tag:blogger.com,1999:blog-18675105.post1232323662145600931..comments2023-12-30T10:06:37.450+00:00Comments on HousingPANIC - The Housing Bubble Blog with an Attitude Problem, 2005 - 2008: 60 Minutes report on the NAR's MLS monopoly and the dinosaur "six percenter" realtors (real estate clerks)bloggerhttp://www.blogger.com/profile/06585266242070350399noreply@blogger.comBlogger42125tag:blogger.com,1999:blog-18675105.post-33956047719327066952013-03-16T07:55:24.153+00:002013-03-16T07:55:24.153+00:00This comment has been removed by a blog administrator.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-53190136801518190512007-05-17T23:17:00.000+01:002007-05-17T23:17:00.000+01:00NAR responds:http://tinyurl.com/38s3yhNAR responds:<BR/><BR/>http://tinyurl.com/38s3yhAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-46613210441568954102007-05-15T20:00:00.000+01:002007-05-15T20:00:00.000+01:00"Most of you complaining are perma-renters wanting..."Most of you complaining are perma-renters wanting to buy a house. Sorry for your misfortune. Housing prices are coming down, but you'll still not be able to buy. The interest rates will skyrocket and banks won't loan you money. Wages will fall along with prices. Tough luck, you should have moved out of state."<BR/><BR/>LOL. Living off other people's money is all you homedebtors know. And then there are those of us who aren't losers and actually have our own. Tough concept, I know.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-88422594949773633152007-05-15T07:06:00.000+01:002007-05-15T07:06:00.000+01:00When real estate was at a average of 100k I don't...When real estate was at a average of 100k I don't think people minded paying 6% or 3k to the selling agent and 3k to the buying agent . The selling and buying agents usually give a cut to the real estate company which could be as high as 1/2 of the 3% that they make .This would mean that each agent would get $1500 in pocket with the Company usually paying for the advertising costs on a 100k property sale . <BR/><BR/>Sometimes a Real Estate Company just sells office space to the real estate agent at a monthly fee and takes a lessor cut of the action .<BR/><BR/>When the real estate went sky high the commissions skyrocketed .30k for a average Ca. home of 500k for a commission was a little much based on hours spent and advertising and costs considered .<BR/><BR/>The RE agents and the Loan agents were making more money than deserved on the inflated property ,no question, especially because of the quick easy no-brainer way houses were selling during the high appreciation of homes from 2000 to 2006 .Easy money to be sure . <BR/><BR/>Also many real estate transactions were taking place during the boom making the realtors/lender agents even richer on volume of business . More agents were getting into the business trying to get a piece of the pie as it became a easy money get rich quick business , That volume of agents cut into the piece of the volume pie as time went by . <BR/><BR/>My point is now on the down-side real estate is going down so sellers don't have as much to work with to pay big commissions and sellers don't have the wealth effect ,waste money kind of feeling anymore . Paying a high commission can make the difference between selling you property and not selling your property if you have little equity and need to sell .<BR/><BR/>Sellers will just not be as willing to pay these fees and buyers will not care about the costs sellers have to sell a house because they will be looking for vlaue .As long as real estate is going up sellers feel they have the money to pay . Same with loans , as long as real estate is going up borrowers pulling out equity dont seem to piss and moan about costs to get a loan .<BR/><BR/>So while buyers and sellers need the services of realtors and loan agents they will not be willing to pay as much because of tigher margins and profits on selling a piece of real estate .<BR/><BR/>The public will take it out on realtors for real estate going down .Sellers will seek out cheaper ways of marketing homes including discount brokers .Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-70976502406966678612007-05-15T05:39:00.000+01:002007-05-15T05:39:00.000+01:00You can't argue with success, and Redfin appears t...You can't argue with success, and Redfin appears to be successful. And I have been among the most skeptical that anyone could make discount brokerage work. We'll see how they do in a down market. <BR/><BR/>Their success may actually force commissions up for the people who go the full service route. Easy deals subsidize the hard deals. When all the easy deals get skimmed off the top, full service brokers may have to charge more for the hard deals.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-62572051516883270192007-05-15T00:54:00.000+01:002007-05-15T00:54:00.000+01:00Most of you complaining are perma-renters wanting ...Most of you complaining are perma-renters wanting to buy a house. Sorry for your misfortune. Housing prices are coming down, but you'll still not be able to buy. The interest rates will skyrocket and banks won't loan you money. Wages will fall along with prices. Tough luck, you should have moved out of state.