November 03, 2008

An anon posted this today: "I'm a Realtor. How did I cause any of this to happen?" I thought I'd let HP'ers answer that one


I truly think this person doesn't realize the destruction caused by their profession.

Please explain it to them. Maybe they'll listen.

Or not.


63 comments:

The Housing Bubble Ate My Balls.. said...

Another Clueless Realtor....

Along with this one..

At a dinner party the other night I had the pleasure of meeting someone that was apparently high up in the ranks of one of the national brokerages.

First, she didn't strike me a being savvy enough to hold a position that high.
Second, she of course told everyone that would listen that "Now was a great time to buy!"

According to her crystal ball housing will bottom in 2009. She also said that Florida was a bargain and that if you didn't get in now you would loose out because it is ALL getting snapped up buy foreign money and anyone that waits is going to miss out.

I think the best pearl of wisdom she came up with was this:

"The Main Stream Media isn't telling the whole story, 75% of the foreclosures out there are investment properties, there are very few families loosing their homes."

RIIIIGGGGHHHTTTT!!!!!!!

Anonymous said...

Dear Caveman, Connie, Lereah and Yun, NAR and all those pasty white innocent faced mortgage and REIC banking people hiding behind their desks in a soon-to-be-closed office and every citizen of Arizona, Las Vegas and Orange County, CA:

Your misinformtion campaign and loyalty oath has been breached by one of your own. The Kool Aid is wearing off or an anti dote has been found...

Many are called, but you slimebages have been chosen... The bell will ring for you and your ilk Tuesday.

You are obsolete and irrelevant. Your 'job' has been outsourced to the internet.

Any used-house peddler asking 'why'? or 'what did I do'?needs an immediate frontal lobotomy and banishment to a Bushco or Cheneyburton work camp reeducation gulag posing as a FEMA camp.

Worldwide Financial Collapse ring any bells, douchebag?

Nevermore

VOTE OUT ALL INCUMBENTS

CENSURE BUSH AND CHENEY AND IMPRISON TO REMOVE PARDON POWER

GOP = DEAD

MASH MCCAIN AND PULVERIZE PALIN

Cow_tipping said...

Easy, by being shills for the sellers, and it got to a point were flipping in 1-2 months made massive commissions for the realt-whores when the basic fact that Realt-Whores ignored was that, rents were dropping due to high vacancies and houses are being built like there is no tommorow resulting in a serious over supply in short order.
The seller, the sellers agent, and the buyers agent are all looking out for the seller. They ignored fundamentals and gave out bad advise and got paid big. Sorta like the financial industry.
Cool.
Cow_tipping.

FlyingMonkeyWarrior said...

DEAR ANONOPUSSY REALT-HO,
Realtors are more distructive of peoples lives than dirty cops.
Just an understatement from a
FORMER VICTIM OF REALTOR GRIFTING, BUT NO MORE.
FMW

i've had it said...

Dear Realtwhore,

The reasons we are in this mess are multi-faceted and here is why you are partly to blame. You

1) told borrowers they "can afford so much more house with your income", when they couldn't,

2) scared them by saying "they aren't making land anymore", as if this is the only determinant of housing prices,

3) tricked them by blathering how "housing only goes up", when the facts are that it goes up and down,

4) lied to them by falsely claiming that "this is a great time to buy a house", when it has been a shitty time to buy for years now,

5) stupidly and evily (a word?) told flippers they could get a no doc/no income option arm loan and sell the house in six or twelve months for a nice profit.


That is why this mess is partly your fault. In fact, one could make the case that you are the primary reason for this mess because without cheerleader Realtwhores like you, people would not have been conned or encouraged into buying/flipping houses.

If you were a stock broker and said similar things to stock investors and then things imploded, you would be thrown in jail.

When we get around to writing new laws governing realtwhores, you can bet we will be restricting your commercial speech so you can't say any of the above without severe financial and criminal penalties.

FlyingMonkeyWarrior said...

HAHAHAHA Maybe this will help Keith!


MORE: Lifted from Buzz's Blog:
******************************8

@ Buzz,
I was a member of the Church of Anti FlipTards and proud of it!!! heh heh
FMW

buzzsaw99 Says:

November 1, 2008 at 10:21 pm


1 The LENDER is my shepherd, I shall not want.

2 They maketh me to lie down on green lawns,
they leadeth me beside granite countertops,

3 They restoreth my HELOC.
They guide me onto the path of indebtedness
for their name’s sake.

4 Yea though I walk
through the valley of the shadow of foreclosure,
I shall fear no evil,
for the CONgreffs is with me;
their laws and bailouts,
they comfort me.

5 They finance stainless steel appliances before me
even after the sheriff’s sale.
They anointest my head with corporate credit cards;
my mailbox overfloweth.

6 Surely the bill collectors will follow me
all the days of my life,
and I will dwell under a four lane bridge
forever. Amen.

LINK:

http://buzzsaw99.wordpress.com/2008/10/29/no-dont-go/

Anonymous said...

