Background: The Orlando sentinel wrote this about their campaign:
The Home Builders Association of Metro Orlando kicked off a marketing campaign this week to encourage "fence sitters" that now really is a good time to buy a home in the Orlando area.Lies: The Home Builders Association of Metro Orlando has resorted to outright lies in their desperate attempt to find new buyers for their bubblicious new homes. On their newly created propaganda website they write "This website has been created to server only one interest - that of the today's homebuyer.Valued at nearly $1 million, the six-week multimedia campaign is appearing on local television, in print, on billboards and on a Web site (realopportunitycfl.com).
Representatives of the Orlando-based trade association said the campaign is the largest in the group's history and includes brochures, automobile stickers, movie-theater announcements and a comprehensive media effort."
No. Their website was NOT created to "serve only one interest - that of the homebuyer," but instead was to help them attract additional buyers for their homes. These homebuilding businesses are here to sell homes profitably and thus make money. Many of the homebuilders in the Orlando area are desperate and need sales. As one commentator on Housing Panic put it "The website is pure self-interested sales collateral." The homebuilders association resorted to lies and other corrupt measures to move a glut of housing units
Scare Tactics: The Home Builders Association of Metro Orlando uses scare tactics to frighten renters into buying now. In their Frequently Asked Questions (FAQ) section. They ask and answer "As a first-time buyer, should I wait until prices go lower to buy a home? No. If you continue to wait, you may never be able to afford to get into the housing market."
Self Contradictions: In their Frequently Asked Questions (FAQ) section. They ask and answer "If I wait to buy a new home, won't prices go down even lower? Timing the market isn't a great idea." However, in one of their TV Ads the announcer says "When it comes to buying a home, timing is everything. That time is now." Thus, their TV ad contradicts thier FAQ on their website.
My esteemed housing bubble blogger Keith over at Housing Panic wrote this and attacked their campaign saying "the ads and website are disgusting. more lies and spin from the REIC."
The Home Builders Association of Metro Orlando's campaign to convince people to buy now is pathetic. It engages in scare tactics, self contradictions and lies. They should be ashamed of their outrageous tactics. Don't be fooled.
Posts
"The Home Builders Association of Metro Orlando's campaign to convince people to buy now is pathetic. It engages in scare tactics, self contradictions and lies. They should be ashamed of their outrageous tactics. Don't be fooled."
ReplyDeletePot, kettle - black.
bravo, DJ, bravo.
ReplyDeletehow about a piece on NVAR's similar tactics?
Excellent post. This is simple economics. Heavy marketing needs to occur when few buyers are present. Ever bought a car from a lot? Same song and dance about buying now or it will be gone tomorrow.
ReplyDeleteUnfortunately those that buy now are coming from the sub-prime market; to the tune of 1 out of every four buyers mortgage originations occur in the sub-prime side.
Dr. Housing Bubble
The question you must be asking is, if the market is so good and getting better, why waste money on TV Ads?...my only regret is that some suckers will fall fall this.
ReplyDeleteLink to my blog about Chicago RE.
ReplyDeleteUrban pioneers settle in, hoping their investment pays off
sorry if there was a double post!
ReplyDeleteI saw a simmilar ad this weekend for Realtors that showed several times on HGTV saying "there is no better time to be in the market". This is true, of course, unless buyers hold fast and refuse to pay inflated prices. I looked at a house inside the beltway a couple of weekends ago, and its asking price was $1.4 million. I was curious what the person had paid for it. In Feb 2005, they had paid $1 million. They expected a 20% annualized return for each of two years after the market peaked. Needless to say, there were no offers and the price was dropped immediately to 1$1.3, which is still about 400K over what it is probably going to sell for in a year or so.
ReplyDeleteAnother house I saw was obviously priced according to what the seller needed to get, rather than what it was worth. The seller probably bought the house two years ago for $500K, gutted and renovated it for about $100K, and now needs to sell it for $675K. Many prices right now are still not based on value, but on prior expectations and calculations based on peak prices.
