How Not to Buy A House -- By Committee

By
Real Estate Broker Owner with Mint Properties, Tni LeBlanc (805) 878-9879 CalBRE #01871795

How Not to Buy A House -- By Committee

One of the common mistakes I see first time home buyers make is involving too many people in their decision making.  Well meaning family, friends, and co-workers can give advice that interferes with the home buying process.  I experienced the worst example of this with a couple who insisted on having their entire extended family and friends view homes with them. The first house I selected met all their criteria and more.  At the time, I had no idea that this home would have to please everyone in their social circle.  This particular home was unique because of its location, size, amenities and price.  Unfortunately, the "buying committee" all had differing points of view.

Some of the committee members felt that the home needed too much repair, others thought that the buyers needed to look at a lot more homes before deciding to buy any home, others felt this home was great but surely something better would appear, and still others wanted them to continue to hunt for the best “deal.”  Of course, it’s easy to shop and shop and shop for a home, when you have a home to go back to at the end of the day.  As such, the committee was essentially a pool of very unmotivated buyers.  And any real estate agent worth their salt knows that an unmotivated buyer, is a terrible decision maker.  

Further,
if you ask 10 different people, you are going to get 10 different answers.  Turning your home purchase into the equivalent of an “Act of Congress” is not really a great idea.  And, unless your local real estate market is moving at glacial speed, it will cost you.  The buyers clearly wanted this first home, however, pleasing the committee predictably proved to be an impossible task. I tried to point out the unique nature of the home, but I’m sure my advice sounded like the scream of a teenage girl at a Justin Bieber concert -- indiscernible.

The end result?  They missed out on a great house (which time proved was in fact a tremendous deal!), and we ended up looking for homes off and on for another two years.  Eventually the committee members tired of looking at houses with the buyers, after all, they couldn’t seem to make a decision.  I wonder why?  The buyers did eventually make a decision (without committee input), but later confided that they still drove by that first house that got away -- the one that died in committee.

Tni LeBlancis an independent Real Estate Broker, Attorney, and Short Sale Agent. She is a Certified Distressed Property Expert (CDPE), Short Sale and Foreclosure Resource (SFR) and Certified HAFA Specialist (CHS) serving California’s Santa Barbara and San Luis Obispo Counties.

She has successfully completed short sales with Bank of America, Wells Fargo, CHASE , GMAC, Seterus, IndyMac, CitiMortgage, Green Tree Servicing, Specialized Loan Servicing,  HomEq Servicing, Wachovia, Coast Hills Federal Credit Union, Select Portfolio Servicing,  and others.  

* Nothing in this article is intended to solicit listings currently under contract with another broker. This article offers no legal or tax advice. Those considering a short sale are advised to consult with their own attorney for legal advice, and their tax professional for tax advice prior to entering into a short sale listing agreement.

Copyright© 2013 Tni LeBlanc *How Not to Buy A House -- By Committee*

Posted by

Tni LeBlanc, Broker
(805) 878-9879 mobile/text

tni@mintprop.com
www.MintProp.com
CalBRE #01871795

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Re-Bloggged 4 times:

Re-Blogged By Re-Blogged At
  1. Fred Griffin, Your Real Estate Broker for Tallahassee, Florida 850-339-4861 01/07/2013 06:38 AM
  2. Frances Anderson 01/06/2013 09:37 PM
  3. Lanise Warrior 01/06/2013 09:54 PM
  4. Kristen Wahl 01/09/2013 07:40 AM
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Rainmaker
634,747
Evelyn Kennedy
Alameda, Real Estate, Alameda, CA
Gallagher & Lindsey, Alameda, California

Tni:

It is impossible to reach agreement with the input of too many people.  The buyers should be counseled to view homes on their own without the committee.  The committee can see the house when the sale is completed but not before.  

January 09, 2013 09:12 AM
Rainmaker
525,454
Cynthia Larsen
Sonoma County Real Estate Broker
Safe Haven Realty

Ouch - too many cooks spoil the pot, don't they? What a shame, they should have cleaned house before buying one.

January 09, 2013 10:30 AM
Rainer
6,878
Lula Flowers
COMUNNITY REALTY PROPERTY MANAGEMENT INC

What, if any is the liability of the Realtor if the committee breaks something? Should the present this breakage as a possibility to the seller when getting seller's permission for the committee

January 09, 2013 12:47 PM
Rainer
88,616
Peter Preston-Thomas
Real Ottawa

Tni - Your anecdotal story is valuable amunition for dealing with buyer committees.  That said, it is a buyer's right to buy by committee.  And it is your right to choose your clients.  Use your own ammuntion to turn those current buyers with committees into successful past buyer clients (and future clients, and referral sources.)

January 09, 2013 06:30 PM
Rainmaker
261,555
Melissa Brown
Realtor - South Charlotte NC Homes for Sale
Savvy + Co Real Estate

Nobody needs the cluster....it just leads to negative second guessing.  Wow, I really hate it!

January 11, 2013 04:52 PM
Anonymous
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Tni LeBlanc

JD, MA, REALTOR, CalBRE # 01871795
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