Year round golf and pro athletes

upthecreek said...

I have one word for this realtor..
SOTE

"Scum Of The Earth"

Anonymous said...

bottom line is that buyer's agents weren't (aren't) truly representing the bet interests of the buyers by really negotiating a lower price. The commission structure motivates closing deals as fast as possible.

They implicitly and sometimes explicitly conspired with the selling agent to get a deal done so that commissions could be collected. so what if the buyer was paying a little more than they really needed to?

Anonymous said...

Real estate clerks encouraged greed in order to get a fat commission check. Any Questions?

Devil's Advocate said...

I'll play Devil's Advocate here for a minute. This post probably won't be popular but oh well. I believe Realtors (house sales-people) bear much less of the blame in the big picture. Were they really being dis-honest? Up until the time the bubble burst it really was a good time to buy a house - if you planned on selling it for a profit. And people wanted to buy houses, and people wanted to sell houses. And people who sold houses were willing to give up 6%. These realtors were not selling speakers out of white van. (greedy) People were lining up to sleep on the sidewalk to have the privelage to bid against each other in an aution for an overpriced condo that hadn't even been built yet.

All the realtors did was there job. They connected buyers with sellers. I am not talking about the REIC, or the NAR, or realtors as a whole. I am talking about individual realtors. What are they supposed to do when, at the peak of the mania their phones are ringing off the hook with people who want to buy, and people who want to sell? Are they really supposed to tell those people no? Would you really have told those people no? Really? You would have turned down $50k a month that was given to you legally by people acting on their own free will? People who also benefited financially from the transaction?

Without cheap credit, exotic loans, ridiculous lending standards, and dishonest appraisers, and greedy people buying and selling homes for profit, the realtor would not have been getting the business.

So, did the realtors cause this? NO. Did they profit from it? Yes. Are some realtors stupid enough to believe that after the bubble burst it really was still a good time to buy a home? Yes. Do some realtors know that it really may not be a good time to buy a home, and they are still telling customers that it is a good time to buy? Yes. Did realtors cause the housing bubble, and subsequent financial crisis? No.

Yours Truly,

Devil's Advocate

Anonymous said...

Kieth,

Please edit this post by putting the word profession in "quotations". The Cardinal rule of being a HP'r is to understand that being a Realtor is not a profesion.

RayNLA

vanilla ice said...

The question should be, "what damage haven't I caused?"

Anonymous said...

Because Realtors worship Satan and kill babies or anything else to make a buck.

Anonymous said...

.
You misrepresent the buyer and the seller!

Anonymous said...

.




How do you justify your 6%?

The home sells itself,

buyers either like the home i.e floorplan, location, price...etc

You do a 20 minute walk-thru and announce every room as we enter it, as if I couldn't figure that out as we enter the kitchen or master bathroom!

.

Anonymous said...

Actually, I think most of the damage was from the banksters and mortgage brokers themselves as per:

http://www.tickerforum.org/cgi-ticker/akcs-www?singlepost=813364

"I was in the mortgage business for 23 years. Eight of those years were at Freddie, as an underwriter, Quality Controller/Internal Audit and Senior External Auditor. From 1995 to 2006 I was a Senior Level Contract Underwriter. I worked for GE, PMI, Radian, MGIC and United Guaranty. As a contractor, I worked in Crestar, Countrywide, First Magnus, Wells Fargo, Bank NY, Bank United, Bank Of America. I have been out of work for 2.5 years because I was "blacklisted". I moved from company to company because I just didn't decline the loans, I proved the fraud. My managers would say such comments as, "you cant call them liars", "I can get any property appraised", "We do not decline loans here", "We don't use the word (fraud) here". Unlike Ms. Cooper, I made copies of all the files, hundreds of them. The last 1.5 months I was at Magnus in 2005, I only underwrote 46 loans, each of them fraud from cover to cover. I declined each one of them. And I have a copy of each one of them to prove it...."

The Ms. Cooper he references is named in

http://www.nytimes.com/glogin?URI=http://www.nytimes.com/2008/11/02/business/02gret.html&OQ=_rQ3D3Q26refQ3DbusinessQ26orefQ3DsloginQ26orefQ3Dslogin&OP=4f691b02Q2FQ20KQ3BcQ209yEuAyytvQ20vQ25Q25iQ20YYQ20Q25vQ20cquPrQ3BuuQ20Q25v-AQ3Bt8gteQ7B

Was There a Loan It Didn’t Like?
By GRETCHEN MORGENSON
Published: November 2, 2008


But Realtors were the ones who often recommended a fraudulent mortgage broker, and recommended a fraudulent home appraiser. To the extent that they did, they bear some responsibility.

Also the ratings agencies that said everything was AAA bear a large part of the blame.