Hold fast, buyers. We are in the drivers seat now. These ads are simply evidence of panic that is likely to get worse before it gets better.
anon:5:13
ReplyDelete"Many prices right now are still not based on value, but on prior expectations and calculations based on peak prices."
You are so right my fellow blogger, in fact this is the most true statement I've read on this blog in quite sometime. There are many homes for sale that may look attractive price wise, it's an illusion. Some pent up buyers may see this as a bargin and deal. These homes are far from being bargins 2004-2005 prices certainly are not any type of bargin.
So because the Home Builder's Association is deciding to advertise on TV now (LIKE EVER OTHER PRODUCT MANUFATURER ON EARTH), they are full of lies and scare tactics? If YOU had something to sell, would YOU not advertise? Every company HAS to make a profit somehow, are you saying that Home Builder's aren't entitled to a profit? You're negative "spin" on the market disgusts me. Give you opinions on something worthwile instead of "beating a dead horse".
ReplyDeleteanon 6:36,
ReplyDeleteDid you read my post? I gave specific reason why there advertisements use scare tactics, self contradictions and lies.
Companies are allowed to advertise. However, they should not resort to lies or slef contradictions.
David, you pointed to a contradiction. You have not pointed to a lie. I guess you're the one who lied.
ReplyDeleteLies: The Home Builders Association of Metro Orlando has resorted to outright lies in their desperate attempt to find new buyers for their bubblicious new homes. On their newly created propaganda website they write "This website has been created to server only one interest - that of the today's homebuyer.
ReplyDeleteNo. Their website was NOT created to "serve only one interest - that of the homebuyer," but instead was to help them attract additional buyer for their homes. These homebuilding businesses are here to sell homes profitably and thus make money. Many of the homebuilders in the Orlando area are desperate and need sales. As one commentator on Housing Panic put it "The website is pure self-interested sales collateral." The homebuilders association resorted to lies and other corrupt measures to move a glut of housing units
David, why didn't you permit the post about the law firm raises? It was directly relevant to numerous housing-related conversations we've had here.
ReplyDeletethat's your lie? wow, who's resorting to what now?
ReplyDeleteIt's a lie for a business person to say that they want to serve the needs of their customer? That's quite a stretch, david.
ReplyDeleteIs it a lie when you say you started this website to bring us information rather than the truth - to vent your own frustration about your economic condition?
It is a lie. I fully stand by my accusations against the homebuilders association.
ReplyDeleteAnd I stand by my accusations against you - your primary motivation is to vent your frustration about your poor economic condition. You admitted it to the Wall Street Journal.
ReplyDeleteanon wrote: "And I stand by my accusations against you - your primary motivation is to vent your frustration about your poor economic condition."
ReplyDeleteI choose to rent. My renting situation is grand. Thankfully, I earn a high income and have a solid economic condition. No complaints here.
"I choose to rent. My renting situation is grand. Thankfully, I earn a high income and have a solid economic condition. No complaints here. "
ReplyDeleteyou don't earn enough to buy the place you wanted. that's why you started this blog.
also, answer the question about why you didn't permit the post about law firm raises.
"It's a lie for a business person to say that they want to serve the needs of their customer?"
ReplyDeleteThey claim that the website has been crated to "serve only one interest."
Only one? That is a lie.
"My renting situation is grand."
ReplyDeleteYou live in a group house. End of story.
""It's a lie for a business person to say that they want to serve the needs of their customer?"
ReplyDeleteThey claim that the website has been crated to "serve only one interest."
Only one? That is a lie. "
Some of your posts are good and informational. Some are just hysterics. This qualifies as the latter.
Ok, let's try this, david. If that's a lie, you should easily be able to present evidence of the truth the lie misrepresents. I challenge to to do that.
ReplyDelete"If that's a lie, you should easily be able to present evidence of the truth the lie misrepresents"
ReplyDeleteTruth: The Homebuilder Association build this website to convince potential buyers to buy now and thus increase revenue for the local homebuilders.
