Real Estate Questions Answered Here
by Art Santellen, REALTOR®

Q: What are the reasons people are unhappy with real estate agents?

A: Things just don't seem to change much. Recently, the Colorado Association of Realtors published a list of the most common reasons insurance claims are filed against real estate agents. I compared this list with one published 6 years ago by the Pikes Peak Association of Realtors. The reasons people were unhappy with their real estate agent 6 years ago remain the same reasons today. Here's the top 4 complaints:

The fourth most common complaint: Errors in contract language. That is, the client told the real estate agent to make sure something was included in the contract but the agent failed to make sure the contract language was changed. For example, the seller tells his agent that he doesn't want to include the dishwasher in the sale of his home. Then, when the listing is published, the seller's dishwasher is included in the sales price. Then, when an offer is made, the buyer thinks the dishwasher is included, and the seller thinks the dishwasher is NOT included. At closing, everyone is embarrassed and the real estate agent has egg on his face. More significant errors can include purchase price, terms of the sale, and dates that certain events must take place and inclusions/exclusions to the property.

The third most common complaint: Misrepresentation. This is a very serious complaint and it's a fancy was of saying the real estate agent lied. If his or her lie included negligence, incompetence, or criminal fraud, the complaint becomes a civil or criminal court issue. In my experience, most cases where the client feels their agent has lied to them are actually cases where the agent failed to communicate effectively Yes, it's true; some real estate agents will lie. However, most don't. Let's face it, buying or selling real estate is a complex (and often emotional) matter Not all agents are effective communicators or educators. Educators? Yes, educators. Helping someone to buy or sell his or her home really is an education experience. The real estate agent, then, must be patient enough and competent enough to teach his or her client enough about real estate to make an "informed decision. That means the real estate agent makes recommendations, offers options, and counsels their client. But it's the client who must make the decision. Allegations of misrepresentation are often cases where the real estate agent failed to communicate recommendations and options to his or her client.

The second most common complaint: Square footage or lot line problems. Yes, some people will select one home over another simply because their entertainment center will not fit in one home but will in the other Usually, these people make three mistakes: they don't measure their entertainment center, they don't measure the room of house they're buying to make sure their furniture will fit, and they (and their agent) believe the measurement information contained in the listing information without verifying it. In another example, a person wants to buy a cabin in the mountains with a nice creek flowing by the back of the lot. After the sale, the buyer finds out that no part of that creek flows over his land and that to get to the creek, he and his family must trespass on someone else's property. The truth is, most real estate don't include water rights. Even if that creek were on his property, he and family couldn't take a cupful of water out of the creek. Anyway, back to my example, most mortgage lenders will insist on a survey or improvement location certificate. Both these documents require that lot lines and lot boundaries be clearly identified... on a piece of paper If the size of a certain room or the location of a lot line is important to you, make sure your agent clearly includes it in your offer to buy. In both these examples, if the room is too small or the lot line does not include access to the creek, you can terminate the contact will little fanfare.

The number one reason people file complaints against real estate agents: Failure on the part of the agent to disclose defects in the property. As a seller's agent, the real estate agent depends on the statements of the owner regarding the condition of the house. In fact, the state of Colorado requires the seller to disclose any known property defects to all prospective buyers. Most problems surface under one of three situations.

1. The item was fine on the day the seller signed the disclosure statement and broke later on. For example, the house roof does not leak on the day the seller signed the disclosure statement. The home is purchased in the Fall and the following Spring, the roof leaks.

2. The seller really didn't know if the item was defective on the day he signed the disclosure statement. For example, the seller states the home does not have dangerous levels of radon (a cancer causing gas found in most homes in Colorado). But later, the buyer's family starts fainting in the family room because of high levels of radon.

3. The seller does know something is wrong with the house and he lies to everyone, including his real estate agent. In the first two examples, the seller's agent is as surprised as anyone that something is wrong with the house. In the last example, the seller's agent may also be lying or may be as much a victim of the seller's lies as the buyer The buyer, of course, is depending on his or her real estate agent to protect them from fraud and lies. Still, not all buyers' agents are familiar with construction codes or the mechanical condition of appliances. So, most buyers' agents will strongly recommend that the buyer hire the services of a home inspector I've seen home inspections reveal items that surprised even the seller!

Next week, honest, I'll tell you all about credit counseling agencies and whether their services are worth the cost.

NOTE: As you can see, I really do get questions from the public. To add your question to this list, please send them to me at the address listed below. Thanks.

The answers to these, and other fascinating real estate questions will be answered here, in Hispania News, next week.

When you're ready to buy or sell a home, see a REALTOR®

Art is a REALTOR® with Heritage Realtors in Colorado Springs.

If you have a real estate question you’d like answered, please send them to:

Art Santellen, care of Hispania News
PO Box 15116
Colorado Springs, CO 80935

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