Is a buyers realtor responsible ?

Question

In Florida, if a property is listed for 170k, but when you check it out with a realtor the property needs work, and let's say it needs 10k work, so the correct offer price is 160k. If the realtor knows this from her/his experience, is it their responsibility to advise the buyer accordingly if the buyer does not know this?

Russell Brazil · Answer

Why would you assume its worth less because it needs $10k in work? Ive never seen a house that doesnt need $10k in work.

Jonathan Greene · Answer

This doesn't make any sense at all. There is something called supply and demand, especially right now that makes repair value versus list price wholly irrelevant in most markets. You can't rely on your real estate agent to choose your offer price as they can not do that. They are there to give you advice, based on their experience, and provide comparable sales that look similar, but the ultimate decision is on the buyer. When you are an investor-friendly agent, it certainly helps guide your investors on properties to know the repair cost and the real value in a hot market, but if you aren't experienced evaluating repair or are a new agent who doesn't know the market, you should not be overstepping your knowledge.

Max T. · Answer

@Krishnan T.Who is to say that the list price does not accurately reflect the fact that it needs work? Maybe it’s really worth 180.

Jonathan Greene · Answer

What @Mike Dymski said. You are researching 2013 statutes to try to prove an irrelevant point. Any realtor should point things out, but they should not be giving you amounts if they don't know them to be correct and it could create a liability issue if it turns out to be untrue. Fiduciary duty is about non-disclosure of sensitive information or doing or saying something in a transaction that would give adverse information to another party.

Mike Dymski · Answer

This is an intellectual exercise that has no practical value. Proving reasonable care and diligence is highly subjective and will cost more in legal fees than the buyer's share of a $20k settlement. We appear to be missing the full story...the real problem seems to be the pest inspection.

Bill B. · Answer

Maybe it’s worth $250k but they really want to sell, or they priced it too low. This is like when buyers say, the roof only has 2 years left, I want the seller to pay for a new 20 year roof and sell for the same price. Even though, if the roof had 7 years left, they would be fine. They never consider they should pay for half that roof, much less 60%+.

Wale Lawal · Answer

@Krishnan T. Agency is a fiduciary duty and the buyer agent must advise the client accordingly.

Mike McCarthy · Answer

@Krishnan T. Yes and no. I would include that explanation in your offer. I also like to discuss with the realtor about comps in the area. I find it helps explain what they might see as a ‘lowball’ offer... but it’s really not. A good seller’s realtor should have already communicated that, but who knows what they think. A recent purchase of mine was listed at $300K, where the ARV was about that. I don’t know if it was the realtor or seller who came up with that number, but I helped explain that my offer of $215K was appropriate. They didn’t accept it immediately - but after 2-3 months of no other offers, they saw the err in their ways :)

Jonathan R McLaughlin · Answer

@Krishnan T. Let’s turn this around...what are your responsibilities? You need to understand you are making the decisions and bearing the risks and benefitting from the possible profit. ONLY you can make financial decisions. The broker can be the guide to the process and provide general insights about how this house relates to the current market. The rest is on you

Krishnan T. · Answer

@Jonathan Greene So In my example above, pls take the 170k and 20k termite repair numbers as example numbers.I started searching up "Duties of a relator as a Fiduciary " and you get the " loyalty", "confidentiality " etc etc...I came across this document that belongs to the National Association of realtors , it is dated from 2013, maybe things have changed since 2013? : nar-fiduciary-duty-032213.pdfUnder the reasonable care and diligence section, the final line says " Simply put, this is the same duty any professional, such as a doctor or lawyer, owes to his patient or client.So given this is what they are saying, you don't feel that a realtor should disclose to me the buyer that she feels there might be some serious damage, or at least make sure I get a competent termite inspector so it can be uncovered?