Our society has become so infected with deception, half truths and lies that many of us hardly notice it anymore.
ReplyDeleteSad, but true.
Putting aside for the moment the fact that you have not given any evidence, just another of your conclusions ...
ReplyDeleteYour proof that they are lying when they say they are serving one interest - the homeboyer - is the fact that this is a for-profit enterprise?
Isn't this something that anybody with, say, at least a second grade education knows right away upon reading it?
Anon 5:13 and Bollenger,
ReplyDeleteIf you look at the NOVA historical home sales numbers, the last time there was a run-up in prices ('86 to '89) there was a drop to slightly negative in '90, another spike of 17% in '91, and then the market was essentially flat for another 5 years.
I'm curious as to what caused that 17% spike? I'm thinking that the market went slightly negative as cautious buyers withdrew from the market ('90), they all jumped in the year after it went flat (in '91), hence the spike, but then sales volumes just went no where as most buyers were settled in.
source: http://www.nvar.com/market/history.lasso
My $0.02.
"Isn't this something that anybody with, say, at least a second grade education knows right away upon reading it?"
ReplyDeleteApparently not considering the number of ARMs out there that are predicted to foreclose this year.
You cant even go to Mc'Dees anymore without seeing a warning label on a cup of coffee that says "HEY THIS MIGHT BE HOT". What makes you think people might apply intelligence to something like say... buying a house when we feel its neccessary as a society to label a cup of coffee as "DANGEROUS: HOT"?
Fact is there is a large segment of the population who you might not be able to sell a bridge to, but you can scare and confuse them enough to do things that are not neccessarily in thier own best interest. And when your talking about a purchase of this size, the damage done can be irreversable.
anon,
ReplyDeleteWe're tired of things being representd as they are not. David has found another good find here.
I love this quote from the web site:
No. If you continue to wait, you may never be able to afford to get into the housing market."
Ok, let's think a minute what happens when people are truly priced out forever... they leave the area! There is no other choice. Is Austin, Huntsville, or 3/4's of America short on land? No.
Those FUD tactics are horrid. My company is showing all the signs of doing a national consolodation in a mid-size city of reasonable housing costs. I'm now looking forward to being relocated. My fiancee has finally jumped onto the bandwagon when she realized what we could buy sans mortgage in some really nice cities! We've already seen three fortune 500 companies start these types of moves. Some won't move, they'll just layoff. Cest la vie. One of my cousins is about to be laid off in another bubble market. Why? Where he works is worth more as townhomes than a place of business, so the lease won't be renewed. His employer decided the best business plan was 100% layoffs. Cest la vie. Expect to see a lot more of this unit wages and home prices balance out.
So being priced out forever is nothing but blatent lie scare tactics.
This will get interesting.
Got popcorn?
Neil
"You cant even go to Mc'Dees anymore without seeing a warning label on a cup of coffee that says "HEY THIS MIGHT BE HOT". What makes you think people might apply intelligence to something like say... buying a house when we feel its neccessary as a society to label a cup of coffee as "DANGEROUS: HOT"?"
ReplyDeleteThat's because of law suits. I hope David doesn't think he'd get anywhere with a suit about the statements he's whining about here.
David said: "Our society has become so infected with deception, half truths and lies that many of us hardly notice it anymore. "
ReplyDeleteIf you look into the "snake oil" sales practices of the 19th century, you'll see that deceit has been alive and well for a long, long time. (you are railing against human nature, not a specific group of humans)
It was once possible to purchase heroin and syringes directly from the Sears catalog. Salesmen would come door-to-door throughout the country to sell "tonics and elixrs" that contained cocaine. Coca-Cola contained cocaine, and it was marketed as a beverage that would make you healthy.
These are facts. Once approximately 33 percent of the entire population (including infants) of the United States of America was addicted to "tonics and elixrs" and heroin products offered by Sears Roebuck, & Co., the Federal government took action to get heroin and cocaine off the conumer market. Drug Enforcement as we know it today was born.
So, will the Government take action against the so called REIC?
