patrick.net

Nice, you are a foul mouthed idiot.

Would you rather have your enemies working for you or against you?

Like I am supposed to know all of the laws regarding real estate?

BuyerBeware says

Nice, you are a foul mouthed idiot.
Would you rather have your enemies working for you or against you?
Like I am supposed to know all of the laws regarding real estate?

Foul mouth aside, you chose to work with someone you knew was sleazy. Further, I find it hard to believe that you weren't aware that it wasn't OK for an agent to pay $2K to get a listing. It sounds like sour grapes to me--you are just mad because the agent outsmarted you.

Nomograph says

If you haven’t been able to buy a house on the cheap, you are doing something wrong.

Yes, I made the mistake of using only one realtor and not playing the game as they play it.

Nomograph says

The seller gets cash at the end of the transaction no matter what. Don’t you understand how this works?

Then why do the realtors and sellers make such a big deal about cash offers and the cash offers are accepted more often?

Nomograph says

The entire free market system is based on selling something for more than it cost. Do you feel that the detergent industry is rigged because Walmart buys a gallon of Tide and sells it to you for a 75% markup?

At least with detergent there are apple to apple price comparisons not just some number that a realtor made up out of thin air.

Nomograph says

Your problems are of your own making. You purposely sought out someone you believed was dishonest, and you got exactly what you were looking for.

True - it backfired on us.

Nomograph says

It’s foreclosure city, and most houses are listed for less than 150K and have been sitting on the market for months and months.

Have you seen the houses for $150,000?

This is the area where my sis lived and lost her house. On her old street (s-12) there are so many for sale signs it's a rarity when there isn't a foreclosure.

the more I learned about real estate industry, the more crooked and corrupt it really is.

So I would advise against having any kind of loyalty to any real estate agent. Think of it as.... they treat you like a walking bag that will spill money on them, treat them the same way in return. Talk to the sellers instead, makes it easier.

I deleted the first comment because it was just an insult. Please keep it civil folks!

I think BuyerBeware's story is an excellent illustration of how "the whole real estate industry full of dishonest people and is rigged against the buyer." I ran into similar behavior myself in 2001 and that's what motivated me to start Patrick.net.

Nomo is right. Lancaster/Palmdale is so depressed that any cash buyer or even a buyer that needs a loan can find a deal. There is a reason that area is depressed and inexpensive homes are a dime a dozen. The few nice areas are surrounded by crime, poverty and gangs and that's why even the nicer places are inexpensive. It's a commute hell, not to mention being in the middle of nowhere high desert. If you even give it a half ass try you could own a home on the cheap in Lancaster/Palmdale by Sunday evening.

I think BuyerBeware’s story is an excellent illustration of how “the whole real estate industry full of dishonest people and is rigged against the buyer.”

"Realtors are Back to Their Old Tricks"

Did they ever really stop?

I also have a pretty low opinion of realtors in the USA (and outside of the USA as well in many cities). Realistically speaking, many realtors have already gotten out of the industry as they can't survive and things should get worse. Things in the industry are changing and with the power of the internet it doesn't make sense paying 6% to a realtor to sell. There are new business models where people pay a reduced commission and just show properties themselves. Smart business model.

Also, it's inevitable the USA government will get out of totally supporting the mortgage system... most likely in the next decade, 30 year fixed mortgages will vanish from the market leaving variable rate mortgages. Rates are also sure to go up.

If a realtor is wise, they will get out of the market and find a new career. Even long established successful realtors are exiting or looking to exit the industry as they can see what awaits them and it's not pretty.

Why does the OP not buy at courthouse auction if they have all cash?

Get educated, learn up. These agents are not very smart typically - you too can buy at the courthouse and flip homes or just keep it to live in.

Hey, I've been looking up in the Apple Valley for a while now and property values are all over the place. We've seen prices drop for those on the inside, while they get rigged for everyone else. I can give the prices and the locations, along with the newly listed prices that are absurd, based on the areas.

Here's what I secretly suspect. For starters, they're considered pocket deals. The listing agent has both the buyer and the seller. The agent can make more money on a lower amount of money if they have both buyer and seller as opposed to having to share a commission on a higher valued place. That's why many of them get held off from being put on the MLS.

The second thing that I suspect is happening, is that the brokers are brought in on some kind of a kickback. ie- I'm the investor. I have $250k cash. I think that if I can get the property in question for $160k despite the fact that the comp price is $225k, then I can negotiate with my realtor/broker. If he gets me the property for the value of $160k then he gets the full commission.

