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We're part of the problem and won't admit it.

By
Real Estate Broker/Owner

That's right, we are part of the problem going on in the real estate industry right now.  But as a group, we aren't taking any blame.  You can read blogs from two years ago all the way up to today, where "blame is placed on the banks for making bad loans, to the government for buying them, to homeowners who got in over their heads.  There is enough blame for all.  But one group is not taking any blame.  Realtors!

When reading posts, it seems that everybody has a story about a bad customer, be it a seller or buyer.  About how unreasonable they are and the many stupid things that they do.  But consider our behavior.  There are posts today about how it is a great time to buy real estate. What evidence is truly there that that is true? Of course we can spout statistics on home prices two years ago but can we truly say that homes are properly priced?  Please, be honest, of course we can't.  And too many of us say we gave the homeowner the information they needed to make the decision to buy or sell but we didn't make the decision for them.  Guys, if we are to be the professionals we crave to be, we have to start taking responsiblity for our actions and advice.

It looks like short sales are going to be with us for awhile.  But to hear from us, the banks are difficult to work with, won't return our calls and refuse to negotiate.  Who told them they could do that! They should just take their losses and let us get our commission.  Our customer wants in that home for much less than someone else paid for it years ago.  Let us have it now!

As a country we are trying to stop terrorism by giving money to warlords in Afganistan so they will not fight us or give aid to our enemies.  They are fine with taking our money and will do so until we stop. We we do, they start helping our enemies.  Sounds like a no win strategy.  But that is exactly what we did years ago.  We helped promote the fact there was a loan for everybody.  No customer was left behind.  Now, we complain that the banks won't give money to our customers in the form of bailouts and shortsales.  We promote the same mentality today about FHA and other government programs when it is clear that we are trading one problem for another and will have to face the devil sooner or later. 

So here is the real truth.

Not everybody should own a home. Government programs have only made the problems worse.  The only winners are and will continue to be the banks who can use their influence to shape our lives without being responsible, government and anyone involved with government that takes money from one tax payer and gives it to another under the guise of special government programs that limit those who qualify. 

 

Comments(136)

Anonymous
Joseph

Sounds like someone couldn't pass their RE exam. *cough* leigh *cough*

Jan 21, 2010 02:42 PM
#119
Leigh V
Potential Buyer - Portland, OR

Hahaha, I'm an RN, well paid and love my job:O)  I sold near the peak (Portland, Oregon) and now I'm patiently waiting:O)  Have no plans to be in real estate sales.  Can't stand the always "Buy now" NAR mentality shoved onto the public so just trying to bring a different perspective to this Active Rain bubble world.

 

That would be pretty pathetic though, if I couldn't pass the exam.  Some friends that are in the rehab business got their licenses in around 2000 and joked about how easy it was.  You guys really need to raise the bar on entry.  The profession needs to shape up, the last/current bubble was a real public opinion killer.  I think realtors now ranked right there with used car salesmen.  Yes, there are some good ones but good god, then there are.......

 

I think too many of you live in this Active Rain bubble to really get a grasp on reality.  Your future depends on it but too many of you seem to be reading "The Secret."

Jan 21, 2010 03:48 PM
Leigh V
Potential Buyer - Portland, OR

So Joseph, looks like you had to create a new profile to try to slam me...didn't want to look silly in front of your peers, I guess.  That's OK.  Keep it coming.

Jan 21, 2010 03:58 PM
Anonymous
Joseph

Do you beat up on your car salesman for telling you to buy now? How about your pastor telling you to get saved now? Your credit card companies saying pay us now? How about girl scouts using the ole' it's my last box of thin mints... We would simply not be doing our job if someone said they wanted to buy and we dissuaded them. We give our thoughts on the area and the comps. Write the contract if THE BANK says they're qualified and on to the next... nothing sheisty about that.

Jan 21, 2010 04:46 PM
#122
Anonymous
Joseph

I apologize for all the things I have said about you Leigh.  After reading this blog and responses again I can see where your responses are valid.

Jan 21, 2010 11:45 PM
#123
Anonymous
Joseph

Well played.. love it.

Jan 21, 2010 11:54 PM
#124
Mike Woods
M.S.WOODS REAL ESTATE, LLC - Indianapolis, IN

We can advise but we cannot make the decision for our clients. They are adults and can make their own decision whether we agree with them or not.

Jan 22, 2010 01:11 AM
Anonymous
Bob

"We can only advise."  "We can only make recommendations."  "We were just following orders."

For people who claim to have such expertise to justify a 3%-6% cut for every deal, which could easily be $30k in my area, you sure make it seem like you are very simple people who know nothing now that things finally went bad.

Jan 22, 2010 02:39 AM
#126
Anonymous
Leigh

Your clients, especially first time home buyers put their trust in you, the real estate expert.  Buying a home is a HUGE committment. We aren't talking about a $5K car, a $3 box of cookies (hey, it IS Girl Scout Cookie Season!!!)

