Tuesday, December 12, 2006

Realtors' Ego Ride

More ego boosting from the Realtors which appeared on their blog. Here is the offending post:

Realtor® is to Real Estate Agent as Mercedes® is to Car

Recently, some journalists reported results of a Harris poll in which real estate agents were perceived as one of the least prestigious occupations in a list of 23 professions. Too bad they didn't include Realtors'® on the list.

Realtors'® are distinct from real estate licensees. In addition to completing mandatory quadrennial Code of Ethics training, Realtors® also have access to educational opportunities and training in real estate specialties that are not available to other licensees. NAR's Public Awareness Campaign educates consumers about these and other distinctions, and after nine years, the campaign's effects are evident.

In the past three years alone, NAR research has shown that the number of consumers who say they would be more likely to use a Realtor' instead of a real estate agent who is not a member of NAR has risen by nearly 20 percent, to three out of every four consumers. Over the past six years, the percentage of consumers who believe that Realtors'® are more qualified to promote the sale of a home than real estate agents who are not Realtors' has risen dramatically, from 54 percent in 2000 to 73 percent in 2005.

Realtors' are real professionals who have the opportunity, experience, and privilege of helping people achieve the American dream of homeownership. What could be more prestigious than that?

The National Association of Realtors (NAR) has become a pathetic organization that is desperately manipulating the housing market. They spread misinformation to unsuspecting consumers through their 1.3 million members and through the mainstream media (MSM). Now, they are lobbying the US Congress to keep theicommissionse commisions.

49 comments:

  1. too bad the general public makes no distinction between Realtor(tm) and real estate agent.

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  2. Anon 9:50,

    Yep. Exactly what I was thinking. Most people don't realize that not all real estate agents are Realtors. Hence the inflated NAR stats.

    Another reason--I'm probably going to take crap from people for this--is that most people behave like cattle. If NAR tells them during the survey that Realtors are believed by MOST PEOPLE to be ethical and saintly, etc etc etc, they would probably be more inclined to agree with it than disagree, just because "most people" think so, and because NAR is a "legit" association.

    When I was working in the REI I saw a lot of people believe what they were told by their brokers--though there were a few that questioned EVERYTHING and distrusted EVERYONE, including those of us who were actually ethical. They made terrible decisions based on misinformation obtained from commissioned sales people. I hope they don't run into financial trouble, but maybe they will...Especially the sub-prime borrowers!

    OK....Enough ranting...Back to work now.

    --SSH Anon

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  3. Realtors and/or real estate agents rank below used car salesmen on the heirarchy of respectable jobs. The NAR should issue ugly 1970's plaid sport coats as standard uniform so they match their used car brethern.

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  4. "Realtor® is to Real Estate Agent as Mercedes® is to Car"

    Real-a-whore is to honesty as Yugo is to car.

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  5. But every four years they take training in their code of ethics - all 4 items. Surely these are honorable men and women.

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  6. Notrious D.A.P. said...
    "Realtors and/or real estate agents rank below used car salesmen on the heirarchy of respectable jobs. The NAR should issue ugly 1970's plaid sport coats as standard uniform so they match their used car brethern."

    David, I can understand your allowing venting. And I admit to venting often myself. However, my venting is never of the "stand alone" variation. It is always as an adjunct to a posting where a point is discussed. For example, as much as I would like to just make a posting saying something like "Bubbleheads are just dreamers and idealists and probably still believe in the tooth fairy ... ranking them right up there with 5 yr olds.", I realize that you wouldn't dare allow such a post since it wouldn't contribute anything to the dialogue on your post. So, why do you allow such posts from the BHer's?

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  7. And I really wish they'd stop calling themselves a "profession."

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  8. >And I really wish they'd stop calling themselves a "profession."

    They use the term losely, as in "the oldest profession".

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  9. Retail Sales Surge in November

    By MARTIN CRUTSINGER
    The Associated Press
    Wednesday, December 13, 2006; 8:43 AM

    WASHINGTON -- Consumers battered by a multitude of economic woes came roaring back in November, pushing retail sales up by the largest amount in four months.

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  10. We learned at the age of 22 that Realtor's and Agents are a mixed bag. I have never, since that first bad experience, relied upon an Agent to find or make a deal for me. Listen and rely upon anything coming from the NAR? Just as much as I listen to any other bs ads that come my way.

    You guys that hang out here; are you expecting someone to take you by the hand and guide you? Get a clue. No one knows what the future holds. All I have to go on is that, over the long term, RE beats inflation. Is my financial plan wrong? Well, maybe.

    There are NO guarantee's in life. You can always imagine the worst case scenario. If that's you, then good luck.

