ComplaintsforNew Western

• Initial Complaint

  06/26/2024

  Complaint Type:

  Service or Repair Issues

  Status:

  Answered

  More info

  In January 2024, I bought a house from New Western (*************) in *********, Tx for $248k. The agent told me there was no major issue with house just cosmetic, i looked around house for 10 minutes coz that much time was given to me & saw some cosmetic issues in the house. I saw master bedroom floor was little raised , I asked agent why was that but he said it just needs levelling no big problem. Agent even told the house had lifetime foundation warranty. Agent assured me house just needs maximum $20k renovation and ARV will be about $310K. He was ******* me in whole process. I believed his words and agreed to buy, the house. He said you have to pay ******* money $7500 right now within 30 minutes otherwise you will lose house and took me to *************** and I gave him $7500 cashier's check. All the problems started showing up after buying house. The house had big plumbing problem. House had failed plumbing test. Even foundation warranty was not active because the house had failed plumbing test. The full ******************* cost estimate of house came to about $70k where the agent had told me it would be just $20k. Even the master bedroom floor had big issue. After I removed the carpet i saw big pieces of concrete breaking away and raised and issue down under the room where water was being filled because drainage problem. I reached back to New Western and said i will file lawsuit against you they persuaded me they will put the house back in the market if it doesn't sell they will compensate for repairs. They tried for 2 weeks but couldn't sell the house, might be because house issues were not hidden any more. After that i asked them to compensate repairs that were hidden from me but they said they haven't done anything wrong and they won't pay for repairs . This whole process broke me emotionally. I couldn't believe such fraud company is operating in ** without any fear from law authorities. They are duping people openly.

  

  Business response

  07/29/2024

  Please see attached documents.

  Customer response

  08/06/2024

  I am rejecting this response because:  Firstly New western's claim that I rejected their reasonable offer is a total lie. They offered me $20k  but I didn't reject it,I said "My loss because of your lies were lot more . Let me get the estimates of the issues that were caused because of house issues that were lied or hidden to me by New Western. See how much of those issues' cost you could cover." They said ok send over the estimates. I sent them the estimates for master bedroom broken floor, plumbing replacement and french drain to stop future issues with concrete floor. For plumbing replacement i sent them estimates from 2 different companies. All together the estimate was of about $60k . If we add the cost for cosmetic repairs that would come out to be about $80k. But i didn't ask that with them. Remember their agent had assured and persuaded me that maximum repair cost would be about $20k and hidden the house issues & shown inactive foundation warranty.  After sending them estimates I called them and asked how much of that portion of estimates could you cover. But to my surprise they said they would not cover anything and when asked what happened to $20k you had offered earlier they said they are not going to pay even that one. So i didn't reject offer they actually didn't honor their own words. So I got cheated the second time too. Had they honored it I would have accepted it & I would not have thought them as frauds. See the pic of floor of master bedroom i have attached here and same area pic in their Project analysis flyer, we can see how bad it was under the carpet & its just one area pic. No one goes on tearing up carpet when they go to see house. Plumbing estimates have also detailed the issues. So these all issues were hidden from me and inactive foundation warranty was shown to me. When we see things they have done ,anyone can tell how honest or deceiving they were.

• Initial Complaint

  03/13/2024

  Complaint Type:

  Service or Repair Issues

  Status:

