Due Diligence for Real Estate Agents and Buyers

Great blog entry from Rona Fishman in the Boston Globe a few days ago. It has to do with the due diligence that SHOULD have been done in the Smoky Condo lawsuit. But it is also great advice for what both buyers and agents should be doing in gathering info on any prospective condo purchase:

As an agent, I am responsible for figuring that out what is important for my client. That’s part of the art of a good agent. Instead of studying mind reading, I figured out how to ask the right questions.
The more restrictions someone puts on a search, the fewer choices he/she will have. So, I ask for the “do-or-die” requirements first. Most ... are pretty obvious. How many bedrooms, baths, storage, etc…It is after that initial list where things can get too vague if I don’t ask the right questions.
“Do or dies” include anything that will make the new owner sick or inhibit their life significantly. This includes a smoke-free building for the plaintiff of this case. It is not reasonable for this person to buy in a building where the other residents could be a non-smoker today, but sell to a chain smoker a month after she closed. If she were working with me (assuming that she actually told me this...), it would have been up to her to specifically direct me to show her anything that wasn’t a smoke-free building. I might have found myself working with her for a year -- and seeing only ten properties total. So be it.

Read the whole entry.

There are tons of potential transaction killing issues out there: Pet restrictions, noise, lead paint, rental restrictions, and the general financial and physical condition of the unit and association, as well as the legal footing of the association. Most of this will come out in the wash in the course of due diligence, but the agent, the buyer, and the attorney need to be proactive in uncovering any potential issues.

A further word about being how to be a successful real estate agent. I've been in the business for 18 years, and a huge portion of my business is from repeat business or referrals from previous clients. That's the only way to be successful. It's up to you the buyer to find an agent who will be a knowledgeable and dependable partner. Make sure your agent has never had any complaints against them. Make sure your agent has happy past clients. Talk to your agent about the process. A good agent will encourage you to get together just to talk. It is worth making some time for this. A good agent has done this hundreds of times, and can be a good guiding partner. A bad agent is worse than no agent at all. And just like any business, there are good apples and bad apples.Get in touch with me if you'd like more info.