Why Don't "Professionals" Know What They Should Know? (Port Charlotte: sale, real estate)
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We've been trying to buy a house in SW Florida. For the past 3 months we have been working with one realtor. We figure she's done everything we've asked so we've stuck with her.
We finally zeroed in on one house we really liked. But it was an older house. We paid for the home inspection, pest inspection, survey, elevation certificate and appraisal. Along the way we find out FEMA has laws and the city has ordinances that place some serious limitations on the house. Why didn't our realtor advise on this? It was only through lengthy research, phone calls and asking around we became educated about these things. Our realtor should have known this and told us. She didn't.
After we settle that mess, we go to try to get the insurance on the property. Again, the Q&A begins and now research about insurance puts us on an intense three day information dig. We find ourselves asking the agent things she should have told us right from the start. Then at the end of the day today, she sends us a FEMA flyer and tells us she just discovered something that doubles our floor insurance!
Why don't these so called professionals know these things???
Note that a "professional" standard isn't usually asked of a real estate agent. Also, while not excusing them, they don't always get all of the info themselves and obviously they're not looking to dig too far into the details which might derail a potential commission for them.
Well not everyone does a good job so that obviously is an issue. You also have to consider that the profession of realtor has a very low barrier of entry. Considering those two things you can expect that there are some very good realtors with lots of realtors that are just playing MLS match maker.
I'm always nice to people but I always assume ignorance and make sure I do my homework to protect myself. No one will care more about you or your family situation than yourself.
We've been trying to buy a house in SW Florida. For the past 3 months we have been working with one realtor. We figure she's done everything we've asked so we've stuck with her.
We finally zeroed in on one house we really liked. But it was an older house. We paid for the home inspection, pest inspection, survey, elevation certificate and appraisal. Along the way we find out FEMA has laws and the city has ordinances that place some serious limitations on the house. Why didn't our realtor advise on this? It was only through lengthy research, phone calls and asking around we became educated about these things. Our realtor should have known this and told us. She didn't.
After we settle that mess, we go to try to get the insurance on the property. Again, the Q&A begins and now research about insurance puts us on an intense three day information dig. We find ourselves asking the agent things she should have told us right from the start. Then at the end of the day today, she sends us a FEMA flyer and tells us she just discovered something that doubles our floor insurance!
Why don't these so called professionals know these things???
Two reasons:
1. Because the get hired, and make money, without ever doing the work to learn anything.
2. Because they do know, but they choose to lie, because then they make the sale with the minimum amount of work on their part. I am astounded at how many Realtors lie in Monroe County (the Keys), on things that put people's actual lives in danger. There is very little legally in FL that holds them accountable. I think this Realtor lied to you, unless she's new to the game (in which case you shouldn't have hired her in favor of someone more experienced locally).
Either way, when it's the biggest investment you will ever make in your life, you need to do the research yourself because you can't afford to make a mistake- not with your money, or your health either which is also at stake with a new home. Never trust someone else to make such a big decision for you. And always involve multiple professionals who can check each other, and choose them based on their honesty in telling you things you don't want to hear. I tested all of my Realtors before buying my Keys house on their knowledge of local building code and hazard insurance requirements. More than 10 of them failed. Only 2 passed. One was crooked in other ways, trying to force me to use her mortgage broker and inspector, which is another common problem in the Keys. The only one who made it out with my business told me the whole ugly truth, knew the laws, and let me use whoever I wanted so each professional could act as a check on the other. Two years in, I'm very happy with the people I ended up using, and the house I ended up buying. But it took me two full years of research into local codes and the housing market, and over 100 houses visited (on my own, no Realtor), to get to that. I don't regret a minute of that time, so far I think I made a good investment.