My list in order for those responsible are:

1. Investment Banksters
2. regular Banksters
3. Mortgage brokers
4. Ratings Agencies (Moodys et al)
5. greedy Insurance companies that wrote CDSs irresponsibly (and anyone else who did that)
6. fraudulent appraisers
7. fraudulent homebuyers (who lied on their applications)
8. Realtors who aided and abetted the above
9. Greenspan for keeping the rates too low too long
10 Congress for repealing the laws that would have kept the banksters somewhat in check
11. Bush admin for not having the SEC, FBI and other agencies do their job

Disgruntled Baby Boomer said...

Accountability and post contract consequences is the key. With the realtor and mortgage broker leaving the table at time of transaction or closing, they are not compelled to disclose or tell the truth. I heard so many unsubstantiated statements in past years going back to 1976 when I bought my first house, that I want to puke when ever I meet a realtor.

Anonymous said...

Because you LET PEOPLE DO WHAT THEY WANTED TO DO!!!!

Shame on you!!!

FlyingMonkeyWarrior said...

@ The Devil,
You are in denial if you think a realt whore needs 6% for an introduction, there is Zillow, and Craigs List to name just two FREE sources, for crying out loud.
Do you for a minute believe the drivel you spout that they are innocent and objective!!!!!
They keep their own listings (pocket listings) and do not show the other MLS listings, which may be in the best interest of the buyer, but then; said Realt whore would have to co-broke their commission! Let me spell it out, split it 50/50 with the buyer broker or the other listing broker. and conflict of interest Come to mind Immediately when I hare the words REIC.
They stretch the truth to close the deal, all the while pretending to be FOR THE CLIENT!!! The word SELF DEALING GLARINGLY comes to mind as does Greed .
The have their own BOOK OF APPRAISERS THAT will make THE NUMBERS work, or they do not give them the business.
You are an idiot!
I would go on, but I have real work to do as apposed to Vapor Ware to sell, like the REIC.
FMW

Anonymous said...

"Because you LET PEOPLE DO WHAT THEY WANTED TO DO!!!!

Shame on you!!!"

Good post. I never respond but this have a ton of truth to it. Everyone was to blame and was stupid in this mess. Buyers, realtwhores, lenders, brokers, builders, flippers were all to blame.
forsakencraft

long termer said...

Because it was your job to 'inflate prices' of homes beyond their true value.

in essence that is the root of all the financial troubles we are facing today.


anyone remember the NAR Radio commercials (circa 2006)how a house sold with a Realtor is atleast 16% higher?

Anonymous said...

Right.. Let's Realtor Bash. How many of you sold in 05-06 and used a Realtor. Are they Bad?

Kettle Black Doomers.

Your Housing Panic is over and now your just looking for stuff to cry about.

DOPES 2 said...

DEAR REALTOWHORES:

ALL OF THE ABOVE AND ALL OF THE BELOW LISTED COMMENTS WITH THE EXCEPTION OF THE DICKCHEESE ANON REALTWHORES THAT SAY THEY EARNED THEIR 6%.

TARDS!!!!

TOOLS!!!!

DUPES!!!!

DOLTS!!!!

DOPES!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Anonymous said...

Waaaa

Waaaaaa

WAAAAAAAAAAAAAA!!!

The Devil's Advocate said...

@FMW:

1. Sorry you got burned by a realtor. If you were just trying to buy a place to live I feel bad for you. If you thought you were gonna flip it for a buck shame on you.

2. Of course I don't think they deserve 6%. But like I said people were willing to pay it.

3. I never said realtors were innocent or objective. They are not. You are not. I am not. Nobody is infallible. They are salespeople on a commission for pete's sake. Anybody stupid enough to believe salespeople on commission are innocent and objective deserve to get burned. The buyer knows going into the deal that the realtor is a salesperson with something to gain by "selling" the house.

4. Appraisers. Yes. They are a much bigger problem that the realtors, and on home sales and refis, helocs etc they get most of their work from loan originators - not directly from realtors. Originators call the appraisers and tell them they need an appraisal at xyz and they "are looking for about $xyz.000" Wait, so you already know how much I am going to appraise the property for? Just silly.

5. I am an idiot? Yes. I am an idiot for getting in on the Gravy train that was being a realtor. Here I am doing an honest days work just to be a part of the struggling middle class when I could have printed up some business cards and sold some $1M homes for the big bucks. I am such an idiot, what was I thinking?

Rob Dawg said...

Realitters® no longer add net value to the buying and selling of dwelling units.

Anonymous said...

Show me one buyer, sitting next to the Realtor, OR Lender, who had a GUN pointed at his/her head, and was THREATENED with death if they did not sign the Mortgage Contract?????
Just show me one buyer, only one. (Being stupid is not an excuse)------
Now, substitute the buyer's personal GREED and PRIDE for the gun and by golly I think you got it!!!

Nick said...

I'm sure I'm going to be a pariah on this board for this opinion, but I don't actually blame NAR or its members too much for the mess. In my opinion, the most damaging thing NAR has done is portray themselves as a public-service organization, instead of the for-profit corporation they are.

