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Are Realtors the Villains Behind Next Economic Collapse?

Discussion in 'Real Estate & Other Investments' started by Scorpio, Mar 14, 2017.



  1. Scorpio

    Scorpio Скорпион Founding Member Board Elder Site Mgr Site Supporter ++

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    Are Realtors the Villains Behind Next Economic Collapse?
    Birch Gold Group

    [​IMG]


    Back in 2008, big banks lobbied hard, got cocky, and landed themselves in a crisis. Now a different group is about to do the same — potentially on an even larger scale. But it’s not who you’d expect.

    Over the last election cycle (2015-2016), the financial sector distributed a record breaking number of lobbying dollars to members of Congress – all to “influence decision making.”

    How much did it take to break the record? Over $2 billion.

    According to a recent report conducted by Americans for Financial Reform, that’s a staggering $3.7 million for each member of Congress.

    And who do you think the #1 contributor was? Goldman Sachs? Wells Fargo?

    Nope. Mega banks and hedge funds didn’t even come close to matching the first name on the list: The National Association of Realtors (NAR).

    Will Realtors Get Blamed for Our Next Crisis?

    Just as Wall Street gambled with the economy and lost in 2008, the real estate sector is now doing the same.

    By spending millions upon millions to lobby Congress, the NAR is asking for the same treatment big banks got back in the mid 2000s – things like deregulation, handouts, and government subsidies.

    For example, the NAR expects Congress to pay it back by inflating the housing market. And how will Congress do that? By dominating the mortgage industry, including guarantees and mortgage-backed securities (the same financial instrument that got us into so much trouble back in 2008), and effectively subsidizing mortgage rates.

    The NAR seemingly doesn’t care if government manipulation of the housing market blows up the economy. All that matters are higher house prices and fatter commission checks for realtors; whatever it takes to make that happen is outside the NAR’s scope of concern.

    This approach leads to artificially high prices and puts homeowners at risk. There is a limit to what politicians can do to prop up the already-inflated housing market, even with the millions of dollars NAR is throwing at them. At some point, Congress will run out of tricks and the housing market will fall.

    When Housing Collapses, Gold Will Rise

    Clearly, real estate has their champion among the lobbyists. But gold, on the other hand, has no political champion. No organization is giving money to politicians to inflate gold prices. If anything, there’s plenty of evidence to suggest that gold prices have been manipulated to be artificially low.

    Historically, gold has done well during times of economic distress. So if the housing market begins to decline, it could mean good things for gold.

    Historically, practically every financial crisis in US history has pushed gold prices higher. Why is that? Because gold is the only asset that people run to en masse any time the economic waters get rough. And it’s been that way not just for the last decades, but for the last thousands of years.

    In six of the S&P 500’s eight worst losing streaks, gold shot up while stocks fell drastically, including the crash of 1987 and the meltdown of 2008. And now, according to CNBC’s Trading Nation, technical indicators in the gold and bond markets today are showing eerie similarities to those we saw in the weeks preceding Black Monday.

    When the housing market comes tumbling down from the lofty heights that lobbyists have propped it up to, you can bet gold will do what it’s always done during times of economic crisis. It’s not a matter of if, but when.









    [​IMG]

    Reputation for excellence

    Trustlink 5 Star Testimonials BBB A+Birch Gold Group is known throughout the industry for its exemplary track record. The reputation we’ve earned over the last decade is evident in our many accolades and positive ratings from independent business review organizations. We proudly maintain an A+ rating with the Better Business Bureau, an AAA rating from the Business Consumer Alliance, and numerous other 5-star ratings on top review websites, including Trustlink.org and Yellow Pages.





    www.birchgold.com

    http://www.silverbearcafe.com/private/03.17/villians.html
     
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  2. the_shootist

    the_shootist I self identify as a black '69 Camaro Midas Member Site Supporter ++

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    Realtors are some of the most rancid human scum on the planet. It's no wonder most of them are feminists!
     
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  3. edsl48

    edsl48 Silver Member Silver Miner

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    Realtors are not the total cause of a very complex situation but the way I see it they have a lot to do with it.
     
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  4. nickndfl

    nickndfl Midas Member Midas Member Site Supporter ++

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    Down here they inflate most new listings 1-2% over the average list price. When the older cheaper properties sell, then the newer more expensive listings move unless there are other extraneous circumstances. It inflates the market and their commission. But who would want to sell their home short and leave $ on the table unless they needed a quick sale?

    New listings of vacant property in my areas increase around $500-$1000 every month. What was $15k a year ago is now low-$20s. New construction 4/2/2 homes go up around $1k per month not including the lot. New construction is becoming a platinum premium in coastal South Florida where little vacant land is left unless you want to live in an HOA.
     
  5. Eyebone

    Eyebone Midas Member Midas Member

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    'real estate agents' are no different from bankers.

    House 'flippers and reas are parasites, raising the prices of property to pad their wallets.

