Due Diligence by BOTH Listing Agent and Buyer's Agent
Amen to this blog! Such a simple rule to follow by looking and checking things out before you list or a buyer buys can save everyone very big headaches. It is our responsibility to do these things since we have the education to see them.
When I am a listing agent, I always research the home I will be listing to ensure there are no open Certificate of Occupancy issues, and that the number of bathrooms on the Assessment/Property card coincide with the home itself. If there are some bonus bathrooms as we call them, then they must be addressed in some fashion.
I am currently listing a home that had been sold many years ago to the current owners with an open permit. Neither the Title Company nor the agents concerned caught it, and now my sellers must address the issue. There is an extra bathroom, but I discovered the bathrooms are all original, and it would seem to the Building department personnel that the plans were changed when the home was originally built. So we will obtain a letter from an architect which will satisfy the building department, and the bathroom will be 'grandfathered' in. My point is, we saw the issues and we addressed them so no lost sleep, and we are able to list all of the rooms and bathrooms as being legal.
Conversely, I showed a home in New Rochelle that was in pristine condition, 3 bedrooms, and yet was it? The attic space had been converted to the third bedroom, and there were eaves. In conducting my due diligence as a Buyer's Agent, it was up to me to research the home prior to our placing a bid. I determined from the Assessment office and Building department that the second floor was not legal, the basement (which was claimed in the listing) with a very full description was not legal, the enclosed porch was not legal, the deck was not legal and that the square footage was 'off' by about 500 square feet. Obviously this would make a huge difference when placing a bid... I called the agent. I text messaged her.. I then wrote an apologetic email expressing both my client's great interest in the home, but based on my findings, I could not see past a certain 'number' for the home. How could we work on this together? I emphasized the word together. I was not trying to be adversarial.
Several hours later I received an email back from her informing me that everything was totally legal, and she has an accepted offer far higher than the number I mentioned. Great! I then replied to her and with all of the attachments from City Hall supporting my facts... but politely asked her to send to me her C/O's which obviously I did not see any record of, and my client would be happy to submit a bid that would be far higher than my original estimation.
I am still waiting.... I think it is what we would say -I called her bluff...? Surely, if she wanted the highest price for her client, she would have sent those C/O's to me immediately and endeavor to obtain a higher sales price for her clients? Or, is she hoping the other agent will not do any research and it will all 'slide by?" She wasn't even a new agent although I have never heard of her. I am sincerely hpoing I will adjust this post in the near future and state that this was all corrected but I do not see how.. the building card and assessment cards can be wrong but....
I have seen four situations of late with similar scenarios. I did not obtain a listing a year ago because there was an abandoned furnace covered in foot deep friable asbestos, an illegal deck, an abandoned 1930's ice chest that was too large to be taken through the doorway... and when I submitted my suggested list price of $489,000, I was overlooked for a higher listing price from another company of $549,000. Now, a year later, the gentleman is on his second listing agent, he fired the previous agent but she would not allow him out of the contract, and the home is now listed to what I had suggested a year ago....There is still no mention of the illegal deck.
We see this all of the time but what a shame... Every agent should conduct their due diligence. Things will not right or correct themselves...Home owners and buyers need our expertise in walking them through the process to better obtain the best sales price - or the best purchase price.
I am here for all of your real estate needs.
Westchester is GREAT!
Gay E. Rosen, ABR, CBR, CRS, GRI, SRES, CDPE, REOS
Licensed Real Estate Associate Broker
Houlihan Lawrence
2070 Boston Post Road
Larchmont, New York 10538
(914) 833-0420 Ext. 307
(914) 907-2645 Cell
Email: grosen@houlihanlawrence.com2012, 2011 & 2010 Platinum Award Recipient
2012, 2011 & 2010 Top Agent Award in Customer SatisfactionNew Rochelle and Larchmont homes for sale
Copyright 2009-2013. Gay E. Rosen (914-833-0420)
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