Tag: real estate agent

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Real estate horror stories question the limits of seller disclosure

real estateProperty disclosure laws are mostly straightforward about making known the physical condition of a home that’s for sale. However, whether or not to disclose other material facts, that may include events that occurred in and around the home, is not always clear. Material facts about a home are often described as information that may sway a home buyer’s decision about the purchase or purchase price. Some of the more familiar material fact cases that are typically reported in the news include haunted homes and unruly neighbors. Yet, these two recent accounts have again raised the question and debate about what the seller and the real estate agent is obligated to disclose.

Sounding like a plot of a horror movie, it is the real estate horror story of a New Jersey family. Philadelphia’s WPVI-TV (New Jersey family says they are being stalked at new home; 6abc.com; June 22, 2015) reported on a family that was allegedly stalked through creepy and threatening letters. The new home owners started receiving these letters several days after closing on their million dollar home.

The letters were described as written by the “Watcher,” who claimed to be the latest of his family to watch the home with such statements as the home has been “the subject of my family for decades…” Other letter statements include “Why are you here? I will find out…” And, “I am pleased to know your names now and the name of the young blood you have brought to me.”

According to Tom Haydon, who reported on the lawsuit for NJ Advance Media (Lawsuit: ‘Bring me young blood,’ stalker told Westfield home buyers;nj.com; June 19, 2015), the new owners were so disturbed by the letters that they never moved into their new home; and have been trying to sell it. The family is suing the seller alleging that the seller knew about the “Watcher” because the seller did not disclose that they allegedly received a similar letter prior to closing.

You’ve heard about “Snakes in a Plane?” This next story is about an Annapolis MD family who experienced “snakes in a house.” David Collins reported for Baltimore’s WBAL-TV (Snake-infested Annapolis home rattles owners; wbaltv.com; June 5, 2015) about the snake infested home. Detailing the new owners’ nightmare; they said they used a machete as defense against snakes that reportedly dropped from ceilings, and slithered from the walls.

To rid the home of the snakes, the owners described how they ripped out walls, and tore up the ground around the foundation. However the report indicated that “experts” told the owners gutting the home may not guarantee the snakes would return because the snake pheromones and musk could attract new snakes; and that the home should be left vacant for fifteen years to rid the home of the musky odors.

The new owners allege that their insurance will not cover a claim, nor is their mortgage lender willing to help. The new owners are suing the real estate agent and broker for allegedly not disclosing the snakes; there are also allegations that the tenants who lived in the home prior to the sale, moved out because of snakes.

Legal experts across the country have weighed in on these extraordinary stories, only to illustrate how a seller’s obligation to disclose varies regionally. If you are selling a home and have questions about your obligation to disclose, consult your real estate agent and your attorney.

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Disclaimer. This article is not intended to provide nor should it be relied upon for legal and financial advice. Readers should not rely solely on the information contained herein, as it does not purport to be comprehensive or render specific advice. Readers should consult with an attorney regarding local real estate laws and customs as they vary by state and jurisdiction. Using this article without permission is a violation of copyright laws.

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DANGER Report not a mea culpa – but forecasts issues affecting housing market

real estateNews about the D.A.N.G.E.R. Report is making the media rounds, but maybe the excitement is more hyperbole than news. And contrary to the recent hype, the D.A.N.G.E.R. Report is not a mea culpa by the National Association of Realtors®.

D.A.N.G.E.R. is an acronym for “Definitive Analysis of Negative Game changers Emerging in Real estate.” The Report was commissioned by the National Association of REALTORS® as that is part of the NAR Strategic Thinking Advisory Committee’s attempt to identify issues affecting the future of the industry; the Swanepoel | T3 Group researched and authored the Report, which identifies trends and offers the residential real estate industry an impact assessment.

Described as a “…mix of yesterday, today and tomorrow…” the Report is intended to assist those in the industry to “…anticipate the forces taking shape that we can’t yet see;” by pointing out possible challenges, threats, and opportunities. Although the result is meant to “inspire” discourse, the reception has so far been mixed. NAR CEO Dale Stinton was quoted to say, “The D.A.N.G.E.R. Report is like 50 things that could keep you up at night. It isn’t a strategic plan. It isn’t telling you to do anything. It’s 50 potential black swans. It’s for your strategic planning processes. Digest it and cuss and fuss and decide whether it’s right or wrong…” (Anrea V. Brambila; ‘Danger’ report alerts industry to 50 biggest threats; inman.com; May 15, 2015).