I still have to make it worth their wild, after all, they're still losing the commission from the silent bidding process at the $250k to $275k. So I make a side deal and tell them that I'll cut them a deal after the sale for "X" amount. Hell, I might even just give them "X" amount in their hands on the spot. After all, if it goes through, I got the place for a fraction of what it's current value is. The realtor/broker walks off with a big fat wad of cash in hand bonus, plus commissions. It's a win, win situation for them.

For the rest of us, who are playing by the rules, well, we're just screwed. So much for ethics. We don't stand a chance by trying to be honest. Some of these deals have even been done with the express intention of flipping in a down economy. I happen to know of three of them that are presently on the market that were picked up for prices far less than what Patrick has written about. I can even give the addresses and show the commerce trail of corruption. Hell, I think I even traced one of them down to an inside deal with an X city official.

The only problem with all of my speculation is that I'm only putting the pieces of the puzzle together, so there's no actual evidence of collusion. If my theories are flawed, then I hope someone shows me the light at the end of the tunnel, because right now, it's pretty dark.

Okay...

Here's my real estate horror / war story. There's a reason that car salesman and Realtors are known as slime. This is the only so-called "professional" industry where an agent can represent BOTH SIDES (the buyer and seller) and act like it's not a conflict of interest.

The wife and I was looking at various properties in the Mountain House, CA area in mid-2010.

The listing Realtor on a property we found "attractive" tried to sucker us with the old "Bait and Switch" tactic. He already had a solid buyer for his listing (he thought I didn't know), but acted like the property was still available and wanted me to sign an exclusive "Buyer / Broker Loyalty Agreement" in exchange for writing the RPA (offer) on this listing.

Initially, I played along to see if the stories about Realtors with questionable ethics were factual. However, I got tired of her arrogance after a few email discussions and sent the following...

___________________

Congratulation on selling this subject property!!! I see it listed as
"active short cont." on the MLS.

Dude...Did you really think I didn't know the scam you were trying to
pull on us. I could smell the "Bait and Switch 101" tactic a mile
away.

I knew we never had a chance when you wrote up that RPA. All you
wanted was for us to sign the Buyer / Broker Loyalty Agreement. Thus,
you used the "Bait" of the RPA to try and get us to sign the Loyalty
Agreement contract.

Question...How do you Realtor's sleep at night doing these unethical
acts? I know...I know...the $$$ makes it easier and more palatable to
fool yourself into believing that you're "Master's of the Universe."

Have a Nice Day!!!

APOCALYPSEFUCK says

it would be bigger than the Gong Show

Oh wow...I used to love The Gong Show when I was a little boy...thanks for the flashback Viggo.

I think some you guys forget that real estate(*******) agent is just a title and the fact that some are as you say means nothing!! your pastor could be a (****)child molester yet you kiss their hand like it was gold..I'll bet none of you are perfect...I wonder if you would sit with a family that is loosing their home and help them for nothing! and by the way when I closed my used car lot down to became a (*******) in CA I also realized snakes are everwhere!! just kick them aside and MOVE ON...... Tricks are for Kids!

Well, in all fairness to the realtor/brokers. There are a few good ones out there. However, it only takes one bad apple to ruin a barrel of good ones. If your roots are corrupt, then the branches are also corrupt.

Bankers, brokers and realtors shouldn't treat housing like drug dealers treat drugs when marketing and selling to addicts. Housing is a necessity. While it is a free market, there still needs to be rules employed that make the game fair for all. The last thing we need is for some unscrupulous bastard to come around and manipulate numbers against the honest.

We should all be standing together on good, clean ground. After all, the realtors, brokers and the likes are part of the useless feeders group too. Why don't I see homes being sold off for the balance of what was owed on it. Instead, it's all about profit, profit, profit.

New homes and some others should be sold for profit. Foreclosures and shorts that qualify should be sold for the balances owed to clear their title with the banks. That's why I think auctions are for the greater part, the fairest way to buy. Then again, I was just reading something the other day where even auctions are partaking in the fraud of manipulating prices.

Surely there's got to be a better, more fair way of orchestrating all of this. It's obvious that the present ways are absolutely corrupt, because they rely on mankind's greed.

Oh, cmon...stop being such a victim! You complain that the agent is untrustworthy, is playing games, isn't treating you with "respect". Have YOU signed a buyer agent agreement with them or you just expect "loyalty"? Have YOU wondered why you lose out on all these houses? Maybe because it's not all about YOU. There are other buyers out there. I wish people would stop whining. You're not the only one looking for a DEAL. And then, when you don't get it....gee....it must be someone else's fault. Put on your frickin big girl panties

Why does the OP not buy at courthouse auction if they have all cash?

