly a tear-down.  But, I just have to ask, which red flag did you not see????  My word, there were real estate agents on both ends and the buyer was an insurance salesperson.  There are no excuses...they both should have known better.

When a professional Realtor is hired, they have knowledge and experience.  It is automatic...hire a professional home inspector and thoroughly complete and review disclosures.  I have to believe that neither one of these things were done.  I have no empathy for the buyer.  She cut corners and is now paying the price.  The courts are probably going to say the same thing...she should have known better.

The only good news coming out of this is that I now have another  story to tell the public as to why it is so important to hire a Realtor and to check their references.  If this licensee had done this, she wouldn't be in this situation now.  She would have backed out of the deal and saved herself a lot of grief...not to mention the $295,000 she paid for the house!

Comments(127)

Jim McCormack
Nashville Short Sale Specialist - Jim McCormack - Edge Advantage Realty, LLC - 615-796-6898 - Murfreesboro, TN
Nashville Short Sale REALTOR - Stop Foreclosure

That deal is a great example of ignorance and professional malpractice.

Aug 19, 2011 09:14 AM
Bill Jones
Discovery Real Estate Ltd. - "Homes By Jones" - Airdrie, AB
Realtor (403-701-1739) Airdrie & Calgary Area Homes and Condos

Wow! what a fiasco, it's deals that unprofessional that make our industry bad as a whole.  Those Realtors need to have their hats handed to them.  

Bill

Aug 19, 2011 09:51 AM
Jeff Hollister
Native Californian with 20 years serving OC Buyers & Sellers - San Clemente, CA
Real Estate Broker, Serving Orange County, CA

There is no substitute for common sense. It sounds as though both of them will likely get what they deserve. A lingering headache!

Aug 19, 2011 09:57 AM
Karen Burns
Sacramento, CA

The sellers built the house without permits. It's not a matter of they didn't disclose something someone else did to the house. They were wrong building without permits and they were wrong not disclosing it. 

Aug 19, 2011 10:15 AM
Dimitri Matsis-REALTORĀ® (818) 599-6083
Troop Real Estate Inc. Westlake Village CA - West Hills, CA

Hi Paula,

What is puzzling to say the least is, both, buyer and seller have/had a RE license. Since they were able to obtain one so easy it must not be a big deal. They don’t really need a Realtor® to facilitate their transaction. After all they’ll each save at least $7500 to 9K.

Well now is where the fun begins. They are a classic example of “penny smart and pound foolish”. The pennies are the 9K and the pounds are the 91K…Un-be-freakin-lievable!!!!!!!!  

Thanks for the post.

Aug 19, 2011 10:15 AM
Rosemary Brooks
BMC Real Estate - 209-910-3706 - Stockton, CA
The Mother & Daughter Realty Team

This is one of those transactions.... you'd be afraid to congradulate the new owners!  Thanks for sharing.

Aug 19, 2011 10:31 AM
Alyse "Aly" Sands
AGORA Realty - Nashville, TN
It's Good To Be Home

An experienced agent would have recommended a home inspection.  Had the buyer not seen the "red flags", certainly an inspector would have!

Aug 19, 2011 10:47 AM
Ruby Lee Sweeting
Darville Wong Associates Realty Bahamas
Your Bahamas Agent for Relocations & Second Homes

Yep, the seller and buyer are both accountable for issues: this is definitely a real estate agent (seller) with no ethics or conscience, and an overzealous, gullible buyer... NOT NOTICE THERE IS NO ELECTRICAL  METER? DID THE HOUSE EVER HAVE LIGHTS?

Paula, thanks for sharing this experience. 

Aug 19, 2011 11:34 AM
Kathy Opatka
RE/MAX CROSSROADS - Ocean City, MD
Serving Ocean City, MD, & The Delaware Beaches

Ugh! These people might have passed their R.E. exam, but they're not REALTORS!  They cut every corner they could just to "beat the system"!  I feel NO SYMPATHY for either one!

