It's Caveat Emptor When Buying Privately
Caveat emptor comes from Latin and embodies the principle of "let the buyer beware". When I think back to the tough times in real estate in the early '90's, I remember a number of new clients forced to sell who had bought a private sale during the good times in 1989-90. An analysis of their situation often revealed a number of issues. In many cases, they had overpaid considerably for their home and the location was less than desirable for resale. Why? A decision to buy a home is often filled with emotion. A private seller can prey upon these emotions. Conversely, a Realtor is bound by the Code of Ethics of the Canadian Real Estate Association. When acting for a buyer client, the agent is obligated to work in the buyer client's best interests. It's the Realtor's job to add logic to the equation. This includes a duty to disclose any known defects about the home whereas a private seller is under no such obligation. Additionally we consider the following: What have similar homes sold for in recent months? What did those homes have that this one doesn't and vice-versa? Why is the seller selling? What do we know about the history of the home and the neighbourhood/area? Clients are often surprised when I tell them the results of my research. I was recently asked by a buyer client about a home that a search revealed had sold 3 times in 4 years. Contrast that with the peace of mind of a buyer client who just purchased a one-owner home built in 1954. In short, using a Realtor to help you buy a home is always prudent and particularly in times of uncertainty.
Posted by Jeff Gingerich
on June 5, 2009