If they buy at a courthouse auction, they have no chance to inspect the property, right? Might there not be major maintenance problems or squatters or anything else that could generate lots of costs and hassle?

I do agree with BuyerBeware opinion. A One out of hundreds real estate agent is worth dealing with. The rest of them a bunch of idiots who are trying to make money on your back: whether you are buyer or seller. My personal experience with Realtors on purchasing our next home in Southern New Hampshire is way bellow negative. Don't know what kind of exams Realtors are taking but majorities of them are lacking simple real estate markets knowledge, they are negligent and dishonest. The one thing they understand well is the lower the price is the smaller is their commission. Hence they don't bother with lower priced properties.
Most of the real estate agents are nothing but the person with the keys that opens the door for you so you can look at the property you are interested in. We have worked with 4 agents in the past 4 months to find a suitable home for my family and our 2 young boys. I have gave the agents a list of what we exactly looking, including the house styles and things that we won’t compromise with and good to have. All 4 of them said they will look in their areas and will let us know if they find matches. Of all 60+ houses we looked over the past 4 months, 60 were found by us and none was offered by the agents. Not one of them came with: here is a house that matches your need and I think you’ll like it. Not a single one. Perheps this only happens at HGTV series? My wife will find homes that we liked, then we did the research area, schools, etc. if everything is OK we did a drive by. Useless real estate agents are nothing but a doorman (no offense to the doorman trade as these guys are way more essential to a building that a realtor). Realtors nowadays are no better that a used car salesman!
I was once even told by one of the agents that she wouldn't show us few properties because they were 30-40 miles from where she lives and it is not worth for her to drive so far?! On another occasion we could not place a bid on a gorgeous house in Pepperell, MA (66 Wheeler St. if you are interested to take a peek) because we could not locate our agent for couple days. She did not say she is going away and did not called back. The house build by a general contractor for himself received an offer the first couple of days it hit the market and was gone before our agent could set time for us to see it. On another house in Derry, NH we put a bid on and it got accepted the agent was telling us that is the property is worth the money regardless of the fact that the home inspection found that 21 years old roof need replacement, there was mold in the attic, the whole house needed to be repainted and clapboard siding replaced where needed, and there was electrical and plumbing work to be done. Rough estimate showed $30,000-40,000 worth of work, never mind what left hidden from the inspector. Oh, and by the way the investor (bought the home for $165,000 in cash and put it back on the market for $250,000) paid to have the basement finished and "forgot" to tell the city, so updated annual property taxes would top $10,000. Yup that’s right – Derry, NH tax at $28 per $1,000 valuation. We backed out of this house because the investor did not want to negotiate for lower price despite the major issues with house. We later found that the buyer's agents are offered significant bonus over their regular commission. The same house a month later was offered at $15,000 lower price. Why the seller wouldn't want to negotiate with us, but then later lower the price at about what we asking to cover the repairs. I blame it on both agents who apparently acted as seller's advisers. In this case they were bad advisers, but next few times they may succeed.
The last screw-up came with no surprise from our agent, who we asked to get us updated information on the property taxes on another house we placed a bid on. She got it, but “forgot” to send it to us - like she don’t have other things to worry about it. $1000 a year more in real estate taxes was call a “honest mistake” by her office manager.
So what is the morel of the story? DO NOT use agent when you buy a property – avoid at any cost. You can contact the listing agent and schedule your own time to a see a property. Every step of the purchasing process can be found on the internet. You no need one that you can’t trust and have to double check every piece of information passed to you by the agent. You can do it yourself, especially nowadays when 99% of what you need is available online at your fingertip.
Yes, they are good realtors out there, but is it worth spend time to look for them? In my opinion I will do a lot better without being represented (or misrepresented)!

It's a shame when licensees in any profession use the system to enrich themselves at the expense of their clients. It reflects badly on the group as a whole. I'm sure there are those who break the rules everywhere, but for the most part, agents here in DC Metro seem to play fairly. Undoubtedly, there are honest, hardworking Realtors in CA as well.