You don't blame the used-car salesman for getting ripped off buying a car: it's their job to rip you off, and you have the resources to make an informed purchase. The internet is already transforming that industry, and soon you won't have to buy a car from a slimy salesperson with hours of haggling to get a good deal. Likewise, I hope zillow/redfin/et-all survive long enough to similarly reform the RE industry, so you don't need to give a ridiculous amount of money to someone who just says names of rooms for you.

Regardless, though, NAR is a business, and their agents are salespeople, and I can't fault them too much for trying to extract the maximum amount of money from dumb people through advertising, self-promotion, and cornering information and access markets. It is the American business way, no matter how repugnant, and in the absence of bailouts for the idiots falling for it, I have no philosophical objections to their business model.

Agent 99 said...

I heard this a little too often:

"I think you should make a full-price offer."

Anonymous said...

Gardeners no longer have any value because I have a lawn mower.

http://www.genevalakefrontrealty.com/blog said...

"thank you Realtors"

I'm a Realtor, and I hate to admit this, but I never held a gun to anyone's head and told them to sign on the dotted line. People buy houses because they want to, not because a Realtor tricks them into it. In 13 years in the business, I've never once counseled someone as to what they could or could not afford. That's up to them to decide, and if they decide wrong, why is that anyones fault but their own?

I think Keith needs to crawl out of his parents basement and realize that Realtors don't have as much influence as he thinks. I'm sorry that many people were so ignorant as to think that prices would continue escalating forever.

People bought houses. People agreed to loans that they couldn't pay back. Check that, they agreed to loans that they now don't feel like paying back. Personal responsibility should have kept this housing downturn in check, but the American people chose to abandon that personal responsibility, and this is where we now stand. Banks are taking it on the chin, and Joe Blow American Used to Be Homeowner walks away relatively unscathed.I know, the big bad mean banks. I'm sure you'll all get so angry at the horrible banks that try to steal all your money. Come on people, stop crying.

If you like this lack of personal responsibility, vote Obama on Tuesday. Unless ACORN has already given you a cigarette to vote early.

redbeard said...

After all this time, I hope you guys understand that the true root cause of credit expansion is the Federal Reserve. If the Fed never slashed rates to 1% after 2001, interest rates would not have been artificially and temporarily low. They shouldn't tinker with it. Leave it at 5% forever. Even better, abolish the Fed.
The housing and realtor mess is a symptom of the disease.

Mammoth said...

Realtor 2005: “Would you like Granite with that?”

---------------------

Realtor 2008: “Would you like anything else with your massage?”

Paul E. Math said...

Realtors, you represented yourselves as trustworthy experts in real estate. You were not. If you were an expert in real estate you would have known that prices were out of line with rents and incomes, that we were in a bubble, and you would have warned clients against buying property.

You called yourselves 'agents' which is a technical term that entails that you must put the clients interests above your own. You did not. You talked people into buying homes that they could not afford, that were destined to drop in value so that you could obtain a commission cheque.

You preyed upon the ignorance and vulnerability of your clients. You told them they needed to buy now or be priced out of the market forever. This was a self-serving lie.

You financially supported your state and national associations of realtors who, in a position of respect, trust and authority, not only denied the bubble, but ridiculed and fought those seeking to impartially educate consumers.

Your state and national associations of Realtors lobbied all levels of government heavily, relentlessly and successfully for self-serving policies that inflated the price of real estate, contrary to the interests of their clients, so that their members could reap higher commissions.

You engaged in collusive, anti-competitive practices, jealously guarding the multiple listing service, forcing buyers and sellers to use your members, paying them extortionate fees.

You lied and were one of the chief beneficiaries of rising home prices.

This is just the short list of what Realtors did to cause this to happen. You should be ashamed and apologetic and, if anyone, you should be paying for the foreclosures, not the innocent taxpayer.

Rational Renter said...

"I just sold O.J. the knife and gave him a few pointers on how to use it, how did I cause any of this to happen?"

Anonymous said...

Keith, go take a look at the current listings Bloodhound realty has. The second home down is a total sh*thole. Why would they have it so high up in their listings? How, as a customer of Bloodhound, would you like to have that crack shack ahead of your home? I think Swann has truly lost it.

vanilla ice said...

Well said Paul E.

Anonymous said...

Kweefer, this isn't complicated and yet you're always quick to blame the little guy.

Realtors are scum, yes it's true, but aren't most sales people?

Sales people aren't thinking about how their actions affect society, they are just out to make a quick buck. It's in their right to do so.

If you get screwed by a shady realtor, a dodgy car salesman that sells you a lemon or a scam artist from Nigeria it's your own fault.

However, the bigger issue is government intervention in the economy and the fraudulent fiat monetary system.

As Ron Paul has explained to us all with great clarity it is the low interest rates and government sponsored entities like Fannie and Freddie that encourage the malinvestment (the surge in shady realtors) that is the root cause of the problem.

If you do not understand that then it is you who is clueless.

Anonymous said...

