Relocate to Wisconsin : "The House was Priced for Condition" claimed the Listing Agent

"The House was Priced for Condition" claimed the Listing Agent

    Wisconsin is a very "Pro-Consumer" kind of state with protections written in many areas of the law defending the rights of Badger state residents. WisconsinAs a part of the home  selling process, Sellers are required to complete a  "Real Estate Condition Report".  The report requires sellers to answer questions about the mechanical condition of the bouse from water in the basement to the function of appliances, possible boundary disputes, etc.  We explain it as the Physical Fitness"Physical Fitness Report" for the house that guides and alerts prospective buyers as to anything that may now or have EVER  been a problem during the ownership of the present Sellers.

    That is NOT to say that a Wisconsin Licensed Home Inspector will not find something that needs repair/replacement or some other maintenance that escaped the Sellers.  In Estates and Flips where the Sellers have not actually lived on the property, the condition report can give no clues as to condition.

     A home inspection revealed that there had been a cedar shake roof on both the house and garage and it had been replaced over a decade ago with shingles without properly preparing the  surface underneath.  Clearly the only remedy suggested and agreed upon was to remove the roof, re-deck it and replace with new asphalt shingles. Roofer The poor roofs on both the garage and the house had two issues...they weren't long for this property AND it was highly unlikely that the insurance company for our Buyers would find it satisfactory.

     There was no mention of any roofing issues on the condition report...and the tearoff and re-decking would easily be a five figure fix that the first time buyers could not and should not absorb.    We called this to the attention of the Listing agent, who receives a copy of the inspection report.   "The house was priced for condition," she claimed.   Hmmm...clearly a condition that the Sellers...if they had an inspection when House with magnifierthey bought the house were not informed of...should the Buyers pay the penalty for a less than diligent inspection by the Seller's inspector ?  We think not.

     We offered to have the insurance company send a representative and pronounce the inspector "uninsurable in its present condition."   AND...the Sellers would now be required to amend the condition report, should our Buyers decide to walk from the transaction....now every prospered flagctive buyer would also be aware that the roofs needed replacement.  This is not the kind of warning that any Seller wants on their property information data.

    Flags up...warnings issued....and Sellers reconsidered their position...replacing the roofs was the best remedy.....and this would insure prompt closing and a happily ever after for the Buyers that was our goal.

      If you or anyone you know is looking for the next happily ever after as a Seller and/or Buyer....Call the Hansons for the counties of Kenosha, Racine, Walworth, Milwaukee, Waukesha, Ozaukee, Washington and Jefferson, we are honored to be of service.

Sally K. & David L. Hanson, ABR, CDPE, CSS, e-Pro,ILHM, REDS


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Comment balloon 19 commentsSally K. & David L. Hanson • July 19 2017 06:45AM

Comments

Good morning, Sally and David --- Although it seems California speaks disclosure fluently, there are issues that occur.   All sellers are not created equal.  This does not necessarily mean the seller is withholding information but may be unaware even when they have lived on the property for a number of years.  

The state of California purchase agreement states properties are sold in "as is" condition and that a buyer shouldn't rely on a seller's disclosure.   Contractually, the seller is required to provide disclosures to the buyers within an agreed upon time period but I prefer to have them available to prospective buyers prior to submitting an offer -- if only to get an idea of what they may reveal.  There can be a lot of revealed in if/how questions are answered.

Even though we are in the same business, the "how" of real estate practice and the nuances/differences involved continues to show how "local" our field remains.  

Posted by Michael Jacobs, Los Angeles Pasadena Area Real Estate 818.516.4393 (Coldwell Banker Residential Brokerage) about 1 month ago

I'm sure your buyers were thrilled that you had their back!  

In NY we have a property disclosure report, but sellers don't have to fill it out. Instead, they have the option of giving the buyers a $500 credit at closing. I have not yet seen a seller fill out the disclosure.

Posted by Kat Palmiotti, The House Kat (Grand Lux Realty, 914-419-0270, kat@thehousekat.com) about 1 month ago

Good morning Sally K. & David L. Hanson the theory of "the price reflects the repairs" is never a path that makes it to the closing table....path of least resistance is to repair/replace before listing....  

Posted by Barbara Todaro, "Franklin MA Homes" (RE/MAX Executive Realty ) about 1 month ago

Trust but verify is a good real estate practice. Thank you very much for sharing your experience.