My priest offers a heck of a lot of guidance throughout life so comparing yourself to a priest/pastor was sacrilegious...hahaha

 

As for a used car salesman, if I went in and told him/her my needs:  midsize SUV, for two adults, two toddlers, a dog, handles well in snow and unmaintained roads, a price range, etc and he/she showed my a Chevie Aveo, or Honda Fit, or a huge Escalade (if you want to compare this to real esate...buy the biggest house you think you can afford) you bet I'd question his ability to serve my needs and move on.

 

And if the CC companies asked for payment on bills that I owed, as a responsible adult I woul pay them...so bad example...try again.

 

So you guys keep talking about advising your clients...what advice are you giving them...you state that there was no way of seeing the bubble but many are advising that now is bottom?!?!?!

 

Do you talk about property taxes, cost of maintainance, the reasonablle % of income that should go into PITI?

 

Why hasn't NAR been dismembered?!?!

Jan 22, 2010 02:52 AM
#127
Mary Wilcox BPOR, CDPE, SFR, ASD, ABR
Reece Nichols-Mary Wilcox - Kansas City, MO
Reece Nichols Mary Wilcox BPOR, CDPE, ASD, SFR, AB

And I talked 9 clients OUT OF BUYING a home in 2009 alone. 

P.S.  I know it was 9 because I was on a Team.  My fearless Leader lectured me on how it was my job to SELL HOUSES not talk anyone out of it.  I told her I was not here to  SELL HOUSES...I'm here to help young people realize one of their DREAMS... (not nightmares) To make the journey a pleasant and memorable experience... :-)  (ok, the memorable part might be a tad self-serving...did someone say referral?)

  She lectured me at 3  then 7  then fired me at number 9.

So, ladies and gents...there's some truth in what he's saying...(It just so happens I'm clearly not one of them) ...and proud of it.

 

Jan 22, 2010 04:04 AM
Anonymous
Joseph

Leigh, your arguement in skillfully made. I was only attempting to say that you don't get angry with people when they are doing their jobs. I'm sorry you have such a distaste for NAR. I can't imagine what type of situation you feel they put you or your loved ones in to make you feel this way. I have resolved to double my NAR contributions this year and will encourage my office staff to do the same in hopes that more NAR funding will correct whatever issues you feel there are within the organization.

Jan 22, 2010 06:05 AM
#129
Anonymous
Steve Cole

Leigh, I know I am on island here but I agree with you.

First, there are many agents with a wonderful educational background but usually that is in something other than real estate.  Agents know they are not suppose to give advice on any meaningful matter associated with the transaction but they continue to give advice anyway.  The documents prepared by the various board of realtors says as much.  The engagement agreements says this as does the pre printed contract they are required to use.  The reason they have to use a pre printed contract is that they are not allowed to practice law and in most states the drafting of a contract is the unauthorized practice of law.  By the way there is no way a pre printed form can anticipate all the particular situations in your transaction.  Why on earth does anyone buy a house with a pre printed contract. The pre printed contract is more for the protection of the agent rather than the client.  Would you use a pre printed will to protect your assets for your family?  I wouldn't.

A lot of agents have a business background but they got laid off or fired and decided to go into real estate. Some do it on  part time basis but you will never know this.  Until the requirements to be real estate agent are increased you will continue to encounter this problem.  There is really no educational requirement to be a real estate agent.  There is virtually no cost or financial commitment to be a real estate agent. The test they are required to take is minimal yet still they receive a license.  I would bet most agents don't know the difference between marketable title and insurable title, they don't why separate consideration is required for due diligence, most can't prepare a settlement statement (but they do know how to calculate the commission), can't match a survey to the legal description contained in the deed etc.  They know how to show you homes and they know how to locate properties you may have an interest in but that is a far as their training goes.

My company, Your Home Team Advisors acknowledges this.  Our agents don't give advice in things they are not trained in. We rely upon attorneys, structural engineers, surveyors, title examiners ect to give advise that can be relied upon.  A lot of agents will say they do this as well but they are relying upon the closing attorney most of the time . This attorney does not represent you but in most cases represents your lender or title company.  You can't rely upon that advice because they don't represent you.

Regarding the NAR, this organization is not a licensing organization.  This is a very effective lobby group and public relations machine for the agent.  The designation REALTOR is honestly meaningless.  To be a REALTOR you only have to be real estate agent and join a local board  of realtors (another lobby and PR group) and pay a fee for the privilege of calling your self a REALTOR.  Their members will say they have to adhere to a strict code of ethics but this too in meaningless. It is a one day class and how much can you learn or retain in one day and they don't test you on the material.  The NAR was formed by real estate agents to promote the financial well being of real estate agents and was not formed to provide the consumer any protections.

