November 15, 2006

Another day, another unethical and immoral bribe for a realtwhore

Posted by blogger at 11/15/2006

7 comments:

Anonymous said...

I checked out the website and for a 1855 sq ft house 2 bed 2 bath they want 366,900 !! and at the bottom of the ad it says *Prices listed do not reflect premiums associated with individual lots. They better boil it or bake it or BBQ it because they're gonna have to eat it .

November 15, 2006 12:39 AM
Anonymous said...

Are realtwhores being offered whores and cocaine?

November 15, 2006 12:42 AM
Anonymous said...

Imagine a company offering a stockbroker a 10% bonus for steering a client into their stock

There are laws against that.

But not in Real Estate.

November 15, 2006 12:44 AM
Paul E. Math said...

I'm not much for regulation and government intervention. But I think 'david lereah' makes a good point here - it's high time for some form of regulation here. Realtors and home-builders obviously can't be trusted to do what's right. This ad proves it.

The ad clearly creates a conflict of interest between realtors and their clients, whom they are supposed to represent. The fiduciary relationship between realtor and buyer is dead. Realtors are no better than used car salesmen. And residential real estate is now no better investment than a used car.

November 15, 2006 4:39 AM
foxwoodlief said...

So there is a meltdown in new homes and builders in Phoenix are still asking $197 a sq ft without premiums? Doesn't sound desperate or a bargain.

Many on this site seem to ignore my advice about cost per sq ft from historical mean as a guide to buying and yet examples of these ridiculous prices continue. In Vegas I read they are now offering new build for $175 a sq ft. Historically a starter home with no premiums was closer to $80-100 a sq ft depending on area of the country. Here in SW Austin you can buy from $80-135 a sqft with the higher price being pretty nice.

In Phoenix average homes (middle class) should only be $80-90 a sq ft new, nicely appointed ones $99-105, highend $110-200.

When prices fall to 2002 prices of $100 a sq ft for a nice house I'd say a correction has occured (and you can add $12 a sq ft to that for inflation). For a meltdown it would have to drop to $80 a sq ft.

Prices in Phoenix are still too high.

November 15, 2006 6:34 PM
Anonymous said...

> The fiduciary relationship between realtor and buyer is dead.

A fiduciary relationship between realtor and buyer never existed in the first place. Realtors, both on the listing and buying side, work for the seller.

November 15, 2006 6:50 PM
Todd Tarson said...

Fiduciary relationship with buyers is poor in my opinion for some of the reasons that others have shared in this thread. No arguments here.

Does this kind of ad work on realtors?? Yeah, probably. The problem that I have with it is that buyers need to be informed of the commission by their agent/broker. Does this ALWAYS happen?? Nope.

Buyers need to understand that in reality the seller doesn't pay the realtors... the buyers do... without the money the buyers bring to closing there is no commission, let alone sale of the property.

I've said it before, HP readers are the smartest living human beings on the planet and don't need to hire an agent to represent them. So understand that I'm not here trying to make you think otherwise.

What buyers (that aren't HP readers and that still feel the need to hire a representative) NEED to do is negotiate with their agent before they begin working with one. Basically asking the realtor to take a flat netotiated fee for the service they provide to the client or the client will find someone that will.

This way, even if builders are offering realtors more commission the buyer will still be able to ajust the offering price to either have the extra commission help pay for their closing costs or simply just agree to a lower purchasing price.

November 15, 2006 11:11 PM

Post a Comment

Subscribe to: Post Comments (Atom)