The Ummels are suing their ReMax buyer's agent because they claim they overpaid for their $1.150M home. A later appraisal on the property put it at $1.05M, or $100K less -- a roughly 9% flub. Their legal fees currently stand at $75K.
1. How much "caveat emptor" should there be when you are purchasing a seven figure property?
2. Moreover, does a less-than-10% variance in value constitute negligence on the part of the buyer's agent?
3. How can you tell the difference between buying at a price inflated by your buyer's agent and a price inflated by the market? By definition, someone has to buy at the top of the market. How can you tell the difference between that and a fraudulent sale?
What is certain: If this begins a trend of suits against buyer's agents, their insurance premiums will go up and someone will have to bear that cost. Either it will mean leaner margins, and fewer agents or less service, or it will mean higher costs. We'll see what the court does.
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