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Evil Buyers Display Extreme Cruelty to Distressed Sellers


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2007 Apr 17, 5:43am   33,445 views  547 comments

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buyer eyeing seller

Sadistic, Greedy Buyers Toying with Sellers Like Cats with Prey*
Copyright © 2007 UnReality Times®. All Rights Reserved.
by David Lereah, Leslie Appleton-Young and John Karevoll

As the alleged real estate bear market enters its second year of hitting bottom, some buyers out there are clearly enjoying this one-time market aberration --perhaps a little too much. Is deriving sadistic glee from other peoples' suffering a nice thing to do? The Germans have a word for this: schadenfreude (and we all know what cruelty the Germans are capable of!).

According to Donald Parisi, president of the Realtor Association of the Fox Valley (IL), buyer cruelty is reaching grotesque proportions:

"Parisi said he believes ‘doom and gloom’ media coverage has hurt the market. 'We’ve seen some very ridiculous offers,' Parisi said. 'People shouldn’t be desperate … The problem is some buyers are out there just to take advantage of the marketplace.'"

This view is further clarified by Jim Fox, manager of Realty One in Canton, Ohio:

“As unrealistic, said Fox, are some would-be buyers; they expect sellers to practically give their homes away. ‘Some people, … they want us to help them steal a home,’ Fox said.”

Even more to the point than Mr. Parisi, Florida Realtorâ„¢ Becky Troutt gets right to the heart of the matter:

"I think some of the buyers are out for blood! ...There is a difference from 'getting a deal' and 'trying to get something for nothing'! Just because the market is slow right now and homes take longer to sell.....doesn't mean that sellers are going to give their homes away and it doesn't give you the right to go for the jugular vein! How insulted would you be if you were that seller and someone asked you to come down off your price $90,000? Do you think you would say...ok sure no problem. I'm not spinning my heels in mud with an unrealistic buyer who only wants to try and rip a seller off!"

A note to home buyers: If you only want to pay $200,000 for a home......don't look at homes that are $90,000 more than you want to spend or can afford just because it's a slow market, and you think you can get a seller down that much.....because....IT AIN'T GONNA HAPPEN!!!"

Now, that's telling 'em like it is, Becky!

While the unbridled greed and glee exhibited by these sadistic buyers (and the American Dreamâ„¢-hating press) are stomach-turning awful, they are not the primary causes of this upside-down market. The real culprit for this most unnatural and unhealthy market condition, is well understood in the industry:

"What appears to be driving the increase in foreclosures is that home values are not rising, DataQuick analyst Andrew LePage said. 'Take away home-price appreciation, or ratchet it down or even make prices negative, and all of those forms of (economic) distress start to result in increased foreclosure activity,' LePage said."

Clearly what's needed here is massive government intervention to protect homeowners and rekindle the normal 20%/year appreciation. This might take the form of a distressed homeowner mortgage buy-down, or federal underwriting for all the kindhearted subprime lenders who generously enabled low-income Americans participate in the American Dreamâ„¢ (often mischaracterized by Gloom'n'Doomers as a "bailout").

To proactively tackle this looming crisis, the NAR and CAR have teamed up with the MBAA (Mortgage Bankers Association of America) to sponsor the Save the American Dreamâ„¢ Act of 2007. Says NAR Chief Economist, David Lereah, "We are urging people to sign our online petition, and write, call, email and beg their Senators and Congresspersons to support this badly needed piece of mercy legislation. Home ownership is as American as apple pie --only you (and Uncle Sam) have the power to save it! Please do your patriotic duty and support the SADA. God bless."

[*Note: while the offset quotes and links are real, this 'article' is a parody]

#housing

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107   astrid   2007 Apr 17, 11:58am  

GC,

Well, at least he's not a Chinese grad student from Shanghai, as initially reported.

The Mainland Chinese upper middle class people I know obsess over high end AV equipment the way American hausfraus obsess over granite countertops.

108   surfer-x   2007 Apr 17, 11:59am  

if Mr-X got 1997 price + inflation

El HARM-O, exactly what I offered and so far it's accepted. We'll see though. I put a pen on the 10-year Ventura graph on Zillow and offered that. plus closing costs.