I don't believe it is in a client's best interests to have an agent represent both buyer and seller even when the licensee isn't a party to the transaction. When agents are buying and selling properties while representing clients as buyers and sellers in those transactions, there's certainly a conflict of interest. It doesn't sound as if that is what actually occurred in Buyerbeware's story, although the agent seemed to infer that she'd list a property in order to achieve a low price for the buyer, which would certainly seem a breach of duty to the seller, something that didn't seem to bother Buyerbeware when initiating a relationship with the agent. (A foreclosure can't be listed as a short sale as a foreclosure is already owned by the bank, so I'm assuming Buyerbeware meant "pre-foreclosure")

In Washington DC, there are some licensees who also rehab and flip properties as a sideline. It's a perk of the business to be able to quickly ID good properties, offer quickly and turn them at a profit, using expert knowledge of real estate to do so. That doesn't mean there's any dishonesty involved. As long as relationships between the licensee as a seller and as a representative of a buyer in the transaction are separate, this shouldn't be a problem, especially when the buyer is represented by another qualified agent.

In addition to rises in property values based on location, desirability, demand and supply, the last "comp" value changes values for the neighborhood and homes are typically priced above the comp price in order to leave room for negotiation. This, per se, is not dishonest or a game or scam. Were you the seller of these properties, you would likely agree! The actual sales price doesn't show on public records until the transaction has recorded, and lenders and appraisers have to deem the property worth the sales price. In cash transactions, a buyer can pay whatever they wish for a property. It becomes their liability. Also fair.

Any person can buy property at a trustee's sale and flip it, including Buyerbeware. If the licensee represents her parent in those transactions, there's no conflict in that. Were my mother purchasing and selling property, I'd hope she'd use me as her agent, too. Buyers need to be aware that listing agents don't work for them, they work for the seller and will do what is legal and fair to make a profit for that seller. It is telltale that Buyerbeware noted that he/she should have called the listing agent and asked for a showing of the home her agent wouldn't schedule for a tour. The listing agent represents the seller. Why call the lister when the lister represents the seller? What Buyerbeware should have done is phone his/her own agent's broker, state that the agent was refusing to show a property, and ask the broker to assign another agent to do it immediately. The broker "owns" the client, not the agent. Buyerbeware could have used that opportunity to change agents, or brokerages altogether.

The agent's offering to "buy" a short sale listing should have been enough to warn Buyerbeware off that agent in the first place (sounds like there was greed involved on both sides here).

Inter-related activities can become a type of scam if licensees cross the line, and as with any transaction, it actually is up to the buyer to identify and back off from any transaction that seems unscrupulous. Buyers should act decisively when encountering these types of infractions and practices, by immediately "firing" the agent, reporting the behavior to the agent's broker, refusing to participate in transactions in which the licensee is involved, and by reporting the incidents immediately to the real estate board along with substantiation. If you feel you've been taken advantage of, file a formal complaint.

All that said, if you are a buyer in a competitive market, you need to step up. Real estate agents will tire of giving you the same unheeded advice and touring you endlessly at their expense. It is a drag on their time, which involves research and preparation as well as touring time, and prevents them for allocating that time to another client who will step up. Real estate agents are not utilities or charities. They are not your friend. It is a business. They need to manage their time and budget just like any other business. Find a BUYER AGENT. Buyer agents typically don't list property (I list only for my buyer clients, and then I will not represent a buyer for purchase of that property), have complete loyalty to their buyers, and are aware that buyers cost more time, effort and expense than sellers (listings). They, too, will put a limit on it if you're not realistic.

BTW, Cash offers are stronger than those with financing because the seller doesn't have to worry about the buyer qualifying for the loan, or the lender's appraisal coming in low. That doesn't mean that a much higher purchase price offer won't be accepted instead of a cash offer. It depends on how confident the seller is in the buyer's creditworthiness and in the ability of the property to appraise at that price.

It IS worthwhile to work with a good real estate agent. Every step can not be found on the Internet, and most buyers and sellers are not equipped to handle this important transaction themselves. A lot of what we do isn't witnessed by buyers and sellers; endless hours of research, paperwork, previewing, communication between buyer, agents, title, lender, etc. and, of course, touring. We are not personal assistants, we do represent multiple clients, and we are human and do make mistakes. Don't you? Often our hard work averages us minimum wage after expenses. I work 7 days a week, 12-16 hours a day. I care about my clients and do everything possible to acheive their goals.

