The Price is Right?

Vernon and Marty Ummel, a couple in North San Diego County, are suing the real estate agent that represented them in the purchase of their home in Carlsbad, three years ago. They allege that their real estate agent duped them into over-paying for their home.  The Ummels paid $1.2 million for their home, at a time where comparable homes were selling for around $150,000 less in the same area. 

My Take

Ouch!!!  Anyone who has bought a home in California in the last few years is no doubt feeling at least some discomfort as home prices continue to fall.   And there's no doubt that many feel that real estate agents are at least partly to blame for what has happened.  

As a result, I think buyers (and perhaps sellers too) are going to increasingly expect real estate agents to be accountable for their actions.  Real estate agents are licensed professionals who have certain ethical and legal obligations to their clients.  To ignore these obligations is tantamount to malpractice.  It seems though, during the Housing Boom, many agents ignored these obligations, and were just looking to score as much cash as they could... That could all change if things go well for this couple in court.

Read the full article here.