That's why I write on here so much warning people about moving down here. It is great, but takes a ton of research because it is a steep learning curve coming from other places, and you can't trust the "professionals" to protect you from anything. They just want theirs, and in the Keys have many local systems of corrupt kickbacks for reaming a house through that is all wrong for the buyer, and sometimes even also at a price that is wrong for the seller. All the 3rd parties work together locally to get their money off of the unsuspecting buyer and seller in 30 days flat, before anybody has time to think or second-guess themselves. All the more with cash buyers, they rush them through not caring if this will ruin somebody's life or not. Really, it is shocking. I have not seen people of this low moral caliber so openly flaunting it even in the big cities I am used to living in. There is no such thing as too much research when it comes to such a big decision. Likewise for having kids, despite the fact that people often rarely even crack open a single book on parenting before making that choice, either. Unfortunately, you can't trust anybody but yourself in business. And buying a house is BUSINESS, don't let anybody tell you otherwise.
Hire a real estate lawyer to thoroughly vet the property before buying. And I personally would dump that Realtor and tell her it's because you expected her to inform you of the building codes and related mortgage and investment issues beforehand, and you have decided to go with somebody who will protect you and is knowledgeable about property - not just about interior design, which is totally irrelevant to investment. Make sure the inspector doesn't have a deal with anyone to rush the house through, get the one with the toughest reputation in your county, one who kills deals all the time due to finding the smallest defect. Then you can decide for yourself if you want to go ahead or not, because you know what's really wrong with the house. They will LIE and say it's fine because they get a kickback from the Realtor or the Mortgage Broker! Shocking, but unfortunately true in FL.
Make absolutely SURE that house has no permit issues, which is a big problem in FL houses, especially coastal ones. Hire an independent real estate lawyer and contractor to make SURE, because you can be fined over 100k after purchase for things a prior owner put in without permit that were never caught, but were caught AFTER the sale to you! No joke, I know people this has happened to! Ignore any Realtor who says "Oh, don't worry, that stuff never happens!" Yes, it does.
We've been trying to buy a house in SW Florida. For the past 3 months we have been working with one realtor. We figure she's done everything we've asked so we've stuck with her.
We finally zeroed in on one house we really liked. But it was an older house. We paid for the home inspection, pest inspection, survey, elevation certificate and appraisal. Along the way we find out FEMA has laws and the city has ordinances that place some serious limitations on the house. Why didn't our realtor advise on this? It was only through lengthy research, phone calls and asking around we became educated about these things. Our realtor should have known this and told us. She didn't.
After we settle that mess, we go to try to get the insurance on the property. Again, the Q&A begins and now research about insurance puts us on an intense three day information dig. We find ourselves asking the agent things she should have told us right from the start. Then at the end of the day today, she sends us a FEMA flyer and tells us she just discovered something that doubles our floor insurance!
Why don't these so called professionals know these things???
Literally anyone with half a brain can study to get a real estate license relatively quick, so you need to do you research better on the agent you choose to work with.
Go with Redfin.com, they pay their agents a high salary, so they are very selective with who they hire versus 99% of brokers will accept anyone and everyone because they only pay commission, so the more people working under them the better it is for them.
1. Because the get hired, and make money, without ever doing the work to learn anything.
2. Because they do know, but they choose to lie, because then they make the sale with the minimum amount of work on their part. I am astounded at how many Realtors lie in Monroe County (the Keys), on things that put people's actual lives in danger. There is very little legally in FL that holds them accountable. I think this Realtor lied to you, unless she's new to the game (in which case you shouldn't have hired her in favor of someone more experienced locally).
Hire a real estate lawyer to thoroughly vet the property before buying. And I personally would dump that Realtor and tell her it's because you expected her to inform you of the building codes and related mortgage and investment issues beforehand, and you have decided to go with somebody who will protect you and is knowledgeable about property - not just about interior design, which is totally irrelevant to investment. Make sure the inspector doesn't have a deal with anyone to rush the house through, get the one with the toughest reputation in your county, one who kills deals all the time due to finding the smallest defect. Then you can decide for yourself if you want to go ahead or not, because you know what's really wrong with the house. They will LIE and say it's fine because they get a kickback from the Realtor or the Mortgage Broker! Shocking, but unfortunately true in FL.
