October 10, 2006

Realtors - corrupt charlatans, never to be trusted again

It's been amazing (and funny) to see the corrupt David Lereah spin lately. Now he's a the "we've been anticipating a price correction" stage of lying. Well, I pulled a series of quotes from the past year, when read together tell a funny story.

Realtors, my friends, led by the NAR and the corrupt David Lereah, should be seen as leaches, as corrupted, commission-hungry, say-anything-to-earn-their-check charlatans, never to be trusted again. Their profession is now fully and completely discredited, a dinosaur to be disintermediated post-haste.

Children should point and laugh when they see a realtor on the street. The town hooker should be held in higher regard. They should be branded, mocked, ridiculed, scorned and ostracized from society.

I give you the corrupt David Lereah:

June 25, 2005: "We've been expecting sales to remain at historically high levels, but this performance underscores the value of housing as an investment and the importance of homeownership in fulfilling the American dream"

August 12, 2005: "Real estate is still a great investment opportunity for households. Price appreciation will continue. I don't think there will be a price-appreciation pop"

November 29, 2005: "I don't like to use the word "bubble" because bubbles burst"

April 27th, 2006 (privately to NAR gathering): "We made a mistake. It's going to hurt. You are going to have a double digit drop. Expect it."

September 19, 2006: "The housing boom ended more than a year ago, but sellers are having a tough time accepting that fact"

September 25, 2006: "We've been anticipating a price correction and now it's here,'' Lereah said. "The price drop has stopped the bleeding for housing sales. We think the housing market has now hit bottom.''

57 comments:

Anonymous said...

Yet there are still those morons handing them their 3 million dollar home and believing they will bring them a buyer for a
mere 6%. Idiots.

Alan P. said...
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Todd Tarson said...

Keith, I know it is your blog and all, but how many times have you been exactly right??

I won't sit here and defend the quotes of Lereah, he's a big boy and if he was offended maybe he could come to the table.

You know that he is paid by the NAR, I know he is paid by the NAR. He is an economist, not Jesus Christ. Economists make guesses for a living. In my 6 years as a realtor I've never, ever had a client come to me and say that he/she should buy because of David Lereah. Hell, if I polled my clients its doubtful that even a very few even knows who he is. His name never comes up in a presentation with a client... and I don't know of another realtor that uses Lereah as a talking point.

If you hate realtors because of NAR and Lereah, fine. You sound like a perfectly capable buyer or seller, you shouldn't pay anyone to aid you in a property transaction (if you ever do another one again).

You ought to write a book or something on how to do property transactions without hiring a realtor and publicize it right here on your blog.

I still wonder if you disclosed to the buyer of your condo in Phoenix that the market was going to crash and that the buyer was buying at the top of the impending curve or bubble?? Like I would have.

keith said...

actually, I disclosed to my realtor when I sold my condo that the market was going to crash and I was getting out hasta-pronto.

If he decided to disclose that opinion to the buyer, well, I'd say that's highly unlikely, as that would get in the way of him making his commission!

dumbass

Todd Tarson said...

Sorry Keith, I thought you were too smart to pay a commission to a realtor. So you probably posted the disclosure on the seller disclosure form then right??

Alan P. said...
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Anonymous said...

"Keith, I know it is your blog and all, but how many times have you been exactly right??"

Keith doesn't have to be right because, hey, this is just a blog and people know that...

Surely, Lereah is no different than Keith but, unfortunately, TV stations, etc..., brand Lereah as a "newsmaker," "an insider," "a man of intelligence," "a leader," "somebody who's important" and "somebody with a title" since he works for NAR.

In reality, Lereah is just a paid shrill and another guy with a biased opinion.

However, because the media gives Lereah special treatment, he should be viewed differently than Keith. Keith isn't an "industry leader" so, unlike Lereah, we can't say he is a misleader.

For comparison, the Pope also doesn't like criticism and that's why he talks about "faith" and the "pre-scientific period" because he doesn't want his behavior and contributions to be compared to folks like MLK, Rosa Parks, Ghandi and many others...

Lereah, in my opinion, is like the Iraqi Information Minister!

Anonymous said...

"You know that he is paid by the NAR, I know he is paid by the NAR. He is an economist, not Jesus Christ. Economists make guesses for a living."

As far as I know, he's a marketer for NAR, not an economist. "Being an economist" helps him sell his bullshit just like the pharmaceutical industry uses doctors to sell theirs.

"In my 6 years as a realtor I've never, ever had a client come to me and say that he/she should buy because of David Lereah."

Lereah's job is "defining the message" for realtors who then spread his bullshit to others.

Todd Tarson said...

No Mort, things aren't great. I'm working longer hours, my golf game went to the crapper, the price of gas was a bitch this year.

Somehow I still manage to put food on the table though, whew!!

I come here to make sure that folks are still cheering on the rental market. It's time to rent, rent, rent, and rent some more. Please I beg everyone to sell their home and rent instead.

It is true that I won't do the same production as last year, whoah is me. I've turned down so many listings this year, what was I thinking?? I should have been in the real estate yard sign business this year, what was I thinking??

