The Virginian-Pilot
©
At $207,000, the five-bedroom, 2,700-square-foot home in Williamsburg sounds like a phenomenal deal, even in this housing market.
“Yes the price is correct!” reads the real estate listing in a local online database of homes for sale. “What an opportunity. Property to convey 'as is, where is.’ ”
But not even the fine print lets potential homebuyers know why this property – which sold for $383,000 in 2006 – is such a bargain.
It’s one of several houses containing tainted Chinese-made drywall that have been popping up on the market recently. At least a half-dozen such homes were listed for sale on Friday.
Although some disclose to the public the presence of the drywall, other listings disclose that information only to other real estate agents. The U.S. Consumer Product Safety Commission found that the wallboard emits higher levels of volatile sulfur gases than typical U.S.-made drywall and probably is causing metal corrosion in homes. The commission has recommended that homeowners rip out the problem wallboard, electrical wiring and natural gas piping.
Bill and Deborah Morgan lost the home at 8495 Ashington Way in Williamsburg to foreclosure after leaving the house amid health concerns. The property is now owned by mortgage giant Freddie Mac, which hired Prudential Towne Realty to sell it at a deep discount.
The description seen by the public on the house only hints at the work that is needed on the property.
“It’s not in the public remarks because we certainly want people to inquire about the property,” said Kimber Smith, president of Prudential Towne’s Peninsula division.
Smith said interested buyers are immediately informed of the drywall and may view the property only in the presence of the home’s agent. He argued that prominently advertising the drywall is not in the best interest of the seller.
Two other listed homes also offered potential buyers no hints that there was anything wrong with the properties.
“Elegant tri-level townhome in Hollymeade Village,” stated one listing for a home at 1213 Avondale Lane in Newport News.
Tanya Cosmini , the home’s agent with Abbitt Realty Co. , said part of the problem is that there are no rules on how to disclose the tainted drywall. On her listing, the disclosure is made in the comments to agents.
“That was just what my company decided,” Cosmini said. “If I do get calls from the general public, I disclose to them.”
However, the listings for three other properties in Virginia Beach’s Highland Parish neighborhood state prominently that they contain the tainted wallboard.
Rebecca Bulkeley , the Exit Realty Professionals agent for two of the properties, said agents should be as transparent as possible. “In this particular case, you cannot go far enough,” she said. “We are obligated to protect the public.”
Josh Brown, (757) 446-2318, josh.brown@pilotonline.com
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To answer Millionaire Club
What is unique about our business is that when times are good, we see an increase in competition. As sales increase, the number of agents increase. Its during this time when the real estate agent's reputation usually takes a beating.
In today's market, many of the agents who are not as serious are finding other jobs. It becomes harder to compete with agents who have a large sphere of influence with repeat referrals.
Realtors(R) did away with the term Millionare Club some years ago because the perception was that the agent was actually a Millionare. What it meant was the agent sold about 2.5 - 3 million in sales price. Fuzzy math I know. At that time (1995), it was probably 18-20 homes a year. We now call it Circle of Excellence as a level of achievement.
I have been a Realtor(R)for 16 wonderful years. I say wonderful because over those years, I have built so many personal relationships with my customers and agents too that endure long after the closing is over.
TO SILVRTUNGDVL
Silvertungdvl, I assume since you have such strong opinions about real estate agents that you are one. Would you mind telling us who you work for or what your real name is so the public can make sure and avoid useing your services. I sure would hate to end up with you as a real estate agent considering you have such low opinions of your customers. Comments like yours is what gives agents a bad name. Every broker knew before they got into this business that they work on commission. Not such a great deal considering the current R/E market, but even you have to admit that it was a pretty good business to be in during the feeding frenzy.
joannek23456 Says: I sure would hate to end up with you as a rea
Interesting you should say this but yet it is ok to call Realtors lowlifes, lowerer than dirt, scum of the earth...get my picture? I am not a Realtor. I have many friends that are and I see what they go through with uncaring selfish clients/customers believing agents make a fortune when in fact they do not make a penny until a sale is completed. How many of you would work for free I ask?? How many of you would be willing to put out of your pocket the full cost and expenses of running your own business which is exactly what agents must do. They carry their own costs until a sale is made. How about you working for free until your product is sold? I bet not one of you would do that.