The simple fact that he has to ask tells a lot about why we are in this mess.
It means realtors can't grasp shit of their own business fondamentals. It never occured to them that something was wrong selling Mc mansions to jobless people.

Anonymous said...

Dear Realtor - the only way you can redeem yourself now is to make sellers understand that it was all a big ponzi scheme and work on getting those prices back down to match the fundamentals for fixed rate mortgages. Most people can't manage their 401Ks - they certainly aren't qualified to time the use of an ARM. Particularly someone that doesn't understand that what goes up must come down or someone that thinks they can buy a $500K house when they only make $11.50/hour. You and your kind are to blame because you took a commission and knowingly put people into houses that they could never afford.

Anonymous said...

Realtors sold themselves as experts to the uneducated masses. The masses were stupid and trusting and in 5 or 10 years they will forget and trust again. My father is a realtor and did not even finish high school. I love him because he is my father, but I never used his supposed "expertise" because I grew up knowing him and the people he worked with as the "used car" salespeople that they are. I bought my home using a contract and an escrow company. The problem is that the realthors have convinced the stupid masses that they cannot handle their own contracts. They also screw the independent FSBO by redirecting their clients to other realthor properties. They are the mob and they keep a tight hold on their MLS to trick the masses into using their services. On this subject I think we can all agree in our distain for "them".
Having said that, I find it shameful and bizarre to see the majority of the supposed "enlightened" on this sight fall for the trickery of Obama. My vote for McCain is simply a hedge against letting my country fall into Obama's hands. Too bad the masses on this sight can be so insightful regarding some matters but off their rockers when it comes to Obama.

Anonymous said...

The problems with unrealtors is still very much alive and well. Despite my objections the story I am going to tell is very true and happening right now.

My son-in-law's parents are close to 70 years old. They recently finally found someone to buy their home in the Northeast after a whole lot of months and several price decreases.

On a single trip to Florida last week they somehow got scammed into signing a contract to buy a house in Ground Zero. Port Charlotte. Port Charlotte is just a couple of miles north of Fort Myers.

The asking price of the house is $150k and the biggest selling point was the fact that the unreal estate agent told them they could flip the house for $200k right after they bought it since it was so underpriced. Nevermind the fact that there are thousands of houses in that area and price range that will take years to sell.

They are so screwed it's unbelievable.

Anonymous said...

Just for shiggles I decided to go to a couple of open houses about a year and a half ago.

At the first open house the lonely Realtor started talking to us and I informed her I was only looking. She informed me that this place was going fast and I should really think about buying before I was priced out.

The second open house in the same complex I heard the same exact thing.

There were four open houses in the complex that had been finished about 2 years earlier.

In each instance I told them I beleived based on the exotic loans and the subprime implosion that the market was going to contiue falling.

Once they realized I wasn't a sucker they started telling me how tough it is.

One actually told me that her office had downsized considerably and she was thinking of leaving the industry all together.

I don't know that I could blame the sellers agent but a buyers agent should absolutely tell the buyer that now is not the time to buy unless you can get a really great deal. That is after explaining the downside of the market.

Anonymous said...

I think the question "How did I cause any of this to happen?" is one we all have to answer to.

In the spirit of HA ( Housing Anonymous ) I will take the floor and answer the question.

I live in SouthWest Florida ( yes - THAT Florida ) and my housing tale began in 2001 when I lost my job for the first time ever in my life.

No problem, I mused. I have two advanced degrees ( Physics and Computer Science ), 35 years professional experience ( including 15 years of self employment ).

Furthermore, I had aggressively saved almost a decade of expenses so I was not in a hurry. Much to my surprise, after a year of search - I was still unemployed. I learned to my dismay that I had become unemployable because of my age, income history and professional experience.

So I "retired" and decided to put some of my savings to work.

The Real Estate market was just starting to "go crazy" ( and by crazy I mean prices no longer reflected actual replacement costs ), so I located a nice buildable lot - for $1500 and drew up plans for a modest 3/2/2 house.

The lot was in a "deed restricted" community ( about a 100 pages of rules and regulations!) and I discovered to my amazement that one of the restrictions was a minimum square footage under air of 1600 sq ft! My plan was 1540.

I briefly considered revising the plan, but decided a better course of action was simply sell the lot and find a more suitable property for the house.

I stuck a "For Sale by Owner" sign on the property - and within a week I had an offer of $3,000 - which I accepted. I was puzzled why anyone would pay double my investment in a little over a month.

A week later I found a lot suitable for the plan ( no "deed restrictions" )within a mile of the first lot posted with an overgrown "for sale by owner" sign. The owner had "invested" in the property over 20 years ago and had paid $10,000 for the lot. I offered $3,000 and he accepted - on the condition I buy the lot that he owned next to it.

The next five months were the most fun I had had in a long time. ( NOT! - I was an owner / builder ) But on May 1, 2002 I moved into my new home - mortgage free and ready to enjoy my retirement.

My total development was $82,000 ( land, plans, permits, fees, materials, labor and the kitchen sink ) - slightly over my budgeted cost of $75,000.

