My dad is 71 and lives in Florida. I believe he was completely taken advantage of by his real estate agent, and I’m not sure what to do to help him. Recently, he bought a property for cash in August for $113k. He’s a stubborn old man, didn’t ask for help, and did it all on his own while he was hospitalized. I live out of state, and we aren’t particularly close—it’s his choice—but I try my best to help him when he lets me.
He had just sold his house, which had been damaged by Hurricane Ian two years ago, to one of those ‘cash for houses’ buyers. I found out after the fact. Sure, maybe he got less than he could have, but the house was in rough shape and unsafe for him to stay in.
He used a real estate agent to help him buy this new property with cash, and while she advised him to get an inspection, she didn’t recommend an appraisal.
When I looked up property records, I found out that the property had previously sold for $60k in December 2023. That’s almost half of what my dad paid, and I’m concerned he overpaid.
Can anyone help me figure out if there’s any way to hold the agent accountable? Don’t real estate agents have a duty of care? I feel like she might have pushed this sale for a higher commission. My dad lost almost half of his life savings in this deal, and this property is all he has. Is it possible to sue for fraud or misrepresentation?
The fact that the previous sale was for $60k doesn’t necessarily mean much. The property could have been in poor condition or damaged by the hurricane and later flipped or improved before your dad bought it. You should consider getting an appraisal now to determine its current value if you’re worried about what he paid.
@Vic
I see what you’re saying. I’ll look into getting an appraisal now just to be sure. I guess I jumped to conclusions after seeing the big price difference.
It sounds like your dad might need a new agent. While it’s common for agents to recommend inspections, an appraisal for cash deals is not always a must. Without proof of actual fraud, legal action may be difficult. Filing a complaint with the local real estate commission might be the best route to investigate whether the agent acted unethically.
I found out with little effort that the property was overpriced. Aren’t agents supposed to check comps or tax records as part of their job? She should have known or was just really bad at her job.
Ainsley said:
I found out with little effort that the property was overpriced. Aren’t agents supposed to check comps or tax records as part of their job? She should have known or was just really bad at her job.
Do you have any basis for your valuation besides the prior sale price? A previous sale doesn’t always indicate the current market value, as many factors could change in that time.
Ainsley said:
I found out with little effort that the property was overpriced. Aren’t agents supposed to check comps or tax records as part of their job? She should have known or was just really bad at her job.
Exactly. The previous sale doesn’t automatically mean the property is overpriced. There could have been significant repairs or market shifts since then. Did the agent pull comps before the sale?
I don’t think an appraisal is always necessary for a cash deal, and seeing a price increase from $60k to $113k doesn’t necessarily mean your dad was taken advantage of. The property could have been improved or reflect market trends. What you really need is a comparative market analysis (CMA) to get a true sense of the property’s value.
This could be a case of elder abuse by an unethical agent, but it could also be a responsible agent working with an eccentric client. Either way, your options are limited unless there’s clear evidence of wrongdoing.
I’d suggest having a conversation with your dad about planning his estate, setting up power of attorney, and making sure you’re involved in future decisions to avoid situations like this.
@Haru
That’s a good point about the CMA. I’ll suggest that to my dad. We definitely need to have a conversation about getting some legal protections in place to help avoid future mistakes.
If your father is incompetent, you may want to consider guardianship. But if he’s competent, unfortunately, he has the right to make poor financial decisions.
I’ve never had an appraisal for a cash deal, and it’s not common. If the agent had recommended it, you might be here saying they wasted your dad’s money on something unnecessary. It’s all about perspective.