    To the person who claimed that RE was a bad move in the period of 1991 to 2000 in CA, please take a look at the actual charts. Even if you you bought at the absolute peak and sold 10 yrs later, you were fine.

    I bought in NoVa at the peak in 1989 and made alot of money. Alot of money. What seemed like a really dumb move (buying 8-10 places in '88 and '89) turned out great IN THE LONG RUN.

    No need to give me any of your 20-something wisdom, or 30-something, for that matter. Rent if you think that is smart. I really never was a market timer.

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  11. I always get a free carpet shampoo from the local Kirby sales people. I then tell them sorry, the price of your vacuum is too expensive. Same go's for Real Estate agents.

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  12. i'm pretty sure if a poll is taken saying cars are worthless for getting from point A to point B, that a mercedes doing the job wont be much better.

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  13. I guess I just don't share David's dislike of Realtors and their trade association.

    Of course, the Realtors association is going to try to brand Realtors as swell people who help you make good decisions and realize your dreams. What else are they supposed to do? They're a freakin' trade association! They're just branding.

    Maybe I'm just too cynical or maybe I just don't go out of my way to protect people from what seems to me like obvious stupidity, but if you really go around believing Realtors are anything besides salespeople and that they really are objective about your interests, then it really is your fault if you make a bad decision.

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  14. Today’s FREE report on Miami has been released! Tomorrow I’ll release both the Las Vegas & San Diego reports. They will joins prior Q3:2006 reports on Boston, Bakersfield, Chicago, Denver, San Francisco, Seattle & Los Angeles.
    thebubblebuster.com

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  15. Don't get off topic bubbleheads! With rates steadily falling, this bubble is in no downward slide yet. And that poses a question to the people sitting on the fence. What are you going to do if rates stay low as they are now? Historically rates are as low as they will likely go. Within reason of course. With a strong economy and low rates, real estate becomes an even more attractive investment.

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  16. "...bought in NoVa at the peak in 1989 and made alot of money. Alot of money..."

    _______________________________

    Don't visit here much, but looks like things have not changed.


    crispy&cole

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  17. This site has become even more shrill and childish than it was when I used to frequent it several months ago. Good to see that VA_Investor is still around. The asylum always need a sane adult to serve as a role model.

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  18. Fritz, I agree, it is getting rather shrill and childish. We are watching a tragedy unfold, after all.

    I do take issue with your applause for VA Investor, however, who has been saying towards, during and slightly off peak that real estate is a "good investment." The inference is that everyone should have bought and still should.

    That, Fritz, is Realtorspeak, nothing less.

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  19. Anonymous said...
    “Don't get off topic bubbleheads! With rates steadily falling, this bubble is in no downward slide yet.”

    I guess the MRIS numbers are wrong then?
    http://www.mris.com/reports

    “And that poses a question to the people sitting on the fence. What are you going to do if rates stay low as they are now?”

    Rates are low and (according to MRIS numbers) median prices are still slipping.

    “With a strong economy and low rates, real estate becomes an even more attractive investment.”

    Especially in Florida, Eh? With 44% YOY declines in Ft. Myers, better run down there and snatch up some of that inventory. Wonder why more specuguessers aren’t doing the same?

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  20. Fritz said...
    “This site has become even more shrill and childish than it was when I used to frequent it several months ago.”

    Glad to see you back “fritz”. Any YOY numbers you want to share with us?

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  21. God dammit - I'm a REALTOR < (insert trademark symbol here...)

    Cause I'm Good Enough, I'm Smart Enough, and Doggone It, People Like Me!


    Realtors are to today's economy what MSCE certified IT workers were in the post Internet boom economy...

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  22. Realtors are to today's economy what MSCE certified IT workers were in the post Internet boom economy...

    As a software engineer, I LOLed @ this.

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  23. To VA Investor--would you care to share the rough cost of each of those sweet RE deals you swung in the late 80s? I'm sure they would have incurred the same income to debt ratio that current homeowners must tackle in this bubble, right? And salaries have kept up with the bubble inflation of RE prices too?

    Unless you are Casey Serin's dad, I bet you had someone stake you to those properties instead of taking out 100% loans on each.

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  24. Realtors are a hurting bunch. They have made their own bed and will have to sleep in it. Credibility has been destroyed.

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  25. Keep the shills on guard David. The NAR is a shill mouthpiece that MUST be held accountable for their BS. What about all the families that listened to their shilling the last 2 years?
    How many lives have they ruined?

    Thank you and keep up the pressure on this clan of thugs.