There's so much wrong with this post I don't know where to start. The agent's ignorance doesn't automatically mean malice and broad-based conspiracy. Your experiences and theories in the Keys have no bearing on the OPs location or experience.
This isn't just the realtor. Three insurance agents quoted us flood insurance prices and all were within $400 of each other. Then, out of the blue, one of them says, "It looks like the subsidized rates are atomically dropped and TRUE RATE imposed when the home changes ownership."
DUH! I learned that on the FEMA website, while trying to get answers the agent couldn't give us. That took the rates the three were quoting to over twice what it was! The law that quote above came from went into effect in 2012. Three years ago! I ran across it the first day I was digging for information. These three agents didn't know.
The agent who came back to us with that reply did so only after we asked several times, "Is this the true rate? New owners don't qualify for subsidized rates." That was asked of all three agents from the get go. And they still got it wrong. Literally, without exaggeration, we asked three times, just to make sure, before the first one got it right. The other two are probably still trying to figure it out.
The only professional who has been competent is the 2nd home inspector we hired. The 1st one was a doozy! "Those leaky faucets will self heal."
We pay them for competency then have to make sure they are doing their job right. I'm an electrician, not a realtor or an insurance agent or a licensed home inspector. I can only imagine doing electrical work on their houses and making them find out if I'm doing the work up to code. Maybe I can offer my services to them.
An agent should warn you about the hazards of buying in an identified flood zone (insurance rates, Florida flood mitigation rules), the wind mitigation inspection and rules. As to some things (condition of the home, home size, etc) the agent is not allowed to make representations due to legal liabilities. For example, the agent will rely on tax data for size as agents have been sued when measuring a home and an appraiser measures it as something else. Condition of the home, equipments, etc is the job of the appraiser. Valuation of the home is the responsibility of the appraiser. Wind mitigation inspection for insurance coverage is the responsibility of an inspector. Termites, etc is the responsibility of the termite inspector. Each of these professionals are trained in these areas. The agent is not, as a rule.
I have a real estate license and retired from appraisal (not practicing at this time) and always had to remember which hat I was wearing at the time. What to say, etc.
Now remember that things can and will pop up in the process. For example, windstorm coverage in Florida has been a PITA since the big companies pulled out and Citizens was created. Now there are other companies (Florida Peninsula, etc) but it is still expensive. And if the home has ganle roofs, no wind clips, etc, rates go up. Flood insurance rates are jumping big time due to the change in federal laws (big hole in the FEMA budget since Sandy).
For anyone buying down here, DO YOUR RESEARCH. Buying down here is NOT like buying a home in New York, Michigan, California. Florida is a big peninsula that extends between the Gulf and the Atlantic Ocean, creating unique problems.
OP, you posted while I was writing the prior post. As an real estate agent I would NEVER give an insurance or flood insurance quote. I would refer you to any number of insurance agencies to let them give you a quote. Again, that is their job.
Yes, your agents failed in their responsibility to you.
BTW, as you are buying a home in an identified flood zone (flood insurance) did the agent warn you about the 50% rule? Check out the Florida flood mitigation rules. A lot of homes were torn down in Port Charlotte and Punta Gorda after Charlie due to this rule.
We've been trying to buy a house in SW Florida. For the past 3 months we have been working with one realtor. We figure she's done everything we've asked so we've stuck with her.
We finally zeroed in on one house we really liked. But it was an older house. We paid for the home inspection, pest inspection, survey, elevation certificate and appraisal. Along the way we find out FEMA has laws and the city has ordinances that place some serious limitations on the house. Why didn't our realtor advise on this? It was only through lengthy research, phone calls and asking around we became educated about these things. Our realtor should have known this and told us. She didn't.
After we settle that mess, we go to try to get the insurance on the property. Again, the Q&A begins and now research about insurance puts us on an intense three day information dig. We find ourselves asking the agent things she should have told us right from the start. Then at the end of the day today, she sends us a FEMA flyer and tells us she just discovered something that doubles our floor insurance!
Why don't these so called professionals know these things???
I don't know how that 20 hour course didn't prepare them for everything.
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