Realtors® do you realize that life isn't always good and easy. We all get sick, lose jobs, get in accidents, lose loved ones and pets, and then we die. But, during our life we have good times and bad times. Just grow up and face reality.
I was previously a Realtor®, but only because I needed to be as I needed the Multiple Listing Service (MLS) for my appraisal business and in order to obtain MLS you need to be a member of the National Association of Realtors®. However, I am not a big fan of Realtors®. I find most lack the knowledge to assist buyers and sellers with the largest purchase or sale of their lifetime. They live for their commission check and will say anything to make sure the deal closes. I say this because I have 18 years of experience in the real estate business, most as an appraiser and I can't think of a day in my career that went by that I wasn't stunned by something a Realtor® said or did. Remember everything is always good in "Realtorland." If there are any problems with the appraised value or the home inspector finds any major repair problems there will be hell to pay and that appraiser and home inspector won't be receiving many referrals again.
Blame it on the Media
This is what I hear many Realtors® saying. The slump in real estate sales and decline in property values is the medias fault because they write and talk about it. Are you kidding me? It was OK for the media to write and talk about the real estate market when values were increasing and everybody could get a loan and buy multiple homes. Were they that dumb to believe this would continue forever?
Every Market is Different
The Realtors® have commercials that say "Every Market is Different", therefore telling us that yes property values are declining, however each market is different so where you may want to buy things could be good. Now if I went to an area where property values are still declining do you think any Realtor® I speak to will say that market is bad and not to buy? No, they will say what they all say all the time "Now is a Great Time to Buy" you can get a great deal.
Great Deals Abound
Why do Realtors® believe there are so many great deals? I hear this all the time, now is a great time to buy because you can get a great deal. Let me explain something to Realtors®, it is not a bargain, great deal or priced below market value just because the previous buyer paid top dollar in an over inflated, bogus real estate market that was made up of mostly greedy unknowledgeable buyers. If I foolishly bought a new 2010 Honda Accord for $100,000 (current cost according to their website $22,000) and then tried to resell it for $50,000 is it really a bargain? Of course not, I overpaid because I was a fool and just because I lower the price it still does not make it a good deal. This is exactly what is happening in the real estate market. Just because a get rich quick investor paid $500,000 for a townhome in Miami, Florida in 2007 does not mean you are getting a bargain because you can buy it now for $250,000. Prices are still declining in most areas and if you think that this townhome is going to be worth $500,000 again or close to that in your lifetime I have a bridge to sell you.
What Would They Tell Their Clients Now
The real estate industry does not like to admit that real estate values have been declining and continue to decline throughout the country. The Realtors® have their TV and newspaper ads "Now is a Great Time to Buy" and "Every Market is Different". Let me ask them a question. What would you tell your clients (buyers) now who listened to your advice and purchased a home in the past few years? There are many people who listened to these commercials and their local Realtors® and purchased homes in the past three years that are worth half of what they bought them for. If you are a Realtor® what would you tell that young newly married couple that listened to your advice and bought a home 3 years ago for $400,000 and it is now worth $200,000 and they have a mortgage of $350,000? They listened to your advice and purchased a property at a bargain price and lost big, but on a happy note you did get your commission check. What would you tell them now?
Realtor®'s Economist
Hey I have good news; the National Association of Realtors® have their own economist Lawrence Yun, so maybe we should listen to him because as an educated, experienced, knowledgeable economist he would know when the market will improve. Think again, I have never read anything where he has acknowledged the real estate market was ever in a decline. He works for the National Association of Realtors® and never says anything negative about the real estate market. Do you think he is bought and paid for?
Help is on the Way
I am sorry to complain, but it is frustrating to watch people being taken advantage of for so long. But I do really have good news for potential home buyers and sellers. If you want to know the real value of a property you are interested in buying or selling hire a local real estate appraiser. It has always amazed me that sellers are willing to pay a Realtor® (who works part-time at the mall) thousands of dollars in commissions to help them price and sell their home, but they won't pay a professional real estate appraiser $300.00 to price it right to sell quickly for top dollar. And buyers are willing to spend hundreds of thousands of dollars for a home, but don't consider spending a few hundred dollars for an appraisal to determine the actual value and the current market conditions. Before you buy or sell real estate you should have an independent real estate appraiser assist you to determine the value and tell you whether the market is declining, stable or increasing. I know most appraisers love these types of appraisal assignments, I always did. I just give my actual opinion to help people. There is no pressure from commission hungry mortgage brokers, lenders, Realtors®, etc. to inflate the property's value or indicate that market conditions are good. It is simple, just contact a local real estate appraiser and tell them you want an honest, thorough appraisal. Interview them first to make sure they have experience in the market area and appraising the type of property you need appraised. You can find a local real estate appraiser in our directory by clicking the following link: Real Estate Appraisers Directory
