Bill Thompson, REALTOR® : Buyer’s Agent Tip For The Day

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Buyer’s Agent Tip For The Day

By: Bill Thompson, REALTOR®
Thursday, November 22, 2007 12:46 PM

My broker uncle, the only broker I have ever worked with, taught me many things and I often assume all other Realtors know these same things. Recently, I realized one of the best tips he ever taught me is not commonly know. When working with a buyer we always check the insurance records of the property. Even though the seller’s disclosure form asks for claims made and whether these claims were paid and the repairs made, some sellers may “forget” some of the details. Getting information about claims made and then checking to see if those repairs were made can be a big help to your buyer. It can reveal quite a bit about the property and the sellers themselves in some cases. Do any of you do this routinely for your buyer clients?

Comments

Member Since '07	Candice A Donofrio said: Seller provides a CLUE report and/or claims history for property to Buyer as part of the AZ Residential Purchase Contract. http://www.rationalsimplicity.com/clue.html November 22, 2007 2:05 PM
Member Since '07	Bill Thompson, REALTOR® said: I am in Texas. It is easy enough to call an insurance company for a quote for a new policy on this property. In coming up with a quote the insurance company will check for past claims. If the seller did not list those claims on the seller's disclosure form, let them know you know a claim was filed and that they must provide information on this. Ask for receipts or other proof that the work was done. All kinds of information can be uncovered. For example the seller claims the home has never had plumbing problems but there are 2 claims for water damage. What was that all about? It make you a great detective. It is a great service for your buyer. Service like this gets referrals. November 22, 2007 2:28 PM
Member Since '07	Candice A Donofrio said: [Bill sez: In coming up with a quote the insurance company will check for past claims.] This is a great topic Bill! You are right on, taking those steps pre-contract is 'value added'. For us, it's mandatory. This was a hot button issue in AZ in recent years. In fact, our residential contracts changed when AZ laws changed to deal with this insurance issue . . . What was happening was that insurance companies were issuing binders but not doing a comprehensive check for up to 60 days! Escrow closes; new owner possesses. Next thing you know, the insurance company kicks the policy to curb that was a condition of the mortgage. Lender can foreclose. Big problemas! We have to obtain a CLUE report or a claims history from the insurance company before closing and preferably during buyer's inspection period. For listing agents, it's a GRRRREAT thing to have seller contact their insurer and have that letter issued to accompany listing info from the get-go. Water claims are kiss of death and it's so easy for a seller to underplay the importance . . . "Oh, it was just a toilet leak we had insurance pay to retile the floor." UH HUH. Do that a couple times over a couple or three years and insurance may be cost-prohibitive or even unobtainable. November 22, 2007 3:02 PM
Member Since '05	Karen Weger said: Bill excellent point. Me being in Texas also, not in our contract. I was given this tip by a fellow agent I co-oped with once. I now write in special provisions each time, home must be insurable. Because, if the home has had numerous claims, they may not insure it. some agents do not understand why I do it. My sister is an insurance agent/owner in Texas and filled me in on this after I ask. If a homeowner has previosly made numerous claims, this and that, they could turn it down for insuring. And often times, buyers wait til 2 days before closing to shop for their insurance. I give you a 5 star tip of the day. Have a great day! November 22, 2007 3:13 PM
Member Since '07	Bill Thompson, REALTOR® said: Thanks Karen! I had a situation recently where the sellers had "new roof 1999" in the comments but the insurance showed a claim for roof damage due to a 2003 hail storm and the insurance company had paid about $5,000 for a new roof. Knowing this we asked point blank, "Was the roof repaired after you were paid for it in 2003?" It wasn't and that was good to know because the insurance compnay would not insure it until that repair was made. It is good to find these things out ASAP. November 22, 2007 4:51 PM
Member Since '07	"Dee" Mayers said: Bill, you genius you, I can see you have the makings of a good broker. Good tip, keep um coming. November 23, 2007 1:02 PM
Member Since '04	The C Team said: Bill, Great post, thanks for the information. Tony November 23, 2007 11:36 PM
Member Since '05	Karen Weger said: I agree with Dee, you do have great potential to lead and coach. November 24, 2007 8:47 AM
Member Since '07	Bill Thompson, REALTOR® said: Thanks! November 24, 2007 9:35 AM
Member Since '03	Gail Griffin said: Another excellent post, Bill! Thank you. November 24, 2007 10:38 AM
Member Since '07	Bill Thompson, REALTOR® said: Gail! Always nice to see you here! Thanks for the kind words. November 25, 2007 7:57 AM