This is wrong, wrong, wrong, wrong, wrong.
A seller offering realtors $75,000 (13.6%) to steer a sucker into this property. And you know the "winning" realtor will never disclose the bribe to the sucker (buyer).
Twist at HousingDoom pointed this gem out, from a realtor who asked that the deal NOT BE FORWARDED TO THE GENERAL PUBLIC. Sorry. Big hat-tip HD (who's also black-listed at Ben's boring blog FYI)
So where do we start HP'ers? This out of control system is spinning more out of control daily now. And the whores who call themselves realtors will be all over deals like these - bonus commissions from desperate builders, "co-broke" deals from soon-to-be-foreclosed homedebtors.
Hopefully there is nobody, NOBODY, in America stupid enough to be out buying a home today.
November 10, 2006
Should we call the police? The The BBB? The FBI? The MSM? The NAR? The AZ AG? Realtors being offered outright bribes in Phoenix.
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9 comments:
RIP realtor
if i ever buy a house, I'll do it directly with the seller with no middlemad. he/she can bring the price a little lower, saving him/herself brokerage fees, and bringing down my property taxes.
totally wrong and totally legal. the realtor does not need to disclose their commission prior to closing, but if the buyer READS THEIR HUD SETTLEMENT STATEMENT, they'll see the commission being paid to the realtors from the seller. if they were smart, they would force a price reduction instead of overpaying to cover their agent's commission. sadly, there is no shortage of fools out there.
Standard of Practice 1-3
REALTORS®, in attempting to secure a listing, shall not deliberately mislead the owner as to market value.
Standard of Practice 1-13
When entering into buyer/tenant agreements, REALTORS® must advise potential clients of:
the REALTOR®’s company policies regarding cooperation;
the amount of compensation to be paid by the client;
the potential for additional or offsetting compensation from other brokers, from the seller or landlord, or from other parties;
Article 2
REALTORS® shall avoid exaggeration, misrepresentation, or concealment of pertinent facts relating to the property or the transaction
Article 6
REALTORS® shall not accept any commission, rebate, or profit on expenditures made for their client, without the client’s knowledge and consent.
Article 7
In a transaction, REALTORS® shall not accept compensation from more than one party, even if permitted by law, without disclosure to all parties and the informed consent of the REALTOR®’s client or clients.
You mean the non-binding standards of practice? Ohhh I bet those scare Realtors® honest. Anyway a $475,000 house, $75,000 comission -> 15.8%!
But here's someone who needs straightening:
http://therealestateguide.blogspot.com/
The blogger is named Athol Kay and this is a response left on http://www.therealestatebloggers.com/2006/11/10/real-estate-agents-goals-at-odds-with-yours/#comments about this subject.
"The buyer is not paying the commission. The buyer is buying the house, and the seller is paying the commission."
Alright everyone repeat after me:
EVERYONE EXCEPT THE BUYER WALKS AWAY WITH MONEY. THE ONLY PERSON BRINGING MONEY TO THE TABLE IS THE BUYER AND THEY ARE PAYING ALL THE COSTS.
Please give Athol Kay all the apporpriate attention.
You people are missing the point...all the commission incentives in the world won't change the fact that the house is overpriced and not selling. Heck, just ask a million dollars and pay a $250k commission. It still won't sell. Most builders are so stupid they didn't even see a slowdown approaching. It's amazing, somethings never change. The recession of 1980 and 1990 caught a pile of builders with over inventory. They're never prepared for a slowdown.
Our town's housing market is truly great. But, builder's are sucking hind teet. The built homes double the median price and few can afford it. The median priced homes are selling at a record pace.
The only reason I would even consider buying a house today is if I got paid in foreign currency, then I can just watch my mortgage evaporate.
If I sell myself this house, do I get to keep the $75K? Can I just get $75K off the purchase price?
Who wants to live in some McAdobe mansion in the desert?
Am I the only one who thinks that the photo of that house looks fake (CGI)? And no address information. Bits of it look like it's the original pdf, but it's digitally masked. A scanned flyer wouldn't look like that.
I bet it's a spoof.
That house IS cgi rendered!
It looks like Buzz Lightyear could walk in from stage-left any minute.
Seriously, though, I hope it's SUPPOSED to be CGI, because if it's not then it's an obvious fraud.
The ad is real. The address and other listing info was digitally removed by us. Anyone wanting to check into the validity of the ad can go to housingdoom.com and leave us an email message. We will be glad to provide the address.
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