Tuesday, December 15, 2009

Real Estate Agent Quote of the Month


"Kirsten, sorry this happened to you! We had it happen in our office recently. Remember, all the stable people who make logical decisions are sitting on the sidelines until the uncertainty ends. All the CRAZIES are out there buying now." - Linda Ferrara, Coldwell Banker

This is a response to a post by local agent Kristen Lindquist lamenting the fact that her clients had backed out of a home purchase. Interesting that the first reply, by a Realtor no less, states that people "who make logical decisions" are not buying, however "CRAZIES" are out in full force.

Other comments in the thread are also revealing like:

"Kirsten, I've had this happen to me as well. Everyone is different. My buyers ended up getting a divorce 2 months later after being married for only 1 year. I had another client who almost pulled out of the transaction because he was worried about his job. A week after his offer was accepted, his company had a meeting and gave out pink slips to 20% of the staff and told everyone else there may be more layoffs. Hopefully, your clients will ultimately come back into the market with you when they are ready. In the meantime, keep up the professionalism!" - Anthony Ebright, Santa Rosa Home Loans

Notice the risk of taking on hundreds of thousands of dollars of debt for 30 years when this world throws you life changing curveballs months or even days down the road.

The second example is mindboggling. The client "almost" pulled out because he was worried about his job. Low and behold it looks like it is in serious jeopardy. The real estate professionals involved in the deal should have told him to seriously reconsider buying given his circumstances. It doesn't look like this was the advice he received.

16 comments:

  1. Linda Ferrara sounds like someone whose company I would enjoy.I do know several people who recently bought or who will be buying a home soon.In none of these cases are the people making a rational decision and in one case the person openly admits it.Buying a particular home is seldom an entirely rational decision but right now,in Sonoma County, it is glaringly obvious that significant price drops are coming soon in the better neighborhoods.

    ReplyDelete
  2. When will Realtors realize that they are LICENSED by the state, not for personal profit, but to be PROFESSIONAL. Realtors will get a higher rating as a professioan, when they stop doing "cowboy" type selling. Rope em and bring em in---no matter how wek---for commish PROFITS TODAY, and misery next month for the buyers, as house prices ascend again into the heavens for the second hump of the BIG BUBBLE. THERE IS NO FREE LUNCH! Someone will have to pay. And so far its been taxpayers bailing out selfish banking interests. It could help, if we had a rule that says if the homeowner can't make payments ON TIME EACH month for at least five years (its supposed to be for 30), the Realtor would have to pay the buyer their commission WITH INTEREST. I KNOW if we tried this, REALTORS would have to stop crossing their fingers when they lie. Finally, THEY would be held accountable for their sins.

    Why hasn't any of them complaining about the excesses while the bubble was expanding the first time? See No evil, speak no evil hear no evil--- just collect your 6% and run to the bank.

    the only comeuppance I have seen are a few local Realtors who tried to flip (LIKE LATE NIGHT TV infomercials) and THEY got burned. I am NOT crying, maybe a little sly smile and "I told you so.."

    ReplyDelete
  3. This article makes it sound like you are absolutely "doomed" if you buy a house and then lose your job. I bought a house this year and then a month later I lost my job. I would have preferred not to lose my job but me losing my job 1 month after buying the house does not make me regret buying the house (I still feel it was one of the best decisions I have ever made). I bought the house for the long haul... it was a decision that will affect my life for the next 30 years. On the other hand my job... oh well. I've lost so many of them I can hardly keep track of them anymore. I've had 12 jobs already and I'm just 7 years out of graduating from college. It just so happened that my last job I had been at for over 2 years and because of that could qualify for a full documentation loan with 20 percent down. The fact that I had that job for as long as I had it and my high credit score allowed me to buy the house. I can always get another job to pay off my super small mortgage.

