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Agent selling his own house: Willful misrepresentation of comps

Discussion in 'Buying & Selling a Home or Residence' started by Kevin J., Oct 18, 2021.

  1. Kevin J.

    Kevin J. Law Topic Starter New Member

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    Jurisdiction:
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    Hello legal community,

    I am new here + new to talking to lawyers, period.

    I purchased a home in August in TX. In this transaction, when we made our offer, the seller who is also an agent (selling his own house) sent a counteroffer with his CMA document. We've decided that the counter offer seemed reasonable based on his comps analysis and closed on the transaction.

    Well, a few months later, long story short, we found out that the 4 comps he sent over during the negotiation were inflated, some by over $100,000 from the PUBLIC sales record.

    (REDACTED agent employer for our protection and yours. Please, exact names are unnecessary, and can cause you to be on the receiving end of a lawsuit! -One of the friendly admins)

    When I said he "sent over the comps", I meant, the PDF file that he sent over had ***REDACTED*** logo and everything, showing his professional analysis of how he arrived at the price. The public record sale price was inflated on all of them (READ: not an honest mistake). At the bottom of this CMA document, there is a disclaimer that says the following:

    "THIS IS A BROKER PRICE OPINION OR A COMPARATIVE MARKET ANALYSIS AND NOT AN APPRAISAL OR OPINION OF VALUE. In making any decision that relies on my work, you should know that I have not followed the guidelines for development of an appraisal or analysis contained in the Uniform Standards of Appraisal Practice of the Appraisal Foundation."

    I am not sure whether the above disclaimer gets him off the hook or not. My estimate is that we overpaid by around $70,000 by trusting his CMA document given his professional credential.

    Do I have a case here, and if so, whom do I start the conversation with? My agent or the seller's agent (who happens to be the seller)? Thanks in advance!
     
  2. flyingron

    flyingron Well-Known Member

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    CMAs aren't worth much. They're mostly a tool used by brokers to sell a listing price to their clients. As far as a buyer, they're not worth much. Nothing says they are based on sales prices (more often than not they're run off MLS listing prices).
     
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  3. Zigner

    Zigner Well-Known Member

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    You should have obtained an independent appraisal.
     
  4. Kevin J.

    Kevin J. Law Topic Starter New Member

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    I see. Thanks for your responses.

    So, it seems like my legal case has no merit or is tenuous at best...
     
  5. Zigner

    Zigner Well-Known Member

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    You are free to speak to a local real estate attorney about this, but I think you were given tons of warning that the price she was showing had no basis in reality, so to speak. I mean, the disclaimer is pretty clear about it.

    On the bright side (depending on who you ask), your purchase will help bring up the price of homes in the area...
     
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  6. adjusterjack

    adjusterjack Super Moderator

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    Translation: "I'm lying to your face. You're a fool if you believe me."

    It does. You could have easily checked those comps by yourself.

    Almost certainly not but feel free to talk to an attorney.

    Forget about talking to your agent or the seller. They've been paid.
     
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  7. adjusterjack

    adjusterjack Super Moderator

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    Doubtful. It'll be anomalous when buyers check other comps around that time.

    On the other hand, in 10 years other house values may catch up to it.
     
  8. hrforme

    hrforme Active Member

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    did you not have a RE agent representing your side? Did they not do a comp analysis? I would not have accepted one from the seller's agent as they were 100% representing the seller (even if it was themselves)
     
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  9. army judge

    army judge Super Moderator

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    It is unwise to purchase real estate and NOT retain an attorney to properly represent YOUR interests.

    Real estate salespeople are similar to other salespeople, often known to tell a sucker, err, prospective buyer ANYTHING to make the sale.

    Some call themselves brokers, agents, etc..., in fact all are nothing more than a person trying to SELL you something. That means lies could be told, facts concealed, documents reconstructed in order to get you to buy whatever the person has on offer.
     
  10. army judge

    army judge Super Moderator

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    BINGO, this person understands the process and is aware of the shenanigans employed by salespeople.
     
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