Truth in Real Estate

Some years ago, there was law passed that resulted in something called "Truth in Lending".  One of the rationales for this was that lenders weren't always totally honest about loans, interest rates, and the like.  Now I could easily write a long and titillating book on the current abuses in lending, with some degree of expertise due to almost 28 years in the lending field.  However, for today, I'd like to touch on something even more sacred.  If you plan to throw a rock at a wasp nest to see them all fly, might as well be a big wasp nest.  And that brings me to what I have made up a term to call, Truth in Real Estate.  Most states have lots of laws regarding real estate and honesty.  The National Association of Realtors, and closer to my own home, the Texas Association of Realtors are awash with ethics codes, guidelines, policies, restrictions, and a myriad of other written verbiage designed to keep realtors honest.  If you listen to Howard Clark, 20-20, or 60 Minutes, you might be inclined to think all realtors are crooks.  Truth of the matter lies somewhere in the middle.  Actually I believe very few realtors are crooks.  Some are greedy, some are unethical, and a whole lot are inexperienced.  But for the most part, they are not crooks.  There is no more of a conspiracy to cheat poor innocent homeowners out of profit on their home sales than there was a conspiracy by George Bush to cause 9/11.  Yes, the 6% commission has gotten too fat, in those parts of the country where a 1200 foot house sells for $500,000 in one day.  Realtors that charge that much are in fact greedy, and a bit lazy.  Down south where the average home is still well under $200K and on the market for 3-4 months is a different story.  That 6% makes a lot of sense there, and most sellers get their moneys worth on those type sales.  Flat fees?  Yeah, they make a WHOLE lot of sense to me.  I'd list homes all day for $3000-$4000 flat fees on the listing side.  So just why do we need more truth in real estate?  Simple.  Most warm bodies that have a real estate license can help sell your home, or help you find a home as a buyer.  But most real estate agents do not have the experience necessary to deliver a high level of expertise in the real estate field.  Let me repeat that.  MOST REAL ESTATE AGENTS DO NOT KNOW WHAT THEY NEED TO KNOW TO PROPERLY ASSIST YOU IN BUYING OR SELLING A HOME.  Why not?  Because property transactions require much more than filling out a few forms, or driving around letting you into houses.  What about construction...does your agent understand construction?  Septic systems, water systems, mold, floodplains, insurance, loans and lending practices?  Appraisals, or do they think the Comparative Market Analysis is an appraisal?  Are they good negotiators?  Just because they have "been in the business for 30 years" does not make them good realtors. Some of the worst agents we have dealt with are those that handle lots of property and have done it a long time.  Some of these type agents are sloppy, unprofessional and generally have replaced laws, codes and ethics with their own made up rules that no one questions.  If this sounds harsh, I assure you it is not harsh enough.  The world of real estate agents is full of inept, poorly trained, and sometimes lazy individuals.  What John Doe homebuyer and homeseller need, is to stop finding an agent based on Mollie's best friend's cousin's recommendation, and finding someone who is truly qualified, experienced, highly ethical and trained to assist them.  On 20-20 a realtor said "it is hard to be a good realtor and have a conscience."  It may be less profitable, but it is not hard.  I do it every day.