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What Buyers Need to Know When Purchasing A Home in Palm Springs

 

This is my typical morning before I go to work:  Have my cup of tea, turn on the Today Show for background noise, and read my morning paper. 

This is my normal routine until something I heard on the Today Show that made me spit out my tea across the kitchen table: 

A Buyer in San Diego is suing their Realtor for fraud because they overpaid for the home they bought in 2004.

I could not believe what I was hearing!!!!

The couple purchased their northern San Diego home in 2004 for 1.2 million dollars, and the basis of the lawsuit is that their Realtor did not disclose the fact that a few homes in their neighborhood sold for 100-150k less than what they paid for their home.  They felt the Realtor was not doing their due diligence and was only looking for their commission.

As I listened to the interview, this person was not losing their home, they were just complaining that they paid too much.  Even the NBC Legal Expert told this couple that is the responsibility of the BUYER to satisfy their investigation of the property, including the comps because the information is public record.  This expert explained to her that she doesn’t know why the other owners sold for less.  It could have been a divorce, job transfer, or the rooms were painted black.  Her point was that home is worth what someone is willing to pay.

So what can you and your REALTOR do to protect yourselves when buying a home in Palm Springs?  The same as we always have:  DISCLOSE AND INVESTIGATE!!

One of the forms that I am starting to use again is the Market Conditions Advisory disclosure form from the the California Association of Realtors (CAR Form- MCA).

Item A States: “Real Estate markets are cyclical and can change over time.  It is impossible to predict future market conditions with exact accuracy  In a competitive or “hot” real estate market, there are generally more buyers than sellers.  This will often lead to multiple buyers competing for the same property.  As a result, in order to make their offers more attractive, some buyers may offer more than originally planned or eliminate certain contingencies in their offers. 

In a less competitive or “cool” market there are generally more sellers than buyers, often causing real estate prices to level off or drop, sometimes precipitously.  In light of the real estate market’s cyclical nature it is important that buyers understand the potential for little or no appreciation in value, or the actual loss in value, of the property they purchase.  This Advisory discusses some of the potential risks inherent in changing market conditions.

Your Palm Springs Realtor is going to give you the most accurate & up-to-date information that is available for the real estate estate market, but the responsibility to investigate belongs with you, the buyer.  If you have a question or don’t understand something, ask your REALTOR. 

A responsible REALTOR is not going to have you buy a property that is not right for you.  There are many buying opportunities available in Palm Springs, but make sure you do your homework.  It’s in your best interest to do so.

© 2008 Blog of the Desert.