November 20, 2006

AZ Republic: Complaints against realtors soaring - up 150% since before the bubble

Thank god for Glen Creno at the Republic, who serves as a counterbalance against the lazy reporting of "Rolodex-of-Realtors" Catherine Reagor. Bravo, GC. Keep it up.

Here's his piece about complaints against our favorites, Arizona schisters (oops, I mean realtors). If you want the home of get-rich-quick hucksters, say-anything-to-make-a-deal-liars, and a fake economy based on a dead industry (housing), visit Phoenix, Arizona.

Grievances targeting agents rise - Boom opened door to violations, abuses
Glen Creno The Arizona Republic

Complaints against real estate agents are on the rise, with consumers accusing them of everything from selling property without a license to cutting corners to make a sale.

As of June, the number of complaints opened with the Arizona Department of Real Estate had jumped 53 percent since 2003, the year before the housing boom took the Valley by storm. Complaints forwarded for discipline increased 150 percent in that same time.

More consumers are not only griping about the way they have been treated, but they're also alleging they have lost money in real estate deals.

Agents found in violation of state laws that govern license holders can wind up paying fines or having their licenses suspended or revoked. Part of the spike in complaints reflects the rush of new agents who flooded the market to take advantage of the housing boom of 2004 and 2005.

The housing market fizzled this year as rising prices and more inventory kept buyers on the sidelines. Now, buyers are scarce, it's harder to make sales, and agents may cut corners by doing something such as not disclosing a termite problem, he said.

Most of the complaints come from consumers. Others come from agents complaining about other agents or governmental jurisdictions reporting what they believe are illegal subdivisions.

"I honestly think the agents got caught in the frenzy of the market," Schubert said. "They were making a lot of money. They forgot their responsibility to their clients."

Lending fraud also is a growing concern, he said, citing situations in which a buyer may not meet certain qualifications. An agent knows it, so does the lender, but it's not disclosed, he said, and that hurts the seller.

12 comments:

sandiegoHICK said...

Up 150%? What was the baseline? Complaints about realtors was always 100%!

hcooper said...

It would be interesting to know, however, how many of these complaints are truly valid.

It seems to me that people were trodding along nicely, making a pretty penny and not causing any waves. Now, all of a sudden, in a once-again-over-priced-by-the-consumer-and-at-no-fault-of-their-own market, they are losing money (or at least not making as much) and now it is time to place blame. Guess who gets that blame?

Wouldn't it be neat to see a graph that shows the relationship between the amount of profit made on sales compared to the number of complaints in a certain area. I would be willing to bet that the number is inversely proportional.

BubbleShanker said...

One more time.

No one should live in Phoenix, why live in an oven?

If you had to live in an oven, you should pay no more than 80-100k for a home, since the land is worth nothing, infested with termites, scorpions, roaches, and cactus.

The real question is which will ruin your life the quickest, the depreciation, the i/o loan, the termites, the scorpion bite on your 2 year old daughters foot, or the scumbag real estate agent hooking up with your partner.

Phoenix is dead, much like the anons on the board.

The Truth Incarnate said...

lol, yeah, I don't think the anons will be missed...... That Honica character though, I'll sure miss her enlightened commentary.

Stuck In So Pa said...

hcooper said...
Wouldn't it be neat to see a graph that shows the relationship between the amount of profit made on sales compared to the number of complaints in a certain area. I would be willing to bet that the number is inversely proportional.

Good point. When the dough is flying in like there is no tomorrow, nobody cares how much the parasites on the side are sucking out as long as YOU keep the biggest chunk.
When the deal starts going south it's always "God's will, or somebody ELSE'S fault." Typical America!
Not to say that there isn’t always going to be some wrongdoing in almost everything, but it should be despicable at ALL times, not just when it’s convenient (or non profitable.)

Anonymous said...

Does the collective psychology move the market or does the market move the collective psychology?

When does having a "New Kids on the Block" lunch box make you cool and when does it make you a has been geek?

Nothing changes beyond junior high except the stakes.

When your NKOTB lunch box makes you cool, you love mommy. When it doesn't, mommy is on your sh** list.

foxwoodlief said...

Bubbleshanker, Southern California is a desert and was once infested with termites, scorpions, roaches and cactus, and what is so different there now? And water? Without stealing it from the Owends valley and making that land "dead" and stealing it from the Colorado river and via canals from Northern California the area couldn't support all those crack houses.