  Resolved

  More info

  I recently entered a real estate transaction with New Western in the Dallas ***** and my experience has been horrible.The initial communication led me to believe that the property required minimal renovations, specifically a sewer line extension, a new driveway pour, and an AC condenser.However, the reality of the situation quickly became apparent after I placed a $10,000 deposit. The projected costs for the rehab, particularly the $25,000 - $30,000 sewer line extension, were grossly inaccurate, with the actual figures ranging from $70,000 to $75,000. I obtained multiple quotes from reputable companies to validate this information. This does not at all include the rest of the rehab work that would need to be completed.Presented by New Western vs Actual:1) Sewer line extension 25k-30k / ACTUAL =70k-75k 2) Driveway pour 10k 3)AC condenser 4K 4) ARV $375k / Actual = $359k Furthermore, the After Repair Value (ARV) of the property was misrepresented as $375,000, when in reality, it stands closer to $359,000. This disparity has significantly affected the feasibility of the entire project.What added to this misleading experience was the urgency conveyed by the New Western agent to wire the $10,000 deposit immediately due to other potential buyers in line. This pressure tactic, coupled with the misleading information, paints a picture of a project that was set up for failure from the beginning.Upon discovering these discrepancies, I sought to terminate the contract and requested a refund of my deposit. Unfortunately, I was met with resistance, and my $10,000 down payment was deemed non-refundable and quoted Youre not getting the $10k back.In essence, my experience with New Western has left me feeling misled and taken advantage of. I strongly caution others considering their services to thoroughly scrutinize the information provided and proceed with caution.This has been a disappointing and regrettable experience with New Western.

  

  Business response

  03/15/2024

  Hey *******,

  I just talked to *****, the *** and he said you closed on this property today and got $5,000 in return as well. Not sure where you got the other numbers from, but reach out to ***** if you have any further questions! 

  Thanks.

  

  Business response

  03/15/2024

  Hey *******,
  I just talked to *****, the *** and he said you closed on this property today and got $5,000 in return as well. Not sure where you got the other numbers from, but reach out to ***** if you have any further questions! 
  Thanks.

  Customer response

  03/15/2024

  I have reviewed the business response and accept this resolution. 

• Initial Complaint

  03/10/2024

  Complaint Type:

  Service or Repair Issues

  Status:

  Answered

  More info

  This regards the New Western Brokerage in **********, *******. This was our first real estate investment and I contacted New Western, eager to start our investing journey. They required a deposit of $7500, which was to go to the down payment on a property. The agent I was working with was friendly and presented herself as working in my best interest. She presented a property that had a promising After Repair Value that would fit nicely into our strategy as a fix and flip. Except she failed to inform me that this house was in a terrible part of town where there are mostly rentals and the *** was not only wildly optimistic, but flat out unattainable. She was not looking out for our best interest. The recommended contractor put in a bid that was later discovered to be inflated and the amount of money that we would spend on the rehab would make the house not only unprofitable, but would make the property ineligible to be refinanced. When I told the agent about this, who was no longer returning phone calls, her text response was that they would buy the house back from us at a deep discount forcing us to lose ****** sum up our experience: this brokerage is predatory and the ** did not do the work he promised and took our money. Stay away from them at all costs.

  

  Business response

  04/03/2024

  Hey ******,
  
  I am sorry to hear that you had a less than ideal experience. As a general rule, we advise our clients to conduct proper research on the property and the surrounding area before making any purchases. It appears that the contractor is at fault here, and we would like to clarify that we have no connection with them. ****** should've reached out to you by now to mediate the situation the best she could. Thanks for the feedback.

  Customer response

  04/09/2024

  I am rejecting this response because:   ****** did not address the issue at hand. New Western presented a property for sale that showed a flawed market value for the property and did not allow for a licensed, independent, appraiser to give their opinion of the market value of the property. New Western's business practice of not allowing independent appraisers to review their listings is self-serving at the expense of the client. While there is issue with how the contractor conducted himself, the issue with New Western is based on providing false information, the refusal to allow for independent verification of the information presented in the property listing, and the self-dealing that the issue stems from. I request my deposit of $7,500 to be returned. Thank you.