109   astrid   2007 Apr 17, 12:02pm  

Huh?

110   Peter P   2007 Apr 17, 12:03pm  

Huh?

Huh?

111   astrid   2007 Apr 17, 12:04pm  

If you want to insult me or my family/friends, please be a little more clear about it, so my hopelessly petite bourgeoisie brain can receive the insult in the proper spirit.

112   FormerAptBroker   2007 Apr 17, 12:09pm  

GC Says:

> High end stereo equipment is an obsession of people
> of a certain (economic and cultural) background.
> Whenever you see expensive Hi-Fi, you can immediately
> tell something about the owner.

I have not noticed any pattern in the economic or cultural background of audiophiles (other than they are all men). I’m sure that more people at a Symphony Patrons Dinner (or even a Symphonix dinner) have high end audio than the general public, but I know a lot of poor uneducated people (including some tenants) that have impressive home (and car) sound systems…

P.S. I have a Sony stereo that I bought for

113   OO   2007 Apr 17, 12:17pm  

Honestly, I want to know what kind of parents he has after reading about this killer Cho. His parents are clearly at fault, to say the least, they are negligent. Their son was so obviously, seriously disturbed, they should have sent him to a mental institute.

114   astrid   2007 Apr 17, 12:27pm  

GC,

It's forgiven. I thought you were doubting the upper middle class status of my Chinese connections or making some veiled comment about their arriviste status...the latter is true enough.

I don't think very highly of their equipment or musical taste (Chinese pop music and pirated Celine Dion/Yanni is my idea of hell), and most of the equipment seems to collect dust (I have an uncle who has a US$10K set but never use it because he think it uses too much electricity). My little Klipsch iFi is good enough for me.

115   Randy H   2007 Apr 17, 12:29pm  

I think Randy is going to buy soon because of QOL considerations.

I would be very happy to buy soon. But chances are growing that we may be moving back to the Peninsula eventually. So during the interim, which may take a while, we're in a must rent situation anyway. Even if we end up $0 even for having rented after all this ends, we'll be ahead by not having any hindrances to moving or buying when time comes to bid adieu to Marin.

116   Different Sean   2007 Apr 17, 12:31pm  

The Mainland Chinese upper middle class people I know obsess over high end AV equipment the way American hausfraus obsess over granite countertops.

well that's all just to do with the evils of communism, just ask SP. the connection is just palpable...

117   DaBoss   2007 Apr 17, 12:36pm  

> High end stereo equipment is an obsession of people
> of a certain (economic and cultural) background.

I worked in a hi-end shop ...Cupertino mid 80s
we had mainly single engineers, white who were true
analog fans. They hated CD players... loved their LPs
Sometimes we had women in the shop... "Does it come in
different colors"...

We sold lots of American products..still out there.
CounterPoint Threshold, Vandersteen SOTA TT
Stax Theils Spica Apagee Infinity Martin Logan
Oh the list goes on...

118   astrid   2007 Apr 17, 12:37pm  

DS,

Ugh, yes. Certainly Communism as it was and is practiced in China. The 1960s broke our idealism and severed us from our cultured past. The 1980s and 1990s introduced crass materialism. The Chinese were always a somewhat callous race, but the Cultural Revolution destroyed our sense of social responsibility and morality. Reacquiring these sensibilities will take much more time.

119   DaBoss   2007 Apr 17, 12:38pm  

I would say we had few Asian in our shop around 10%.
Many were around 35-40...

120   Different Sean   2007 Apr 17, 12:40pm  

astrid Says:
The 1960s broke our idealism and severed us from our cultured past. The 1980s and 1990s introduced crass materialism.

hmm, that seems to follow the crass materialism of the West of the 80s and 90s!

121   Malcolm   2007 Apr 17, 12:40pm  

Headset Says:
"Savers now get the chance to be evil.
I’m going to lowball big time, and of course be turned down.
Then when the house is still unsold months later, I will get a call seeing if I’m still interested.
Then I knock another 20% off the price and do the “evil dance”
It will be the revenge of the “too stupid to take advantage of leverage” crowd. "

OO addressed the main response I would have which is that it won't be any easier to buy in the future, just that there will be more deals. Money is going to tighten up. There will be plenty of it, but you will need a real downpayment, so start planning for it.