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-11497765822556829022007-05-15T00:51:00.000+01:002007-05-15T00:51:00.000+01:00Would you rather spend 6% and have an expert's adv...Would you rather spend 6% and have an expert's advice in selling your house? Or would you rather sit on the market with a discount broker paying your monthly mortgage payment for 6 months? It's your choice. <BR/><BR/>Discount brokers and FSBO's don't make it in a down market.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-31343753971843239462007-05-14T23:12:00.000+01:002007-05-14T23:12:00.000+01:00LOL. Listen to the realtwhores in here in full spi...LOL. Listen to the realtwhores in here in full spin mode, comparing themselves to doctors and lawyers. Well, I guess the car salesmen comparison was accurate. <A HREF="http://www.edmunds.com/advice/buying/articles/42962/page004.html" REL="nofollow">Those aren't needed either</A>.<BR/><BR/>'I'll repeat what Michael, my ASM, told me about Caucasians . He said white people never come into the dealership. "They're all on the Internet trying to find out what our invoice price is. <B>We never even get a shot at them.</B> I hate it."'Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-84732873920642523712007-05-14T21:06:00.000+01:002007-05-14T21:06:00.000+01:00Realtor bashing. You can get legal information on...Realtor bashing. You can get legal information on the internet (not to mention NOLO press), so lawyers are now obsolete. WebMD made doctors obsolete. Ebay made car salesmen obsolete. Home Depot and the DIY network made contractors obsolete. Not really. Realtors will never be obsolete. Those who add value to a transaction will continue to be employed. Those who do not will starve. I actually think you'll see a weeding out of the idiotic clerks who just drive people around all day. To add value to a sale, you actually need to understand and communicate the complexity of a real estate transaction. Realtors who use the new technology to their advantage have the potential to become more efficient. Commissions always have been, and always will be negotiable. With a lot of realtors and few sales, commissions should go down. But they can also go back up if the situation reverses. If you want to do it yourself, go for it. Personally, I'd rather have someone who does 10-20 transactions a year helpgin me, than someone who does one transaction every 7-10 years (myself).<BR/><BR/>--ChetAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-58219017881375259702007-05-14T21:04:00.000+01:002007-05-14T21:04:00.000+01:00North Americans get ripped off.We paid 1.45% to se...North Americans get ripped off.<BR/><BR/>We paid 1.45% to sell our house in London. In Hong Kong you pay 1%. <BR/><BR/>But in North America they 'need' 6% to do a good job?<BR/><BR/>Well, the architect who designed the house didn't make 6% (because he only gets paid on the building and not on building + land). <BR/><BR/>So how is it that the Realtwhore needs more than the architect to do a good job?<BR/><BR/>Think about it. It's just a monopolized rip off.<BR/><BR/>HaggisAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-9421502635923463672007-05-14T20:13:00.000+01:002007-05-14T20:13:00.000+01:00...and I'm surprised Bush hasn't called the DOJ an...<I>...and I'm surprised Bush hasn't called the DOJ and gotten the kabash on enforcing anti-trust laws, as he probably thinks they're not laissez-faire, either).</I><BR/><BR/>I'm not sure what you're trying to say here Ben, but DEFINITELY yes.<BR/><BR/>This is a perfect example of where Bush likes to turn his back on the American people and side with big business (and this is a republican speaking). Doesn't even matter that the NAR supports Democrats 10/1 over Reps.<BR/><BR/>Bush has a stubborn streak like no other.<BR/><BR/>Like having that McClellan as press secretary. I can hear it now, "Mr President, you can't appoint someone who can barely speak as press secretary".<BR/><BR/>Bush: "Yes I can, it's done".<BR/><BR/><BR/>I'm a little off subject here, what were we talking about, housing?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-82218432214702117462007-05-14T19:59:00.000+01:002007-05-14T19:59:00.000+01:00I sold my home in Los Angeles for 305K in January ...I sold my home in Los Angeles for 305K in January 2004. I had offers from the first 2 people who looked and accepted one. The realtor handled both ends for 4% total. If it would have another realtor who was a buyer agent, it would have been 5%. <BR/><BR/>I had no complaints on this realtor he did a good job. The transaction was smooth and fast. Fees can be negoiated in some cases.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-53239765842365821382007-05-14T19:53:00.000+01:002007-05-14T19:53:00.000+01:00I sold my last rental property in March in Phoenix...I sold my last rental property in March in Phoenix.<BR/><BR/>I paid a discount broker 199.00 for an MLS listing, with 8 photos, a lock box and options for an additional 100.00 if I needed closing negotiation help.