I was surprised when the property appraiser assessed the property at $135,000. I had "made" $53,000 on $82,000 in 6 months. A pretty good "wage".

By the time I had moved into my new home the asking price of my original $1,500 lot was up to $10,000! Good luck on that I thought. The county I live in had ( and STILL has ) over 150,000 platted and buildable lots - about 50 years of development at the rate of development then. ( more like a couple of centuries at the current rate.)

A few months passed and the lot -- and house prices kept rising. And rising.The bubble started inflating geometrically.

My $1,500 lot sold again and a new sign appeared: $15,000 asking! I just laughed. And then it sold for $20,000 and I stopped laughing.

I decided to see just what the "market value" was for my $3,000 side yard was. My cousin who was wheeling and dealing in like mad in RE said I could ask $20,000 and it would be gone in a week. He had been flipping some of his lots at what were patiently silly prices - including one "waterfront" property a block away backing onto a green and fetid drainage ditch laughingly called a canal for $40,000.

But I didn't want to be greedy, so I put up a sign asking $15,000. The next day a "snowbird" rang my doorbell and said he wanted the property so he could build a retirement house in 5 years. He seemed like a decent chap that might make a good neighbor, so I signed an agreement with him. But I warned him that the prices were irrational and explained that the last owner had lost $7,000 plus inflation on the lot.

Lots next to mine sold for $40,000 and then were within days back on the market for $60,000. I continued to monitor the lot I had purchased for $1,500. It peaked at $60,000!

Developed lots rocketed upwards too. People rang my doorbell and asked if I were interested in selling. The offers went to $150,000, $200,000 - $230,000!

And then the music stopped.

Every other empty lot and house in the county suddenly sprouted for sale signs.

The asking price for the lot next to mine dropped to $50,000 - $40,000. And then the "bank owned" appeared last year.

I knew then that the banking system was in deep trouble. I was perplexed that any bank would loan to anyone in the housing bubble - until I started reading about the "financial instruments of mass destruction".

I started searching the web for answers to this bank fueled mass hysteria, found HousingPanic ( among others ) and began to fear for my country - for the world.

So what was my role? Aside from a sale of a property that I specifically warned the buyer was grossly over valued, I think my greatest sin was not screaming at the top of my voice on every street corner that these property valuations were insane.

Of course, I would have been called "un-American", a "commie pinko" - or worse a "doomer and gloomer" - just a notch below "terrorist" -- as the great bankster con game unfolded.

I was silent while they ruined the country - and perhaps the world.

Thank you for listening.

Anonymous said...

"I'm a Realtor... I'm sorry that many people were so ignorant as to think that prices would continue escalating forever."


And since you weren't so ignorant and knew that prices were way too high based on fundamentals, why did you not realize that the responsible thing to do was to leave the "profession" instead of giving the impression, to the naive and/or first time buyers who just needed a house, that everything was just fine?

Anonymous said...

They are TRULY HOPELESS.

Cut off the head and the body will DIE...

Realtor.com's Pricey New Look
Posted by: Chris Palmeri on November 03

Realtor.com, the first real estate search site and official online arm of the National Association of Realtors, got a new look last week. The company says the redesign makes the site easier to navigate and prettier to look at, with bigger photos and a warmer color scheme.

Among the things frequent Realtor.com visitors may note is that you no longer have to type in a city name, state and zip like you would on an envelope. Instead you just type in the city or zip in one line and you can start searching.

Realtor.com says home buyers are now viewing 40% more properties and are 37% more likely to send a friend an email with the new look. More than 3.3 million folks have registered for home alerts since the beta version of the site was launched in May.

One thing I noticed is that the default on the searches now brings you a list of available homes from highest priced to lowest. That means if you live in a place like Los Angeles your first properties are going to be multi-million-dollar homes, unless you tailor your search accordingly. Lorna Borenstein, president of Move.com, Realtor.com’s parent, says the site was designed to do that because her main customers, real estate agents, want it that way. Realtors pay to advertise on the site. “What we find is that Realtors spend a lot more time on higher end homes,” she says.


-Priceless.

Devestment said...

Because Realtors worship Satan and kill babies or anything else to make a buck.

Anon in the header said...

I'm the one that posed the question.

Too many on this board seem to think that Realtors are to blame for 5% to 10% of the population acting like children in a casino.

I have several friends that bought "investment" property out of state (without my knowledge). They've now lost those homes and have severe financial pain as a result. I gave them, and no one else, advice to gamble in real estate. I've been selling real estate for almost 20 years.

How many bought stocks during the dot com boom? Did you blame the broker if you told him what you wanted to buy?

Sometimes people need to look in the mirror.

I'm certain there were some bad apples in the mix of Agents that convinced people. But, what about the fools that lined up at new home developments around the country. These "investors" were hoping to see if they could "win" an auction to buy a lot. What fools! Didn't they see that was stupid!

