Home of the Peak Producers

Tuesday, August 25, 2009

Buyers agents: Be careful how you ask.


I recently reviewed a sales contract where the buyers agent submitted an addendum as a result of a home inspection that their buyer performed the day prior.


This is what the addendum said: and I quote

"Now, therefore, it is mutually agreed that the following provisions be added:


1. Roof has missing shingles.

2. Small leak under kitchen sink

3. Grounding strap is not connected

4. Refrigerator water dispensor makes noise

5. Garage door opener battery is dead

6. Gutters full of leaves

7. Tree branches touching house"



and the list went on.



Funny: no where in this addendum was a single repair requested. This addendum was simply a list of everything that was found wrong, and, as a great benefit to the seller, the buyer removed the contingency without asking the seller to do anything. When the buyer signs it, he agrees that these statements are true, when the seller signs it, he agrees that these statements are true.



That's wonderful...both the seller and the buyer agree that these items exist.


BUT>>>>>>>



What do you think the buyer thought was going to happen? You guessed it, they thought the items were going to be repaired because this is what their agent told them (and assumed) was going to happen. Now, when the buyer goes back to do their final walkthrough and none of these items have been addressed, what is the buyer going to do?



First, they look at the seller, then, after a long conversation between the buyers agent and the listing agent, the listing agent explains that the buyer never did request any repairs. Now who do they look to? Their agent: the one who was supposed to be looking out for their best interest. Guess who is going to be getting things repaired?



It is so important, when you are representing a client, to ensure that you are writing your addendums correctly. You need to ensure that the addendum states exactally what the buyer wants and leaves no room for interpretation.



What this addendum should have said was:


"1. Roof has missing shingles. Seller will replace all missing shingles with shingles to match the rest of the roof."



See how this is different?





Some tips to agents:

1. Never use the word "requests" If the seller signs this addendum, they
are just agreeing that the buyer made a request, they are not agreeing to do
anything.

2. Always use commands: Seller will, Buyer will, Listing agent will,
etc

3. If you want a professional doing the work, you need to specifically ask
for that.

4. If you want receipts provided at closing, you need to specifically ask
for that.


As licensed agents, it is our responsibility to present a realistic picture of what happend, what is happening and what will happen. Be sure you review your addendums before sending them on...or else you might be digging yourself a hole.

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