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Buyers Sues Agent for Home Value Falling!

By Gordon Corsie

Real Estate Agent with Scotsman Realty Group

January 25, 2008 05:19 AM

You read correctly!

As reported this morning on NBCs the today show, a buyer of a $1million+ property in Carlsbad California is suing the Remax agent who represented her and her husband because the value of their property has fallen.

Marty Umell claims her Realtor failed to disclose home prices in the neighborhood before she and her husband made an offer on their Southern California home and that her agent therefore is liable because they overpaid for their house.

The court will hear the case Monday, and this brings up the question, are Realtors liable for house prices falling?

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Unhappy Buyer

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Eric L. Cutler

Keller Williams - Greenville, NC

There was several other posts on this this week. Read the article. Very interesting. I hate my gas guzzling car. It dosnt get the mileage they said it would on the sticker. Can I sue my dealer?

Jan 25, 2008 05:27 AM

David Patterson

Columbia, SC

ibdp3

Gordon:

Whether you agree with the lawsuit or not......This gives serious real estate agents an opportunity to tighten their business practices. I show my clients comps BEFORE writing an offer on a home.

In the future, I will have them initial and date all other listings in the neighborhood and COMPS for the subject property.

AR Community.....Let's don't use this as an opportunity to give the media more fuel to throw on our industry. Let's use it as an opportunity to improve our persona in the community.

Jan 25, 2008 05:31 AM

David Swierczynski

Retired - Antioch, IL

RETIRED

Hopefully the agent can document that he prepared a CMA for the buyer prior to contract acceptance. If that is missing from his file he might appear negligent in his fiduciary duties. (In my opinion). I have begun to require buyers to sign an "acceptance of the CMA" for my records. CYA!

Jan 25, 2008 05:32 AM

TeamCHI - Complete Home Inspections, Inc.

Complete Home Inspections, Inc. - Brentwood, TN

Home Inspectons - Nashville, TN area - 615.661.029

Gordon, I read about this in several posts this morning. My concern is that if she wins - which she probably will because this is in CA - can everybody related to the real estate transaction be sued as well? 8-}

Jan 25, 2008 05:34 AM

Erica Crowell

eRealty Inc. - Wake Forest, NC

Wow...I'm sitting here in shock! First of all, here in North Carolina we have to sign a buyer agency agreement. It puts the responsibility to fully disclose everything we can dig up!

I NEVER write an offer without pulling a CMA and looking at the FSBO sales on the tax record. That stays in my file forever. Is that not normal? I know other states don't have buyer laws, but isn't that part of the service you offer as a Realtor?

I feel for the poor hubby. I think he knows he's wasting his money! I don't see how this will stick. I think it will only push for buyers agency paperwork and guidelines in more states. Maybe even amendment to the code of ethics.

Jan 25, 2008 05:41 AM

Jim Dunlap

Roberts Realty - Yucca Valley, CA

I, too never write an offer without showing clients comps. Also, I'm sure all of us are asked the question, what are real estate prices going to do in the future? I answer, I wish I had a crystal ball.....

Jan 25, 2008 06:03 AM

Michael La Fay

Meadow Lakes Supply Co. - Wasilla, AK

Ok... lets say that their Representative did not show them comps... Wasn't there an appraisal done??? Are there not COMPS on the appraisals, and if in fact an appraisal was done, then why aren't they going after the appraiser that verified the value of their new home...

It is rediculous, but that is why I pose a question.... I feel this question is valid and apparently California is providing proof....

Jan 25, 2008 09:08 AM

Craig Armstrong

Mackaby Realty - Stillwater, MN

In her comments on Today Show, the buyer said a house down the street had sold 6 months earlier for less money....

And, is she also suing her stock broker because she bought a stock and its value went down? Just 6 months earlier a competing stock had gone up in value...

Jan 25, 2008 12:43 PM