So...as I said...especially to you people that think it is such a piece of cake to be an agent...try it..you might just appreciate how hard they work for the few small dollars they do make. It takes an average of 2 months to close a sale. The average commission is 2-3 % which is then split with the company. 40% of that goes to a relocation company 75% of the time. So it boils down to about $2000 a closing. Would you work for that for 2 months PLUS pay all the costs of marketing, gas etc?? Let me k
"they do not make a penny
"they do not make a penny until a sale is completed. How many of you would work for free I ask??"
This describes nearly every small business. Realtors are nothing special in that regard.
Con't
of cake to be an agent...try it..you might just appreciate how hard they work for the few small dollars they do make. It takes an average of 2 months to close a sale. The average commission is 2-3 % which is then split with the company. 40% of that goes to a relocation company 75% of the time. So it boils down to about $2000 a closing. Would you work for that for 2 months PLUS pay all the costs of marketing, gas etc?? Let me know when you do...you might have an eye opener! Million dollar club memebers are not millionaires..that means they sold a million dollars worth of real estate which is an average of 3 sales..
I own my own business, always have
and most of us do work for free until the product is sold. Who is going to pay me otherwise.
I have to front all the money for running the business and then depend upon my clients to pay my invoices in a reasonable amount of time so that I can cover the expenses, pay my employees, pay the rent, utilities, insurance, taxes and, oh yes, me…but I am last in a long line of obligations.
Realtors are just independent contractors who have to run their business the same way.
As far a working 2 months for $2K, and realtor worth his salt has many listings working simultaneously and he or she is not spending 320 hours on that one closing.
No need to cry the blues for them, they are working under the same rules we all are.
There are successful realtors who make a lot of money and there probably many more who need to supplement their income in the present environment.
Just like the rest of us.
Len Rothman :says they are working under the same rules we all a
Len, I beg to differ on this point. How many returns do you get a month out of your daily sales? Hopefully not as many as a Realtor does. For every 10 listings in this market, 3 will sell within 2 months, for every 10 buyers about 4 will buy within 3 months. So, to invest the same amount of time/effort and monies in giving the best to each and every one of them knowing these odds...how would you do, if 13 out of 20 products were returned continuously each and every month? And then to have to wait another 2 months for your invoices to be paid by the income you just had to wait 2 months for but had to return? It is a costly career and as someone stated...Realtors need to work twice as hard and long for fewer rewards ...Retail and sales are so far apart it is amazing you would even think to compare them ...The product a Realtor has to sell are listings...carry an average of 10 of them, market them etc etc..and costs go up real fast..unlike retail, your shelves are bulging with products...but if 60% are returned...how much harder and longer would you have to work just to make a small living off of it?
Well if the business is that bad
then they need to reconsider their careers.
The bubble created a lot of wealth and a lot of real estate agents.
Now that the market is tight and slow moving, there are just too many agents competing for the same dollars.
The successful agents I have known have always worked hard with long hours and on weekends. That is part of the job description.
I will venture to say that there are a lot of folks who are working a lot harder for less money.
And it today's market, there are a lot of people who would love to be working at all and if the Realtors find it too onerous, they should step aside and let someone else take over.
Again, you need to cry on the shoulder of someone who doesn't run a small business.
silvrtungdvl the realtor...
Thanks Joanne. I was getting ready to say something similar. No need to get so belligerent with an opinion.
$383,000 in 2006? 207,000 today?
I'll bet in this economy, there are houses WITHOUT dry wall issues that have gone down almost that much in "value."
Realtors are/were the reason the value of every house goes up by 6% almost immediately.