Next thing and I have said this before. To aimlessly lowball is stupid, even if you are successful how would you know if you really got a deal. I really must assert that you will do better when you understand what makes a house worth something, understand the fundamentals, and then negotiate with confidence. You can play the lowball game, or you can just sit back and wait. I'd rather sit back and not look interested until prices are REAL bargains.

122   astrid   2007 Apr 17, 12:41pm  

I also intentionally compared the Chinese AV preference to the American granite countertop preference. It's 90%+ about perceived status, not too much about practicality or true appreciation for its beauty.

123   Different Sean   2007 Apr 17, 12:43pm  

I have a medium-end Panasonic stereo (integrated, of course), but at least it has 5.1 surround sound built in. Wait, that's because I was too cheap to get a separate theatre unit...

My brother has bought all Panasonic gear just so that the remotes interoperate! Or maybe it was just coincidence...

124   Malcolm   2007 Apr 17, 12:44pm  

GC Says:
April 17th, 2007 at 6:50 pm
"Is it true that every bespectacled asian man with a pair of bewildered eyes and a sullen face is a suspect now? "

I don't knwo if you are Asian but I'm a white guy, and I can tell you that this incident won't reflect on Asians. I figured it's about time for an Asian to go postal, they never cause any trouble.

125   DaBoss   2007 Apr 17, 12:44pm  

Malc,
Inventory will increase new and used. Im betting on great choices with
no 'multiple bids' heard from sellers.

126   Michael Holliday   2007 Apr 17, 12:44pm  

Space Ace Says:

> High end stereo equipment is an obsession of people
> of a certain (economic and cultural) background.

I worked in a hi-end shop …Cupertino mid 80s
we had mainly single engineers, white who were true
analog fans. They hated CD players… loved their LPs
Sometimes we had women in the shop… “Does it come in
different colors”…

We sold lots of American products..still out there.
CounterPoint Threshold, Vandersteen SOTA TT
Stax Theils Spica Apagee Infinity Martin Logan
Oh the list goes on…
_____

Space Ace, good memories!

I remember those names. Vandersteens were the sh-t. How about Paradigm, Mirage, B&O, Klipsch, Norman Labs, Carver was doing some speakers, also.

I created anti-vibration products: one during the early nineties, that was featured in the New Products section of the now defunct Stereo Review Magazine, and one a few years ago featured in Sound and Vision Magazine.

I picked up a nice, used SAE A502 200 wpc amp and an Adcom GFP 565 preamp for about $65.00 FOR BOTH. Great sound.

I just snagged some Klispch KG4's, circa late '80s for $180 a pair. I use them to play drums along to because they're so efficient and crank pretty loud!

127   DaBoss   2007 Apr 17, 12:49pm  

There are few true high end shops out there, sorround sound was around for some time.
but true high end will provide better imaging of sound. The mass marketing of gear
is sad. You can try the Audible Difference in Palo Alto or Century Stereo in San Jose...
Last time i been there was about 3 years ago. We had far more HE shops back in the 80s.

128   astrid   2007 Apr 17, 12:50pm  

Malcolm,

Hmm, a little too ignored if you ask me. A Chinese grad student went postal a couple years ago and offed a couple of his professors. Never heard a peep about it in the mainstream media.

129   DaBoss   2007 Apr 17, 12:52pm  

Michael Holliday, yes i too recall those ... good pick my man. SAE/Adcom for $65
Oh man ... thats sweet...

130   Randy H   2007 Apr 17, 12:56pm  

Jon, OO

It's to be expected in a group like this that there will be a strong resistance to anyone "defecting", no matter how much sense it might make for their personal situation. The very choice of the word "capitulation" tells me more about the speaker's biases than the object of that term. I would hope that each and every person here would ultimately make a decision to buy or not to buy entirely independent of any cheering or cajoling from Patrick.net'ers.

