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Evil Buyers Display Extreme Cruelty to Distressed Sellers


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2007 Apr 17, 5:43am   33,275 views  547 comments

by HARM   ➕follow (0)   💰tip   ignore  

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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486   Malcolm   2007 Apr 18, 11:13am  

Man Iraq is really sucking lately.

487   HeadSet   2007 Apr 18, 11:17am  

Malcolm

See! This is what I saw coming:

"So, the point is, we will tolerate many types of monopoly for many reasons, it’s only when an activity is ‘easy’ that we invoke High Market Principles of anti-monopolism and so on… "

But I do see your point Malcolm, about monopoly being a bad word

488   skibum   2007 Apr 18, 11:18am  

Eburd, that’s ok isn’t the first year just the ethics part? Who needs it?

lol.

Malcolm,

I wonder - maybe the restricting of med school slots you're thinking of was the attempt back in the 1990's to reduce the number of residency positions funded by Medicare? In an attempt by the "Contract with America" folks to balance the budget, part of it was to cut funding of residencies by medicare, which basically pays for a large part of a teaching hospital's costs for training doctors. That's a whole other can of worms, though.

489   Malcolm   2007 Apr 18, 11:18am  

HARM Says:
April 18th, 2007 at 5:49 pm
Thanks, Malcolm. Just curious, do you work in a field related to corporate/IP law?

My background is in logistics, but a formative job was in a startup involving new fuel cell technology. I have a Bachelor of Science degree in Production Operations Management. My main knowledge comes from my Master's degree in Entrepreneurship. This stuff was hammered into us. Each class basically was the same core concept with a different direction. Of course my direct experience in real estate is what I try to contribute on this board. So in a nutshell, that's me.

490   Malcolm   2007 Apr 18, 11:24am  

I try to desensitize people to terms like monoploy or disruption because these are hot button words that politicians use to work people up into some anti whatever frenzy.

491   HeadSet   2007 Apr 18, 11:25am  

"My background is in logistics,"

Ho, brother! I have a MS in Logisticd Management thanks to the Air Force policy of overeducating its officers.

492   Malcolm   2007 Apr 18, 11:26am  

"Does that mean we could one day argue that ‘housing should be managed and allocated by a central, responsible authority on a needs basis in most developed societies’?"

I in humor laid out the ideal housing market. The seller lists it with the government listing office, and then a seller goes through the government board screening and then pays the government determined price. It's an improvement on Russia's old housing system!

493   Malcolm   2007 Apr 18, 11:28am  

Headset, that must have sucked. In an APICS class I made friends with a marine logistics guy. He was cool, he had a photo of him saluting Ronald Reagan getting off of Marine 1. The part of logistics that is fun is the creativity a small or medium company allows but it would suck to be in the military doing it.

494   Randy H   2007 Apr 18, 11:28am  

Patents are not "monopolies" from an economic definition, but a barrier to entry which may be used to defend market power. Patents are different from other forms of market power because they are a specific type of legislation which is accessible to anyone wishing to participate in the free market as innovators. The only barriers to establishing a patent aside from innovating something are some marginal fees and basic form-filling-out skills.

Defending a patent is an entirely different thing.

And currently, the patent system is 99% broken, in my opinion. Far too many junk patents get awarded for things that are prior art or obvious conclusions.

Also, in general, you are not _supposed_ to be able to patent software algorithms. You can patent formulae, but not algorithms. Thus, Zillow could patent the way the do property value estimates. MLS could not (or should not be able to) patent a pile of code which serves up records from a database.

495   Malcolm   2007 Apr 18, 11:29am  

second seller is buyer in that post. sorry :(

496   HeadSet   2007 Apr 18, 11:30am  

DS says

"There is 1) licensing meaning certification, and 2) licensing meaning passing on the right to use some protected technology to another party, usually in exchange for a fee. I was referring to the latter, you were apparently referring to the former."

That is why I put the term "royalty" in my statement.

Now your writing is much more articulate than my brutish prose (and thus a delight to read, I might add) , but your well crafted response is just proving my point.

497   Malcolm   2007 Apr 18, 11:31am  

Randy, I agree with the patent system being broken. In business we don't mince words, patents are a legal monopoly. It is in every textbook and I guarantee you will see it that way if you do a search on legal forms of monopoly.

498   e   2007 Apr 18, 11:31am  

I am seriously considering retiring from the rat race in a year or six (i.e. nothing finite),

Holy cow. What's your income strategy?

Did you do -that- well from stock options at G?

A friend of a friend just retired from Apple with $9mil in stock options after 9 years. :(

499   Malcolm   2007 Apr 18, 11:34am  

You can patent software code.
Can computer software be patented?
Yes, filing a patent, Even though you can't get a patent on a mathematical formula, you may be able to get protection for a specific application of a formula. Thus, software may qualify for a patent if the patent application produces a useful, concrete and tangible result.

http://www.meredithkeyhani.com/patent/software.html

500   Different Sean   2007 Apr 18, 11:44am  

HeadSet Says:
your well crafted response is just proving my point.