    Don't give me the anecdotal, my wife or my mum is a rea and she is really nice, FU.
     
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  6. Howdy

    Howdy Silver Member Silver Miner

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    In moral terms, maybe. Bankers are the cause of most of our economic ills, though.
     
  7. JFN111

    JFN111 Silver Member Silver Miner

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    I don't think I'm a bad guy. My job is simply to get the most money for the Seller or the best deal for the Buyer, depending on whom I'm representing.
     
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  8. searcher

    searcher Mother Lode Found Site Supporter ++ Mother Lode

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    I'd say greed.

    Sure there are a lot of unscrupulous realtors (and some pretty dumb ones too) but that holds true for just about any profession. I'd say it's simple greed. Every one wants what they can get for what ever they are selling. Just basic human nature I'd say.

    On a different note I've seen realtors who really didn't know too much about the properties they were showing. Kinda aggravating dealing with some one like that.
     
  9. Howdy

    Howdy Silver Member Silver Miner

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    There are problems with how things are structured. Although it's possible many realtors do try to do the best job for the seller and the buyer, it's often in conflict with doing the best job for the Realtor.
    Good or bad, 6% is way too damn much for what they do.
     
  10. nickndfl

    nickndfl Midas Member Midas Member Site Supporter ++

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    I need a REA because I have my own business to run and travel extensively. Mine charges 4.5%-5% or a flat fee sometimes. Best agent so far.
     
  11. luckabuck

    luckabuck Gold Member Gold Chaser

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    Mortgage companies make realtors and bankers look like Sunday school teachers. Fannie Mae and Freddie Mac are on the edge of failure.
     
  12. Goldhedge

    Goldhedge Modal Operator/Moderator Site Mgr Site Supporter

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    If you really believe it's Realtors, go be one.

    You will soon discover they only follow what the market dictates.

    List a home for $200K and 4 or more offers come in, each higher than the last...

    Sounds to me that it's the buyers who are pushing the prices. 1% or 2% is nothing to selling a $200k home for $230k!

    Also, the Sellers always want top dollar.

    If the Realtor proves to them with comparable sales in the last 6 months what the market is doing. If the Seller wants to list it high, who is the Realtor to argue? You list it. If it doesn't sell in 3 months revisit the valuation.


    Also, if you bought a home before you would know that the LENDER'S appraiser has the final say on the valuation of the home.

    List it for $230K and appraisal comes in at $200k, the buyer has to come to the table with $30k more, or else the seller lowers his price.

    If one of those two things don't happen... there is no sale!

    So, for arguments sake, NO the Realtor is not responsible.
     
  13. JFN111

    JFN111 Silver Member Silver Miner

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    6% of what? I'm primarily a Buyer's rep and I'm currently helping one of my contractors with a $12,000 vacant lot. The usual buyers rep percentage is 2.75%. That means $330 bucks before the Brokers cut. Bring on the hookers and blow. :-)
     
  14. edsl48

    edsl48 Silver Member Silver Miner

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    I have been involved in 3 real estate transactions over the years where my offers were not conveyed to the seller. I probably have others as well but these 3 I know for sure. These three properties were in fact purchased by the realtors that were supposed to be representing me. None the less my advice is if you are going to buy a certain piece of property deal with the listing agent because they control what the seller does and dose not see.
    I have also had listing agents call me late at night wondering if I wanted to up my offer and then give me an idea of what I should offer based upon other offers that were in. Having been outbid by as little as a penny once taught me all I need to know about the tank of sharks. I bought my last place at 100.00 over the highest sealed bid offers recently...by using the listing agents suggested bid and I got what I consider one heck of a great deal. Having been in the past been negatively affected by these situations I no longer feel any guilt by it. The way I see it is when you deal with liars and unethical types (re agents) lying and unethical ain't lying and unethical.
     
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  15. Howdy

    Howdy Silver Member Silver Miner

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    You're pretty selective in your example. I've bought and sold a lot of real estate over the years and I can't remember one single time that a Realtor complained about the commission being too high when they sold a 4 or 500K property and charged me up to 30K for all that "hard work" they did. 6% might be OK on properties selling for under 50K, but the average sale is much higher than that.
    BTW, I recently sold a place for 482K. The listing broker would not agree to anything less than 3% to the listing agent if someone else sold it. At closing he told the closing agent his commission was 4% and that the selling agent got 2%. I pointed it out and he acted like he forgot and then switched to telling me that he spends a fortune on advertising etc.. anyway I got the split adjusted to 50/50 but the selling agent never thanked me.
    I had been warned by another broker that my broker did this so I was on guard for it.
     
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  16. Cigarlover

    Cigarlover Gold Member Gold Chaser

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    Bank are the only ones who can make loans so they have to be the ones responsible for any housing crash.
    The big problem I see right now is People are maxed out already. Unless salaries go up a lot to catch up to housing prices the math just doesn't work.
     
