What did the Gronik's do wrong ?

Dream home becomes family’s worst nightmare

Read this story and tell me what the Gronik’s did wrong.
After you tell me what they did wrong please also tell me who you think is in the wrong.:slight_smile:


Received this story on one of my Google alerts…feel free to ask me what they are if you have never heard of them.

Not having an inspection the 2nd time around and just taking the word of the sellers and agents on the issues found on the 1st inspection.

I would say all parties are at fault, buyers, sellers and agents.

Several weeks later, the Groniks offered $3.1 million. They were told there was a competing offer, and to get the house they’d need to go up to $3.5 million, and later $3.6 million, and that no more inspections would be allowed. The Groniks’ final offer of $3.55 million was accepted.

And they agreed to this. To me that statement would put up a red flag AND knowing there were issues on their first offer I say they went in blind. Shame on the sellers, their agent and the buyers for agreeing to buy without an inspection.

The whole situation is a mess.

The Gronik’s sound like trusting people who were eager to acquire the home they really wanted.

Unfortunately it appears they were lied to by multiple people.

The tip off should have been "No more inspections allowed"

How do you become the CEO of two companies without the kind of instinct that raises a red flag when you someone tells you can’t have an inspection on a multi-million dollar home. They probably were not first time home owners with no clue what was going on. Obviously, they were lied to but they need to take some responsibility as well.

There are many subplots here but for me at least the big lesson is that most people when buying a home are looking at it through rose colored glasses and this story helps relate exactly why Home Inspections are needed.

This was almost like an impulse buy.
Wisdom is having enough life experience to recognize an impulse but emotions often overtake our logic so having a disinterested third party see a situation for what it actually is has to be a no brainier.

Sellers have every right to insist on no Inspections or to refuse repairs needed as disclosed in a Home Inspection report but buyers at least with the latter will have eyes wide open going in.
Tell anybody you know never to purchase property that is not allowed to be inspected.
We are talking life saving being played with like it is a carnival game with buyers being the shills.

The Groniks’s did not perform the proper due diligence in aquiring the property.
It is unfortunate, but the money they are spending now…
should have been spent prior to purchase…

In a nut shell, they became emotionally biased. Big investment, spend a few bucks on the inspection, it’s a whole new purchase process. The we fixed ecverything but you cant look to be sure, even a little kid would see through that trick.

I feel bad for the family, but they skipped the most important part, finding out about the home, and took a blind leap here.

How is it an impulse buy?

They had been desiring for years and had made an attempt to acquire it earlier.

They could have invested in Solyndra
the end result would have been the same…

The home is not worth the 4 million
It is the Land plus the Home.
That home could be reconstructed for $500,000
the actual loss is the material cost…

the decrease in land value,

well, that is what it is…