Specialized Knowledge Matters

I met a client who contacted me about a listing he saw online. The house met all of his criteria: It was in a desirable part of the city, was close to his office, and had the right square footage. He phoned me, and he was ready to buy. Once he told me where the home was, I broke the news to him—the listing was right next to a freeway. Needless to say, he was disappointed. He certainly had no intention of living by an LA freeway and greatly appreciated the information.

In his case, the photos in the paper looked appealing, but none of them revealed that the house was next to the 10 Freeway. This kind of information is something that only an expert agent would recognize right away.

When you’re an expert, you’ll look at all aspects of the real estate sale with a critical eye. Photos online may look attract your clients, but once they tell you the listing’s address, you’ll know better.

In the next example, a building inspector provided his assessment of the listing my clients wanted to buy. The picture he painted was disastrous for the deal. From the experience, I learned that just because someone has a license and has more training than me in certain area, doesn’t mean that what she says is always right.

A few years ago, I was representing a Hollywood Studio executive. From the beginning, Jeff and his wife had a clear vision of what they planned to buy. They sought a Spanish-style home with spectacular views situated on a large lot. The two had a significant amount of money to invest and were willing to wait until they found their dream home.

Over the course of several months, I looked for a listing that would meet their requirements. After almost a year, I received a tip about a home that was for sale but not yet on the market. I drove to the listing right away. After walking through it, I knew that it was precisely what the couple wanted. I phoned my client right away.

“Colleen, I’ve found what you’ve been looking for. It’s not listed yet, so you’ve gotta come see it right now,” I recall telling her.

“Tell me about it.” she said.

“It’s in the best part of Santa Monica and has a view that’ll take your breath away. It’s a hot property, so bring your checkbook,” I said.

Colleen arrived at the listing and found her dream home—the Spanish architecture, the view of the Brentwood golf course, the tennis court, pool, and landscaping all met her requirements. She phoned her husband. He saw the listing the same day and agreed that it was the home that he and his wife had been dreaming to buy.

They needed to act fast. The house would attract much attention once it appeared on the MLS (Multiple Listing Service). To avoid competition, I suggested that Jeff make an all-cash offer and buy the home at its full list price. He agreed. We submitted a clean offer that made it clear that we wanted the house. The seller accepted, and the home went into escrow.

I set up an inspection with one of the most well-respected contracting companies in the city. I met the inspector and waited as he completed a thorough assessment of the home’s condition.

Afterwards, his expression told me that he didn’t like what he saw.

“Myra, you have to walk away from this deal,” he said.

“Why?” I asked.

“This is a hollow clay tile structure. It’s not safe.”

“But I’ve worked with plenty of hollow clay homes. What’s wrong with this one?” I asked.

“This area is earthquake prone. I can’t give my seal of approval because it’s not wood framed,” he said.

Hollow clay tile was cutting-edge construction when the historic house was built, a time before multiple-zone climate control. The insulation that hollow clay tile homes provided was superior to that of other construction methods. In addition, these homes were resistant to fire. Unfortunately, many did not stand up to earthquakes because the tile didn’t reinforce the home as a well as a wood frame.

I shared the bad news with my clients. The couple had their hearts set on buying this home, but they were now advised to back out of the purchase and start the home search all over again.

After the inspection, I phoned my husband and told him about the inspector’s report. I recall his response after I expressed my disappointment.

“Is that it?” he asked.

“What do you mean? The inspector told me to look for another home.”

“Tell your clients not to worry. I’m going to call someone.”

“Who?” I asked.

“Remember when we wanted to buy the Hollywood Athletic Club? And remember what the inspectors said about that?”

Thanks to Saeed’s expertise, the deal was saved. Next time, I’ll share how a second opinion turned around a dream home gone bad.

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