  

  Business response

  04/17/2024

  ******,
  
  I appreciate your response.  Allow me to provide clarity regarding this transaction and our process. We let buyers know from the outset our purchasing process. Appraisals are certainly allowed, and some of our investors do choose to get independent appraisals, though due to the nature of our transactions the purchase would not be contingent on the results of an appraisal. Most investors choose not to have one done. 
  Our discussions with investors regarding after repair values are an estimated range based on the best available comparable properties. For example: at the time of your purchase there were 3 renovated comparable properties at similar size, style, and age in that area of ********; all of which sold for $200k or more along with 2 others showing less value for a total of 5 renovated comps. We discussed an estimated after repair value range of *******k. None of the information provided was false or misleading and can be verified through tax records or an MLS search.

  
  I acknowledge the challenges posed by the previous tenant and contractor on this property; challenges we've tried to work through on your behalf despite not representing you. I believe this aspect of the deal is where the investment went awry for you, not in the valuation. 

  
  We've closed hundreds of properties with local and out of state investors in ********** alone, hundreds of thousands nationwide; demonstrating our commitment to providing investment opportunities while prioritizing transparency and collaboration. We are not here to be self-serving but to provide opportunities to investors. But as with any investment, real estate comes with inherent risk and none of us have a crystal ball to tell us what the market's future will be or if a contractor will honor their word. It's regrettable that you believe we were trying to pull wool over your eyes or mislead you when on multiple occasions worked through getting the tenant out and provided new contractor recommendations.

  Customer response

  04/24/2024

  I am rejecting this response because:   Respondent has failed to take responsibility for actions of subordinates.

• Initial Complaint

  01/14/2024

  Complaint Type:

  Service or Repair Issues

  Status:

  Answered

  More info

  I recently ventured into the real estate market with excitement, eager to explore opportunities through a new wholesaler called New Western. However, my enthusiasm quickly turned into frustration as the wholesaler incessantly pressured me to wire $7500 for dilapidated properties without giving me ample time to assess them. This rush left me feeling taken advantage of and stripped of the chance to make an informed decision, especially since it was my first experience with both New Western and a wholesaler in general. The urgency and insistence on a non-refundable down payment raise suspicions, making me question the legitimacy of this entire process, as it seems more like a scheme to collect such payments repeatedly.

  

  Business response

  02/05/2024

  Hi ****, we've been in contact with your partner and are hopeful we can close this deal for you. Reach out to the *** *****, with any questions you might have. Thank you

• Initial Complaint

  12/17/2023

  Complaint Type:

  Customer Service Issues

  Status:

  Answered

  More info

  I opted to purchase a house through New Western, with the closing set for a specific date. However, the closing did not happen as planned. Subsequently, the contract was modified to include a different title company, not the one originally specified. This raised concerns for me, leading to my decision not to sign the revised contract. As a result, New Western terminated the original contract. Given that the contract underwent multiple changes, including the switch of the title company and the cancellation of our initial agreement, I am now seeking a refund of my initial payment.

  

  Business response

  12/19/2023

  There is not much to this story. He was meant to close on a deal with us last week and he doesn't have the funds to close. This was after bending over backward for him to extend the closing for two weeks to "sort out his funds"
  

  Customer response

  12/20/2023

  I am rejecting this response because: This is not right. 

  Customer response

  01/02/2024

  I am rejecting this response because: its not true. 

  

  Business response

  02/06/2024

  Here's a screenshot of **** and one of our agents text conversations of December 14th.

  Customer response

  02/14/2024

  I am disputing this reply because: The third party presented a house they don't own. I paid a $10,000 down payment, which they still hold. They retained the deposit, and the property remains with the original owner. According to Texas law, the buyer has the right to withdraw from any deal and receive their ******* money back. The only acceptable resolution is to refund my money.

• Initial Complaint

  11/28/2023

  Complaint Type:

  Billing Issues

  Status:

  Answered

  More info

  People need to watch out. They said 2 percent but change me 3 . Not a honest company.

  

  Business response

  11/29/2023

  Hi ****** - we're sorry to hear you had a bad experience with us. We'd like to learn what happened and try to make things right but we need a little more information. We cant find you in our system so we were unable to reach out to address your concerns. Please email us at *********************************** if youd like to discuss it in more detail. We hope to speak with you soon.

