I have been a Glenn Beck fan for years, but his comment, "If you want honest advice about selling your home, don't listen to the people who are trying to make a living selling them," has really set me back on my heals because he has attacked my integrity as a Realtor.
The first radio show I ever heard Glenn do was on the topic of Sadam Hussein's Mansion and the horrific purpose of many of the rooms. From that moment on I became a fan and a listener. Now, I know that Glenn's style (he is an entertainer, after all) is to provoke responses and be a bit controversial to make people think - after all that's what attracts listeners in today's world, right? I don't always agree with what Glenn has to say, but then how many times do we as a society collectively agree on anything? Never. We are diverse.
In Real Estate, our company, Select 1 Properties, has about a 90% referral rate. That means we do repeat business and our clients trust and believe in us enough to pass our name on to someone else. The only way to earn a referral is to prove you are honest, trustworthy and that you will go above and beyond what is expected.
It may be hard to believe for some, but Realtors do not have control over the price a home will sell for. Only the market, or what a Buyer is willing to pay, will dictate that. Yes, it is our job to run comps to see what other comparable homes in the neighborhood have sold for and we take into consideration the condition of the local market - how quickly homes are selling - before suggesting a listing price. But fact of the matter is - the Seller has ultimate control over that final number. And unfortunately, sometimes the Seller believes their house is worth more than anyone else's. (Don't we all think our home is better than everyone else's?)
And as it turns out - imagine this - the Buyer has ultimate control over the price they pay for a home! A Buyer's Agent also runs comparables to see what other homes - like the one their client is trying to purchase - have sold for in the neighborhood. The Buyer then has the right to do home inspections, radon inspections, and termite inspections (usually required by lender). If the inspections are not to the Buyer's satisfaction, then the Buyer has the right to walk away from the deal. Of course, needed repairs can be negotiated. Then there's municipality inspection and occupancy permits that may be required. Also the home has to appraise for the selling price. In other words, for a lender to front the money for a loan, they need to know that the home is worth what the Buyer said they are willing to pay. And guess what? If the home doesn't appraise for the contracted price the Buyer can walk, or the Buyer or Seller may elect to come up with the extra cash to make up the difference between the apprasal and the contracted price! That is, if the Buyer just can't live without that particular house.
So Glenn, when someone calls and says they want us to help them through the home buying/selling process, are we suppose to say, "No, gee, I'm sorry. Real estate is priced over the top right now and therefore at this time I can't help you?" That's just insane! Yes, we are working to make a living, but so are attorneys, doctors, and anyone else that is working to put food in their face. The sale of a property depends not only on Realtors - who's job it is to make sure the entire process is successful and goes to the closing table, but on Sellers, Buyers, lenders, the possible multitude of inspectors, appraisers, and the title company.
Now add the very low interest rates and a stock market that has gone crazy!
During the frenzied market of just a few years ago, our phone rang off the hook with buyers wanting to buy property. And just about every Realtor in our area at that time had multiple offers coming in on at least one of their listings. Who's to blame for that? Should we have told everyone. No! Go home? And how about the appraisals that were done to justify the high sales prices? Are we to blame for that, too? Do we also take the blame for the unscrupulous practices of some lenders? The majority of our Buyers have already chosen their lenders before they meet with us.
Now throw in the pessism of the media starting back in January of 2007.
"Is the Real Estate Bubble About to Burst?" was an overused headline in a majority of the news media at that time. But it sold copies and got people to pay attention to the news. Potential Buyers began to posture and worry about whether or not to purchase a home, which inevitably, slowed the market. Days on Market began to wrack up for the homes that were on the market and Sellers began to lower their price to sell. Now nearly 2 years later, the economy is hurting because of other factors that are out of our control and the real estate market has dropped even more in the areas where the values had gone through the roof during the frenzied market. Quite a cycle, huh? I guess Realtors should get the blame for the economy, too.
Glenn, before you throw all of the Realtors under the bus, please check your facts. Yes, it seems pretty obvious that David Lereah wanted to sell lot of books and painted too rosey of a picture of the housing market. And NAR has continued to stay positive - after all they represent Realtors all over the US in different markets - markets that can differ like night and day. But please, don't give out group punishment to all Realtors by advising the public; " If you want honest advice about selling your home, don't listen to the people who are trying to make a living selling them." That poor advice can do a lot of damage to honest hardworking people.
Anyone who doesn't know or understand the real estate market and process, should never attempt to sell/buy real estate without professional or legal help. Today, there's just too many liability issues to risk it. So Glen, I must ask: did you not use a Realtor or a real estate attorney when you purchased your home(s)? If so, why did you want to listen to someone who is trying to make a living selling real estate?
And yet, I'm still a fan . . . Michelle Rowe
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