Another Anon.
Forgive the re-post, but this may have some bearing on the topic at hand:
ReplyDeletehttp://www.baltimoresun.com/business/bal-te.bz.vacanthomes21jan21,0,2387143.story?coll=bal-business-headlines
Houses for sale stand vacant
Slowdown leaves half of homes on market unoccupied
BY LORRAINE MIRABELLA
SUN REPORTER
ORIGINALLY PUBLISHED JANUARY 21, 2007
-The number of vacant homes for sale nationally jumped more than 30 percent in the third quarter from a year earlier, to 1.9 million homes, the latest data available from the U.S. Census Bureau show. That's about half of all single-family homes on the market, said Michael Carliner, vice president of economics for the National Association of Home Builders.
More than a third of those - 825,000 - are in the southern region of the United States, which includes Maryland.-
Will the owners of these empty homes continue to feed the alligator? Who will slash prices first, homeowners or builders? I’d wager that individual home owners are most likely to blink first and that will pressure builders to follow.
Neil, you mention your impending relocation in every post. As if that's some badge of honor. Way to find yourself in a career where you can be moved around at somebody else's will like you were their garden rake.
ReplyDeleteIf you are so excited about leaving DC, go now.
Puh-leeze. David is correct. It is a lie (as in not true) to say that: "This website has been created to serve only one interest - that of the today's homebuyer." If a car manufacturer said their website was created "to serve only one interest - that of the today's car buyer" would anyone believe it?
ReplyDeleteOf course they are allowed to advertise. But please don't insult our intelligence and claim their only motive is “service.” It's absurd.
And, David, ...expect comments like this: "You live in a group house. End of story" to increase. As housing collapses, the "bitter renter" label will shift to "bitter homeowner" and be seen for what it is.
The plague is spreading and there is nothing this unethcial bunch can do to stop.
ReplyDeleteIf you are a buyer and have a half a brain you will realize it is propaganda.
Anon,
ReplyDeleteYou take swipes instead of building your argument with facts. Yawn.
Its a fact. My employer is a good employer. If I really didn't want to move... alternate employment is available to me.
Tell me why companies want to stay! Denote relocations (e.g., I know of one going San Diego to DC!). But barbs without substance? Yawn. That's what created the bubble. Its also what is going to accelerate the drop. Believe it or not, the same bears who are posting about housing being overpriced will post about how it will become underpriced in the ensuing overcorrection.
But that won't be until 2009 or 2010.
This is going to be a long brutal proces. Did you see all of the layoff notices being sent out? The recession the bears predicted is starting. We don't want. Believe it or not most of us wish we were wrong. So we look for the facts, the root-causes, the underlying triggers... and find debt, debt, and more debt
Neil
Thier are enough fools to drive the prices higher. Easy loans fuel the fire even more. I just had a little meeting last week with several would be Real Estate investors. Thier take? Now is the best time to buy. The Market has gone down just enough for the next run up in prices. This will not be over until these ARM and IO loans taken out in record numbers in 2004/2005 come do. As long as the banks are throwing money at people to buy homes people will buy them.
ReplyDeleteYeah, I actually know a ton of people who are going to start to look in the spring. The downturn is done.
ReplyDeleteHere is a crazy tenant story from DC. Read it and weep.
ReplyDeletehttp://economicdespair.blogspot.com/2007/01/you-can-always-rent-your-unwanted-flip.html
That's a pretty good example of the type of people who rent apartments.
ReplyDeleteGive me a break! This is just an ADVERTISING CAMPAIGN. Don't get your undies in a twist about it. If you believe that advertisers are sincere, then you must also believe that Frosted Flakes are part of a balanced breakfast, Cingular has the lowest dropped calls, and Tiger Woods really drives a Buick.
ReplyDeleteThe sole purpose of advertising (in 95% of the cases) is to SELL YOUR STUFF. That's all the builders are doing...no different from any of the other advertisers on tv and/or radio.
companies marketing mineral makeups and also get the best bargains in mineral makeup you can imagine,
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