I know my comments will be met with anger and distain by those who read this blog but I really don't care.  The old way of doing business is broken and there is a better way for the consumer.  For the past 6 months I have challenged any real estate agent or broker to come on to my radio show to debate the pros and cons of the old way (their way) vs. our way and as of today no one has agreed to the debate.  I can only take that to mean they know the old way is broken and they don't want to talk about it.

I am not a full member of Active Rain so my info will not show on this blog.  If you want more info email me at steve@hometeamadvisors.com.  I am not an agent but our company does employ agents as a part of our team approach.

Good luck

Steve

tangelo

Jan 22, 2010 06:10 AM
#130
Anonymous
Leigh

Thanks Steve Cole, got an office in Portland, Oregon?!?!

Jan 22, 2010 01:22 PM
#131
Anonymous
Steve Cole

Not yet but hopefully one day soon.

Jan 25, 2010 01:08 AM
#132
Beverly Femia
BlueCoast Realty Corporation - Hampstead, NC
Broker Realtor Stager - Greater Wilmington, NC Are

Good for you MARY (#132) - Dale is painting with a borad brush but most of us are going to get hit with a little paint. 

Jan 25, 2010 12:36 PM
Lynn LeGlaire
Keller Williams - Beverly Hills, CA

I agree with your post.    Real sagents are as much to blame as are lenders.  But that's life.  I have buyers now who are ready to buy and when they ask me if I think it's a good time to purchase, I say if you're ready- Yes.  If buying a property now will create financial stress, then wait.  The market is still supported by the government.  What is to become of our market when government support disappears?  Will my client buying a $560,000.00 condo find himself in a $450,000.00 condo?  I don't know the answer.  But I do suggest to my buyers that they hold on to their purchase for a while-the longer the better in order not to lose any money.  Being a sales agent these days isn't easy-but if one is honest and truly works on behalf of the client, then the blame is less.  What can we do?  I need to make a living and I genuinely love helping people sell or buy real estate so I continue to do it.  

   Dale-thanks for writing about such a controversial topic.

Jan 26, 2010 05:17 AM
Debe Maxwell, CRS
Savvy + Company (704) 491-3310 - Charlotte, NC
The RIGHT CHARLOTTE REALTOR!

Hi Dale!  I have no idea how I missed this post last month and there is probably no one still receiving notifications of new comments, which is absolutely fine with me!  I just wanted to weigh in on this post--from my standpoint:

Yours is not the first post that real estate agents, politicians and bankers complaining and proclaiming, "It's not my fault, it's YOURS!"  Here's a novel idea--why not put all of the blaming energy, that continues to pour out of the woodwork, into something more positive?  We can't go back and change any of the consequenses of any or all of our personal or collective actions.  All we can do is focus on something more positive--turning our economy around and doing everything that we can possibly do to educate the consumer so that this never happens again (in our generation or any that follow)! 

We all need to lay off of the blame game and focus on something more positive!

Feb 04, 2010 03:00 PM
Pat & Wayne Harriman
Harriman Real Estate, LLC (203) 672-4499 - Wallingford, CT
Broker/Owners, Wallingford CT Real Estate

Debe: I just happened to be still getting notifications and I'm glad to see you feel as I do (see comment #93 above). I also left my 2 cents over on Martin Kalisker's post too. I'm getting really tired of seeing all these finger pointing posts. They serve no purpose except to rile people up, and we've had enough of that already. I'm fixin' to declare a week of amnesty for everyone who is to blame for the housing mess and do something to reverse the negative stench in the air. I'm thinking of maybe some kind of contest but it's just a wild idea at this point. We need to focus our attention ahead to bigger and better things, not backwards to things beyond our control. I don't know, we'll see what happens as I chew on this some more. I've got some many things on my plate right now, it's crazy. Well, anyway, we'll see...

Feb 04, 2010 03:35 PM
Debe Maxwell, CRS
Savvy + Company (704) 491-3310 - Charlotte, NC
The RIGHT CHARLOTTE REALTOR!

Pat & Wayne--I could't agree more!  You know, it's like I used to tell my boys who are only 18-months apart--they would blame one another...on and on...  Finally, I would say, "I really don't care WHO spilled the milk, just clean it up and let's move on!"  We can't really do anything to 'clean this up,' but, we can move on. 

I'm ALL for turning our focus from blame to GAME!  (Did you like that?!  Feel free to use it in your contest title!!)  Can't wait to see what you're cooking up...

Feb 04, 2010 04:20 PM
Beverly of Bev & Bob Meaux
Keller Williams Suburban Realty - West Orange, NJ
Where Buying & Selling Works

Interesting discussion. Surprised it's not on Members Only, but a good discussion. Everyone who played a factor in real estate sales is responsible in some way. And it's a great time to buy for some and a bad time for others. Our job is to provide information to educate the consumer so he/she can make an informed decision.

Feb 11, 2010 08:01 AM