Recently I sat next to a woman who haltingly told me about her real estate transaction. She explained she had purchased a home directly from a home seller believing she would get a “good deal” if she dealt direct with the Seller. Her rationale primarily pivoted around the notion that she believed she would get a great deal for the home since the Sellers weren’t paying commission and this would benefit both the Buyer and Seller. Why have a real estate agent, she thought?
Emotional Decisions
The woman went on to say she hired a home inspector she found online and conducted her home inspection with the Sellers present. During the home inspection, the Buyer questioned the Sellers if the basement ever got wet and was greeted with a convincing “no, never gets wet” from the Sellers. The woman stated she loved the property so much that she realizes (in hindsight) she was emotionally committed to the purchase regardless of logic.
The Buyer removed her conditions making the transaction a firm sale. As close day approached financial and emotional chaos ripped the Buyer. According to the woman, she was advised by her lender it was necessary to complete an appraisal on the (Sellers) property in order to secure her mortgage. When the appraisal was completed the buyer was advised the property she was purchasing didn’t appraise. In other words, the property was deemed to be about $15,000 over current market value. This meant two things for the Buyer: she needed to come up with $15K out of her own pocket on close date or be sued by the Buyers if she didn’t close. The woman explained finding the $15,000 shortfall was unbelievably difficult. She closed on the property and moved in.
Shortly after moving the basement flooded. The spring thaw had found its way into her basement destroying treasured antique family documents still boxed.
Real Estate Agents Can Help Prevent Disasters
Tears rimmed her eyes as she lamented how many mistakes she made buying her home without a Realtor. She explained she attempted to seek compensation from the Home Inspector but he wasn’t licensed, nor insured and no longer a Home Inspector. She also tried to get compensation from the Sellers but they denied knowing about a wet basement. And finally, the woman acknowledged since she didn’t have a Realtor conducting a market analysis on her purchase she now knows she’s unable to sell without sustaining a devastating financial loss.
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