patrick.net

I went to an open house two years back. The realtor greets me and tells me 'this one went just like that' Huh? He thought I just landed from Mars. The reality is that house had all its lawn dried up for months and had for sale sign on the front yard for months. I just walked in to check on it. I was just amazed by the fact that the realtor assumed I knew nothing about the house.

Vain says
This is a lie Maybe in the higher end markets. But the lower end markets, sellers rather just hang on to their properties than to take a non bubble price. Then you have the short sales which might as well have an ad in your local Dollar Store.

I don't know what you mean by 'this is a lie' - but where I am looking, there are several more attractive used-houses sitting on the market (for weeks and months now) at or near that price-point. The point is that realtwhores have a vested interest in making up colossal fibs about "competing offers", when even a dumbass like me can figure out the odds of getting even one offer at that price are pretty small.

I can't watch that show any more. I watched one where a single woman was asked if she was worried about her mortgage increasing and she said "I'll worry about that when the time comes". Really???? I thought the whole idea of owning a house was future planning and stability. The irresponsibility was just too much "reality" in this "reality show".

The whole idea is that happiness is based on the selection, the deal and ownership of the American Dream (AD). And at the same time ommitting the gory details of getting approved credit, looking at the fees of a contract, how much the realtors are getting, what repairs need to be made, what HOA fees there might be, what the school districts are, etc. etc. The "gory" details of picking out a place to live are left on the editing room floor. Lets not forget about that huge DEBT thing about owning a house also.

once per week each RE office holds an MLS meeting, and once per month each MLS area holds a general meeting with all area RE offices attending.

This is why the BPO process always comes back with higher-than-lender amounts. Commonly called colusion.
These meeting are where "price-per-suqare-foot" are set up by region and neighborhood, pulled from the asses of REwhores. More colusion.
These meeting is where they are all made aware of what make-idiots-into-buyers program is best to use in the area. This is where sub-prime, stated income, and liar buyers were born.
These meetings is where local lending agents make deals that see forced "pre-qualifications" at particular offices before an offer can be made on an REO. Just old fashioned back scratching, I guess.

These meetings are very very interesting to attend, but if you go then you must sit quiet and not jump up and holler, "AHHH HA!!! I knew it !!! You rotten bastards are screwing us blind!!"

If you can not hold your tounge, do not go ..... espicially to one of the large monthy MLS meetings. But, if you can just sit and listen you will learn just how much like Mafia this stuff works. If they ask your intent or reason for attending just say you are looking at getting a license or some other bullshit line.

bubblesitter says

FTB101(fool the buyer 101)

FOOL the buyer? That’s not what I heard it meant…

lmao

I went to an open house a few weeks ago at a new work/live loft complex in my town. The real estate agent told me that two were sold, but they were still showing one of the "sold" units. My friend went last week to snoop at them and now they have sold three more! I don't believe this. There are already two bankrupt condo/loft bldgs. in town that are nearly empty. These new ones just sprang up this summer, god knows why. Do the agents lie and say they sold them, or, I wonder if people are crazy enough to buy these ugly, unimaginative places? They are priced between 400k-620k.

Bap33 says

These meetings is where local lending agents make deals that see forced “pre-qualifications” at particular offices before an offer can be made on an REO. Just old fashioned back scratching, I guess.

I've had problems with this scenario before where the person you must prequalify with ignored calls/voicemails. I can see how if you can bribe the loan officer, you can snag the house at a great deal. They also know what someone intends to offer on the home.

One note re "House Hunters" and "My First Place" shows: I'm pretty sure I just saw this same Phx. episode, and it was a rerun from at least 2009? Even though I live way back East, I'm somewhat up to speed on where prices are now in the Phx. metro area. Knowing that, it's getting incredibly easy to watch the first few minutes of a Phx-focused "House Hunters" or "My First Place" episode and know whether or not I'm watching a new 2010 episode, or a rerun from 2007, 2008 or 2009.... Check the date at the very end of the episode.

Sure do feel bad for the folks who bought in Phx. area from about 2004 up until about early 2010....

