guy berry: What's really behind the financial crisis
- 10/03/08 11:38 AM
Unless you went to sleep a couple of weeks ago, it must be quite clear that this fiancial crisis didn't just happen And, all the finger pointing at Wall Street (and I think they are mostly weasels) was a diversion away from the real culprits. The congress put incredible pressure on Fannie Mae and FreddieMac to lower the standards to allow more lower income and minority people to buy houses. Yes, that means people who could not afford them. Then, add on top of that the lack of supervision by the Departments of Real estate and Lender oversight regulators at state … (4 comments)
guy berry: When we tell the FBI the truth
- 10/03/08 11:16 AM
I was in a seminar given yesterday by the FBI fraud division. They were discussing their efforts to clean up real estate fraud of various kinds. Right behind me, an agent raised her hand and asked, ......."You know, for the longest time, we have been putting anything on the loan app that would get the buyer qualified. Is that fraud?" Most of us laughed but then we realized she wasn't kidding. She was one of these agents who does loans and real estate. And, she was trained that you do whatever it takes to put the deal together, including commiting lender … (9 comments)
guy berry: Too Easy to get into our business
- 10/03/08 11:07 AM
A lot of people in our Biz are not properly trained. It is much too easy to get into our business and agents, especially part timers are not held to any standard. There are offices in our area where there are 200+ agents, most of which have full time jobs. Even if their office offerred training, when would they attend. In California, you can even get a brokers license and open an office without any experience if you have a college degree. This was intended to take the industry out of a blue collar mode. Well it didn't. In fact, most … (4 comments)
guy berry: We need to stop whining - Doctor Phil strikes again
- 10/03/08 06:13 AM
I don't know about your office but so many agents I speak with are down. Sales are down, except for REO and shortsales. Interest rates are great except it is harder to get a loan. You can add the rest. Most of the agents I see are just wandering around, without a clear focus of what to do next. It is like a boat without a sail, being blown by the wind and waves. Don't you think it is time for us to adjust? When the market changes, we have to change. Yes, the market has changed, so what have we … (7 comments)
guy berry: REO Sales - How to get more of them closed
- 10/02/08 09:55 AM
I was just on a panel this morning with an REO Assett manager from Wacovia bank. Let me share some of the ideas that he and I gave to the attendees: If you can, always talk with the listing agent before you write an offer. Each bank has its own quirks, so you need to know what they expect, othewise they many not even consider your offer, especially if multiples. Not always a good idea to be first with an offer. The bank, like most sellers, thinks that it is listed too low and hopes to get more ...so they might … (5 comments)
guy berry: A Rant about the cause of this financial crisis from a real estate agent
- 09/26/08 10:51 AM
The following is an email that I received from my friend Carl Zanger. He is very upset but thought you might like to hear another side of the story that you are not going to hear in the traditional media. (forgive his language but it seems appropriate)
This is my opinion and mine only...if you're not interested, please delete now. I'm pissed and that hardly begins to explain the outrage and betrayal I feel by our government. As of today, every man woman and child, in this country, is about $2300 in additional debt to the current scandal going on … (2 comments)
guy berry: How to get sued - Don't let your assistant do this
- 09/26/08 06:58 AM
Here's the story: An top agent with lots of assistants, represented an out of town buyer. Once in contract, the unlicensed assistant took over the transaction. She compiled all the disclosures and reports and sent them to the buyer. Her cover sheet said something like: "Here are your disclosures and reports. I have indicated where you are to sign and intial. After you have done so, please return them in the enclosed prepaid envelope. If you have any questions, call me. The buyer sent the docs back and never called back with any questions. After close, they found all kinds of … (6 comments)
guy berry: Big legal risk to agents - Read my blog just before this one
- 09/25/08 02:42 AM
Just had an agent comment on my prior blog: AGENT BEWARE! She had attended a class where the instructor raised the same issue I had. But, his suggestions was for the agent to go to the govenmental agency and put together a package of permits for the buyer: NO. NO & NO AGAIN. Several problems with this approach: You many not get all the permits. Cities are notorious for being sloppy and in most jurisidictions, have governmental immunity, meaning they can't be sued for negligence Permits are complicated. If you are adding a master bedroom, it is not common to have … (4 comments)
guy berry: Another stupid lawsuit against the agent
- 09/22/08 12:51 PM
On one of my previous posts, I warned that agents can't ignore the issues surrounding permits. Since most of the houses in our market are 40 years old or so, many of them have been remodeled......new roofs, kitchens, baths, decks and patio covers, etc. Our California Associaiton effectively lobbied so that agent are not required to go offsite to make their visual inspeciton and disclosure to the property. Most agents interpret this to mean that they don't have to worry about permits. Unfortunately, this is not true. 1. In California at least, and I would assume elsewhere, an agent is held … (15 comments)
guy berry: This is a bad practice
- 09/05/08 10:55 AM
Have you ever seen this. An agent takes a listing on Wednesday. instead of putting it on to MLS, they keep it to themselves but they have time to put an Open House ad in the newspaper and get a sign ordered. If they don't double end it themselves over the weekend, they will put it on MLS. In a hot market, they have a good chance of being the buyers agent. If you see this, you should file a Grievance with your Association. I must not have been clear. I have received several answers to this Blog saying that the … (11 comments)
guy berry: We can't keep ignoring the Commission Issue!!! This might offend you.
- 08/13/08 06:49 AM
Because everyone is afraid of the FTC case against organized real estate for supposed price fixing of commissions, everyone seems afraid to even talk about it. Well, I am going to take the chance. My issue isn't whether commissions should be 6% or 20%. It is the way it is calculated that doesn't make sense. Does it really make sense that your commission should be based on how much a property sells for rather than the work that it takes to deliver the services. If it were marginal differences, like the bonus a Best Buy person receives for selling a $2000 … (9 comments)
guy berry: What do you think about our industry training. I'm embarrassed
- 07/25/08 11:45 AM
First of all, let's talk licencing training. In most states, it is just adequate at best. Much too easy to become an agent when you consider the risk that we take on for our clients. Also, that there is not some added criteria if you want to sell commercial, land or some other more exotic part of the business. And, if it is anything like California, what you learn isn't that revelant to what we do on a daily basis. Don't remember the last time I had a client ask me about avulsion. If you forgot, look it up: http://en.wikipedia.org/wiki/Avulsion Then … (6 comments)
guy berry: You need to file a Grievance!!
- 07/25/08 10:19 AM
I have been on Grievance and Pro Stans committees for over 20 years. I have also been an Ombudsman for our local board, In that experience, I have come to the conclusion that we don't take the Grievance process seriously. I hope I can persuade you to change this. We all complain about bad agents. Too often, manager/brokers don't control their people or have any idea of what they are doing. Ask yourself, have you ever dealt with an imcompetent, unethical or stupid agent? If you say, no, then I wonder how many deals you have done. If the answer is … (4 comments)
Guy Berry is a frequent expert witness in real estate litigation and an accomplished trainer in real estate law and contracts. In addition he has been licensed for 30 years as an agent and managed large offices, including Coldwell Banker and Century 21.
Unless you went to sleep a couple of weeks ago, it must be quite clear that this fiancial crisis didn't just happen And, all the finger pointing at Wall Street (and I think they are mostly weasels) was a diversion away from the real culprits. The congress put incredible pressure on Fannie Mae and FreddieMac to lower the standards to allow more lower income and minority people to buy houses. Yes, that means people who could not afford them. Then, add on top of that the lack of supervision by the Departments of Real estate and Lender oversight regulators at state … (4 comments)
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