Posted by Roy Kelley, Roy and Dolores Kelley Photographs (Realty Group Referrals) about 1 month ago

Good morning Sally. Did I not get something, or did the sellers step up to the plate and have the roof repaired?

Posted by James Dray, Exceptional Agents, Outstanding Results (Fathom Realty AR LLC) about 1 month ago

As Kat stated above, NYS has a property disclosure report, but instead of filling it out, they can give the buyers a $500 credit at closing which protects them from any future findings. We have never been to a closing where this has not happened!

Posted by Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400, Long Island Condo & Home Sale Specialists (The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803) about 1 month ago

The happy ending to avoid a tragic story... (bugle sound) The Sally K. & David L. Hanson chare in, to the house buying rescue to help the new home owner from finding themselves in an expensive box canyon.

Posted by Andrew Mooers, Northern Maine Real Estate-Aroostook County Broker (MOOERS REALTY) about 1 month ago

Glad to hear the sellers decided to replace that roof. That's one of the biggest concerns any buyer who have. Everyone wants to have a good and satisfactory roof over their heads.

Posted by Jerry Newman, Texas REALTOR, San Antonio Military Relocation (Brown Realty, 210-789-4216,www.JeremiahNewman.com) about 1 month ago

Good morning Sally and David.  The best thing your buyers did was in hiring you to navigate them successfully through this issue.

Posted by Gabe Sanders, Stuart Florida Real Estate (Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales) about 1 month ago

Go get 'em, Sally K. & David L. Hanson . The Sellers' Property Disclosure is not required in Florida, but it is customary for sellers to provide one. The absence of one certainly flies' many red flags. California: required!

Posted by Sandy Padula and Norm Padula, JD, GRI NMLS#1483386, Presence, Persistence & Perseverance (Realty One Group) about 1 month ago

What a fluff, meaningless answer!  Priced to reflect what is impossible to calculate?

Posted by Jay Markanich, Home Inspector - servicing all Northern Virginia (Jay Markanich Real Estate Inspections, LLC) about 1 month ago

Sally & David, interesting how states differ.   We don't have to have an inspection on the home prior to listing, but the Sellers do have to disclose any issues known.   This roof issue would be on the Seller.  Kudos for saving them thousands! 

Posted by Joan Cox, Denver Real Estate - Selling One Home at a Time (Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373) about 1 month ago

I am running into more and more disclosures that are not truthful.   I don't get it.

Posted by William Feela, Realtor, Whispering Pines Realty 651-674-5999 No. (WHISPERING PINES REALTY) about 1 month ago

It is a good thing to have this kind of disclosure for the buyers.  I'm glad they found out about the roof before they closed on the house.

Posted by Sybil Campbell, REALTOR® ABR, SFR, SRES Williamsburg, Virginia (Long and Foster REALTORS® 5234 Monticello Ave Williamsburg, Virginia) about 1 month ago

Sally and David you provided excellent representation for your Buyer, and it is ashamed that some Realtors try to get away with things like this.

Posted by George Souto, Your Connecticut Mortgage Expert (George Souto NMLS #65149 FHA, CHFA, VA Mortgages) about 1 month ago

Sally and David- a roof issue always sends up a red flag. I'm glad that the buyers had you to represent them. 

Posted by Kathy Streib, Home Stager - Palm Beach County,FL -561-914-6224 (Room Service Home Staging) about 1 month ago

Hansons both, the smartest thing your buyers did was hire you! I'm telling you, there are many agents who would cave on this but, kudos to you for your tenacity!

Posted by Debe Maxwell, CRS, Charlotte Homes for Sale - Charlotte Neighborhoods (www.AtHomesCharlotte.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310) about 1 month ago

I had this very talk with a potential listing today, they were told they could sell as is and not disclose. I told them how wrong that is, to fix it the cost is minimal and i only do things right Sally K. & David L. Hanson 

Posted by Scott Godzyk, One of Manchester NH's Leading Agents (Godzyk Real Estate Services) about 1 month ago

In Alaska we have the requirement of either property disclosures, an exemption for new construction or a waiver if both parties agree.  Residential only. We didnt have any disclosures at all till about 1994  

I like that New York thing....$500 at closing and call it a day!

Posted by Debra Leisek ( Bay Realty,Inc Homer Alaska) 4 days ago

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