Echoing something said a few posts ago: if HGTV had more integrity, they'd create a show focusing on FOLLOWING UP ON many of the homebuyers profiled on "House Hunters" and "My First Place" earlier this past decade, to show a very stark and sad glimpse of how those "just got the keys!" smiles have turned upside-down in many cases. That would be very useful-- though of course painful-- television programming....

Bap33 says

bubblesitter says

FTB101(fool the buyer 101)

FOOL the buyer? That’s not what I heard it meant…

lmao

:)

When are people going to start selling their own homes and we get rid off these snake realtors! all you need is a real estate lawyer to sell your home! best to all.

About 18 months ago I was looking for a house in Springfield, MA.

I got the same spiel from the realtors there.

But what I said was that I'm not interested in competing with anyone, so unless you can confirm no one else has bid, don't take me to see.

I also told the realtor I don't do counter--offers, I'm a one bid person only.

I also showed him I had money in the bank.

sarahmusrara1 says

About 18 months ago I was looking for a house in Springfield, MA.
I got the same spiel from the realtors there.
But what I said was that I’m not interested in competing with anyone, so unless you can confirm no one else has bid, don’t take me to see.
I also told the realtor I don’t do counter–offers, I’m a one bid person only.
I also showed him I had money in the bank.

I'd put 1 more condition. I want half of your commission. I mean you are hiring the realtor. You decide his pay.

Ms.Sullivan says

When are people going to start selling their own homes and we get rid off these snake realtors! all you need is a real estate lawyer to sell your home! best to all.

http://www.youtube.com/watch?v=fJuNgBkloFE

What do you expect? :p

Almost all the homes seemed to be bank foreclosures that they were bidding on. With each house they liked, the story was the same…”there’s another (or 2, or 3) couples…and they’ve bid full price”.

Biggest scam ever, Congress is too busy chasing evil bankers to even notice the scams from the REA.

steve04074 says

Echoing something said a few posts ago: if HGTV had more integrity, they’d create a show focusing on FOLLOWING UP ON many of the homebuyers profiled on “House Hunters” and “My First Place” earlier this past decade, to show a very stark and sad glimpse of how those “just got the keys!” smiles have turned upside-down in many cases. That would be very useful– though of course painful– television programming….

They do, it is called "My First Sale" and it has short sales...people looking for bubble prices and more. They are also get more realistic. "For Rent" which covers apartment hunting and negotiating on the lease. :)

Nomograph says

It was like 2005 never ended.
I would love to see a show called House Hunters: Five Years Later.

How about these highly resellable homes?
http://www.bonairetalk.com/newsgroup/messages/23830/299080.html
http://www.airportjournals.com/Display.cfm?varID=0509014
http://www.monsterhouse.tv/mhhouse/magichouse.htm
http://www.monsterhouse.tv/mhhouse/lofthouse.htm

NEVER, I repeat, NEVER use an agent any more, unless you don't know the area or are out of town so much you need someone to help you.

ALWAYS make your own offers and add this line to the bottom:
"My offer reflects me acting as my own agent". Offer at lease 5%, lower, but typically I offer at least 10% lower than the asking price and base it purely on price per sq ft in the area with comps from the web.

THEN WHEN THEY ASK, TELL THEM THAT THEIR AGENT ONLY GETS 2% OR LESS OF THE 6%, SO THE REAL SALES PRICE IS ACTUALLY REDUCED BY THE AGENT'S FEE LOSS! THIS REALLY PISSES THE AGENTS OFF. If they fight it and make a counter, I counter by taking 5.5% away from the agent directly in the contract and offer another 5% off the total from before, they get then picture fast. I have had home builders call me back a week later to take the first offer

So easy, so Simple, yet I cannot figure out why we don;t all act on our own behalf and POCKET the cash.

well gammer, I have wrote only 15 offers in the past 3 years. I have no idea how to avoid the agent. Any chance you can post a link to a sample offer form we could use to do as you suggest?

FalconMaster says

I would love to see a show called House Hunters: Five Years Later. They could go around to all those nice houses that people bought during the bubble and see how they look with dead grass, graffiti, and foreclosure signs in the front yard. People could talk about how much better life is when you aren’t a slave to an interest-only, adjustable rate mortgage on an overpriced POS with ugly green granite counters and cheap particleboard cherry veneer cabinets.