<BR/><BR/>I offered a buyer’s agent 2% if they brought in a buyer.<BR/><BR/>All inquiries were redirected to my personal phone from the discount broker.<BR/><BR/>I made my own sign and flyers. I staged the home, held my own open houses and put the house up on free Internet sites everywhere.<BR/><BR/>I sold the property in 3 weeks. Not one buyer's agent showed the house.<BR/><BR/>I had good traffic on the open houses and pretty good response off my ad in Craigslist.com.<BR/><BR/>We closed using a known lender and the title company my wife works for.<BR/><BR/>I paid the closing costs for the buyer. They purchased a 30 year fixed loan and had good credit.<BR/><BR/>All in all, it cost me about 1200.00 in advertising, flyers, MLS listing etc.<BR/><BR/>I did lose approx 2% paying the buyer's costs, but I sold at asking price.<BR/><BR/>The bottom line is that I pocketed close to 26000.00 in unrealized real estate commissions and I most likely would have had to drop my price and still pay the closing costs had I gone that route.<BR/><BR/>Let them rot in hell. <BR/> <BR/><BR/>Happy baby boomer in Glendale AZ.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-55697733053125005482007-05-14T19:52:00.000+01:002007-05-14T19:52:00.000+01:00""Bottom line is that we don't expect that the seg...""Bottom line is that we don't expect that the segment will make Realtors happy, but it could have been much, much worse," the NAR said."<BR/><BR/>Only the NAR knows the real story of just how rotten their industry is.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-39327682906140648042007-05-14T19:48:00.000+01:002007-05-14T19:48:00.000+01:00This is old and somewhat incorrect news. Discount...This is old and somewhat incorrect news. Discount Realtors have been around for awhile. And the 6% being "sacrosanct". Give me a break. It depends on the market and location but in the hot market days Realtors were lucky to get 2.5%. Now that it is a buyers market they are asking 5-7%. <BR/><BR/>The real story is the NAR attempt to block access to the MLSs to the discount brokers. I believe that NAR will ultimately fail on the legal front. <BR/><BR/>IMOHO full-price Realtors are paid way too much for the "service" they provide. But you sometimes don't get much going the discount route either.<BR/><BR/>What the story did NOT cover is that a buyer or seller can hire their own competent appraiser to assist them in valuing thier sale or purchase for $300-500.<BR/><BR/>In the end, the market will decide. I suspect that it will be a wide spectrum of services offered with fees to match.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-38193907884159416642007-05-14T19:28:00.000+01:002007-05-14T19:28:00.000+01:00Never bet against the internet.Never bet against the internet.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-69089675550256458602007-05-14T19:26:00.000+01:002007-05-14T19:26:00.000+01:00As somebody that's been looking to buy I think thi...As somebody that's been looking to buy I think this online stuff is rather ineffective. Seattle is still hot, over here in New England nobody's in a rush and I want to see the damn place and work with a person. Also, thoses assit2sell, helpusell sites are stagnant, homes just don't move on them. Six percent is ridiculous but if I were selling in a down market I'd do it the traditional way.<BR/><BR/><BR/>Hey, Cant you buy pet food online too? Pets.com? ooops, my bad. sorry.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-54560088189689125302007-05-14T18:49:00.000+01:002007-05-14T18:49:00.000+01:00Apparently Redfin's servers were overwhelmed by tr...Apparently Redfin's servers were overwhelmed by traffic last night after the segment ran. A lot of people are interested in not getting screwed.<BR/><BR/>There is a company out of Miami called Homekeys that is similar to Redfin. I guess we will be seeing more of these companies pop up.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-9691547426655298782007-05-14T18:44:00.000+01:002007-05-14T18:44:00.000+01:00The NAR decided to try to do some damage control a...The NAR decided to try to do some damage control ahead of the 60 Minutes piece and sent a memo with talking points to it's member offices. I guess it's making them sweat. Here is a link to the memo:<BR/><BR/>http://tinyurl.com/2qlm2j<BR/><BR/>I love the line that says:<BR/><BR/>"Bottom line is that we don't expect that the segment will make Realtors happy, but it could have been much, much worse. Be glad that it's Mother's Day and the show will probably draw fewer than its average 14 million viewers."Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-51816621017002264032007-05-14T18:32:00.000+01:002007-05-14T18:32:00.000+01:00The part about the Dept. of Justice going after th...<B>The part about the Dept. of Justice going after the NAR for practices harmful to consumers is the best thing I've heard in weeks. Monopolizing the MLS... bastards.</B><BR/><BR/>Yeah, well the board of appraisers in one Western state tried to sue zillow.com for operating in their state as an unlicensed appraiser. <BR/><BR/>Fortunately, the local lawmakers saw it for what it was: an attempt to block free trade, as well as free speech.