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Exceeding Expectations

Does selling drugs out of your home lower the value?

By: Todd Clark
Sunday, June 03, 2007 11:46 PM

It sure did for one of my clients today! I was under contract on a home and the disclosure forms came in and one of the disclosures was that the home was once used as a drug house.

                                   Drug Store

This home was now owned by the wife and the husband (Dealer) was now in jail. My clients loved the home, but the wife was a stay at home mom and was worried that someone who didn't know that the dealer has moved to cement office (Jail) would come to the door and possibly put her family in harms way.

I couldn't argue with her and think I would have done the same thing, since the owner had only been in jail less than a month. I felt sorry for the seller, but she also understood and said it is something that she just couldn'tlie about.

What would you have done if you had been the listing agent?

Todd Clark - broker
Kastings & Associates
(503)524-9494
Todd@IFoundYourNewHome.com
www.IFoundYourNewHome.com

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Comments

Scott McClain
Member Since '06

Scott McClain said:

The husband was a pharmacist? :)

How long will he be in jail for? Is that known?

June 4, 2007 4:36 AM
Carmen and Jeff Bills
Member Since '07

Carmen and Jeff Bills said:

You just never know who or what you are going to run into in this biz. WOW

June 4, 2007 5:30 AM
Ron Tiller
Member Since '05

Ron Tiller said:

What would you have done if you had been the listing agent?

Todd Clark - broker

==================================

As a listing agent, Disclose, disclose, disclose.

As a buyers agent, share the possibilities discussed above as well as the possibility of chemical residue in the home. If, after a herculean attempt to scare your buyer away from the home, your client wants the home, help him/her/them get it. If they don't want it, go find something else.

Kudos to the seller for her honesty.

June 4, 2007 7:28 AM
Mary Welch
Member Since '04

Mary Welch said:

Todd, I don't have that problem here. The drugs would retain their value even if sold from the home. Sorry, that wasn't the question.

You were asking about the home value, right?

Disclose, of course. But here, everyone knows everything or think they do, I usually have to set the story straight, it is typically blown out of proportion. I did have a house that I sold 2 years ago that they guy made the front page of the paper. He just lived there and didn't sell out of his home but by the time the rumor mill got it, he had drugs hidden all over the house and had a three ring circus going on.

Yes, disclose what you know.

June 4, 2007 7:45 AM
Todd Clark
Member Since '06

Todd Clark said:

I was thinking more of who would you target the home to sell to? Investors, Future Drug Dealers (Already have the traffic) or a first time home buyer, since the house was at a lower the market price?

Todd

June 4, 2007 9:35 AM
Matthew Collinge
Member Since '03

Matthew Collinge said:

Investors!

This doesn;t sound that bad. Our big problem here is with hydroponic marjuana grow operations that destroy homes with moisture and mold.

http://www.aztechenvironmental.com/2000.htm

And also Crystal Meth labs that have a tendency to blow up on occassion. Here many agents put a clause in every contract asking the seller to warrant that the home or condo was never used for these purposes while they owned the home. Good luck with that one.

June 4, 2007 9:50 AM
Ronda Kaufman
Member Since '06

Ronda Kaufman said:

I showed a foreclosure that was a drug house and it was not disclosed. You could tell by looking at the house that it was drug infested. I asked the listing agent and he assured me I was wrong. I checked the newspaper and the court records for the former owners name and it was a drug house and had been raided for meth. It finally sold to an investor who had it tore down and is now building new houses on it. I took over 2 years and sold for 75% less than listed for.

If meth was made in the house I think the FDA or some agency has to approve that it is ok to live in. Please someone who knows the answer tell me..

June 4, 2007 12:25 PM
Bob Mitchell
Member Since '04

Bob Mitchell said:

Todd I would go for the future drug dealers as they could buy an established business at a reduced cost. Like getting a steal on a pizza place that has been open for awhile and has a customer base, but owner was forced to retire due to health issues.

We don't have a spot for that on our sellers disclosures, but I agree with the seller you don't want a family to move in and have no idea what all the people are doing ringing the doorbell at 2AM.

June 4, 2007 10:05 PM
Bill Thompson, REALTOR®
Member Since '07

Bill Thompson, REALTOR® said:

Just curious, did you use a residential or commercial contract on this one? ;)

June 5, 2007 3:21 PM

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Todd Clark
Kastings & Associates

Todd Clark
Member Since '06

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