OO, the trouble with using other people as measuring sticks -- especially people you don't actually know personally and intimately -- is you know very little about what is driving their personal utility. As far as we know, FAB is single, wealthy, and very self confident and secure. His utility will be different from Surfer -X' is from DinORs is from mine. Maybe you think you're most like FAB, so that works for you. But how will you know if his situation changes? Maybe he won't tell us if he gets married or decides to buy a home in Monaco so he can walk to the Grand Prix and elects to never buy a primary residence here. In the long run, FAB has his decisions to live with, you yours and me mine. Just go a bit lighter on "capitulation" talk. It assumes that everyone else has the same needs and wants as you.

131   Doug H   2007 Apr 17, 1:08pm  

astrid,

Who was the famous Chinese poet who was purged during the CR and then rehabilitated just before his death? I can't put the name together.....any idea?

His son is a noted artist in China and recently built a tribute to his father....

I'm having a brain cramp...

132   speedingpullet   2007 Apr 17, 1:12pm  

Best thing for brushing cats - a pair of rubber gloves and a little bit of water to wet them...
Don rubber gloves
Stroke cat
Watch the unholy amount of fur collect on them.
Rinse and repeat.

My last cat was, I suspect, largely composed of compacted cat hair.

Being an Exotic Shorthair (half Persian, half Domestic Shorthair), she got the fluffiiness gene from her Persian ancestors.
Despite never weighing more than 7 pounds, one brushing session could yield as much as half a paper grocery bag of fur.
Sadly, she went to to great hunting ground in the sky last november, at the ripe age of 18. If I'd had my wits about me, I should have carded and spun her fur - and made about 15 sweaters out of it.

RE: Becky Troutt and insulting lowballs - don't know if any of you caught the "lowball offers are increasingly common" thread over on Ben's blog, but one poster - Kevin - has it down to a fine art.
I'll quote it in full, 'cos its a scream:

Comment by Kevin
2007-04-16 13:05:49
In the Baltimore Housing Bubble, sellers are having a hard time understanding that their houses are not worth as much as they are trying to sell them for. What I like to do to fuel the soon coming onslaught of decline is to go to open houses and offer 50% of their asking prices. I know this seems cruel and unusually, but when the seller and their agents jaws drop, I simply point to the price on their open house flier and I drop my jaw too. Then I point to their hanging 60 inch plasma TV and I say, “My price also includes you throwing in that TV.” This is point that I usually get thrown out.

It not like I was offender the other buyers…I am almost always the only person looking at their home, opps I mean investment. I then proceed to walk next door to the neighbor’s house and proceed with my script. I can spend a whole afternoon doing this in just one neighborhood. Call me sadistic, but I find this truly entertaining to see the seller reactions. Even better is the agent’s reaction. Sometimes I even pull out my check book and start writing a check. This usually gets sellers angry. So to make it even better, I start to write a second check out for 30% of the selling value, but I post date it for 9 month later and I ask the seller which they would like. One guy called the cops on me. I decided to wait and see what the cops would do. I explained to the cop that I was trying to buy a house. The cop tells the seller that if they are having an open house then I am allowed to come and make an offer for their home. I trying to get a movement started. Anyone care to join?

-Kevin

133   astrid   2007 Apr 17, 1:15pm  

Doug H,

GC would probably be a much better person to ask. I don't keep up with modern China very much, it's all filtered through my parents (there's apparently a huge American Idol like spectacle to select the cast of the next Dream of the Red Mansion). I generally prefer pre-1949 Chinese writing, so I'm drawing a blank too.

134   astrid   2007 Apr 17, 1:18pm  

speedingpullet,

"If I’d had my wits about me, I should have carded and spun her fur - and made about 15 sweaters out of it."

Hehe, that's my first thought when I read the description of your cat.

"Today, I'm wearing cat!"

135   DaBoss   2007 Apr 17, 1:29pm  

justme - i dropped out back in late 80s and went on with my career. I did walk with a NAD + Infinity + Dual TT.... at cost... but you can get great deals today on Ebay.

