No Buyer Agent, No Guidance, No Clue, and Now the Tears

Skilled buyer agents are critical to a successful home purchase. Recent changes to real estate law regarding buyer agent compensation are prompting a new batch of "disruptive" and "innovative" ideas. Simply put, there is no substitute for the guidance provided by an experienced buyer's agent. The internet is ripe with "do it alone" advocates; that advice is straight stupid. Buying a home is a rather significant purchase, most buyers are not savvy to the process.  What could go wrong? Well...consider an inquiry that I received.

"After several missed opportunities a listing appeared in XXXX for an unoccupied home as an estate sale and the asking price was in line with market rates, so we made an offer of asking price. We engaged an inspector, but the inspector was unable to review the plumbing in operation because the water was turned off. I expressed my concern with this because there was evidence of a previous leak under the kitchen sink and I was offered a one year home warranty that I accepted. We closed remotely on Friday XXXX and on Sunday XXXX I drove up from XXXX to acquire the keys and establish utility service. I quickly discovered a leak audibly inside the wall where the washing machine connection is. I observed water seeping out below the base boards and could smell the musty smell of mold and clearly observed that this leak had been present for quite some time. Yesterday I noticed a small light brown area on the garage ceiling and in the attic observed a hole the size of a football where water had rotted away the sheathing and someone had screwed what appeared to be a tin sheet over it. I would have never bought this house if this had been disclosed to us and I do not know why the owner did not disclose these things and how an inspector could have missed this, but I do know that an issue like this would have a dramatic impact on the value of a property and I am very unhappy about this. Please let me know if there is anything/advice you may have".

This buyer is screwed. GA is a buyer beware state and once the due diligence period is over, you are expected to close. This buyer told me "I've bought and sold several homes"; well OK. Our conversation was broad - key points and bolded sections from above:

• Did you have an agent? "No, I've bought and sold many homes"
• Did you visit the home before contract? "No, we are familiar with the area" 
• Did you have an appraiser to review list price? "No"
• How long was due diligence? "3 days"
• You understood this appears to be an "as is" estate sale? "Yes"
• Where did you find the inspector? "Listing agent recommended"
• Did you google the inspector and verify credentials? "No"
• Did you attend the inspection? "No"
• Why didn't you ensure the water was on? "Didn't know it was off"
• Why didn't you extend due diligence after learning that? "They offered a warranty"
• Did you understand what due diligence is and means in GA? "No"
• How can I help you at this point? "Looking for suggestions and advice"
• You own the home. Anything beyond that is best answered by a real estate litigator. "OK"

This is one of a regular stream of inquiries I get off my blog. Others come via the phone; many of these buyers seem to think I'm an attorney. The idea that anyone not skilled and involved in this industry full time can effectively navigate this process is wishful thinking at best, abject stupidity at worst. Georgia is a state where there are NO ATTORNEYS INVOLVED at any time except closing. That single attorney represents the LENDER ONLY. When "the internet" says to "have an attorney review the offer", question if that's even logical. How many of these keyboards wizards make a living in this industry?

Be an expert at what you know, if it's not real estate sales then consult a pro. It's just buying a home, what could go wrong? Oh wait...

Tags

• buyer agents (4)
• buying a home (3)
• contract issues (2)