Buyers are taking their sweet time making up their minds on whether or not they will actually buy a property, I'm glad I'm not holding my breath.

I know, maybe I should force the buyers to buy like I didn't do the last 4 or 5 years. Maybe that will work eh?? Nah.. I'll stick with simply working on behalf of my clients and their own wishes. If they choose not to buy this year, then it is truly their choice. And perhaps a wise choice that I fully understand and respect.

But thanks for the time.

Real Estate 101 said...

Stop with the misinformation. Lereah's a real economist. Maybe not a good one, but Greenspan sucked too.


Dr. Lereah received his B.A. in Economics & Marketing from American University, Washington, D.C. and his Ph.D. in Economics from the University of Virginia, Charlottesville, Virginia. He lives with his wife Wendy and three children in Fairfax Station, Virginia.

Todd Tarson said...

>Lereah's job is "defining the message" for realtors who then spread his bullshit to others.

Hmm... I've come to know of this David Lereah and his message basically right here on this blog. Before that he was a dude I saw in the realtor magazine with some charts.

Anonymous said...

I have bought and sold a few properties in my life (now currently renting...just good timing here, not planned) and now with the internet and open MLS listings, I cannot for the life of me see what a Realtor offers except give me a ride in there nice (leased) car and know the combination to the lock box. Whenever I purchased, I did my own "comps" and surveyed the area myself. As a matter of fact, if the Realtor would just open the door and stand outside for a while, the whole experience would be much nicer, in my opinion.

InfidelWoman said...

I just bought from a FB who sold short and the Realtors got only 2%! Desperation is in the Air.

Todd Tarson said...

>Whenever I purchased, I did my own "comps" and surveyed the area myself. As a matter of fact, if the Realtor would just open the door and stand outside for a while, the whole experience would be much nicer, in my opinion.

That's great and I think you are not alone. I've noticed buying clients over the years become more informed and have done some of the work for me. I think that is wonderful and I fully support it. I love working for buying clients that are educated and can make decisions for themselves.

I'm in a position to negotiate with my buying clients. They are free to ask for the services they need in the transaction. If they just want a ride to properties and for me to open doors for them they are free to ask for that and I will ask for a fee.

For instance if you really only want the service you asked for, I'd ask for $500 a day. If you don't want to pay for it then you are free to find another realtor member with access to lockbox's.

Todd Tarson said...

>I just bought from a FB who sold short and the Realtors got only 2%! Desperation is in the Air.

2% of your money.

InfidelWoman said...

Yep, not 6% or 7%, 2% total, plus a 25% discount on the appraised value. hahahha

Todd Tarson said...

>Yep, not 6% or 7%, 2% total, plus a 25% discount on the appraised value. hahahha

Sounds like you made a heck of a deal. I am happy for you and hope that many others can make similar deals.

Anonymous said...

todd tarson - if you polled your clients, probably most would want to kick you in the rear.

Todd Tarson said...

>todd tarson - if you polled your clients, probably most would want to kick you in the rear.

Yeah, yeah. All realtors are bad, I get it.

InfidelWoman said...

Thanks HP.

Alan P. said...
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Anonymous said...

actually, todd did poll all his clients if you know what I mean!

Alan P. said...
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keith said...

funny that todd's such a bad realtor that he thinks owner's opinions need to be disclosed on their seller forms

man, that's funny!

should I have listed my political picks, world series bets and view of the financial markets as well?

realtors - the kids in high school who didn't pay attention during class

Todd Tarson said...

>Hey Todd, How many of the crapshacks you've sold over the last five years in foreclosure?

None that I am aware of. Many of the homes I sold were paid for with cash, and I've yet to sell a home where the buyer had to use 'exotic' financing. I am the only client of mine that has used IO financing.

Heck, even the investor clients didn't use 'exotic' financing.

I'm sure that many of the issues about such lending practices featured on this blog do exist and I won't debate them. I think they may be overstated a bit though.

Not every purchase of property is for investment. Exactly zero of my clients have ever been told by me that the property of their choice is a great investment.

Todd Tarson said...

>funny that todd's such a bad realtor that he thinks owner's opinions need to be disclosed on their seller forms

I guess it's okay to seem to care about everyone else in the world, other than the one buyer who happened to buy your property. Wow, you sound exactly like the folks in the REIC you rail about. You are no better sir.

InfidelWoman said...

Keith,
Check BuBBle Meter.
http://bubblemeter.blogspot.com/

Alan P. said...
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IW said...

LOL, no really, Mort, to funny.

InfidelSix said...

Todd, not knowing your history, I think you're being unfairly assailed here. I applaud you for hanging in there.

Truth is probably MOST industries have their own ethical predicaments. This includes ALL types of sales/marketing in particular, but also in Health, Legal, and all other industries.

You just have to realize that in sales, salesmen of all description are only interested in one thing - making the deal. That can be unscrupulous or not. The frustration level is high because of the industry-wide gravy train collusion and the destruction it's only now starting to cause. You're obviously taking a lot of grief because of others. In the end, you can only be judged by your own personal ethics decisions, but if you choose to defend poor ethics instead of condemning them, then, well ... good luck, you'll need it.