I would also love to watch this show.

zzyzzx says

I would also love to watch this show.

Then get on hulu dot com! I just realized they have it :)

http://www.hulu.com/watch/177846/house-hunters-new-hampshire-new-home
I love how that episode's guests made a comment about the blue walls make it seem like "you're underwater." Little did they know....

I used to watch that show back in 2003 and 2004 when all the episodes took place in the Greater Los Angeles area. At the time, the show kept the prices and locations of the houses a well-hidden secret and it was hosted by Suzanne Whang. The show was very redundant and formulaic. Each episode showed a buyer looking at three houses. Then near the end of the show, each house was briefly shown and given a nick name such as "the house with the large yard" and Whang would ask "So which house did they choose? Stay tuned to find out". All I can say is that every buyer had horrible taste and almost always complained about "not having enough room".

We love this show. The format has a way of making milquetoast people appear even more stupid than they probably are. The way they trudge through the houses like zombies, complaining about not enough closets, they don't like the wall color (this one makes me laugh every time), there isn't enough granite in the kitchen or marble in the bathroom, etc. Clueless.

The older version of the show used to have a fake bidding thing at the end, where they would pretend to be waiting by the phone for their Real Estate Huckster to call them with the good news. You could tell they were scripted. It was the height of silliness. Funny thing is the real estate agent was usually pretty good at delivering her lines. . . . Too bad they don't do this bit anymore. It really did send my partner and me into stitches

Philistine says

We love this show. The format has a way of making milquetoast people appear even more stupid than they probably are. The way they trudge through the houses like zombies, complaining about not enough closets, they don’t like the wall color (this one makes me laugh every time), there isn’t enough granite in the kitchen or marble in the bathroom, etc. Clueless.
The older version of the show used to have a fake bidding thing at the end, where they would pretend to be waiting by the phone for their Real Estate Huckster to call them with the good news. You could tell they were scripted. It was the height of silliness. Funny thing is the real estate agent was usually pretty good at delivering her lines. . . . Too bad they don’t do this bit anymore. It really did send my partner and me into stitches

The suspense of waiting to find out if the bid went through was excruciating!

BobbyS says

excruciating!

Lordy, wasn't it?! You could just be sick with the suspense.

High camp at its finest.

Oh man I just started watching this show on Hulu a bit back from time to time and I have to wonder, are home buyers REALLY like that?

Do they really go "WOWWWWWW!!! Ohhhh ahhhhh This is niceeeee!" in real life? Doesn't that pretty much kill ANY negotiating room you have if the seller's agent sees that you really love the place and would pay 10x your annual salary for the place?

It just is a show. They tend to buy one of three homes that are shown in the show. And it somewhat sounds like they're bounded to some sort of bargain agreement or something.

Of course, we go "wow" "nice" "great" etc when we went to openhouse. We only do that when the realtor was next to us while we're looking arround. That does not mean it really is, or we want that home.

…”there’s another (or 2, or 3) couples…and they’ve bid full price”.

" Maybe I’m being paranoid, but I had this thought that all the “agents” had this clandestine network "

No your not being paranoid. I would say the scandal has yet to be exposed. Its not a clandastine network thats the question here, but the sales tactics by realtors.

Obama's admin. has okayed flippers for another year. I'm waiting for them to okay the "floppers." Why not? No one seems to be interested in prosecuting the banks etc. for robo-signing and falsifying docs.

pkennedy says

It’s probably less about everyone knowing each other, and more about everyone behaving in the same way. These sales people were probably all trained by more or less the same agents who probably learned from the same agents. It’s like evolution in business, the best strategies survive, while the worst die off. These are the surviving agents, and they’re using the strategies that have always worked for them in the past.

Yep. The system isn't transparent so all the sales gimmicks work.
- "There are bunch of others who really want this and are paying more, you have to bid up."
- "But now or be priced out forever."

It's gimmicks, but gullible people always fall for these car salesmen tricks. I know here there is a local real estate agent who during the day of appointments specifically asks some of her relatives to show up to the properties and pretend to act as if they really want it to create false sense of competition for the would be buyers.

