Comments on: Quote of the day: Realtors Get Real http://www.ritholtz.com/blog/2007/03/quote-of-the-day-realtors-get-real/ Macro Perspective on the Capital Markets, Economy, Geopolitics, Technology, and Digital Media Sat, 21 Nov 2009 12:43:00 -0500 http://wordpress.org/?v=2.8.5 hourly 1 By: The Big Picture http://www.ritholtz.com/blog/2007/03/quote-of-the-day-realtors-get-real/comment-page-1/#comment-35613 The Big Picture Tue, 25 Mar 2008 11:35:33 +0000 http://thebigpicture.dev.wilder.ca/blog/2007/03/09/quote-of-the-day-realtors-get-real/#comment-35613 <strong>How Counter-Productive is Realtor Association Spin?</strong> One of themes we've looked at over the years is the spin that some trade groups put out on top of their data releases. Some data runs put out by Trade Associastions, like the ATA tonnage index, or the Home Builders Index, are the straight dope -- an un... How Counter-Productive is Realtor Association Spin?

One of themes we’ve looked at over the years is the spin that some trade groups put out on top of their data releases. Some data runs put out by Trade Associastions, like the ATA tonnage index, or the Home Builders Index, are the straight dope — an un…

]]> By: Michael Gracie http://www.ritholtz.com/blog/2007/03/quote-of-the-day-realtors-get-real/comment-page-1/#comment-35611 Michael Gracie Mon, 01 Oct 2007 18:43:29 +0000 http://thebigpicture.dev.wilder.ca/blog/2007/03/09/quote-of-the-day-realtors-get-real/#comment-35611 Certainly brings the national versus "local scene" into perspective. But I do, however, think that those realtors grounded in reality represent the minority, particularly considering how many licenses have been issued over the past five to seven years to opportunists versus career realtors. I actual know a few of the latter that are still doing quite well, but they are specifically targeting those who have the ability to lower prices (something we all know a lot of homeowners simply can't do right now). Certainly brings the national versus “local scene” into perspective. But I do, however, think that those realtors grounded in reality represent the minority, particularly considering how many licenses have been issued over the past five to seven years to opportunists versus career realtors. I actual know a few of the latter that are still doing quite well, but they are specifically targeting those who have the ability to lower prices (something we all know a lot of homeowners simply can’t do right now).

]]> By: The Big Picture http://www.ritholtz.com/blog/2007/03/quote-of-the-day-realtors-get-real/comment-page-1/#comment-35612 The Big Picture Thu, 07 Jun 2007 15:38:11 +0000 http://thebigpicture.dev.wilder.ca/blog/2007/03/09/quote-of-the-day-realtors-get-real/#comment-35612 <strong>NAR and Housing Forecasts</strong> With the oft hallucinatory David Lereah now gone from the NAR, one would expect hope that the Realtor Group would take off the cheerleading outfit and get real. So far, that wish appears to be unfulfilled. There's been only grudging signs of any realit... NAR and Housing Forecasts

With the oft hallucinatory David Lereah now gone from the NAR, one would expect hope that the Realtor Group would take off the cheerleading outfit and get real. So far, that wish appears to be unfulfilled. There’s been only grudging signs of any realit…

]]> By: Nova Law http://www.ritholtz.com/blog/2007/03/quote-of-the-day-realtors-get-real/comment-page-1/#comment-35610 Nova Law Sun, 11 Mar 2007 12:55:55 +0000 http://thebigpicture.dev.wilder.ca/blog/2007/03/09/quote-of-the-day-realtors-get-real/#comment-35610 For all the hating on realtors going on in this thread, I will observe that nearly everyone I have ever known who tried to buy or sell a home without a realtor lived to regret it. Sellers representing themselves typically don't know how to realistically price their home, don't know how to deal with contract formation, don't know how to separate business from personal in negotiations, don't know how to deal with buyers who have agents, don't know how to deal with problem when they arise, don't know how to deal with escrow issues, and don't know anything about the law. Buyers representing themselves don't know how to assess an asking price, don't know how to make an offer, don't know how to structure a legal contract, don't know how to place escape clauses in a contract, don't know how to deal with escrow issues, don't know how to separate their desires from their budget, and don't know how distinguish risky properties from unappreciated bargains. Three acquaintances who tried to sell or buy their homes without a realtor ended up in nasty lawsuits. But, HEY!, they saved 6%! No, realtors don't make money unless a sale happens, and some are bad at what they do. This problem only arises when people fail to do their due diligence and engage a realtor's services based on the fact that she's married to their cousin. You can't protect people from their own stupidity - if they're too stupid to hire a good, solid, reputable realtor, then they are definitely too stupid to buy a sell a home without one. For all the hating on realtors going on in this thread, I will observe that nearly everyone I have ever known who tried to buy or sell a home without a realtor lived to regret it.

Sellers representing themselves typically don’t know how to realistically price their home, don’t know how to deal with contract formation, don’t know how to separate business from personal in negotiations, don’t know how to deal with buyers who have agents, don’t know how to deal with problem when they arise, don’t know how to deal with escrow issues, and don’t know anything about the law.

Buyers representing themselves don’t know how to assess an asking price, don’t know how to make an offer, don’t know how to structure a legal contract, don’t know how to place escape clauses in a contract, don’t know how to deal with escrow issues, don’t know how to separate their desires from their budget, and don’t know how distinguish risky properties from unappreciated bargains.

Three acquaintances who tried to sell or buy their homes without a realtor ended up in nasty lawsuits. But, HEY!, they saved 6%!

No, realtors don’t make money unless a sale happens, and some are bad at what they do. This problem only arises when people fail to do their due diligence and engage a realtor’s services based on the fact that she’s married to their cousin. You can’t protect people from their own stupidity – if they’re too stupid to hire a good, solid, reputable realtor, then they are definitely too stupid to buy a sell a home without one.

