Greed is Good...NOT!!!

By
Real Estate Agent with United Country Premier Properties TX 482380

Pardon the rant.  This is by no means all encompassing, but I just have to get this off my chest...

Greedy banks and lenders, greedy homeowners, greedy investors, greedy Realtors (not all, but certainly some) and greedy Wall Street types.  Contrary to what Gordon Gekko (Wall Street) says, greed is not good.  Greed has led this country into an economic downturn the likes of which have not been felt in 30 years or longer.  The love of money, not money itself, is the root to all evil.    

I have been in this business 8 years now so i guess you could say that I've gone through "the best of times" and I'm getting ready for "the worst of times."  Here's the painful truth about the situation.  There were a lot of people in our industry that took advantage of the easy money market that we were going through and were happy to put anyone with a pulse in a house.  You know when someone shouldn't be buying a house.  If you've been around very long at all, you know that it wasn't very long ago that lenders and mortgage brokers were ready to slam anyone into a house whether or not they believed they could handle the obligation.  They made it so easy for the buyer with statements like "Of course you can buy a house", "We have a program for buyers with bad credit", "Bad credit, no credit, bankruptcy...no problem" and of course the ever popular "SUB-PRIME!!!"

Now it's easy to sit back and point the finger at the mortgage industry, but where were we Realtors when this was happening.  Where was the Realtor whose job it was to give advice and opinions to serve the best interest of the client.  In all the years I have been in this business, I have sold only one home to a buyer who could not qualify under normal guidelines.  That buyer has since refinanced to a "normal" mortgage.  Happily, I can also say that in my 8 years, none of my buyers has had a home foreclosed on.  I'm not saying this to brag, but rather to remind each of us that we have an obligation to our clients, not to our own pocketbooks.  There's a lot of money to be made in this business, and that can be tempting.  Ask yourself, is it your priority to be number one, to make the most money or is it to REALLY, REALLY do what is best for your client? 

Are you Realtor enough to tell your clients what they need to hear, not what they want to hear.  When the lean times are past and the good times are rolling again, I pray that we are all still in the game.  I hope when that time comes we will all remember where we've been, how we got there, and that we will do that which is necessary to prevent this from happening again.  Remember, those that do not remember the past are destined to repeat it.  Let's get through this together and I will see you on the other side.

Comments (4)

Andrea Curtis United Country Premier Properties Certified Military Relocation Professional
United CountryPremier Properties - Harker Heights, TX
U C INTERNATIONAL DIRECTOR OF MILITARY PROPERTIES

AMEN BROTHER!   This is the same lesson our industry did not learn in the mid-late 80's when I first started!   We had a BIG real estate bust at that time and the same practices that got us into that mess have gotten us into this one!   If we do not learn from our mistakes we are destined to repeat them!   So RANT ON RICHARD!!!!!

Feb 06, 2009 03:21 AM
Lara O'Keefe
North Texas Home Finders - McKinney, TX

Richard, the key in my opinion is balance. It seems now that the lenders have gone far too much to the opposite side of the spectrum. Now some poeple with good credit cannot even qualify to buy a home.

Feb 06, 2009 07:26 AM
Richard Overall
United Country Premier Properties - Harker Heights, TX
Your OVERALL Long-Term Real Estate Resource

Laura, I agree it is the lack of balance that got us here, but like Andrea said above, it's the same as what happened in the 80's (and not the good "I love the 80's"), but here's the big difference.  Then, the lenders were allowed to fail and the govt scooped up their bad assets and disposed of them through the RTC.  Now, the govt just throws money at the lenders and says 'Now go out and lend' but the lenders cower in their corner hoarding the bailout money.  Once the storm is past, they will be at it again, and unfortunately, some of our Realtor friends will be right there with them.  That's the point of the post.  We should make it our responsibility to educate our clients so we do not have a repeat of this.

Feb 06, 2009 01:05 PM
Joel McDonald
Joel McDonald -- www.AutomatedHomefinder.com - Castle Pines North, CO

I agree.  It's tempting to think that the government printing money will help get us out of the problem we got into, but the fact of the matter is that it will only delay the inevitable...  Responsible borrowing (on everyone's part) and responsible lending based on facts (not speculation). Is the only way we can fix this problem.

Feb 11, 2009 02:39 AM