Realtor issue and legal advise

[retire to nature]

Hi,

I have been selling 4 houses since April.

And I found out my realtor was doing wrong.

I successfully sold all of houses. All of them were contracted with my realtor, AS IS condition but accept FHA/VA loan requirement.

So it applied to two livable houses. And when I was selling the 4th house, I found out, they sent me an inspection report, and I claimed it was AS IS condition contract, and agreed that was wrong and pulled it back. And so FHA appraisal need to be done only, and I found out FHA doesn't require much.

But for the first house, I got an inspection report by a LLC company from buyer and I fixed all of it including roofing based on my realtor. I knew there were some blown shingles, so I paid for a roofing guy and fixed it before putting into market.

And the LLC report said we need to replace to the whole roofing cost $4-5000 (Of course, it was buyer's appointed company, they wanted to fix as much as before their possession.) But, my realtor said, there is a roofing company working with her and able to make an expert inspection report and could make to cost $1000. At that time, I kind of feel she could get a commission doing that.

As I am a real estate investor and my sister was a flipper, I know the roofing job pretty much. At that time, I was not aware of FHA requirement much (because it is my first selling house in MO), and I had so many kinds of stress going on.

After I sold the 4th house, I realized FHA requirement is not much, the shingles I repaired would be good enough. What they fixed for $1000 was changing to normal sale. I fixed everything what the LLC inspection report.
I was pissed off with my realtor because she made a contract with me as is condition and made me spend more money to make normal sale. I was accusing her that she misled me for her convenience because it would go sale work much nicely. She was saying it was because of covid19, but since it was as is condition contract, there shouldn’t exist the inspection report even as long as my understanding.

I am serious of this matter because it seems to be deceptive because most of people don’t know much about housing transaction they just follow what a realtor says. I asked her to provide me any proof why I had to make the first house for normal condition from her misled. She kept delaying by saying she has to go to the office to check all of things together. I already provided her our email with inspection report and detailed roofing repair (it was mostly fixing flashing(which was not necessary at all) and there was no leaking or anything where they repaired)

Also, she had told me that her company runs the property to their own network first before putting market. So I accepted the first offer on the first day of market. I realized it sounds like not fair market rule. Because there were so many showing set up but she pushed me to sign for the first offer from her network.

When I contracted with her she made me to sign a form called “MARIS EXEMPTION FROM: AUTHORIZATION TO WITHHOLD PROPERTY FROM MLS. I don’t remember if I signed this kind form when I sold a condo in CA.
This company advertising themselves No. 1 in the field. If they are doing it with manipulation, I would like to do some effort for fair market.
If she can’t provide me good enough, of course I will report to BBB but I may want some advice if I was wrong in any part.

Thanks.

 

[RunningBum]

If I'm buying any house, "as is" or not, I'm always going to get an inspection. My expectations are lower with an as-is house but if I find major problems I'm either going to back out, or ask for them to be fixed (or cash discounted to fix). The only time I wouldn't bother is if it's a tear down. Or if the seller had disclosed the faults and said the costs to repair are already priced in.

You say you're a real estate investor. Would you buy a place and take your chances on how much is wrong with it, without having an inspection done?

 

[retire to nature]

If I'm buying any house, "as is" or not, I'm always going to get an inspection. My expectations are lower with an as-is house but if I find major problems I'm either going to back out, or ask for them to be fixed (or cash discounted to fix). The only time I wouldn't bother is if it's a tear down. Or if the seller had disclosed the faults and said the costs to repair are already priced in.

You say you're a real estate investor. Would you buy a place and take your chances on how much is wrong with it, without having an inspection done?

Thank you for replying. Yes, the buyer can run the inspection report. That is smart thing to do and they can decide if want to buy or not from their perspective. But my point is my seller realtor should lead me to right direction, but she was asking me to fix everythings plus the roofing which make the smooth transaction for her not for me. The houses are all good conditions.

So when I contracted with her initially as is condition, then asking price is low. If I knew I would fix all, I wouldn't agree to the low asking price. But I was selling as normal condition with low price and they are advertising their company to selling so fast. That pisses me off.