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-51205110178199138112007-05-14T18:19:00.000+01:002007-05-14T18:19:00.000+01:00I forget the name of the company that was on 60 mi...<B>I forget the name of the company that was on 60 minutes (e-realty ?) complaining that he was discriminated against in Texas. His company lost 30 million because his business model did not work.</B><BR/><BR/>No, watch the interview again, and you'll see he says he went out of business after the realtor association sued him. A large organization like NAR has a gaggle of lawyers who can bury a small firm.<BR/><BR/>Hence why the Department of Justice is getting involved, and taking on the NAR itself: an industry as corrupt as the real estate business needs to be tackled by the government's anti-trust regulators (and I'm surprised Bush hasn't called the DOJ and gotten the kabash on enforcing anti-trust laws, as he probably thinks they're not laissez-faire, either).<BR/>prevent him from competingAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-19312561253627799392007-05-14T18:14:00.000+01:002007-05-14T18:14:00.000+01:00if you have $500,000 to waste on a house, another ...<B>if you have $500,000 to waste on a house, another $30,000 is chump change.</B><BR/><BR/>Problem is, most people DON'T have "$500k to waste on a house", and they're incredibly over-leveraged on the purchase, as it is, stretching well beyond prudent limits to buy (especially now that houses are starting to depreciate: getting under water on a loan is going to be pretty common).<BR/><BR/>What happens is once the borrower accepts they'll be borrowing $500k (an obscene amount of money in real-world terms) on a 'zero-down' 40 -year loan, then suddenly people are willing to say that $30k is "chump change".<BR/><BR/>It's kind of like how politicians get numb to the amounts of taxpayer's money they're handling; what's the old joke that says, "spend a few billion here, and a few billion there, and after awhile we're starting to talk about some REAL money"!<BR/><BR/>Where I'm from, $30k is A LOT of money to most citizens: so much, that most people are unable to save anywhere close to that for a down-payment!<BR/><BR/>$30k is more than many people MAKE in one year! <BR/><BR/>$30k will get you a rather nice car (another large-ticket item most people will NEED to finance, UNLESS they're a realtor who just got a commission check). <BR/><BR/>So thinking of that 6% commission in those terms, is the value added by a real estate agent so great that you'd give her a brand-new car as a measure of your gratitude, or fork over a year's worth of paychecks to her? What is this: a game show where she wins a "brand new car"?<BR/><BR/>I didn't think so.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-77903161490609012952007-05-14T18:12:00.000+01:002007-05-14T18:12:00.000+01:00I love how the realtor referred to Redfin as the W...I love how the realtor referred to Redfin as the Wal-Mart of real estate like that is supposed to scare people away. The only people who are critical of discount realty services are other realtors who are terrified of losing their scam.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-49363065956944986422007-05-14T17:57:00.000+01:002007-05-14T17:57:00.000+01:00A lot of RE clerks didn't sleep too well last nigh...A lot of RE clerks didn't sleep too well last night. They finally been "caught".Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-2410912958712098242007-05-14T17:47:00.000+01:002007-05-14T17:47:00.000+01:00SAN DIEGO -- An auction of nearly 100 foreclosed h...SAN DIEGO -- An auction of nearly 100 foreclosed homes here Saturday showed that mortgage lenders are having to accept huge discounts in some cases to unload such properties.<BR/><BR/>A surge of foreclosures over the past year or so has left lenders struggling to sell a growing backlog of homes. Rather than relying on real-estate agents, the usual practice, some are turning to large-scale auctions to speed up the sale process.<BR/><BR/>• The Situation: Surging foreclosures over the past year or so have left lenders with a rising backlog of homes.<BR/> <BR/>• The Strategy: Some lenders are turning to large-scale auctions rather than the practice of relying on real-estate agents.<BR/> <BR/>• The Consequence: Mortgage lenders are finding they must accept big discounts in some cases to unload properties.<BR/> <BR/>Real Estate Disposition Corp., the Irvine, Calif., company that organized Saturday's auction of lender-owned homes, plans similar sales May 19 in Los Angeles and May 20 in Riverside, Calif.<BR/><BR/>At the San Diego sale, houses and condos typically sold for about 30% below the previous sale or appraisal prices. In a few cases, the discounts were around 50%.<BR/><BR/>A four-bedroom home in Oceanside, Calif., attracted a high bid of $495,000 at the auction, 33% below the sale price recorded in November 2005 for the property. One condo in San Diego sold for $120,000, less than half of its previous value.<BR/><BR/><BR/>*Burn in Hell* Real Estate investors!!!Anonymousnoreply@blogger.com