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  17. JFN111

    JFN111 Silver Member Silver Miner

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    You're right it was selective. :-) Here the usual listing is 6% with 2.7% to the buyer's rep. Commissions are negotiated all the time. 5.5% with about a 50/50 split is not uncommon. Our Brokerage will not allow us to offer less than the 2.7% to the buyer's agent without some reason like representing an auction company.
    If you feel commissions are too high try FSBO. People on this forum are probably more apt than most to be able to dicker and negotiate.
     
  18. SilverCity

    SilverCity Gold Member Gold Chaser

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    Sold a $190,000 home in 2003. Assist-2-Sell worked both sides of the deal.

    House sold in one week and cost me a flat fee of $2500.

    Good luck all

    SC
     
  19. Silver

    Silver Gold Member Gold Chaser

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    I don't have any problem realtors - I've used them buying and selling and everything has always been on the up and up. I did get a little hoodwinked on recent deal, but it was my fault, or the law. A recent change in Texas is the buyers option period, for a small fee, the buyers have option of backing out for just the loss of the option fee. Where I got hoodwinked was not realizing AS IS no longer applies in reality. What the buyers did was offer AS IS, but during the option period has inspections done - then used the inspection report to renegotiate. I let go another offer that that had a few minor contingencies thinking the AS IS would be easier - nope. Had to jump hoops with the AS IS a lot more than the other offer would have been. Live and learn.
     
  20. Krag

    Krag Planet earth Platinum Bling

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    The good ones do their jobs and help potential buyers and renters get a good deal. But the greedy ones are the lowest dogs around. I suspect some of the gals give oral sex to potential buyers to cinch the deal.
     
  21. Howdy

    Howdy Silver Member Silver Miner

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    "love it or leave it" is difficult to do when you are excluded from the MLS. MLS should be accessible to all.
     
  22. nickndfl

    nickndfl Midas Member Midas Member Site Supporter ++

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    Go to realtor.com to see the most current listings for your area.
     
  23. Goldhedge

    Goldhedge Modal Operator/Moderator Site Mgr Site Supporter

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    FYI the MLS is private for a reason. Realtors pay a monthly fee to access it. They are the ones who's efforts create it.

    You can find everything you want on Realtor.com. 15 years ago that wasn't the case because computers and the iNet were relatively new in the Realtor world.

    What you don't get is all the tools available to a Realtor such as the ability to search based upon certain criteria.

    Realtor's have more 'power' to find things. They can set up searches for their buyers and email them.

    It's more 'user friendly".
     
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  24. dacrunch

    dacrunch Gold Chaser Platinum Bling

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    I don't know how much this "skews" the "real" market pricing, but the development of REITs (Real Estate Investment Trusts) - traded on the Stock Market - might have an effect.

    There are BILLIONS of $$ in Pension Funds, University "savings", City/State "holdings", etc. looking for "investments" with "cash turnover", and with the low/negative returns on bonds, and common stocks being priced way above historical PE value, I wonder how much of that Pension Fund money flows into REITs... That is sure to raise prices. At least on commercial, office & multi-unit rental complexes.
     
    Last edited: Mar 17, 2017
  25. dacrunch

    dacrunch Gold Chaser Platinum Bling

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    Back in the 90's, they had a monthly catalog for each region - in realtors' offices.

    I would spend hours leafing through them, trying to find properties that matched my druthers. (Run-down small (2-5) multi-unit rentals). Had a "rule of thumb" that eliminated 99% of the offers = the rental income had to be at least TWICE the mortgage.. The "other half" of the rent needed for repairs, taxes, insurance, maintenance, vacancies, management etc...

    Also - the properties had to be "within my commute" - since I'd be spending nights & weekends fixing them up. (And you don't want to have to make an 80 mile trip each time a water-heater breaker trips...)

    Then I'd send my "buyer's agent realtor" to make ridiculously low offers (that I couldn't make in person keeping a straight face)... followed by a series of counter-offers... including seller financing (my credit was shot)... Depending on the seller's "need to sell", and in cases where other buyers didn't over-bid me, I came up with a few good deals. (Thank goodness, because since, taxes & fees & "mandated city improvements" & insurance & repairs have skyrocketed compared to rents. The "taxes" & "insurance" are based on the "current appraised value", not on the purchase price or the rental income.)
     
    Last edited: Mar 17, 2017
  26. Howdy

    Howdy Silver Member Silver Miner

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    The MLS is a centralized database monopoly which makes realtors much more valuable than they really are. Monopolies are illegal for a reason and that reason applies here. The MLS should be available to the public for a reasonable fee, like $200 or so, which would cover their share of the costs of maintaining the system.
    I can tell you for a fact that if the MLS had been available to me when I listed my last home, it would have saved me 30 grand and saved realtors the trouble of showing it. A win- win situation.
     

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