Buyer Beware. Sky is Falling

Buy a house with your Eyes Wide Open. You will have no one to blame but yourself. The Calfornia Association of Realtors new "Market Condition Advisory" disclosure form asks home buyers to acknowledge, in writing, that home prices can and do, go up and Down.

In part, the new form states, "In light of the real estate market's cyclical nature it is important that buyers understand the potential for little or no appreciation in value, or the actual loss in value, of the property they purchase."

It goes further, warning buyers that Realtors have NO role in telling them what to pay for a house. " Buyers are responsible for determining a price to offer on a property, and "If your offer is accepted, you may have 'buyer's remorse' that you paid too much,'" the form states.

In many heated real estate markets, buyers waive contigencies to better their offer to the seller. This "no contigency strategy" is also addressed in the new disclosure, with hopes of protecting agent's from future problems when buyers lose money. The form says "There is inherent risk in writing a non-contingent offer," the form states. "Only you, after careful consultation and deliberation with your attorney, accountant or financial advisor, can decide how much risk you are willing to take. It is your decision alone and cannot be made by your broker or real estate agent."

Summary: Waterfalls are slippery and wet... History teaches, first people lose money, second they look for someone to blame. Kudo's to the CA association and the honest, hard working Realtors for their forward thinking. Real estate is a cyclical business and you've been warned.