136   Michael Holliday   2007 Apr 17, 1:31pm  

Hey Space:

Did you ever go to that used stereo place off of Saratoga Blvd. near Los Gatos/Saratoga?

I used to check out the old tube amps & solid state stuff they'd get in. I can't remember the name of the place, though.

Also, there was a good place near Chili's in Mountain View, but I can't remember the name. It was pretty close to Stanford, etc. The Audible Difference had those big ass Infinity $50K speakers in the early nineties.

Remember the Conrad Johnson amps?

Anyway...cool sh-t. I didn't make much money off my little products.

137   Michael Holliday   2007 Apr 17, 1:32pm  

Space:

I think it was called Hi-Fi Cents or Hi-Fi Sence or something like that...

138   DaBoss   2007 Apr 17, 1:33pm  

just me, i think the democrats dont want to be the We Tax Party of the 80s.
going into the Pres election year.

139   DaBoss   2007 Apr 17, 1:37pm  

Micheal - I will have to check it out.. is it still open?
There is a place called the Analog Room ... did not go there...
http://www.theanalogroom.com/
There is also a nice shop in SF off VanNess and Geary or Post
Good stuff, walked by about 6 months ago.

140   Randy H   2007 Apr 17, 1:37pm  

I actually never understood why there aren't more below-market price side-deals. Wouldn't it be advantageous to the buyer (less property taxes) and potentially the seller (capture part of the tax difference for themselves, avoid capital gains)?

I can see the barrier being this wouldn't work for buyers without a lot of cash. But cash rich buyers could afford to say buy a $1.0m home for $750K officially (maybe little down), then pay the seller $250K somehow as a side deal.

I know it's probably illegal. Probably very illegal. But from what I've seen, just about everything in real-estate is illegal anyway, from the NAR all the way down to local agents.

141   DaBoss   2007 Apr 17, 1:38pm  

Michael,
there is a book store on Castro and Ellis in MT View,,, at the back of the store
they sell some great LPs... Nice stuff... Also try out Ameba Records SF Height Asbury...
Ton of LP

142   DaBoss   2007 Apr 17, 1:40pm  

SimonBart -- Freaking aye ... thats what I want to hear. Good deal my man.

143   Michael Holliday   2007 Apr 17, 1:51pm  

Space:

I'm in Phoenix now, so I'm not within shooting range of those stores.

I did make the switch from LPs to CDs and haven't looked back.

I'm not THAT hi-fi'd out, but I do understand with a high-end turntable, records still sound the best.

As far as Hi-Fi Cents, I'm not sure if they're around anymore. That was more than ten years ago. I've been in Phoenix for eight.

144   DaBoss   2007 Apr 17, 2:05pm  

Lucky you , How do you like Phoenix?

145   DaBoss   2007 Apr 17, 2:10pm  

Simon, I agree that was a great deal. Sadly since 1998 everyone in BA thinks overbidding is normal. All the past homeowners always low balled their offers and they were accepted. I dont recall ever hearing about other bidders. It was pretty much first come first serve.

146   mr beezer   2007 Apr 17, 2:11pm  

@randy
tks for taking some of the heat off of FAB being used as a yardstick

@sry I forget who said this
I will use FAB as a yardstick for buying. When he buys, then we have hit the bottom and I can follow suit

@FAB
when you buy that 18.8 mill home that you linked us the video to that you know you want please please lemme know

cause I will be the bestest ever Butler/Servant you could dream of and give em a price to keep that piano cause yes I play jazz better than most and I know how to swim to test the pool before you get in and most importantly

i own and know how to operate my 9mm to keep others away to protect us-I will shoot and ask no questions later nobody should bother us there-

other pertinent to the job skills :

can order and give del instructions for takeout
can see dirt to notify the cleaning staff to take action
good phone skills to screen your calls
operate dvd for our movie room
remote control savvy on/off ch up/dn vol up/dn
speak some spanish knowledge of swear words 4 gardeners
internet savyy to locate other house maint. problems
ex asst pga pro to caddy you in cart of course
as I'm writing am thinking that I perhaps am over-qualified
but heck who cares if I'm living large in that home

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