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Help! My Home was flooded during a showing!

By
Education & Training with Success With Listings AUTHOR & NATIONAL SPEAKER

What a strange situation.

I rreceived late night call from the seller of one of my listings. The home is a VACANT. The seller (also a builder) built the home as an investment and lives in a home just a few doors down. The seller left a message and was absolutely LIVID. He went to check on the home several hours after it had been shown only to find that the entire first floor was FLOODED. How? Well the refrigerator/ice maker water spigot was turned on. There is no refrigerator in the home. The owner says he observed the showing agent showing up with a prospective buyer who had two small kids and two teenagers with her.

After checking the Supra lock box showing history I confirmed that only ONE agent had shown the home that day (or for that entire week). I called the agent and explained the situation and she swears that she walked back through the kitchen before leaving and NO water was running anywhere.

Of course my client (the seller) believes the other agent is liable. Our corporate attorney says the seller  has no evidence so he has no case - pure speculation. My broker says it is the seller's responsibility and there is nothing we can do about it. And of course the listing agreement indemnifies me of any liability.

So the seller is feeling really bummed because the incident cost him almost $6,000 in damage. I feel really bad but there is really nothing we as agents can do to prevent this from happening. Ive sold hundreds of listings and never had this happen - so I was still a bit shocked that the seller got stuck with the tab.

Bottom line: a buyer can severely damage a home during a showing, and unless there is proofthat the buyer did the damage, the seller is left holding the bag. I guess that's the risk the sellers take when listing their home on the MLS.

My solution? I told the seller to file an insurance claim and pay the $1,000 deductible. I will then rebate him the amount of the deductible from my commission when I sell the home. I know I don't have to do that and I am not culpable, but this is super nice guy and I hate to see him get shafted.

Anyone had this happen? Any advice?

Comments(12)

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Dinah Lee Griffey
Windermere Peninsula Properties - Allyn, WA
Managing Broker Windermere Peninsula Properties

Murphy's law says I should not answer that question.It is touching that you would rebate your client the $1,000. I wish that there were more Agents like you. Maybe real estate agents could be thought of like Police offices and Fire fighters-Dinah Lee

Nov 14, 2008 03:33 PM
Roy A. Peterson
Domicile Analysis of Texas - El Paso, TX
P.R.E.I.

I think that's what they call a catch-22, they is no right or wrong answer to this. It more like do what you feel in your heart is right.

 

                                             ~ All the Best                 

 

 

Nov 14, 2008 03:44 PM
Mick Michaud
Distinctly Texas Lifestyle Properties, LLC Office:682/498-3107 - Granbury, TX
Your Texas Lifestyle is Here!

That is a tough situation.  Being a builder, I know he doesn't have that much room on the price to take that kind of a hit. Offering to cover the deductible is way beyond the call of duty, unless you've got several of his properties listed.  Then its a smart move.  If I felt some compulsion to help cover the damages, then I might have offered to split the deductible.  That way you don't give him the idea that you're taking on the liability for the home and opening the door for him to walk all over you. 

 

Nov 14, 2008 03:44 PM
Lynda Eisenmann
Preferred Home Brokers - Brea, CA
Broker Associate ,CRS,GRI,SRES, Brea,CA, Orange Co

Hey Knolly,

No advice, sorry to say things like this just happen. Irrespective of the liability, sounds to me like "something" was overlooked on the last showing.

I think you're absolutely correct in stepping up to the plate for the $1,000 deductible. However not sure about your state, but in CA, now becomes a disclosure issue. Anything that has to do with a water claim on insurance within 5 years is required to be disclosed to a buyer.

BTW, the white hat looks great!

Nov 14, 2008 03:50 PM
Mike Wong
Keller Williams Realty Southwest - Sugar Land, TX
Realtor: Commercial, Residential, Leasing, Invest

Wow sorry to hear that happened to your client. I think what you offered to do is the right thing, I would offer the same.

I heard of one showing agent tour a home with a family with kids who ran rampant through the home and damaged an antique clock, helped themselves to food and scattered it through the home on and under beds and furniture. I also heard the angry listing agents phone call and our broker saying the showing agent was liable and should be accountable. Never heard the outcome of it.

Nov 14, 2008 03:50 PM
Maria Morton
Platinum Realty - Kansas City, MO
Kansas City Real Estate 816-560-3758

Wow, Knolly, what a bummer. I'm wondering if the showing agent really checked the water spigot before locking up. It's not something I normally even think about checking. And two teenagers and two small children....

Anyway, water under the bridge, so to speak. Your heart's in the right place; the seller will appreciate it and you may even get Karma points for acting with honor. Kudos.

Nov 14, 2008 04:16 PM
Dinah Lee Griffey
Windermere Peninsula Properties - Allyn, WA
Managing Broker Windermere Peninsula Properties

Please blog about this when you sell the house ,and let us know how it all turns out. Don't leave me hanging-Dinah Lee

Nov 14, 2008 04:35 PM
Richard Dolbeare
Inactive - Wailuku, HI
Living the Hawaii Lifestyle

It sounds like you reached a nice resolution which won't cost you anything until it sells.  Hopefully you will have a greateful client.

Nov 14, 2008 05:15 PM
Janna Scharf
Keller Williams Realty Coeur d'Alene - Coeur d'Alene, ID
Coeur d'Alene Idaho Real Estate Expert

I have heard so many stories lately of agents doing irresponsible things with a unhappy ending, usually for their clients.  Is it just me, or is this ESCALATING lately?

Nov 14, 2008 05:52 PM
Sabrina Kelley
ERA Herman Group Real Estate - Woodland Park, CO
Woodland Park Colorado Mountain Homes and Land

That is the way to make the deal work and the $1000 you put out will come back tens time to you.

Nov 14, 2008 06:21 PM
Knolly Williams
Success With Listings - Austin, TX

We recently CLOSED this transaction! Yeah! Thanks so much for everyones input!

Mar 29, 2009 04:40 PM
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Wait a minute!

Why are we paying through the nose if the fantastical lock boxes that TRACK AGENT'S VISITS aren't worth anything.

If the agent that showed the house didn't report the water damage, you know it happened on her watch.

Geez.  So what's the use of tracking agent visits?????

Oct 10, 2009 10:45 AM