 

[Doribe]

A seller has to look out for their own interest. R.E. Agents are looking out for their interests.

I've had R.E. agents try to get me to fix or give in more than I had intended. I had to stand my ground and let the sale drop, if that needed to happen.

The last house I sold was a mixed bag, some new renovations and some old disasters. I filled out the disclosure form with all of the problems. I stated I would fix a few of the critical and expensive items (new AC, new aerator pump on septic, new pump for well).
A lot of the other problems I factored into the price with a discount.

Why did you allow the private network sale, instead of MLS? That may not be legal where I live.

 

[levindb]

The selling realtor has a goal to help you sell your house(s) and they get paid ONLY if you sell...

You have your preferred way of selling, which may or may not be appropriate for that local market. It appears your realtor got you to spend more money to either attract more buyers, or to get a quicker sale. The homes sold, and the realtor was paid at closing.

Could you have sold it for the same price without the repairs? Maybe
Could you have sold it for a higher price? Maybe

You may not be happy, but everything is done now, and you might be better off looking to your future rather than dealing with this issue. Hopefully, you have learned something from this experience, and you will be more careful in signing any agreements with realtors in the future.

 

[ivinsfan]

What would you want the lawyer to do for you?

You don't have to agree to everything the realtor suggests. Sounds like you were rattled. The realtor can't make you sign anything you don't want to, just find a different broker for your next sales. Were you wrong, no but remember no one cares about your money as much as you do, no matter what they tell you!

 

[ExFlyBoy5]

If you are a RE investor, then I would suggest that you bone up on the ins and outs of a RE transaction, what a contract involves (getting pissed off about something isn't a valid claim) and what the fiduciary duty of a real estate agent is. From your posts, I don't see that the agent did anything illegal or even unethical. It appears that you agreed to his/her suggestion and even signed an agreement to withhold your property from the MLS.

I am not trying to be an ass, but I don't see that you have any real claim or controversy. Your adversary would call this "failure to state a claim."

If you are serious about trying to get some sort of resolution, then contact an attorney in your state that deals with real estate transactions.

 

[retire to nature]

A seller has to look out for their own interest. R.E. Agents are looking out for their interests.

I've had R.E. agents try to get me to fix or give in more than I had intended. I had to stand my ground and let the sale drop, if that needed to happen.

The last house I sold was a mixed bag, some new renovations and some old disasters. I filled out the disclosure form with all of the problems. I stated I would fix a few of the critical and expensive items (new AC, new aerator pump on septic, new pump for well).
A lot of the other problems I factored into the price with a discount.

Why did you allow the private network sale, instead of MLS? That may not be legal where I live.

Thank you for the reply. No I didnt sell thru private network sale. That's why I am pissed. They set up that way. And they were holding my property, and they found a buyer as if private sale, and put the market in MLS and first day, tried to close the advertisement by doing that.

So I am doubting if it is allowed. Later I realized the form was that for. They cannot hold houses more than 14 days, but they can extend as much as possible too.

 

[retire to nature]

What would you want the lawyer to do for you?

You don't have to agree to everything the realtor suggests. Sounds like you were rattled. The realtor can't make you sign anything you don't want to, just find a different broker for your next sales. Were you wrong, no but remember no one cares about your money as much as you do, no matter what they tell you!

I know I definitely find another realtor for other houses. I was upset that I was giving her more advice what a realtor is supposed to, but she was acting she is doing so good. She told me to call FHA appraisal, I said no. It sounded like unappropriated and I was right. I need some clarification to repair, she told me to call the buyer agent. I got upset and said to her, that is her job to do.

 

[retire to nature]

If you are a RE investor, then I would suggest that you bone up on the ins and outs of a RE transaction, what a contract involves (getting pissed off about something isn't a valid claim) and what the fiduciary duty of a real estate agent is. From your posts, I don't see that the agent did anything illegal or even unethical. It appears that you agreed to his/her suggestion and even signed an agreement to withhold your property from the MLS.

I am not trying to be an ass, but I don't see that you have any real claim or controversy. Your adversary would call this "failure to state a claim."

If you are serious about trying to get some sort of resolution, then contact an attorney in your state that deals with real estate transactions.