As far as complaints? They mean nothing. When we sold our house in Phoenix in the spring of 2005 we learned real fast that unethical realtors get away with it. Our agent didn't disclose to us that people were writing multiple offers and walking away after getting a house they wanted. The first agent who brought an offer down right lied about her clients, and then after they were going to loose their earnest money got a new appraisal from a friend saying the house was worth less than the first appraisal and wanted us to lower the price and then wanted every little item found by the home inspector fixed (and we did) and then still walked away and after we complained about that agent with her broker and through our broker all they told us was to "let it go" and it cost us $2,500 because our agent left "one word" out of her contract. Neither agents were penalized. So complaints up? That is all most will ever be,complaints, as the board will protect themselves first.

Todd Tarson said...

Not shocked you would run this story this way without including the entire context.

The top three complaints raised in AZ are license violations, failing to disclose a conviction, and advertising violations. None of which are filed by the public, either the ADRE or other realtors file these kinds of complaints.

Then you quote the buyer Shubert as if we should believe that the realtor deceived her somehow and she lost some money. It was HER husband that either lost his job or switched jobs (neither of which would a realtor been in control of) during the escrow and as a result could not qualify any longer for the loan. The buyers did sign an agreement, that they 'agreed' to. I'm guessing this isn't exactly all that great of a case if she is this happy to talk to the press about it as I'd guess her lawyer would have her do otherwise.

Now we don't know for sure without looking at any docs, but the seller gave a 30 day out clause if the buyer couldn't obtain financing so it isn't like there wasn't a chance to get their money back. Keith I'm sure you'd go back and give the poor sap that bought your condo some of the money back since things have changed after the fact of when you made the agreement, wouldn't you??

Again we don't know enough about the facts here, but I supose as long as Keith has crowned this journalist as all knowing we should conclude that the realtor kept $92,000 of earnest and upgrade money and call for a lynching.

I sit on the pro standards committee in Arizona and I can share with you that if a member of the public files a complaint against a realtor that party cannot win a monetary award. In order to do such a thing it needs to go before civil court. I'd keep an eye out to see if more suits are being filed against realtors for monetary damages. Not anything reported on by the so called reporter in this story.

For the year of 2005, with all the realtors in this state AND all the alleged complaints only 234 ethics complaints against realtors were filed. 'Ethics' complaints and 'advertising' complaints are much different in scope and number.

But again Keith, don't let the facts stand in the way.

keith said...

Good luck with the job search Todd

I hear Ramen is on sale at Safeway

I didn't write the article goober. I just reported it. I guess your issue is with the Arizona Republic. In addition to the facts.

Face it bud, your career is over. You're led by a corrupt organization (the NAR), you're being disintermediated (zillow, fsbo), the ponzi scheme is over, people no longer trust you, and "realtor" is now below "crack dealer" on society's rung

cheers

Anonymous said...

Seems like there are some RE shills posting on the board. I guess they have some free time these days.


Agents found in violation of state laws that govern license holders can wind up paying fines or having their licenses suspended or revoked.


How about instead paying with fingers and toes ala the boyz in Tehran? I know Keith loves them, let's give it a try. Can you imagine Harriet-the-Harlot realtress trying to shake your hand with two fingers and no thumb?

Todd Tarson said...

Typical response by Keith. You quoted bits and pieces from the article to frame your loser argument and got called on it.

You are the one that knighted the reporter for the article he wrote and used the juicy pieces for your incorrect and jaded view.

Do you want to talk about the facts you tried to reveal or are you going to hide behind top ramen quips?? Cause if you are... you'll be wrong again. Twice on one post.... again, typical.

AnonyRuss said...

>>>...either the ADRE or other realtors file these kinds of complaints...I sit on the pro standards committee in Arizona and I can share with you that if a member of the public files a complaint against a realtor that party cannot win a monetary award...only 234 ethics complaints against realtors were filed...

You refer to the term realtor in relation to state licensing/discipline throughout your comment. You get a real estate salesman or broker's license from the state. Being a "realtor" is achieved by paying fees so that Lereah can send bouquets and PAC money to Pelosi et al. Do not tarnish the State of Arizona's name any further by linking the ADRE to the term "Realtor" TM.