Aug 19, 2011 01:20 PM
Lynn B. Friedman CRS Atlanta, GA 404-617-6375
Atlanta Homes ODAT Realty - Love our Great City - Love our Clients! Buckhead - Midtown - Westside - Atlanta, GA
Concierge Service for Our Atlanta Sellers & Buyers

Dear Paula -
So many comments and so many good responses - except for the one saying "feel sorry for buyer". No way!
Please - what part of ignoring everything ever learned in RE wasn't understood on both sides?
Have a happy day -
Lynn

Aug 19, 2011 05:00 PM
Deepak Chauhan Asso-Broker, MLO
Versailles Property - Irvine, CA
Your Solution-Oriented Realtor

Paula, # 119 There is a price for every thing, even for a good bargain. I don't feel sorry for the buyer, it is good to have money ... spend it wisely!

Aug 19, 2011 05:25 PM
Dale Taylor
Re/Max 10 New Lenox Illinois http://dtaylor.remax.com - Frankfort, IL
Realtor = Chicago Illinois Homes Townhomes Condos

Good story to remember!

Aug 20, 2011 02:56 AM
Steve Stenros
Poway,La Jolla,Del Mar,Mira Mesa,Carlsbad,Escondido,Temecula - San Diego, CA
CREIA MCI, ICC, ACI Home Inspector,San Diego

Unbelievable! It makes one wonder how either of these Realtors had enough intelligence to pass their exam! They certainly are deficient in common sense!

Aug 20, 2011 04:02 AM
Gerard Gilbers
Higher Authority Markeing - Asheboro, NC
Your Marketing Master

While we are not inspectors, when things are different they should stick out! A little bit of common sense would helped if it were not blinded by the GREAT deal they (thought) they were getting! Wonder if their E&O insurance will cover this mistake!!

Aug 20, 2011 04:34 PM
Michael Singh,Broker
Singh Real Estate - Corral de Tierra, CA

The buyer wouldn't have seen the Red Flag if the seller beat her over the head with it.   Both agents should voluntary turn in their licenses 

Aug 20, 2011 05:56 PM
Bill Parecki
Elite Pacific Properties - Hilo, HI
RS, ABR, RDCPro, SFR, E-Pro, SRS, AHWD, Green

Aloha Paula,

Thank's for sharing.  What can I say, I am seeing red!!!!  That is the most insane story I have heard in a long time.  I guess that is why the paper picked it up.  The fact that the seller was a real estate agent and if, in fact he did not disclose anything, then he needs to go back to school or possible take up another profession.  I keep thinking of the movie Dumb and Dumber. 

Mahalo nui loa

Bill Parecki, Hawaiian Island Homes 808-345-8818

Aug 21, 2011 09:03 AM
Beverly of Bev & Bob Meaux
Keller Williams Suburban Realty - West Orange, NJ
Where Buying & Selling Works

I'm still trying to figure out when was logic used here?

Aug 21, 2011 11:37 AM
John DL Arendsen
CREST "BACKYARD' HOMES, ON THE LEVEL General & Manufactured Home Contractor, TAG Real Estate Sales & Investments - Leucadia, CA
Crest Backyard Homes "ADU" dealer & RE Developer

Be they a "Realtor" or "RE Professional" they need to know the ropes. I couldn't agree more.l

Aug 21, 2011 03:27 PM
Paula Swayne
Dunnigan, Realtors, Sacramento (916) 425-9715 - Sacramento, CA
Realtor-Land Park, East Sac & Curtis Park -Dunniga

Hi Gabrielle!
....and nothing more needs to be said...you said it all!

Thanks to all of you who participated! 

Aug 23, 2011 03:50 PM
Kerry Jenkins
Prime Properties - Crestline, CA

I feel badly for any clients that agent happens to represent. If she did this to herself in her own transaction what on earth is she doing for clients???SCARY....

Sep 29, 2011 10:01 AM