Look at Casey Serin he didn't use an Agent after his first transaction. He was an expert "investor" after doing it once. What a genius! Real estate is easy! Isn't it?

The basic reason to buy a house is to put a roof over your head. If you want to really invest in real estate, wait for the prices to come down or the rents to go up. That's what I've been telling people for 3 years.

I sold my investment properties to homeowners and bought gold in 2005. I did this after I noticed the neophyte "investors" acting stupid along with Fannie and Freddie easing the rules. You can't persuade a fool that he's acting like a fool. He's focused on greed. Don't be so quick to blame the Realtor.

mickeyc said...

You lied to people who trusted you.
You lied to your family, your neighbors and your friends.
You are the friendly local face that convinces people they will be rich with no effort.
Now you loudly tell everyone it was "Wall Street" and that you're a victim too.
Don't use a realtor.
(The spell check wants me to capitalize "realtor". I don't think so)

Anonymous said...

Anonymous Anonymous said...

I think the question "How did I cause any of this to happen?" is one we all have to answer to.

In the spirit of HA ( Housing Anonymous ) I will take the floor and answer the question.

I live in SouthWest Florida ( yes - THAT Florida ) and my housing tale began in 2001 when I lost my job for the first time ever in my life.

No problem, I mused. I have two advanced degrees ( Physics and Computer Science ), 35 years professional experience ( including 15 years of self employment ).

Furthermore, I had aggressively saved almost a decade of expenses so I was not in a hurry. Much to my surprise, after a year of search - I was still unemployed. I learned to my dismay that I had become unemployable because of my age, income history and professional experience.

So I "retired" and decided to put some of my savings to work.

The Real Estate market was just starting to "go crazy" ( and by crazy I mean prices no longer reflected actual replacement costs ), so I located a nice buildable lot - for $1500 and drew up plans for a modest 3/2/2 house.

The lot was in a "deed restricted" community ( about a 100 pages of rules and regulations!) and I discovered to my amazement that one of the restrictions was a minimum square footage under air of 1600 sq ft! My plan was 1540.

I briefly considered revising the plan, but decided a better course of action was simply sell the lot and find a more suitable property for the house.

I stuck a "For Sale by Owner" sign on the property - and within a week I had an offer of $3,000 - which I accepted. I was puzzled why anyone would pay double my investment in a little over a month.

A week later I found a lot suitable for the plan ( no "deed restrictions" )within a mile of the first lot posted with an overgrown "for sale by owner" sign. The owner had "invested" in the property over 20 years ago and had paid $10,000 for the lot. I offered $3,000 and he accepted - on the condition I buy the lot that he owned next to it.

The next five months were the most fun I had had in a long time. ( NOT! - I was an owner / builder ) But on May 1, 2002 I moved into my new home - mortgage free and ready to enjoy my retirement.

My total development was $82,000 ( land, plans, permits, fees, materials, labor and the kitchen sink ) - slightly over my budgeted cost of $75,000.

I was surprised when the property appraiser assessed the property at $135,000. I had "made" $53,000 on $82,000 in 6 months. A pretty good "wage".

By the time I had moved into my new home the asking price of my original $1,500 lot was up to $10,000! Good luck on that I thought. The county I live in had ( and STILL has ) over 150,000 platted and buildable lots - about 50 years of development at the rate of development then. ( more like a couple of centuries at the current rate.)

A few months passed and the lot -- and house prices kept rising. And rising.The bubble started inflating geometrically.

My $1,500 lot sold again and a new sign appeared: $15,000 asking! I just laughed. And then it sold for $20,000 and I stopped laughing.

I decided to see just what the "market value" was for my $3,000 side yard was. My cousin who was wheeling and dealing in like mad in RE said I could ask $20,000 and it would be gone in a week. He had been flipping some of his lots at what were patiently silly prices - including one "waterfront" property a block away backing onto a green and fetid drainage ditch laughingly called a canal for $40,000.

But I didn't want to be greedy, so I put up a sign asking $15,000. The next day a "snowbird" rang my doorbell and said he wanted the property so he could build a retirement house in 5 years. He seemed like a decent chap that might make a good neighbor, so I signed an agreement with him. But I warned him that the prices were irrational and explained that the last owner had lost $7,000 plus inflation on the lot.

Lots next to mine sold for $40,000 and then were within days back on the market for $60,000. I continued to monitor the lot I had purchased for $1,500. It peaked at $60,000!

Developed lots rocketed upwards too. People rang my doorbell and asked if I were interested in selling. The offers went to $150,000, $200,000 - $230,000!

And then the music stopped.

Every other empty lot and house in the county suddenly sprouted for sale signs.

The asking price for the lot next to mine dropped to $50,000 - $40,000. And then the "bank owned" appeared last year.

I knew then that the banking system was in deep trouble. I was perplexed that any bank would loan to anyone in the housing bubble - until I started reading about the "financial instruments of mass destruction".

I started searching the web for answers to this bank fueled mass hysteria, found HousingPanic ( among others ) and began to fear for my country - for the world.