It's tough out there right now, for buyers and sellers. It's a confusing market with ups and downs and each micro-location is different. Find a dedicated agent who will work hard for you and appreciate them. Things will work out.

or not find agent at all. I disagree with susanisaacsrealtor and think that an educated buyers no need real estate agent to represent them (or misrepresent them). You can represent yourself, don't be fooled by the realtor's that this is extremely complicated process and you need someone to guide you. Furthermore if you don't have an agent as a buyer you get get a further price reduction equal to half of the entire commission the seller has to pay to both agents. This is on average is an additional 2.5 % of the asking price.

repo4sale says

ALL DEALS WITH REALTORS ARE “SUSPECT” AKA NOT FAIR.
AVOID THE REALTORS AND YOU ALWAYS GET A BETTER DEAL.
I KNOW, BEEN IN REAL ESTATE SINCE 1976, OVER 650 ESCROWS.
114 COURT CASES OVER LIFETIME AS LANDLORD/PARALEGAL/PRO-PER!
AVERAGE GROSS PROFIT PER DEAL 1167%, ONLY BECAUSE I DON’T USE A REALTOR.
PS: I’M THE LARGEST LAND BUYER IN CALIFORNIA THAT IS A “PERSON” NOT CORPORATION.

OVER 3000 ACRES IN LAST 18 MONTHS…
27% IRR PER MONTH FROM 1999 TO 2008!

Are you sure you're not APOCOLYPS**** in disguise?

even if the realtors want, how can they be 100% honest? They can't because it would be against their interest? They won't sell anything and won't make any money without adding some "spice up" whether they think it is needed. Yes, the good ones struggle, but this a profession that honesty is not a value. Don't use realtors, do it yourself!

susanisaacsrealtor, I agree we all humans and make mistakes. However when buying house a month ago my agent made "mistake" by "forgetting" to send me the updated property taxes which apparently went up with $1000 per year compared to what listing agent had on the sheet. This is over $30,000 over the life of 30 years loan without adding any interest? How is that sounds to you? Would you still call it honest mistake if it will have to come out of your pocket? It is a way more than a negligence, it is careless and mean? Does she cared about her clients? I don't think so!

I know it's hard to accept something like that. I request updated property taxes and back tax info from the title company to be sent directly to the buyer, so hopefully it never will happen! I think things in CA are done a little differently. I can't speak to the actions of other agents, but I do know a lot of really good and caring agents here. There are some disappointing ones, too.

I am 100% honest (sometimes too honest!) and I make a decent living. My clients are loyal and appreciative and they refer friends and co-workers to me. I take that responsibility seriously.

I do think the CA and FLA markets are quite a bit different than ours in DC (DC, by the way, has some of the most pro-buyer laws in the U.S.) and practitioners vary accordingly.

Some of you on this site are really smart people who are perfectly able to handle your own real estate transactions, and you should. But others are simply unwilling or unable to acquire the knowledge and experience necessary for their one or two lifetime transactions. They have full time jobs and familial responsibilities, and are overwhelmed even by the touring process. For the majority a GOOD real estate agent is a bonus, not a liability. I hope those of you who need one can find one!

Thanks for all the lively debate. I enjoy reading this blog.

When I look at a foreclosure I only work with the listing agent.

#1) The listing agent of the foreclosure has the most information about the property.
#2) The listing agent is doubly motivated to sell the property to their client because they get both sides of the deal (i.e. double commission)
#3) If I really wanted a property I would consider offering the listing agent a commission bonus (independent of what the Seller is paying) of 2% at the close of escrow. The at close of escrow is the key because during escrow you could find out information from inspectors that makes the property unacceptable.

Great advice rmacdon1

repo4sale says

I have 4 semesters of Calculus! 650 escrows! 114 court cases, daily work on 4 computer screens!
Read about 25,000 to 35,000 pages a year on Economics, real estate, law, finance, banking & litigation! I listen/watch CNBC daily for about 2 to 8 hours while I work on my 4 screens & 4 multifunction HP Laserjets! I close about 30 escrows a year and drag race & fish weekly!

Holy Crap. You have 4 multifunction HP Laserjets??? And you drag race too?

susanisaacsrealtor says

Undoubtedly, there are honest, hardworking Realtors in CA as well.

Then use your connection and show me one, at least one!

repo4sale says

joshuatrio says

repo4sale says

ALL DEALS WITH REALTORS ARE “SUSPECT” AKA NOT FAIR.
AVOID THE REALTORS AND YOU ALWAYS GET A BETTER DEAL.
I KNOW, BEEN IN REAL ESTATE SINCE 1976, OVER 650 ESCROWS.
114 COURT CASES OVER LIFETIME AS LANDLORD/PARALEGAL/PRO-PER!
AVERAGE GROSS PROFIT PER DEAL 1167%, ONLY BECAUSE I DON’T USE A REALTOR.
PS: I’M THE LARGEST LAND BUYER IN CALIFORNIA THAT IS A “PERSON” NOT CORPORATION.