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  26. hey RE pimps listen what an industry person is saying from wamu

    "In our guidance we've assumed that the mortgage industry would be about as tough next year as this year," Killinger said, adding that he would not be surprised to see "multiple years" of housing prices lagging inflation and other asset classes.

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  27. Anonymous 5:28 said...
    "Realtors are a hurting bunch. They have made their own bed and will have to sleep in it. Credibility has been destroyed."

    How pitiful! Someone who isn't capable of making good buy decisions on his own and ends up blaming others for his own inadequacies! What is even more pitiful is that he is blaming the very people who can help him! It's like blaming the doctors who help you when you find you have a medical problem such as cancer. Yeah, right ... blame the doctors .. or blame the realtors. YOU are the problem .. and things won't be right for YOU until you realize THAT ... and fix it. Quit blaming others for your own inadequacies!

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  28. Lance said...
    “It's like blaming the doctors who help you when you find you have a medical problem such as cancer. Yeah, right ... blame the doctors .. or blame the realtors.”

    Uh, no Lance. It’s like going to a doctor, and all medical evidence suggests you have cancer, and they diagnose you with the flu.

    How does the REI help you when all indicators point to a tanking market and we still get the “no bad time to buy spiel”? How does the REI help you when they deliberately skew the numbers?

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  29. Something you might want to send your local RE agent:

    http://www.cbsnews.com/stories/2006/12/14/ap/
    business/mainD8M0P1F80.shtml

    Peter Morici, business professor at the University of Maryland, said artificially low interest rates over the past half-decade encouraged China and other exporting nations to purchase 10-year bonds, which kept U.S. mortgage rates low and fueled the housing bubble _ despite a gaping trade deficit that should have sapped investor confidence years ago.

    "In order to play this ponzi scheme, the value of the homes had to go up faster than the economy grew and faster than people could service their debt. We've reached that limit," Morci said. "The housing market sustained the economy at a time of very large trade deficits. It's been a false prosperity."


    Thank to patch for the link.

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  30. Help him?

    Only one that is helped is the greedy sales people trying to talk you into a lifetime of debt slavery.

    GAME IS UP! Blogs like this one are thinning out the last of the morons left that listen to your propaganda.

    KEEP POUNDING AWAY DAIVD... CREDIBILITY IS GOING DOWN IN THE GUTTER.

    If you can bypass a realtor by all means do it. Go directly to owners with your offers. First eliminate the 5% then chop another 20% off of these inflated bloated prices.

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  31. Anon 10:49

    It appears that you missed the point of my post and I really am not inclined to explain it to you. Nobody staked me to anything except a college education. I believe dataminer already demonstrated the comparative costs of owning in the 80's and owning today. A little time and effort on your part and you may be able to figure it out.

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  32. Keep up the fudging dummy.

    That's why unaffordability is at record lows and exotic loans going bellyup are the norm today.

    Your rap is old news.

    REAL ESTATE IS TANKING!

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  33. Robert asked:
    "How does the REI help you when all indicators point to a tanking market and we still get the “no bad time to buy spiel”?"

    A person needs their doctor in good health and in bad ... but especially when in bad health. Ditto your real estate agent. A real estate agent is very helpful when it is an easy market to buy in, but he is invaluable when it is a hard market to buy in. We've been round and round why there really never is a "bad time to buy" ... Yes, there are "harder" times to buy (as when I bought in 2005) but that doesn't mean you can't get just as good a price then (relative to everything else) then you can when it is a "good" time to buy or an "easy" market.

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  34. The NAR/Mercedes analogy seems right to me considering the following assessment by Consumer Reports:

    "Mercedes-Benz, on the other hand, does not have a single model reliable enough to be recommended."

    http://autos.msn.com/advice/CRArt.aspx?contentid=4023544

    If the shoe fits...

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  35. AVOID A REALTOR AT ALL COST. SEND BIDS DIRECTLY TO HOME OWNER.

    COMPARING A DOCTOR WITH YEARS AND YEARS OF SPECIALIZED TRAINING TO A SALESPERSON IS ABSOLUTELY RIDICULOUS.

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  36. I think Realtors/Real Estate agents have surpassed the lawyers in sliminess :)

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  37. Lance said...
    “A person needs their doctor in good health and in bad ... but especially when in bad health. Ditto your real estate agent. A real estate agent is very helpful when it is an easy market to buy in, but he is invaluable when it is a hard market to buy in.”

    Lance, if you continue to use the doctor analogy, keep in mind that the “doctor” persists on misdiagnosing the conditions especially in bad “health”.

    Hard market, or easy market, if a real estate agent continues to receive a commission, their recommendation will always be to buy. Maybe the only possible value, is that the RE agent has the key to the lock box.