One issue highlighted in the Report that has attracted the media attention is agent competency and ethics. The use of Report quotes such as, “the real estate industry is saddled with a large number of part-time, untrained, unethical, and/or incompetent agents…” is as if some in the media are saying “we told you so.” But the truth is that competency does not guarantee ethical behavior, and vice versa; the answers, like the issues, are more complex than you might expect – and do not assure advancement.

Like many of the issues reported in D.A.N.G.E.R., concern about agent competency and ethics is not new. The National Association of Realtors® has for years tried to influence public opinion of Realtors® and the industry by publicly promoting the high ethical standards by which Realtors® are held. Many are unaware that a code of ethics was adopted in 1913 by the association, and has since strived to instill and maintain a high level of integrity in the field. And yet with such emphasis on ethics, you might expect that public opinion would be much higher, but the limited research on consumer perception of ethics is mixed at best. And according to one study, consumers consider price, quality, and value more important than ethical criteria in purchase behavior (The myth of the ethical consumer – do ethics matter in purchase behaviour? The Journal of Consumer Marketing. 2001;18(7),560-577).

The D.A.N.G.E.R. Report may have missed the mark by not acknowledging that the industry’s transformation over many decades has been mainly influenced and driven by market forces, regulation, and technology. Discussing “black swans” with regard to these three areas may have been more valuable and practical to professionals and consumers.

However, as much as we try to identify unforeseen events; they are just that – unexpected and unanticipated. Take for instance the extreme changes that have occurred over the last ten years in the real estate industry – much of which were due to market forces, regulation, and technology.

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Disclaimer. This article is not intended to provide nor should it be relied upon for legal and financial advice. Readers should not rely solely on the information contained herein, as it does not purport to be comprehensive or render specific advice. Readers should consult with an attorney regarding local real estate laws and customs as they vary by state and jurisdiction. Using this article without permission is a violation of copyright laws.

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Due diligence when buying a home

Due Diligence
Trust and Verify

If you’re a home buyer who’s ready to jump into the housing market this spring, you’ve probably begun searching to see what’s on the market. You may have already met a real estate agent or two; and if you’ve haven’t yet talked with a mortgage lender for a prequalification, it’s probably high on your priority list. Exercise due diligence throughout the home buying process.

Before you know it, you’ve selected an agent, mortgage lender, and title attorney to assist you. Then you find yourself searching for homes. Guess what? You’re well into in the process of buying a home! But before you put the buying process on cruise control, how much trust should you put into the professionals helping you?

Exercise your due diligence when buying a home.

It’s not to say that real estate agents, loan officers, home inspectors, or anyone else assisting your home purchase are not qualified.  But then again, some professionals are better than others. Buying a home is probably one of the biggest purchases you’ll make during your life. The saying “trust but verify” should be your mantra throughout the home buying process to ensure you exercise due diligence.

Have you verified the credentials of those you’ve hired?

Believe it or not, there are some who are doing business without the authorization of the corresponding licensing agency. And yet, some reasons given for not having a license may sound innocuous, such as forgetting about a license renewal deadline; other reasons may not seem as innocent (for example, licensed professionals from neighboring jurisdictions, DC or VA, attempt to do business locally where they are not licensed).

Professional licensing is a regulatory safeguard that provides consumers a pool of professionals that meet or exceed a minimum professional competency. Agencies such as the Maryland Real Estate Commission; Maryland Home Improvement Commission; Maryland Commission of Real Estate Appraisers, Appraisal Management Companies, and Home Inspectors; Office of the Commissioner of Financial Regulation; and the Maryland Insurance Administration offers an internet portal to verify a licensee’s status, check for disciplinary actions, and also explains how to file a complaint.

Although the MLS strives for accuracy in home listings, there are inaccuracies. The MLS provides guidelines and standards for home listing data.  However, exactness and truthfulness can vary because data input is performed by many agents and/or their staff. a disclaimer used by our local MLS prompts you to verify MLS listing information,

“Information is believed to be accurate, but should not be relied upon without verification. Accuracy of square footage, lot size, schools and other information is not guaranteed…”

Verify the schools are accurate.