Todd Tarson said...

>All Todd's clients pay cash, ha! None of them use exotic financing, ha ha! The amount of exotic financing in this country is overstated.

At least get it right Mort. Not ALL of my clients paid cash.

Are FHA's and VA's exotic?? Did plenty of those.

Like I said I have been involved with one IO loan to purchase a property... but that client was me.

I didn't deny exotic loans existed, I just haven't seen too much of this and maybe have been fortunate enough that my clients didn't have to utilize one for a purchase.

I also think that exotic loans did in fact bring more buyers into the market which helped fuel the increase in pricing that simply was NOT healthy long term.

When more buyers were created there simply was not enough supply of inventory available.. and now many sellers have been conditioned to believe that their property should sell for more than their neighbor sold for last year.

I never told the seller that. In fact those sellers that still think this way that want to hire me, I excuse myself from and disclose to them the reasons why. Right now the sellers need to price their home to meet the market and the market bears much less than it did before.

Yet sales are still happening.

Todd Tarson said...

>In the end, you can only be judged by your own personal ethics decisions, but if you choose to defend poor ethics instead of condemning them, then, well ... good luck, you'll need it.

I'm not going to speak for other realtors. But I'm all too happy for defending my own situation here. Many people, including the blogs host, say that ALL realtors are bad and in cahoots to separate good money from all people in order to drive a Lexus or whatever. Keith puts me in that group.

But it is funny, in Keith's eyes I'm supposed to disclose to potential buyers that now is not a good time to buy real estate, while he -- as a property seller -- doesnt' have to. And he is the hero for calling out the REIC. Please.

He is the REIC.

Alan P. said...
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Todd Tarson said...

>Your own words are an indictment of your entire "profession".

Nope. My entire profession is not made up entirely of the kinds of agents I mention. Quite the contrary actually.

There are idiots in my line of work, just like there are in yours.

Alan P. said...
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Joey said...

All the Realtwhores® can soon find themselves back to their traditional employment options:

Marketing Analysts
Waitresses
Actresses
Human Resources
Call Girls

Alan P. said...
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Todd Tarson said...

>I see, rat bastard Realtwhores® are really rare. My business is not screwing people over, so, your fishin' expedition didn't go too well now did it?

Yeah Mort, it floors me every time maybe twice a year. Now I'll say that even if it is twice a year it is two times too many.

My business is not screwing people over either. Instead it is to help people that hire me to successfully transact property exchanges.

Muhammed Saeed al-Sahaf said...

Hey you guys - quit giving all realtors a hard time. The perception that there is a collapsing bubble has not sunk in everywhere, so it is understandable that some people may think it's a slowdown, or that prices will come back. The combination of purchasing a house at a stupid price and using exotic mortgages suggests to me that much of the debt will be liquidated by default rather than getting paid back. Think of it not as a crash, but a "deep correction".

Alan P. said...
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Todd Tarson said...

>so it is understandable that some people may think it's a slowdown, or that prices will come back.

Frankly I can't control whether or not prices come back, or the pace of sales picks back up to record levels. My job is simply to be there and provide the services the client chooses.

I've been reading this blog on and off again for months and the doom and gloom just hasn't appeared as of yet. It may very well still happen the way the author says it will and it could very well affect my business.

The slowdown or burst has affected my total production from the past record years, but I always looked at those years as an anonomly and not as something that would last forever. I'm on track for production that matched 2003 (which was not a bad year by any stretch).

Todd Tarson said...

>No really, my business is not screwing people over, that's the name of it. You must have a guilty conscience or something.

No Mort I'm not guilty of anything nor would I feel so.

Your business sounds like a winner. Love the name.

Alan P. said...
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WestchesterChick said...

Todd really held his own on this thread in some pretty un-realtor-friendly terrain. Rental and commercial agents will probably be fine as will seasoned pro's.

Alan P. said...
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Alan P. said...
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Todd Tarson said...

>Production, that's a laugher. My production thus far has been 6.5 billion people not screwed over this year so far, how's yours?

I don't quite have that many clients. But none of my clients have been screwed over by my services. All of the clients negotiated for the fees they agreed to pay me as well.

Anonymous said...

...and the scarlet 'A' stands for, you guessed it ASSholes!

Alan P. said...
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Shakster said...

Probably just dipsh!ts.

Alan P. said...
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Alan P. said...
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Alan P. said...
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Alan P. said...
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Alan P. said...
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Anonymous said...

Realtwhore® = high-school grads with big egos.

Anonymous said...

Why in the world do you think you would deserve $500/ day for driving people around and opening up homes? That's $180,000/ full year and $125,000 with weekends off and two week vacation.

The fact that anyone would pay this, clearly shows how screwed-up the current system is and why it will disappear.

The fact you think this is justified shows why it should disappear.

What service do you provide that justifies more than a very small amount of compensation? You don't give investment advice as you're not a licensed investment advisor; you can't write a contract as you're not a licensed lawyer; you can't value a property as you're not a licensed appraiser. Any other ideas?