I see.

Just on the question of 'protected' technologies, anything that is written is protected by copyright automatically. Proving you were the first to write it is a different story, but computer code, musical composition and essays and poems are all automatically self-copyrighted under the law, unlike 'algorithms' (moot and evolving) and 'look and feel'. (Or are they? Microsoft recently succeeded in patenting the y-axis in a recent flurry of IP activity.)

501   Different Sean   2007 Apr 18, 11:59am  

but see:

MS seeks patent experts - no patent experience necessary

Microsoft is recruiting patent engineers - but complete ignorance of patent law is not considered an obstacle to being hired, according to the job ad.

Last year, Redmond began outsourcing the task of researching and analysing patents to a firm called Intellevate, and the team is based in New Delhi, India. The applicant must be a computer science or electrical engineering PhD, and will be involved in prior art searches, patentability research, "file wrapper analysis", "claim scope mapping" and technical analysis.

But "patent experience" itself "is helpful but not mandatory," for potential recruits. To emphasize the point, the ad stresses that "although advance knowledge of patent law is helpful, it is not required".

Over the past eighteen months, Microsoft has dramatically accelerated its patent filing activity. Many claims, such as tabbing through a web page have little chance of withstanding the most basic prior art examination.

Just before Christmas Microsoft was granted a patent for online bill payment (which includes the innovation "'the consumer is in direct control of the amount to be paid and the payment date") and fine-grained IM presence - ("... a participant might not want someone else to know whether or not the individual is logged in or out to lunch. Thus, one might want to prohibit other individuals from viewing such presence information").

The USPTO has also granted Microsoft's Expedia a patent for matching a quote with an offer, which claimed -

"An effective electronic exchange system for satisfying an offer by a purchaser with a quote from a supplier has eluded those skilled in the art."

Other recent filings include attempting to patent the "y-axis", the "IS NOT" operator in Basic, interactive test feedback, and reading ahead 20 records at a time in a database, when the user clicks the Previous or Next buttons.

Along with other companies, Microsoft is mining India's brilliant engineering talent to save money. But judging by recent form, it may as well save even more money by dropping the requirement for PhDs altogether - and simply employ children.

503   mr beezer   2007 Apr 18, 12:32pm  

I think that smallpox still holds the record for killing humans

I like to think of myself as a professional musician
I dropped out of high school and the
Berklee School of Music Boston Mass

when I was a Steinway & Sons salesperson I thought of myself as a "professional salesperson"

And before marriage I paid dues to the Philadelphia Section of the PGA as an assistant Golf Professional

and now at 53 into my 17th month of retirement trading stocks and commodity futures options I call myself

a professional day trader
sec calls me a pattern day trader
morgan stanley calls me a client
message board longs when I short call me all sorts of things

so if people who know where bathrooms and kitchens are
located when walking clients thru a home want to call themselves professionals, its not a big deal. seriously

504   Sandibe   2007 Apr 18, 12:38pm  

I thought death holds the record for killing humans....

505   DaBoss   2007 Apr 18, 1:10pm  

Problem with Microsoft is they infringe on many patents from all kinds of companies. They are being sued by everyone. As result they pay billions in settlements and legal costs. They dont advertise how they hire the brigthest out of top universities. Here is just an example of one. Patent lawyers will tell about so many others.

Microsoft ended another long-standing legal dispute on Monday, announcing a $440 million settlement and licensing deal with InterTrust Technologies, which markets digital rights management tools.

506   DaBoss   2007 Apr 18, 1:14pm  

Actually a 50% drop would be great for bay area. Recent news on Seagate earnings show that demand is high but downward pricing pressure is very high. This is true with so many employers here.

Lets look at Japan prices declined over 50% yet they are still able to maintain dominance in Consumer and Comercial products world wide. Did Toyota Sony Panasonic Toshiba etc etc go bankrupt? No.. fact is they are No1 in the world.

507   DaBoss   2007 Apr 18, 1:21pm  

So how would that make the Bay Area like current-day Detroit?

Lets not forget the Auto Union won every demand from Auto companies.
High costing employers killed the business model that could not compete with cheaper Japanese products. This was also true back in late 80s when Japan dumped DRAM IC and killed off all US DRAM. It was a blood bath we never recovered from. They also dominate SemiEquipment and Mainframe production. Others in Korea Taiwan and Far East has dominated HT manufacturing. Yes Internet revolution gave us a second leg up but that is past now and the question is Whats Next?

That is the Risk not factored into home prices today for the long term. It was back in the 1980s. People were very informed that it can end on a flip of the dime. They did not overspand and did save like crazy.

So the anwser is buried in the past... HIGH EMPLOYEE COST and their mortgages!

508   Randy H   2007 Apr 18, 1:26pm  

Malcolm

I guarantee not all textbooks agree with your interpretation of "how it's done in business".

http://www0.gsb.columbia.edu/whoswho/bio.cfm?ID=53

Not only did I study directly under Greenwald, but had to use one of the many books he authored.

