| The local news investigators recently did a story | | | | the wall was bleached and repainted, that does |
| on foreclosed homes that banks are putting on | | | | not mean that the agent wasn't informing |
| the market in the Twin Cities area. The story had | | | | potential buyers of the situation. |
| an ominous tone. The reporter visited a home | | | | Buyers considering foreclosed properties must go |
| with a hidden camera in tow posing as a potential | | | | into these homes with their eyes wide open! The |
| buyer. Questions were asked about the condition | | | | best advice is for buyers to sign a buyer's |
| of the home and regarding disclosures available. | | | | representation agreement with an agent prior to |
| This particular home did have evidence of a mold | | | | visiting any listings. Your agent will advise an |
| problem, dark spots on a sheet rocked wall. A | | | | independent inspector on all properties, not just |
| few days later, the reporter returned to the | | | | foreclosed homes, because the average |
| home and the area with the mold had been | | | | homeowner may not be aware of all defects in |
| repainted. | | | | their own property. Most listing agents on |
| The angle of the story in the voice over was that | | | | foreclosed homes will recommend an independent |
| in Minnesota there is a "loophole" where banks and | | | | inspector as well. The reporter did say that the |
| other financial entities would not have to fill out a | | | | agent had done nothing wrong so they did not |
| disclosure form that is required to be completed | | | | show his face. This makes me wonder if the |
| by all other home owners in the state. The | | | | agent had been explaining why inspections are |
| reporter indicated that a new buyer would not be | | | | necessary. |
| aware of the painted-over mold. She had a home | | | | Most foreclosed homes have notices posted in |
| inspector with her as an expert who said that it | | | | the MLS and at the home to "Get an Inspection". |
| was his opinion that the law is flawed; financial | | | | This inspector when hired by the buyer walks |
| institutions should be required to provide potential | | | | through the entire home with the buyer in a |
| buyers with a report from an independent | | | | systematic two-three hour process explaining the |
| licensed inspector. | | | | defects and potential problems and repairs of the |
| Though interesting to watch, there were many | | | | home. The buyer has an in-depth understanding of |
| inaccuracies in this investigation. True, the state of | | | | the property they are buying. If the state had |
| Minnesota does not require financial institutions to | | | | required that financial institutions provide |
| provide a disclosure. But I don't think this is a | | | | inspections, many buyers might forego having an |
| "loophole". When the reporter first visited the | | | | independent inspection. |
| home posing as a potential buyer, she was shown | | | | The current real estate market includes many |
| the home by the listing agent. The listing agent is | | | | foreclosed, bank owned homes. These properties |
| working for the seller. Since the news reporter | | | | can be a great investment resource or |
| was trying to make a point about disclosure, it | | | | "fixer-upper" first home. But buyers must be |
| may have been cut out where the agent | | | | smart. Smart buyers with have their own |
| recommends that the buyer get an independent | | | | representation and hire their own independent |
| inspection. When under contract as a listing agent, | | | | inspectors. On a purchase this big, you owe it to |
| the agent is working for the seller not a buyer | | | | yourself not to take someone's word for the |
| but still must disclose any known information | | | | property's condition. |
| about the property. Although on the return trip, | | | | |