You can verify schools by checking with the local school board. Our local school board has an online tool to check schools assigned to any county address. The tool is located here: Montgomery County Public Schools “School Assignment Tool” (gis.mcpsmd.org/SchoolAssignmentTool2/Index.xhtml).

Verify zoning, development and other information

You can verify zoning or development questions with your locality. Montgomery County allows you to check information online via Montgomery County Planning Department (montgomeryplanning.org).

Verify permits.

Sure the deck is beautiful and the basement is fully finished.  But how do you know that they were built to meet county code?  Maybe the home seller went with the lowest priced contractor who cut corners and did not pull a permit. Or worse, the seller did it themself to save paying a licensed contractor. Make sure any improvements and recent repairs have had the proper permitting! The permitting process certifies that repairs/renovations comply with building and zoning codes. Permitting ensures that houses are safe, structurally sound, and meet health standards. Permits can be checked by contacting your locality.  Montgomery County allows you to check most building permits online via Montgomery County Department of Permitting Services (permittingservices.montgomerycountymd.gov) “eServices” data search portal.

Most home buyers are familiar with basics of the home buying process. However, “trust and verify” can help identify and reduce hidden and obscure risks. Exercising your due diligence can make your home buying experience increasingly trouble free and more enjoyable.

By Dan Krell
© 2015

Original located at https://dankrell.com/blog/2015/01/16/trust-and-verify-home-buyer-due-diligence/

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Disclaimer. This article is not intended to provide nor should it be relied upon for legal and financial advice. Readers should not rely solely on the information contained herein, as it does not purport to be comprehensive or render specific advice. Readers should consult with an attorney regarding local real estate laws and customs as they vary by state and jurisdiction. Using this article without permission is a violation of copyright laws.

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Real estate professionals reputation

real estate professionals
Hire a Realtor (inforgraphic from keepingcurrentmatters.com)

Gallup (gallup.com) conducts a regular poll of ethics and honesty of various professions. Although the survey is not inclusive of all professions, many are covered in alternating years. Results from the 2013 survey ranked the top five professions as (along with their corresponding “Very High/High” rating) nurses (82%), pharmacists (70%), grade school teachers (70%), medical doctors (69%), and military officers (69%). At the bottom of the list we can find lobbyists (6%), members of congress (8%), car salespeople (9%), state office holders and advertising practitioners were tied at 14%, and lawyers and TV reporters were tied at 20%. Where do real estate professionals rank?

Real estate agents were included in the 2011 Gallup Ethics and Honesty survey, where they were rated with a 20% Very High/High rating; which would be toward the bottom of the list. The 20% rating is actually an improvement from the 17% rating given in 2008. Believe it or not, the 20% rating seems to be the highest rating achieved by real estate agents since the first time they appeared in the poll in 1977; and 2011 was the second time for such a rating (2005 was the first). Historically, the rating ranged from 13% to 19%; not surprisingly, the lowest ratings seem to coincide with housing market slowdowns.

The “Very High/High” rating used to compare consumer opinion of professions may be a little misleading. The 20% “Very High/High” rating in ethics and honesty could lead one to believe that agents are generally viewed negatively. However, in 2011 the “Low/Very Low” rating was 22%; while the 57% “Average” rating may be more indicative of consumers’ opinion of real estate professionals ethics – which is indifference.

The National Association of Realtors® has for years tried to influence public opinion of Realtors® and the industry (not all real estate agents are Realtors®; Realtors® are members of the NAR), by publicly promoting the high ethical standards by which Realtors® are held. Many are unaware that a code of ethics was adopted in 1913 by the association (which was then called the National Association of Real Estate Boards), and has since strived to instill and maintain a high level of integrity in the field.

With such emphasis on ethics, you might expect that public opinion would be much higher. Unfortunately, the limited research on consumer perception of ethics is mixed at best. And according to one study, consumers consider price, quality, and value more important than ethical criteria in purchase behavior (The myth of the ethical consumer – do ethics matter in purchase behaviour? The Journal of Consumer Marketing. 2001;18(7),560-577.)