Another textbook which disagrees with you is:

"Economics of Strategy", Besanko et. al. I studied that under Dr. Kristen Barry, a reasonably prominent IP Patent and Antitrust expert witness and professor.

I didn't say you couldn't patent software. I said, verbatim, a pile of code which serves up records from a database. That is *not* patentable. If you can show me a successfully defended collection of patented SQL statements I'll retract my assertion. You also can't patent general utility functions like sort algorithms. You can patent a particular specific application of a sort algorithm (and thus a formula) like say a mechanism that sorts logical network structures for telco telecom usage (I know because I own such a patent). But you cannot patent* the sort itself, nor the code that expresses that sort.

Code is considered idiomatic anyway by the legal system, and not a source of IP. IP is contained in the concepts expressed in code.

*You can patent, but it is an empty patent easily knocked down by procedural challenges.

Just a question, what exactly do you think I do for a living? I just wonder, given your pronouncement In business we don’t mince words, patents are a legal monopoly. You're clearly speaking to me so as to inform me of my ignorance.

509   DaBoss   2007 Apr 18, 1:28pm  

And remember, the Japanese economy was in a recessions for the past 20 years recessions…

What recession?

510   DaBoss   2007 Apr 18, 1:29pm  

LOL! Dont kid your self ... walk into Best Buy or Frys... They still make PC Autos consumer and commercial exported products we here in the US envy.

511   Malcolm   2007 Apr 18, 1:31pm  

Randy, I just cut and pasted the software patent answer from the legal link. I wasn't challenging you in any way.

512   Malcolm   2007 Apr 18, 1:32pm  

How it's done in business has many schools of thought, what are you trying to prove to me?

513   Randy H   2007 Apr 18, 1:34pm  

Malcolm

Then please accept my apology.

Delineating quoted materials is very important in a forum like this. You can do it like TOS does, just using '---'.

Regardless, I still maintain the quoted material is flawed. Whenever I hear anyone speak for a wide diverse group like "we in business" I pretty much know it's BS. It's like saying "we in California...", or even "we on this blog...".

514   Malcolm   2007 Apr 18, 1:35pm  

Randy Says:
"Just a question, what exactly do you think I do for a living? I just wonder, given your pronouncement In business we don’t mince words, patents are a legal monopoly. You’re clearly speaking to me so as to inform me of my ignorance. "

I have no idea what you do for a living and I think you carry yourself as someone confident of their point of view.

515   Malcolm   2007 Apr 18, 1:36pm  

Randy since you want to argue basic details here you go: For everyone to share in if they wish.

http://en.wikipedia.org/wiki/Economics_and_patents

516   Randy H   2007 Apr 18, 1:39pm  

Don't stop there. Get to the core of software patents:

http://en.wikipedia.org/wiki/Software_patent_debate

517   Randy H   2007 Apr 18, 1:40pm  

And then we can be cynically narcissistic about using Wiki itself, relying upon Wiki as a data source to criticize using Wiki as a data source.

http://en.wikipedia.org/wiki/Wikipedia#Criticism_and_controversy

518   Malcolm   2007 Apr 18, 1:45pm  

And why are we going to debate software patents?

519   Randy H   2007 Apr 18, 1:46pm  

We aren't.

I apologize. I'm just grumpy it's so freakin cold here, with an extra shot of Tam Valley fog to make me dreary.

I've quite enjoyed debating with you today, in fact. It's good to have an exchange that doesn't involve trolls or reactionaries. You are very reasonable, even if we disagree on some things.

520   DaBoss   2007 Apr 18, 1:48pm  

Like I said... more people today still buy more Japanese products. All because its cheaper. You asked and I gave you answer many today dont want to hear.
Yet many of us WHO HAVE worked in SV know the facts.

521   Malcolm   2007 Apr 18, 1:49pm  

Sorry to hear it. I've enjoyed our discussions. This is one of those few places that people have heated discussions and maintain their decency.

522   Malcolm   2007 Apr 18, 1:50pm  

I'm calling it a day anyway. You guys all have a good night.

523   DaBoss   2007 Apr 18, 1:52pm  

TOS you failing to recall how many US companies were wipped out in 1990.
Nearly 90% died out. You ask about the next thing. Chances of Next Big Thing is unknown and not factored in the housing prices. There may not be the next big thing... we are nearly 7 years out since 2000. OK where is it?

524   DaBoss   2007 Apr 18, 1:53pm  

TOS said "You don’t known."

Read up on the Asian Tigers... go to Wiki

525   DaBoss   2007 Apr 18, 1:58pm  

TOS talks about "higher educational systems"

Come on TOS who wants to be a GEEK and Nerd
A freaking Loser -- Goober who does not get laid.

Its easy to learn SW programming. Asia and Europe has
lots of educational system too. Much of atomic theory came
from Austrian schools. Today Europe dominates biotech.
Its alll about Global Competition.... You asked about Detroit
and I gave you facts.

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