• Initial Complaint

  09/08/2023

  Complaint Type:

  Product Issues

  Status:

  Resolved

  More info

  I wired the company $7,500 for a "very popular home", come to find out the home's copper piping was stripped from the home, HVAC unit was stripped from the home, septic system is permitted for a 3 bedroom home when the home is a 4 bedroom home. Company stated they would discount the property contracted price by $2,000 which is absurd. I am seeking a full refund of my $7,500 back; if the home is so "popular" they should not have a problem with getting this re listed with another investor. This is misrepresentation/negligence on the companies part. There is no way they didn't know any of these material facts as it deals with this home.

  Customer response

  09/12/2023

  The business has offered me a refund for this case.

• Initial Complaint

  08/18/2023

  Complaint Type:

  Order Issues

  Status:

  Answered

  More info

  New Western sold me a home in **********, ** that they had no right to sell.-I incurred an appraisal expense -Contractor time was wasted inspecting and estimating home repairs ***New Western put this home under contract with me and it turns out they did not have the right to sell the home. It was not under contract from the buyer with them.

  

  Business response

  09/05/2023

  Hi ******. It looks like your DP has already been refunded. ****, the General Manager of our ********** office, has left you a couple of voicemails. If you're still interested in discussing the appraisal payment issue, please give him a call back. He'd be more than happy to listen to what you have to say.

• Initial Complaint

  04/17/2023

  Complaint Type:

  Product Issues

  Status:

  Resolved

  More info

  I am writing to express my profound discontent with the services provided by your organization concerning the property situated at ********************************************************************On 04/10/2023, I transferred $10,000 as an *******/deposit money and subsequently signed the contract after receiving assurances from your agent, *********************************, that the property's after-repair value would justify my investment. However, I later discovered an unanticipated zoning issue, of which I were uninformed of. ********************** dismissed the issue as insignificant and assured me that I could still utilize the property as a duplex, which is how it had been marketed to me. However, given the lack of a current owner rental license and no guarantee that the property could be zoned as a duplex, I am hesitant to take that risk. I had believed ************************** assertion that the property was indeed a duplex.Additionally, I was unable to inspect the property due to the current tenant's occupation, and your agent applied undue pressure to close the deal by 04/21/2023. Before submitting my deposit, ***** provided me with multiple assurances that in the event of any unforeseen circumstances, they would endeavor to locate another buyer and issue a refund of my payment Despite my attempts to negotiate with your agent, I was informed by the general manager that I would not receive a refund of my money. Before that conversation, your acquisition specialist, ***, had previously indicated to me that I could obtain $5,000 back if I chose to proceed with the deal. The general manager accused me of fabricating a false narrative and expressed a lack of willingness to cooperate.I am dismayed by the lack of transparency and honesty exhibited by your organization. Your company preys on new investors seeking to enter the real estate industry by deceiving them to obtain their money and close a deal.

  Customer response

  04/25/2023

  This matter has be resolved and I have be refunded, please remove this complaint 

• Initial Complaint

  03/29/2023

  Complaint Type:

  Product Issues

  Status:

  Answered

  More info

  Concerning the property located at ** ******** St Boston MA On March 8th 2023, I received a marketing email and a text from Nicholas ***** stating that the real estate deals exit strategy was a possible multifamily or condo conversion. I Met with agent Nick ***** at property on 3/9 and he was very verbal about converting the property back into a 2 family from a single family. I ran my numbers on the property as a two family and I agreed to a price of $505,000 with a $10,000 deposit. He required me to pay immediately and sign a P&S without giving me a chance to review by an attorney. He stated that I wasn't signing my life away and that New Western was very "flexible" and easy to work with. Upon further investigation on 3/13 I learned that the property was not properly zoned for a 2 family and requested my deposit back verbally because of the misrepresentation of the property facts. Nick texted me and continued to push the sale saying that they don't have any other buyers and remarketing the property would be difficult despite the closing date being almost 2 months out! on April 28th!!! He then suggested I contact an attorney and the city to see if the building department would convert the classification back to a single family. I hired an attorney and learned that it wasn't possible. I contacted Nick on 3/24 and requested my deposit back citing the misrepresentation and he referred me to his GM Sean *******. Nick said Sean wouldn't return my deposit and Sean would call me. I still haven't heard from Sean despite calling and emailing him. I feel misled by the brokerage deceptive practices and feel that that their holding my deposit hostage when they have plenty of time to remarket the property. They've Misrepresented to me in writing and in person the exit strategies of this property by giving me false information. They need to refund my $10,000 earnest money immediately due to misrepresentation.

