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2010-09-01 — ritholtz.com
The sort of nonsense the Realtor’s group peddles helps explain why sellers have incorrectly believed a recovery was imminent, even as housing went through a historic collapse. It is why home owners incorrectly still expect their homes to go appreciate by 10% a year.
These false beliefs have real world consequences. They create ridiculous expectations among sellers, who selectively grab onto any positive news they can. They choose the temporary blissful ignorance of illusion — that damned blue pill — versus embracing the painful truth of reality (i.e., the red pill).
I would go further: the continual lying is going to eventually discredit real estate in the eyes of a scarred generation, leading to overall less business for real estate agents (and other transactional beneficiaries) than if they had just been more honest to start with.
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Comments:
Ed Wright at 00:51 2010-09-02 said:
Duh… pause for loss of breath and shock!! You mean to tell me that the Board of Realtors State and National Level marketing programs spin their opinion on Real Estate Markets. Tell me it isn’t so! (Lord knows we are forced "as members" to pay for all their programs, like it or not; if you sell homes, you have to be a realtor. Not many other ways to work in the Real Estate Industry). My guess is that anyone surprised by this is blown away by the spin coming out of the Democrats and Republicans camps. One side says “The Sky is Falling†while another claims it’s “already fallen; but we can fix it!†You don’t believe this rhetoric either we assume… if you do, you have to love all this hope and change stuff. Please tell me you do not sell cars, stocks, bonds or gold for a living; because if not I know of the perfect home for you; it sits in the middle of nowhere, is very “green†and has the Easter Bunny on one side and the Tooth Fairy living on the other. The 7-dwarfs keep the garden up; The only problem is qualifying for a loan; you can pay cash, right? All joking and surprise aside, many Realtors don’t agree with the rhetoric their own boards put out any more than the auto workers think their unions add a lick of value to the cars they build. As a Lender who also sells homes and commercial properties we understand your frustration; and your points are 100% accurate. So how do you think the average Realtor / Lender advises their clients? That is the true test of the integrity of our industry. Gee… did I hurt too many feelings; step on too many toes? Sorry, mean it! Permalinkadd a comment | go to forum thread
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