    ReplyDelete
  4. Now matter the market is, Realtors always can find a way to tell you it is the right time to buy. I only use them to push the paper works, never want any advices from them

    ReplyDelete
  5. neither of these comments makes the point about realtors that your readers seem to be hearing.

    they don't play up either greed or insensitivity. quite the opposite, i hear the realtors clearly saying that for many people, now is NOT the right time to buy and it is just a tough time for everyone, which naturally impacts their (realtor's) business.

    if you want an example of 'sleazy realtor speak', best look elsewhere.

    ReplyDelete
  6. I don't see your point with this article. You've made some conclusions that don't make sense and have no merrit. If you read the post in it's entirety, you'll see the realtor was sharing an experience and looking for other's to share as well. No one seems to be discussing anything sleazy here. If you're going to criticize people, maybe you should get your facts straight first. I think i"m going to call Linda and thank her for being straight forward with her comments.

    ReplyDelete
  7. @anonymous 12/16/09 2:59am... God, I hope you lose that house, and forced to declare personal bankruptcy.. Assuming your post is even real.. What a tool you are, hope life teaches you a sorely needed lesson.

    ReplyDelete
  8. All-

    To clarify, the reason I highlighted the first quote is that I was surprised that a Realtor was saying 'now is NOT the best time to buy'. Regular readers of this site will know that it is something I agree with. Kudos to Linda.

    Normally, real estate agents make the opposite case (housing prices have stabalized, you should buy now because interest rates are low, etc). They don't focus enough on the downside of homeownership. Check out the average post on activerain.com or this comment as an example:

    http://healdsburgbubble.blogspot.com/2009/11/fha-takes-another-step-towards-blowing.html?showComment=1258258165163#c224574092305813302

    The second quote highlights someone who it appears shouldn't have bought a home given their circumstances. Did the real estate professionals involved encourage him to go ahead with the purchase, or tell him, like Linda, that "people who make logical decisions are sitting on the sidelines until the uncertainty ends". I doubt it was the latter.

    ReplyDelete
  9. Whoa whoa whoa here...

    Nice quote but she is also "sorry that this happened to you" READ: 'this' = didn't get a commision because the client make a "logical decision"

    And is she telling this to her clients or is this opinion just shared with other Realtors?

    ReplyDelete
  10. Long-term (30/year) jobs in one location are not around anymore.

    Now, its 1 year here, another 2 years over there, 1 year in yet another location, and so it goes...

    The RE industry apparetnly hasn't caught on to this sea change yet.

    ReplyDelete
  11. House prices went down from 1929 to 1946...house prices went down from 2006 to ?..huh...from Wall Street to K street to Tiger and the Generals...nothing is on the level...except you and your own personal Jesus...

    ReplyDelete
  12. Now is the best time to buy with or without a job because face it, you have to live somewhere. If you have to pay something whether a mortgage or rent and there is not much difference between the two then it is best to buy and if you do buy and get a fixed mortgage than remember that you won't have a landlord raising the rent every year. Keep this in mind and buy now!

    ReplyDelete
  13. Andres with PITI still 2x plus rent in good areas and the likelihood of RE Taxes of one kind or another going much higheralmost certain(Special Assessments are still Taxes) buying a home does not make sense EVEN IF prices were stable...and what happens when mortgage rates hit 8% which is still historically low?

    ReplyDelete
  14. Tom,
    I agree 100%. California's huge budget gap will have to be filled somehow. I noticed my DMV renewal fee was 30% higher than last year, even though the car is a year older. Sales tax is already 9% and could go higher. And property taxes will surely go up as the state, counties and individual towns wrestle with the huge deficits they've racked up. They won't make sufficient cuts to balance the budget, it will have to come from increased "revenue."

    All of this impacts property owners, and not in a good way.

    And higher interest rates certainly won't help either.

    ReplyDelete
  15. Buying properties is a good investment. You just have to be sure that the properties you have acquired have clean papers.

    ReplyDelete
  16. This is an interesting article. Im not sure how I came across a real estate article, but interesting read.

    ReplyDelete

Wikinvest Wire