The reality may be that consumers are not necessarily concerned about ethical behavior or honesty when hiring real estate professionals; which may be why the NAR has decided to add a compulsory dimension of “value” for practitioners so as to increase public opinion of the industry. In an effort to increase professionalism standards, the NAR recently approved an “aspirational” Code of Excellence. A report on the November 10th NAR Board of Directors meeting stated (realtor.org):

“The goal is to raise the practice of real estate measurably through increased training in the competencies that consumers value. These competencies include the stewardship of property listing data, privacy and security of consumer information, advocacy of property rights, community involvement, and technology.”

NAR President Steve Brown was quoted to say, “This is the first step in a process for the continuing improvement of our profession…”

Original located at: https://dankrell.com/blog/2014/12/18/changing-the-publics-opinion-of-real-estate-professionals/

© Dan Krell
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Disclaimer. This article is not intended to provide nor should it be relied upon for legal and financial advice. Readers should not rely solely on the information contained herein, as it does not purport to be comprehensive or render specific advice. Readers should consult with an attorney regarding local real estate laws and customs as they vary by state and jurisdiction. Using this article without permission is a violation of copyright laws.

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Narcissistic real estate agents?

narcissistic real estate agents
When real estate agents are narcissistic

A common criticism of real estate agents is that they are manipulative and often focused on their own needs rather the home buyer or seller. Could it be that real estate agents are narcissists? Samuel Lopez De Victoria, Ph.D. describes a narcissist in the World of Psychology blog (psychcentral.com/blog) as someone who is preoccupied with “self, personal preferences, aspirations, needs, success, and how he/she is perceived by others.”  How can you tell when you are dealing with narcissistic real estate agents?

In an industry that relies on self promotion, it’s not as easy as you might think to spot narcissistic real estate agents.  They initially don’t often come across as manipulative or self centered. Dr. Lopez De Victoria describes. Extreme narcissists as being able to portray themselves in many ways to attract others to get what they want.  They will seem likeable  and be the “nice person.” They may often seem to be the “proper diplomatic” person.  They often appear to care about you, but it is not authentic empathy.  And of course, they are often a charming person.

Dr. Lopez De Victoria says that having some amount of narcissism is normal and even healthy. So even though most agents are not extreme narcissists, it does not address the remorse expressed by some about the agents they chose. Even though industry experts recommend interviewing several agents before buying or listing a home, the majority of home buyers and sellers do not. According to the National Association of Realtors® 2014 Highlights of the Profile of Buyers and Sellers (realtor.rog), 70% of home sellers and about 66% of home buyers only contacted one agent before listing or buying a home. Regardless of the remorse expressed by home buyers and sellers about their agent, maybe they would have chosen to work with other agents if given the chance.

Although interviewing several agents before you buy or sell a home won’t eliminate all remorse over your choice of agent, it can certainly increase the probability of your satisfaction. If you choose to interview several agents, you might consider having a conversation about their experience, knowledge, and expertise. Additionally, knowledge about the local neighborhood market and surrounding neighborhoods is extremely important because market trends are hyper-local. You should also talk about the agent’s specialized experience, if your buying or selling situation is unique.

You should also ask about the agent’s limitations. This is an area where some agents get themselves into trouble is by not knowing, or are unwilling to disclose their limitations to potential buyers or sellers. By discussing the agent’s limitations, you can understand what the agent can and cannot do as well as know when the agent will refer you to other professionals for advice; this can also frame your expectations.

To get some insight into the agent’s way of thinking and service, you might consider asking atypical questions too! Surely an agent is more than happy to talk about their accomplishments, number of sales, and even name drop a past client or two; but what about the listings that didn’t sell? Have they been fired by a client?

The ratio of expired to sold listings can be telling; is the agent focused on servicing your listing or is it a “numbers game” for them? If an agent is open to sharing those figures, ask for reasons why the listings didn’t sell; was it about price or the marketing? If an agent has a history of being fired, it could be a possible indication of issues with the quality of service, including over-promising and not meeting expectations.

Original published at https://dankrell.com/blog/2014/11/14/narcissistic-real-estate-agents/

© Dan Krell
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Disclaimer. This article is not intended to provide nor should it be relied upon for legal and financial advice. Readers should not rely solely on the information contained herein, as it does not purport to be comprehensive or render specific advice. Readers should consult with an attorney regarding local real estate laws and customs as they vary by state and jurisdiction. Using this article without permission is a violation of copyright laws.

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