Thread: disclosing neighborhood information

I'm interested in how others might handle this.

Let's say a client wants to purchase a property that I know is right next to a "nuisance bar", i.e., a bar that I know for a fact has been a problem in the neighborhood, including general noise, bar patrons causing parking problems, peeing in the bushes, fighting, etc.

I mean, it's right there for anyone to see, but if you haven't spent any time in the neighborhood, especially at closing time, maybe it doesn't occur to you.

Is it my business to say "Do you really want to live at the back end of this bar parking lot? I've heard that there have been loads of neighborhood complaints about it".

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No, it is not your "Business", but you could mention it.

I wouldn't say anything personally. Like you said John, anybody can see the bar. And with bars come some issues just like you mentioned.

I've often wondered why on earth some people would buy houses in certain areas (ie - 3 penned dogs in the small crates in the rear that bark incessantly and crap everywhere) . We can only assume the buyer has done their homework, researched the neighborhood, and knows what he/she is getting into.

I once had a buyer from NY call to set up inspections on two properties in Reading PA on the same day. Growing up on the fringes of Reading, delivering pizza in the city, and reading the local paper for years, I knew the area of town where the properties were located happened to be drug and gun hotzones. I mentioned on the phone that I was familiar with the area. She asked if I thought it was a good investment. I told her if gunfire and drug activity raise property values then she'll be in great shape. She still opted to go ahead and schedule the appointments and said she'd miss the first inspection but would be there for the 2nd one. Well I inspected the first property myself and then sat waiting to start the 2nd. I called her and said I'd completed one inspection and was ready for the 2nd. She then told me she decided after what I said about the guns and drugs that she decided not to buy either house (but she forgot to tell me).

I saved her from making a possible mistake but at the end of the day, it wasn't my place to dispense real estate advice (plus I got screwed). It's up to the buyer to research the area and get an idea of what they're getting into. Sit in the neighborhood and see how things go, talk to neighbors, etc.

Its really up to the purchasers to satisfy themselves as part of their due diligence. Also the sales agent if having knowledge of the issues would also bear some responsibility to disclose. This is why its important to tour the neighbourhood.

It depends on who you work for...

At some point, the buyer of the home next to the nuisance bar or nuclear power plant is required to exercise "due diligence"

I would not say anything about the neighborhood or area. This could be construed as you providing real estate advice and we really don't want to be doing that.

Kind of like the question we have all been asked; Would you buy this house?

Maybe they are the bar owner or an employee of the bar. Maybe they are regular customer of the bar. The fact is we don't know most of our clients. They may have a valid reason for wanting to live there.

My mode of operations as a property inspector is fairly straight forward. I am employed by the client to inspect the property for defects that could impact the safety & value of the property.

I also work in a State (California) that endorses "full disclosure" in any transaction regardless of the "buyer beware" clause. "As is" does not hold water in this state, even if it is written into the contract.

[1] Your "local" knowledge of the area is your asset, that is why out-of-town buyers employ local inspectors/RE agents/appraisers etc... It may be other persons responsibility to disclose specific facts, but in my mind you cannot go wrong repeating the obvious thus providing knowledge that may be overlooked or purposely avoided.

In other word you should be aware of the hazardous zones, the soil and flood plains that pertain to the area. Far to often the client (buyer) finds out this information during the close of transaction (e.g. Flood insurance...) - it is either to late or too costly to back out in many cases. It may not be my responsibility or problem, but it certainly becomes my clients problem.

[2] When standing on the roof you cannot turn a blind eye, to the surrounding area. A massive retaining wall on the next door property in a known slide area does have a potential impact on the property you are inspecting. This also applies to the smells, noise and general condition of your surround.

I do not expect others to agree with me. I choose to do this type of inspection as a business decision and firmly believe my referrals from past clients and their families are due to the service I provide.

Best regards - Richard

If your client was blind, I'd might mention it to him. If not I'm sure they are or they will find out soon of the surroundings.

I guess you could mention if he's into the Fight Club scene he could have not picked a better location.

rick