]]> By: MarkusArelius http://www.ritholtz.com/blog/2007/03/quote-of-the-day-realtors-get-real/comment-page-1/#comment-35609 MarkusArelius Sun, 11 Mar 2007 05:27:28 +0000 http://thebigpicture.dev.wilder.ca/blog/2007/03/09/quote-of-the-day-realtors-get-real/#comment-35609 You know,the last thing you want to do is make a realtor mad. Over the last several years they've grown way too accustomed to eating other people's lunch. 6%. That's MY 6% commission you're delaying! Get with the program you home sellers! Realtors have a tendencey to deny the duplicitousness of their chosen profession. You know,the last thing you want to do is make a realtor mad.

Over the last several years they’ve grown way too accustomed to eating other people’s lunch.

6%.

That’s MY 6% commission you’re delaying!
Get with the program you home sellers!

Realtors have a tendencey to deny the duplicitousness of their chosen profession.

]]> By: mark http://www.ritholtz.com/blog/2007/03/quote-of-the-day-realtors-get-real/comment-page-1/#comment-35608 mark Sat, 10 Mar 2007 11:34:33 +0000 http://thebigpicture.dev.wilder.ca/blog/2007/03/09/quote-of-the-day-realtors-get-real/#comment-35608 he sky is starting to fall.... http://www.nytimes.com/2007/03/10/business/10real.html?ex=1331182800&en=442d8daf6bf56cac&ei=5090&partner=rssuserland&emc=rss he sky is starting to fall….

http://www.nytimes.com/2007/03/10/business/10real.html?ex=1331182800&en=442d8daf6bf56cac&ei=5090&partner=rssuserland&emc=rss

]]> By: Shane - Apella http://www.ritholtz.com/blog/2007/03/quote-of-the-day-realtors-get-real/comment-page-1/#comment-35607 Shane - Apella Sat, 10 Mar 2007 03:59:38 +0000 http://thebigpicture.dev.wilder.ca/blog/2007/03/09/quote-of-the-day-realtors-get-real/#comment-35607 With the market and the spin as it is I can see three things coming on. The use of appraisals, more free MLS systems and more discount brokers. If the real estate sales brokers and the NRA wish to curb the the use of these services then they are going to need to promote services such as appraisals and homeinspections as they communicate and still keep strong relationships with homeowners who want to list. With the market and the spin as it is I can see three things coming on. The use of appraisals, more free MLS systems and more discount brokers. If the real estate sales brokers and the NRA wish to curb the the use of these services then they are going to need to promote services such as appraisals and homeinspections as they communicate and still keep strong relationships with homeowners who want to list.

]]> By: VJ http://www.ritholtz.com/blog/2007/03/quote-of-the-day-realtors-get-real/comment-page-1/#comment-35606 VJ Sat, 10 Mar 2007 01:21:17 +0000 http://thebigpicture.dev.wilder.ca/blog/2007/03/09/quote-of-the-day-realtors-get-real/#comment-35606 This is a must see: The Mortgage Lender <b>IMPLODE-O-METER</b> http://ml-implode.com/ . This is a must see:

The Mortgage Lender
IMPLODE-O-METER

http://ml-implode.com/
.

]]> By: Bob A http://www.ritholtz.com/blog/2007/03/quote-of-the-day-realtors-get-real/comment-page-1/#comment-35605 Bob A Fri, 09 Mar 2007 23:02:07 +0000 http://thebigpicture.dev.wilder.ca/blog/2007/03/09/quote-of-the-day-realtors-get-real/#comment-35605 Remember 2000 when 'visibility' was the popular word around earnings time? P.S. Just for fun, call up a mortgage broker or two, tell them you owe $500,000 on an option ARM on a house you paid $500,000 for, that's now worth $450,000, and you want to refinance at a low fixed rate so you can try to hold on to it. Let us know what you find out. Remember 2000 when ‘visibility’ was the popular word around earnings time?

P.S. Just for fun, call up a mortgage broker or two, tell them you owe $500,000 on an option ARM on a house you paid $500,000 for, that’s now worth $450,000, and you want to refinance at a low fixed rate so you can try to hold on to it. Let us know what you find out.

]]> By: Alan Coffey http://www.ritholtz.com/blog/2007/03/quote-of-the-day-realtors-get-real/comment-page-1/#comment-35604 Alan Coffey Fri, 09 Mar 2007 23:01:05 +0000 http://thebigpicture.dev.wilder.ca/blog/2007/03/09/quote-of-the-day-realtors-get-real/#comment-35604 I recall a study showing that, when realtors sold their own homes, they kept them on the market longer than average and got a better % of the asking price. When it is somebody else's home, the realtors want a deal to happen and happen quickly. When it is their own home, they want a good price. This is described extensively in the book "Freakanomics". It shows that there is a disconnect between the interests of the seller and the agent. I advocate getting an agent to take a larger percentage above an agreed upon base price. Tough part is finding an agent willing to work that way in an age of inflated housing prices. The agents have gotten rich in the last five to ten years for VERY little effort. I recall a study showing that, when realtors sold their own homes, they kept them on the market longer than average and got a better % of the asking price.

When it is somebody else’s home, the realtors want a deal to happen and happen quickly. When it is their own home, they want a good price.

This is described extensively in the book “Freakanomics”. It shows that there is a disconnect between the interests of the seller and the agent. I advocate getting an agent to take a larger percentage above an agreed upon base price. Tough part is finding an agent willing to work that way in an age of inflated housing prices. The agents have gotten rich in the last five to ten years for VERY little effort.

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