Thank you for the reply. I read about the Exemption form before I signed. But I misinterpreted because I had the 4 houses contract all together because I am on probate, I need a order to sell. I had waited for the official date and made contract with my realtor. Also, some of them was not ready. So we tried to sell in order, so I thought that is the reason, I need to sign that form.

But realizing that company is doing that all the time for all of houses. So it made pissed. I understand I am learning. So to learn I asked her for the clarification, but she is playing with me now.

 

[sengsational]

I see "made me" and "pushed me" in the OP. Apparently her persistence worked! I doubt you have any recourse now unless you can prove willful deception, and that's pretty difficult to do (he said, she said doesn't cut it). You even probably signed something that said (in so many words) what she says means nothing, only what's written down counts.

 

[jfn111]

Just a couple of points- All my investor sales are As-Is. We use this to stop future problems, like a leaking roof 6 months latter. We expect the Buyer to do an inspection and we will negotiate on repairs.
A withhold from MLS is primarily used to delay the publishing of the house while final work is being done. If we want to run a coming soon campaign we need a signed contract and a withhold.
As far as FHA goes that's were you and the agent should have had a discussion before hand if you want to take FHA offers. FHA can be a bit of a pain but you preclude a bunch of buyers if you don't look at those offers.

 

[retire to nature]

Just a couple of points- All my investor sales are As-Is. We use this to stop future problems, like a leaking roof 6 months latter. We expect the Buyer to do an inspection and we will negotiate on repairs.
A withhold from MLS is primarily used to delay the publishing of the house while final work is being done. If we want to run a coming soon campaign we need a signed contract and a withhold.
As far as FHA goes that's were you and the agent should have had a discussion before hand if you want to take FHA offers. FHA can be a bit of a pain but you preclude a bunch of buyers if you don't look at those offers.

Thank you for the reply. I need to clarify my situation. I have 11 rental houses because my sister was a investor so she upgraded all and passed away.

so selling these houses not investor would buy. It is more like turn key houses. Yes, we discussed with her about FHA, so that is a problem here. I wanted to sell house as is but except fha requirement. but she directed me as if we are selling normal sales. So I fixed all of the buyer's inspection report, which was not necessary at all.

FHA requirement was just heating and cooling is good, all insides are intact. it was very simply.

 

[retire to nature]

I see "made me" and "pushed me" in the OP. Apparently her persistence worked! I doubt you have any recourse now unless you can prove willful deception, and that's pretty difficult to do (he said, she said doesn't cut it). You even probably signed something that said (in so many words) what she says means nothing, only what's written down counts.

Thank you for the reply. Yes I understand, they do make and push because without it, it would be hard to sell or buy houses.

I asked her to admit she misled me because repeated sales made me realized her doing wrong. Most of people just buy or sell one property and that's it.

I even claimed the title company was doing wrong to hold my check because of probate. and they admitted and released the check now.

But her attitude made me upset. She could have said an apology or explanation. she is been saying later and later mode to give me the response.

 

[jfn111]

Thank you for the reply. I need to clarify my situation. I have 11 rental houses because my sister was a investor so she upgraded all and passed away.

so selling these houses not investor would buy. It is more like turn key houses. Yes, we discussed with her about FHA, so that is a problem here. I wanted to sell house as is but except fha requirement. but she directed me as if we are selling normal sales. So I fixed all of the buyer's inspection report, which was not necessary at all.

FHA requirement was just heating and cooling is good, all insides are intact. it was very simply.

Just a good lesson for your dealings with your next Realtor. Inspection requests are just that, requests. You don't have to do everything on their lists.

 

[davebarnes]

Advice
Not advise

 

[Sunset]

Next time use a different realtor.

Unless there is a BIG benefit of keeping a house off the MLS, you are just shooting yourself in the foot, by not having more people "see" the listing.

Don't trust your Realtor, they are working for themselves and need to get you to sell the house to be paid.

 

[Scrapr]

Next time use a different realtor.

Unless there is a BIG benefit of keeping a house off the MLS, you are just shooting yourself in the foot, by not having more people "see" the listing.