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  38. Robert said:
    "Lance, if you continue to use the doctor analogy, keep in mind that the “doctor” persists on misdiagnosing the conditions especially in bad “health”.

    Hard market, or easy market, if a real estate agent continues to receive a commission, their recommendation will always be to buy. Maybe the only possible value, is that the RE agent has the key to the lock box."

    Ahhh ... I see the source of our disagreement. You think a Realtor should be there to tell you whether it is a good idea to buy or to wait based on your situation and the general and local economic conditions. I don't think that is their job. I think you need to make those decisions on your own ... helped along by a financial advisor if necessary. The Realtor is only there to help you navigate your way through a purchase. They are a skilled salesperson whose primary job is helping you sell your property (if you are a seller) by marketing it, etc. OR helping you buy (if you are a buyer), by finding what is available AT THE MOMENT at the best prices out there and in the easiest way possible (i.e., direct you toward financing etc.) The rest of the stuff is all YOUR responsibility. Personally, I wouldn't want a Realtor making financial planning decisions for me ... and I would resent it if they tried as you are expecting them to do. If you need help in deciding when/if to purchase and what you can afford or whatever, go to an expert for that. If you need help navigating a difficult market and get the best possible house for the cheapest price, go to a realtor. See the difference?

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  39. Lance said...
    “but he is invaluable when it is a hard market to buy in.”

    “You think a Realtor should be there to tell you whether it is a good idea to buy or to wait based on your situation and the general and local economic conditions. I don't think that is their job.”

    You tell us that a realtor is “invaluable”, tell us what is not their job, and for a job description, you give us:

    “OR helping you buy (if you are a buyer), by finding what is available AT THE MOMENT at the best prices out there and in the easiest way possible”

    But that’s no more valuable than a peruse through any free MLS system and the tax records.

    “Personally, I wouldn't want a Realtor making financial planning decisions for me ... and I would resent it if they tried as you are expecting them to do.”

    The only thing I expect from a realtor, is access to the lock box. And as zillow has started their own free “MLS” type listing service, it will not be long until I don’t even need them for that.

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  40. robert - the realtor is paid by the seller, not the buyer. They buyer they take around in their little car and unlock the door. For the seller, by whom they are paid, they, you know SELL THE HOUSE.

    Sure, there's a "seller's agent" and a "buyer's agent," but they're both paid by the seller - and the buyer gets what he pays for.

    What's so hard to understand?

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  41. Anonymous said...
    “robert - the realtor is paid by the seller, not the buyer....

    What's so hard to understand?”

    You’re kidding, right?

    Alright folks, let’s get this one thing straight. Unless the seller is underwater, the only person writing a check at the closing table is the buyer.

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  42. "Alright folks, let’s get this one thing straight. Unless the seller is underwater, the only person writing a check at the closing table is the buyer. "

    And the seller pays the commission out of the money he receives from the buyer. Are you seriously this ignorant about how a sale works?

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  43. "the only person writing a check at the closing table is the buyer. "

    Right, and none of those checks is made out to a real estate agent. The seller pays the commission.

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  44. Anonymous said...
    “And the seller pays the commission out of the money he receives from the buyer. Are you seriously this ignorant about how a sale works? “

    Are you seriously that naive?

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  45. Anonymous said...
    “Right, and none of those checks is made out to a real estate agent. The seller pays the commission.”

    I beg to differ. The buyer is the only one writing the checks. A certain percentage of those checks go to the real estate agent. Nowhere does the seller pay the agent.

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  46. robert - you're just wrong. you've obviously never been involved in a real estate transaction. paying the realtors is the seller's obligation.

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  47. the seller pays the commission??


    Sure the seller loses proceeds but these proceeds come from money either borrowed or put down by the BUYER.

    SO in reality the buyer is subsidizing two Realturds(R)

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  48. "the seller pays the commission??


    Sure the seller loses proceeds but these proceeds come from money either borrowed or put down by the BUYER.

    SO in reality the buyer is subsidizing two Realturds(R) "

    Well then, in reality, it's the buyer's place of employment that pays the realotors. Or maybe it's the buyer's employer's customers. or their employers. Oh wow the economy is complex.

    The point is that the only one in the transaction who takes on an obligation to pay a real estate agent (assuming one is involved) is the seller. The fact that the buyer doesn't get a whole heck of a lot in terms of service (compared to the seller) shouldn't suprise anybody.

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  49. Anonymous said...
    "robert - you're just wrong. you've obviously never been involved in a real estate transaction. paying the realtors is the seller's obligation."

    Sorry anon, you are just that naive.

    Maybe you should explain how you think a real estate transaction goes and we’ll try to fill you in where needed.

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