So what was my role? Aside from a sale of a property that I specifically warned the buyer was grossly over valued, I think my greatest sin was not screaming at the top of my voice on every street corner that these property valuations were insane.

Of course, I would have been called "un-American", a "commie pinko" - or worse a "doomer and gloomer" - just a notch below "terrorist" -- as the great bankster con game unfolded.

I was silent while they ruined the country - and perhaps the world.

Thank you for listening.

November 03, 2008 11:34 PM



I THINK THIS IS THE BEST POST I HAVE EVER READ ON Housing PANIC. I HAVE BEEN READING FOR ALMOST 3 YEARS. MAYBE THE BEST POST I HAVE EVER READ ON ANY BLOG. BRAVO. I HAVE A NEW CAREER SUGGESTION FOR YOU IF YOU WILL CONSIDER COMING OUT OF RETIREMENT - SERIOUSLY - WRITE A BOOK.

Anonymous said...

.


Quote from more than 1 realtor,



"Home prices only go up"!!!


.

upthecreek said...

Tell all this crap to the Realtor that bought 7 houses in my neighborhood and walked away from all the homes.. After he maxed out the equity on all 7 properties.
he also left the HOA with a 60,000 hole...walked away from approx 180,000 in unpaid property taxes and killed property values with all the REO's he left behind.. He walked with approx. 2 million in HELOC's (This is criminal)

I know this idiot was not your average realtor.. however seems to me this type of greedy thinking ran with the trade.

SOTE's

Anonymous said...

The bottom line is that without cheap and easy money, none of this could have happened. I am an inactive agent with a real job and agree that most agents are self serving idiots. My advice to most of my friends during the boom was to sell and put their money in the bank and rent until this thing pops and then buy again when it begins to go up again whenever that happens if it does. A couple of friends did just that and are happy now as renters. Most everybody else ignored me because I was not a full time agent and couldn't possibly know what I was talking about since the only properties I bought and sold were for myself. Instead, they listened to their agents and now owe twice as much as their homes are worth.

No, Realtors didn't cause this but they sure did profit from it. The blame should be as follows:

1. 60% lenders
2. 10% speculators/flippers
3. 5% stupid buyers
4. 5% realtors
5. 20% bad government

We are all to blame

Anonymous said...

...because you were an ex-hairdresser

Anonymous said...

Realtors do not have a sense of right and wrong so they would not understand.

FlyingMonkeyWarrior said...

@ The Devil,
I am nmot bitter and I KNEW you were in real estate and you brag about all the money you made aka Greg Swan and Casey Serin. Again, you are one of the main reasons for the state of the financials markets in our towns.
I do not need your sympathy, I love pounding on you looser RE Hos.
I was just having a really sh!tty day yesterday, and there you were
Thanks. Enjoy your ill gotten gains at the expense of, well you know. Your hangin out here, idiot.
FMW

FlyingMonkeyWarrior said...

If you do not understand that then it is you who is clueles.
*********************
LOL. Another anonypussy Real Estate Clerk. LOLOLOLOLOLOLOLOLOLOLOLO

FlyingMonkeyWarrior said...

I sold my investment properties to homeowners and bought gold in 2005. I did this after I noticed the neophyte "investors" acting stupid along with Fannie and Freddie easing the rules. You can't persuade a fool that he's acting like a fool. He's focused on greed. Don't be so quick to blame the Realtor.
**************
You just answered your own question. You’re in RE and you found fools and sold to them at the top, brag about it, and now you wonder why we have so much vitriol. Duh.
FMW

Anonymous said...

How can you blame realtors, they're sales people.

I partook in the madness, bought in 2003, sold this year. There was some comment on this blog, last summer I think, like, "If you don't have a for-sale sign in your front yard right now ..."

But blaming realtors, come on. Two words, personal responsibility. Is the waiter responsible for some fat-ass :) eating cheesecake? Don't think so.

To anonymous at November 03, 2008 11:34 PM: Great story ... and "thanks for sharing." (After all this his HA, good one.)

Anonymous said...

Whoops, meant to say, "this is HA, good one."

Your story takes it. The cake.

Anonymous said...

Devil's advocate, I agree with you. The fault lies more with those stupid enough to believe them, or to take at face value what anyone who's on a commission says. Between 2003-2007 an honest real estate agent would have been squeezed out of the profession altogether.

Unfortunately I know a few people who bought in at the top and it wasn't due to advice from realtors so much as advice from their idiot friends who fancied themselves to be 30-year-old real-estate moguls because they'd bought a couple of condos in Toronto.

chslaxcoach said...

When you go to buy a used car, do you trust the used car salesman?

When you go to buy a used house (which probably costs 10x what the car costs), should you trust the used house salesman?

That's why they have the term "Realtor(TM)." Otherwise, people would start calling them "used house salesmen."

It's probably only a matter of time before the guy at the car dealership is going to asked to be called an "automobile agent" or an "Automobilator(TM)."