Don't trust your Realtor, they are working for themselves and need to get you to sell the house to be paid.

I (almost) might see a benefit of keeping off the MLS if an investor came in and bought the entire lot. One closing and be done. Of course probably at a discount. 11 closings would be a lot of work.

An investor possibly could look at a house & calculate repair costs in their head. Individual buyers need to get 3 trades out to look at it, wait for a quote then negotiate with seller. I walked a house a couple weeks ago. I stopped counting at $60k to get it where I would like it.

 

[jfn111]

We are seeing a few more properties being kept off the MLS because of Covid related issues. I had a call yesterday from a woman that owns multiple rental properties. Some of her tenants are not paying rent and her bank is on her A#$.
She wants a quick sale to an investor that will buy the property at a discount and wait out the rent moratorium.

 

[ivinsfan]

We are seeing a few more properties being kept off the MLS because of Covid related issues. I had a call yesterday from a woman that owns multiple rental properties. Some of her tenants are not paying rent and her bank is on her A#$.
She wants a quick sale to an investor that will buy the property at a discount and wait out the rent moratorium.

A little OT but if I was the owner I'd call the AG's office and complain about the bank. The tenants are protected by law and don't have to pay rent at the moment.

 

[Doribe]

I know I definitely find another realtor for other houses. I was upset that I was giving her more advice what a realtor is supposed to, but she was acting she is doing so good. She told me to call FHA appraisal, I said no. It sounded like unappropriated and I was right. I need some clarification to repair, she told me to call the buyer agent. I got upset and said to her, that is her job to do.

She told you to call for an FHA appraisal. I understand that an FHA inspection must be passed for some loans. If you were allowing sales with FHA loans you would have to fix everything required for that type of loan.

You are right that the agent should have called the other agent. Sometimes people don't do what they are supposed to do.

If I were you I would move on with lessons learned. How did you decide on this agent? Did you research for the best agent or was she a relative? Did she have a good reputation in your community? How long and how many sales has she done?

I have sold with and without agents. If at all possible, I will avoid them in the future. I can pay to get my house on the MLS and on-line platforms. They don't bring much value to the table, compared to the cost.

 

[ivinsfan]

To recap, the buyer or lender on one home wanted a44-6K repair or replacement to the roof. Your RE agent found a company that did it promptly for 1K. You felt you shouldn't have needed to do anything. So 1K

Is this the major issue with the sale of 4 homes? Is there something else that cost you actual money out of pocket? Obviously your relationship with this RE agent is trashed, but I hope you would keep your expectations realistic for the next time. It seemed like there was a lot of miscommunication between the two of you, but that is not all on her, you bear some responsibility too.

After reading this frankly she probably thinks you are a difficult client. If there is more to the story I'm not understanding your comments.

 

[Doribe]

Just a couple of points- All my investor sales are As-Is. We use this to stop future problems, like a leaking roof 6 months latter. We expect the Buyer to do an inspection and we will negotiate on repairs.
A withhold from MLS is primarily used to delay the publishing of the house while final work is being done. If we want to run a coming soon campaign we need a signed contract and a withhold.
As far as FHA goes that's were you and the agent should have had a discussion before hand if you want to take FHA offers. FHA can be a bit of a pain but you preclude a bunch of buyers if you don't look at those offers.

Why would you sign with a realtor and put a hold on the listing? Why wouldn't you just wait until you finished the work? What value do you find in a "coming soon" strategy?

 

[jfn111]

Why would you sign with a realtor and put a hold on the listing? Why wouldn't you just wait until you finished the work? What value do you find in a "coming soon" strategy?

Coming soon works well for neighborhood specific buyers. We can see when the house is coming on the market, the buyers can drive by and checkout the exterior and they may hold off on making an offer on a marginal house if one that checks more of the boxes is "coming soon".

 

[Doribe]

Coming soon works well for neighborhood specific buyers. We can see when the house is coming on the market, the buyers can drive by and checkout the exterior and they may hold off on making an offer on a marginal house if one that checks more of the boxes is "coming soon".

That seems to be a better strategy for a low-inventory situation. I'll keep this in mind when I put my house on the market.