Sadly, this weak economy has caused otherwise honorable people to do some very dishonorable things. One area, for example, is when home sellers pocket the money that they have received from the homeowner’s insurance carrier which was intended for repairs on said property due to storm damage, etc.
Recent hail storm damage, as well as damage that occurred during 2003 & 2006 in Middle Tennessee is resulting in an increasing number of properties on the market for sale to unsuspecting buyers who failed to do their own proper due diligence before closing on such home purchases. Untrained or inept buyers agents and facilitators also share in the blame by not counseling buyers on the risks involved of just such a discovery, after the fact!
See my earlier blog post on C.L.U.E. Reports. Many do not have a clue what a C.L.U.E. Report is and why it is so important to flush out an occurrence where a selleris being dishonest regarding this issue.
If a seller had received a homeowners insurance payment for $8000.00, for example, to have their roof replaced, and the seller did not use that money for that purpose but subsequently sold their house, the new owner will likely experience and insurance claim denial if/when their home experienced roof leaks after closing. Can you imagine how you would feel if you were the new homeowner who was denied a legitimate insurance claim in this “not so rare scenario”???
Similarly, I am finding more and more instances where bank or government owned properties who sell “as is”, are failing to disclose known material defects in said properties. Several instances are coming to light that sellers are merely covering up with a little sheet rock, mud, and paint, major defects that require substantially more corrective action than the cosmetic work that was previously performed.
At Red Realty, we teach our agents to help their buyers to protect their interests by considering several conditions to sale when presenting and negotiating the terms of an Offer to Purchase Agreement with a seller.
If you need or want expert guidance, as a buyer, or expert training and affiliation with Red Realty Murfreesboro, TN as an agent, don’t hesitate to call or text me!