For most people a home purchase will be the single largest spend of their lives. Ironically, the home purchase is also the purchase over which they’ll have the least control. Oh sure, you spend countless hours and days poring over the details surrounding your home’s location, proximities, amenities, and construction, but ultimately, once you’ve set your heart on “that” home you hand off much of the control to a third party in the hopes that they care about winning that home as much as you do. Spoiler. They don’t. I mean how could they? They won’t be living in it. They won’t be building in it. The home is going to be yours, not theirs.
It’s for this reason that Myrean has gained so much traction. The traditional home buying model just isn’t all that attractive. The article, “Mistakes Were Made: Contract and Procedural Errors of the Undertrained Agent,” from Wisconsin Real Estate Magazine, Volume 34, No. 5, speaks to this dynamic. According to the issue, page 9, “Often the top complaints from respondents are transactional issues caused by untrained or undertrained agents. Frequently, these complaints are pinned on new or newer agents.”
Having a qualified and caring realtor can be very beneficial, but choosing the wrong realtor (as in any profession) can cause problems. Here are some examples of what buyers have experienced, so don’t worry, we have your back.
A buyer agent sends an amendment to the seller agent after the buyer’s home inspection. The purpose? To amend the terms of the contract after the inspection revealed defects not previously identified. Specifically, to draft a price reduction. However, for the sake of time, the buyer agent sent the request for amendment to the seller agent over text message. The seller agent responded by stating that he understood and that they would be fine with drafting the price reduction amendment to the deal the following day which would post-date the inspection contingency deadline.
When the next day arrived (and after the contingency had already expired) the seller agent stated that there would be no allowance for any amendments in the deal due to inspection because the deadline had passed. The seller agent had clearly misled the buyer intentionally. IF the buyer agent had pressed forward and submitted a notice of defect within the contingency deadline time allotted the seller would have been forced to come to the table to make an agreement or other agreed upon concession. Because the exchange occurred over text, there could be no clear ruling as to the favor or contractual legitimacy of the text message exchange without legal arbitration.
This is a perfect example of contingencies can be missed. While texting can be convenient, actual contract stipulations should never be exchanged or discussed over text message. If the proper forms had been used and the contingency deadline for inspection and defects abided, the legal mess would have been avoided.
This scenario is similar to the first in that the buyer and buyer agent noted some home defects after the home inspection was completed. However, the buyer agent failed to submit an official “Notice of Defects.” In its place the agent merely submitted the inspector’s report, which only includes the inspector’s comments on various components of the home. The official section entitled, “Notice of Defects” is used to specifically outline defective areas of the home for the purpose of amending a contract prior to the expiration of the home inspection contingency.
Because the buyer agent did not sufficiently attach the report and sufficiently detail the impact of report findings on the initial terms of the contract in this line 27:
Line 27 on the WB-41 Notice Relating to Offer to Purchase: The attached ________________ is/are made part of this Notice.
and because the buyer agent failed to properly execute this within the home inspection deadline, the buyer had no further recourse but to contact an attorney and let them arbitrate to a point of mutual finding.
A buyer was attempting a short sale. But the “buyer agent did not use the Addendum SSO, which includes a provision for making the buyer’s offer deadlines run from the lender’s acceptance of the short sale agreement.” During this time the agent told the buyer to order an appraisal and home inspection prior to the lender’s approval. The buyer also notified her landlord that she would not be re-signing the lease.
Once the bank reviewed the deal, they rejected the short sale and the buyer was left with an appraisal and inspection she paid for but didn’t need because the bank rejected the entire short sale! And because she was advised adequately, she made preparations for ending her current rental contract, which left her without a home! Small oversights can lead to BIG inconveniences and frustrating cash losses.
These are just three quick scenarios out of hundreds, which illustrate some of the frustrating situations buyers have found themselves in. The good news, is this is what Myrean does BEST! Myrean manages your paperwork and deadlines and communicates all this information to you with more than adequate time to prepare. Never again do you have to rely on anyone but yourself to see to the successful purchase or sale of your home! Finally, you have all the tools you need to root out mistakes, self-manage, and protect yourself from buyer pitfalls!
Happy Buying and Selling!
Your Myrean Staff!