I hate when I see it, it's 2 doors away and really annoying to see that. Might come out and say something one of these days...

http://www.househunterrealty.net/

Wow. They have a House Hunter Realty. AKA a whorehouse. Notice lady (?) Realtor with her empty hands held out. She wants $$$$. I know of something else she can do with her hands. And it will take less then 5 minutes. ;-/

ChrisLosAngeles says

It’s gimmicks, but gullible people always fall for these car salesmen tricks. I know here there is a local real estate agent who during the day of appointments specifically asks some of her relatives to show up to the properties and pretend to act as if they really want it to create false sense of competition for the would be buyers.

Its not just a domestic "gimmick". Both in Australia and Canada such tactics were employed to fool buyers into overbidding/overpaying. Professional Shills and "dummy bidding" is a common practice..

Dummy bidding prosecution supported

http://www.reiv.com.au/news/details.asp?NewsID=207

thomas.wong1986 says

ChrisLosAngeles says

It’s gimmicks, but gullible people always fall for these car salesmen tricks. I know here there is a local real estate agent who during the day of appointments specifically asks some of her relatives to show up to the properties and pretend to act as if they really want it to create false sense of competition for the would be buyers.

Its not just a domestic “gimmick”. Both in Australia and Canada such tactics were employed to fool buyers into overbidding/overpaying. Professional Shills and “dummy bidding” is a common practice..
Dummy bidding prosecution supported
http://www.reiv.com.au/news/details.asp?NewsID=207

I didn't know it was that widespread. I think I hate this industry more every day.

jaded says

My First Sale

http://www.hulu.com/my-first-sale

Just started watching this today on my day off and uh I can definitely see what Patrick meant by "emotions" to convert a "house" to a "home." The sellers definitely list based on their emotions and what they think they "deserve" rather than the market price, even when the realtor is trying to steer them towards reality.

What I want to know is, why most sellers seem to think they deserve a higher price than what they paid for (profit) or a break-even price after closing. Some of these homeowners haven't even done anything to improve the place or upkeep it.

If homeowners simply "upkeep" the place, it's similiar to selling a refurbished item. I mean used items never sell for as much as the initial purchase (i.e. computers, furniture, cars, anything else), how come home owners seem to expect that they can resell a used home for the same price? I know prices inflate, but again, market price doesn't dictate it. So why is it that everyone seems to think that they can resell the price for a lot more than they paid for (especially if they didn't even upkeep the place). A lot of these sellers seem insulted when the buyer insists that they repair the HVAC. Hmmm...

CaffeineAddict says

What I want to know is, why most sellers seem to think they deserve a higher price than what they paid for (profit) or a break-even price after closing

They think they want to get as much as they can for their house when they sell. Just like you or I would.

If they overprice it, then it won't sell and they will have to lower their price...

http://www.hgtv.com/hgtv/video/player/0,1000149,HGTV_32796_7641_44208-61162,00.html

Did they accidentally reveal that real estate agents lie and manipulate the market?

The couple selling the house specifically states that they had 21 showings, but only 1 low offer with a large sellers concession, who they never heard back from when they offered a counter-offer. No other

Then the real estate agents tells the couple, that they got a 2nd offer, which was 100 dollars higher than their asking price, without a sellers concession (so the sellers got a lot more money, but so did the real estate agent).

Quote from RE agent: "This buyer really wants the house, and she KNOWS THERE ARE OTHER OFFERS." - but the seller specifically said there wasn't any other offers...

Did the show just accidentally reveal that the RE agent probably told the buyer that there were "lots of other offers, and to bid high."

If a short sale was involved, it's called "flopping."

http://losangelesrealestatevoice.com/blog/2010/09/15/house-flopping-scam-preys-homeowners-short-sales/

I will bet bucks that the r.e. agent knew that there was a higher offer on the table and under the table the agent was receiving a kickback if the owner took the lower priced offer.

Last line in the article...

"So, what’s the recourse for a home seller? Have a trusted real estate professional help you"

Even if you find an honest RE agent, prices are often set by comps, which are peppered with fruadualent inflated prices anyway. When we started to see prices decline due to foreclosures the complaint from RE agents was, FC were 'distorting prices' and should be ignored by buyers. Yes we certainly have a problem that hasnt yet been addressed.