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Old Yesterday, 06:17 PM
 
5 posts, read 227 times
Reputation: 15

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Good day, I'm currently attempting to sell a house and have run into some red flags so I thought I would get opinions from real estate professionals. The backround is such: I signed with a real estate company exclusively 5 months ago to sell one of my houses. The upstairs area needs some extensive finishing so price comparisons were discussed AS-IS vs completed. Realtor states they work primarily for sellers and partners with a reputable professional contractor on a regular basis doing this approach regularly and states the professional contractor can get started immediately. I opt to finish the upstairs with their contractor and partial funds are provided by me,(You can see where this going already). The realtor "Knows what sells" and suggests a floor plan including bathroom and two bedrooms, OK no problem with me that's what I had in mind. The realtor says they can do everything that's needed for the sale including routine yardwork and staging. Contractor does not begin work for 2 months and many excuses are provided. Work starts slow and just crawls. I live elsewhere and visit the house 2 months after signing with the realtor. The front and back yards are completely overgrown and evidence shows the contractor has just started within the prior week. More excuses are provided to me, the normal ones you would expect to hear. One month later I'm told the contractor is back at full speed and estimated completion is 2-3 weeks away. 3 weeks pass, (48 hours ago) I visit the property again and see a few days more work progress on the upstairs but the house is completely neglected. Both front and back yards are absolutely untouched for 5 months. Evidence of pest issues are in the house from partially consumed food left by the contractor weeks ago, and the garage door was broken into with petty theft committed. I then file a police report and begin to wade through the sea of red flags. I write a professional pointed letter to the real estate company owner stating they have neglected my property to the extent various damages have occurred and provided no oversite. The next day I contact the city building inspector and discover that no permits were applied for and city then issues a stop work order violation the next day.
Please note that my contract with the real estate company states that property will be listed on the MLS within 30 days of contract execution but here we are 5 months later without property listed.
No word back from the real estate company yet
I'm actively seeking a real estate attorney to mitigate the immense risk I've been put at.
The real estate company has a number of offices around the various counties and has been in business for 14 years selling houses and the contractor they use is licensed and bonded. I somewhat suspect they were playing me over time to pressure me into a below market price sale to them so they could flip.
I'm not in a good position now, but they seem to be in a much worse position.
Thoughts and advice?
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Old Yesterday, 06:23 PM
 
8,090 posts, read 9,904,321 times
Reputation: 14410
What did your contract with the contractor say? Schedule? Completion dates? Penalties for not completing on time?
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Old Yesterday, 06:41 PM
 
5 posts, read 227 times
Reputation: 15
Contractor schedule start to finish is 4-6 weeks, no penalties.
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Old Yesterday, 06:42 PM
 
5 posts, read 227 times
Reputation: 15
I would add also that that the real estate agent retained the contractor
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Old Yesterday, 08:13 PM
 
Location: Just south of Denver since 1989
10,957 posts, read 29,600,814 times
Reputation: 7189
Getting a local to the property real estate attorney is your best play.
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Old Today, 06:06 AM
 
8,090 posts, read 9,904,321 times
Reputation: 14410
Quote:
Originally Posted by Moxnix747 View Post
I would add also that that the real estate agent retained the contractor


hmm.....if I was having work done on my house, I would most certainly hold the contract myself. Why would you have a realtor be a 3rd party to this?
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Old Today, 06:13 AM
 
854 posts, read 298,483 times
Reputation: 2717
I don't understand why you think that the real estate agent is your property manager. They are hired to sell the house, but they are not your landscapers, exterminators, etc. How were you managing this property prior to deciding to sell?
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Old Today, 07:45 AM
 
5 posts, read 227 times
Reputation: 15
Prior to entering real estate contract the property was being manage by friends/neighbors/myself. I've lived there for previous 14 years until recently.
Real estate company agreed to maintain property with gardener, oversee contractor and premises to stage for the sale.
I should clarify, I hold the contract for the contractor and my deposit paid direct to them, real estate company is managing them and the property improvement.
No doubt the real estate company is busy with other sales during the spring/summer season, so I've been put on the back burner this season, but only a naive person would believe that a licensed contractor would begin such a remodel project without permitting. This is what makes me inclined to believe that if my project/listing declines into a state of neglect a below market offer would be presented to me in hopes I would accept out of desperation. Again, note that after 5 months the property is not listed with no pre-showings, etc.
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Old Today, 08:40 AM
 
Location: Virginia
4,096 posts, read 2,138,567 times
Reputation: 11366
Quote:
Originally Posted by Moxnix747 View Post
Prior to entering real estate contract the property was being manage by friends/neighbors/myself. I've lived there for previous 14 years until recently.
Real estate company agreed to maintain property with gardener, oversee contractor and premises to stage for the sale.
I should clarify, I hold the contract for the contractor and my deposit paid direct to them, real estate company is managing them and the property improvement.
No doubt the real estate company is busy with other sales during the spring/summer season, so I've been put on the back burner this season, but only a naive person would believe that a licensed contractor would begin such a remodel project without permitting. This is what makes me inclined to believe that if my project/listing declines into a state of neglect a below market offer would be presented to me in hopes I would accept out of desperation. Again, note that after 5 months the property is not listed with no pre-showings, etc.
Your Post #4 and this post don't match up; in that post you said the realtor retained the contractor, and in this post you say that you hold the contract for the contractor. Which is it? If you have a direct contract with the contractor then it is incumbent on you to make sure that they have pulled the permits and are keeping up with the work, IMHO. You said the real estate company is "managing them", but is doing so part of any actual contract?
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Old Today, 08:51 AM
 
854 posts, read 298,483 times
Reputation: 2717
Quote:
Originally Posted by Bungalove View Post
Your Post #4 and this post don't match up; in that post you said the realtor retained the contractor, and in this post you say that you hold the contract for the contractor. Which is it? If you have a direct contract with the contractor then it is incumbent on you to make sure that they have pulled the permits and are keeping up with the work, IMHO. You said the real estate company is "managing them", but is doing so part of any actual contract?
+1. Is there anything in writing that the RE company will oversee renovations and contract with a landscaper for lawn care?
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