I know with this changing market, we are running more and more into "unique" situations. My question is, what can we do to safe guard ourselves from potential disasters?
I recently met with a client who was referred to me by a friend. We had a very nice meeting and she decided that she would like me to list her home. The home needed some work, but they were in the process of repainting and putting in new floors. I put the lock box on the door, signed a contract with her and we were on our way. A few days later I received a strange phone call from an "investor" who told me he had proof that this house was in foreclosure and that he would like to buy it for $40,000 under market value. I was caught so off guard that I kindly told him to submit his offer and I would discuss it with my client. When I called my client to tell her about this call, she didn't say much. When I asked her if her home was in forclosure. all she said was, I don't know. After a few more questions I realized that I have some investigating to do if I want to continue to list this house.
How can we prevent these situations from happening. I would hate to do all this work and have interested buyers only to have the deal fall apart from lack of knowledge. Should we be asking all of our clients if they are current on their payments. Where is the line drawn between pertinant information and being insulting?