Are Realtors Diligent When Selling Your Home?

I haven’t talked about this issue in quite some time but thought I would mention it given some research I was doing for clients on HOAs.  My clients were wondering about HOAs’ flexibility with a particular requirement he has.  As part of the research, I placed calls to the HOAs for the communities the clients were interested in. 

To identify the HOAs, I used the listing information completed by other Realtors.  However, this is where the question comes in.  For a handful of the properties where I looked for specific HOA name and contact information, several didn’t have the information.  It was then that I decided I needed to talk about this and perform a little test.

Testing

I performed two basic tests.  I was once an Internal Auditor in another life so I am used to performing limited statistical testing.  It goes like this, instead of taking the whole pool of potential properties, you just pick a small ‘random’ subset.  If you see problems in that small subset, then you expand the testing.  It’s an old practice given limited time and resources. 

• Test 1: I looked at Chandler homes with Homeowners Associations from $200,000 to $225,000.  I reviewed the first 20 properties. 
• Test 2: I looked at Scottsdale homes with Homeowners Associations from $800,000 to $900,000.  I reviewed the first 20 properties.  I thought I would go higher in the price range here as one could argue that the higher the price, the more attention a Realtor would place on getting information right in the listing.

The Results

Here are the results to the testing:

• Test 1: Of the 20 properties, 12 (60%) lacked the HOA name and contact information.
• Test 2: Of the 20 properties, 8 (40%) lacked the HOA name and contact information. 

Now, in the listing detail, Realtors are supposed to specify what the HOA fees cover with respect to a given property.  Typically, it’s common area maintenance.  But, it could also be for a clubhouse, basketball or tennis courts, trash or sewer, or cable service, etc. 

Are the Realtors Being Diligent About Listing Information?

If Realtors are indicating what is covered by the Homeowners Associations as part of the fees paid for a property they are listing, how is it they know this if they haven’t even included the information in the listing itself?  In other words, did they even research this and perform the due diligence required for the listing or just guess at it?  Did they just get the homeowner to sign off with the homeowner providing insight?

Taking this further, if the Realtors didn’t contact the HOA directly or really question the homeowner aside from how much they pay per month, then did they research the correct schools information, perform room measurements on the property themselves, and verify all information they were indicating in the listing?  Are they using other properties in the neighborhood and just taking that content as word?

The Realtor Has to Be Diligent and the Information Has to Be Right

This boils down to professionalism in the industry.  If you look at this role as a professional career, then you understand that, though tedious at times, proper due diligence is critical at all times.  It’s not okay to assume that the information is correct.  The HOA issue might be more minor to other property characteristics, but is important nonetheless.  To miss this information here begs the question as to whether other information is missed or omitted. 

And it raises the question of whether your Realtor is doing an okay job or a great job working for you.

Coming back to my previous experience as an Internal Auditor, I have a tendency to want to make sure everything is correct anyway.  But I also understand the ramifications if the information isn’t right or is missing.  

Just thought I would share.  By the way, if you need someone to list your home and get your HOA information correct, just Contact Us.

Email this Post