  

  Business response

  04/04/2023

  New Western’s BBB Response
  4/4/2023
  
  We would like to respond to respond to the Complaint made by ***** ******* surrounding the
  property at ** ******** St, Hyde Park, MA 0**36. New Western is a successful investment real
  estate brokerage licensed to conduct business in Massachusetts. New Western provides brokerage
  services to its clients (like the seller in this transaction) who buy distressed properties from
  property owners and sell them to real estate investors. Mr. ******* is a real estate investor who
  sought to purchase property from New Western’s client and is himself, a Massachusetts licensed
  real estate salesperson.
  
  In September of 20**, Mr. ****** signed up to gain access to New Western’s exclusive inventory
  of investment real estate. At that time, he was informed about New Western’s business model and
  he signed a disclosure providing, among other things, that New Western and its agents do not
  represent him, that he was responsible for his own due diligence, and that properties are sold in
  AS-IS condition. In March 2023, Mr. ******* was provided with a property information packet
  about ** ******** St. The property information packet indicated several possible investment
  strategies and also included multiple disclosures and encouraged Mr. ******* to conduct due
  diligence and independently verify all property information prior to contracting.
  
  Also included within the property information was data from the tax records reflecting that the
  Property was currently zoned as a single-family residence.
  
  With this information in his possession, Mr. ******* signed the contract to purchase ** ********
  St. from New Western’s client on March 9, 2023. New Western acted as the seller’s brokerage
  firm in this transaction. Closing under the contract is scheduled to occur on or before April 28,
  2023. The contract required Mr. ******* to pay a $10,000.00 non-refundable down payment and
  provides that in the event Mr. ******* fails to close or otherwise perform under the Contract, the
  down payment may be kept by seller as liquidated damages. Furthermore, the Contract disclaimed
  seller’s and/or New Western’s knowledge of any conditions that might be impacting the property,
  including zoning conformity. We are providing the disclosure signed by Mr. *******, the property
  information packet, and signed purchase contract to the Better Business Bureau for reference.
  After contracting with seller, Mr. ******* claims he learned that the property was not zoned for
  use as a single-family residence. There was no wrongdoing here on the part of seller or New
  Western. New Western suggested possible investment strategies for the property, and the
  information Mr. ******* needed was in his possession prior to executing the Contract. Because
  Mr. ******* has chosen not to perform on the Contract, seller has lost $10,000.00 of its own
  earnest money related to the acquisition of the property.
  
  Despite Mr. *******’s contentions to the contrary, New Western’s agent, Nick *****, and general
  manager, Sean ******* have spoken with Mr. ******* on several occasions and made it clear that
  the $10,000 is non-refundable in the event he chooses not to perform under the Contract. Mr.
  ******* even attempted to resolve this matter amicably by offering to hold Mr. *******’s deposit
  to be applied toward a subsequent purchase of investment property through New Western’s
  marketplace, but Mr. ******* refused. Ultimately, Mr. ******* has indicated he does not desire to
  move forward with the transaction, and because of this, seller intends to retain the down payment,
  as seller is contractually allowed to do.

*Some consumers may elect to not publish the details of their complaints, some complaints may not meet BBB's standards for publication, or BBB may display a portion of complaints when a high volume is received for a particular business. ↩