OVER 3000 ACRES IN LAST 18 MONTHS…
27% IRR PER MONTH FROM 1999 TO 2008!

Are you sure you’re not APOCOLYPS**** in disguise?

I have 4 semesters of Calculus! 650 escrows! 114 court cases, daily work on 4 computer screens!

Read about 25,000 to 35,000 pages a year on Economics, real estate, law, finance, banking & litigation! I listen/watch CNBC daily for about 2 to 8 hours while I work on my 4 screens & 4 multifunction HP Laserjets! I close about 30 escrows a year and drag race & fish weekly! My goal is to die a Billionaire! Been to 68 countries researching investments, laws, politics, filled 5 passports, 4 world trips & my own personal Dept. of Homeland Security Travel ID#! State of California gave me a SELF INSURED DRIVERS ID#1949! Please post what you do daily that is not “median or average”???

You're full of yourself too !

tatupu70 says

Holy Crap. You have 4 multifunction HP Laserjets??? And you drag race too?

Nigerian scammer?

It is not even funny anymore to me when a realtor says "I am honest" but others in his profession aren't. LOL.

Not what I said, bubblesitter, It seems to me, also, that if you go into any relationship--business or otherwise--with an intense level of distrust and negativity, it would color that relationship to a great degree, and not in a good way. Perhaps you are one of those really smart people who should handle their own transactions.

susanisaacsrealtor says

Not what I said, bubblesitter, It seems to me, also, that if you go into any relationship–business or otherwise–with an intense level of distrust and negativity, it would color that relationship to a great degree, and not in a good way. Perhaps you are one of those really smart people who should handle their own transactions.

So who is to blame for the negativity? I guess banks,MG brokers and Fed right?

Four computer screens? Are you challenged by the taskbar or something?

Are we talking about blame for the market in general, Bubblesitter? I'm not an expert on that. Anyone who conributed to fraud and less than scrupulous deals, I suppose. Who's to blame for your individual troubles? Only you can answer that.

I disagree, Mr. Fantastic, and unless you personally know every real estate agent in the business, that's not a statement that should be made. I've had good and bad experiences with people in many professions as a consumer, but don't damn the entire profession for a negative one. Instead, I try to learn what I can from the experience and go into the next one better prepared. I also take a level of personal responsibility. As consumers, we need to due our own due diligence, whether it is choosing a representative, or following advice. There's a limit to real estate agents' responsibilities and duties and if there are any questions or concerns beyond those lines, buyers and sellers need to consult an attorney or CPA for added information.

Bashing people indiscriminately isn't an answer to anything. What do you do for a living? I'm sure there are people who denounce almost every profession.

I suspect some of the critics of BuyerBeware on this post are real estate agents...
hmmmm...

Don't touch that. WHAT DO YOU DO? You touch it.
Don't look, it'll scare you. WHAT DO YOU DO? You look.
The picture says scary don't look, but the wording says: It's beautiful, spacious, has great flow and a PEAK A BOO VIEW, perfect for the family (not theirs). WHAT DO YOU DO? You go with them hand in hand.

Why do car dealer salesman make you follow them...? It's control and it's all based on the theory of opposites. When you ride with your realtor in their car, you've already lost half the battle.

When you do not exercise your due diligence by doing your own homework, then you can only expect them to sell you what they are able to move. They lead and you follow.

Car dealerships operate the same way. They have a manufacture price and the MSRP price. We see that manufacture price and we're led to believe that the car really cost exactly that and that the dealer isn't making any money on it outside of that. GIVE ME A BREAK. This is the conjured illusion of a master.

This illusion only exists so long as all dealerships play the same game. The moment one goes rogue it all goes South. There are overhead expenses that in some cases, cost more monthly than the houses that we're looking to buy. Then you couple that with payroll, insurances and the immense taxes. It's impossible for a dealer to make all their profits on service alone. The only ones in the know, are those who are on the inner most circles. Simply said, they can't trust some of their most trusted , because their human.

This is also true for the Real Estate business, even though I went off on a tangent. The real estate business operates in much the same way, even on the tier of those in charge (the banks). Think of it all in terms of concentric circles. The further out they are, the less expensive they are. The realtors/brokers/bankers try to keep the concentric circles as dense as possible. This allows them to keep prices higher on the outer rings.

The outer most rings are the outer most reaches of territory with controlled pricing. The closer to mecca you get the more expensive. Profits and the likes are based out of the center of the rings (bullseye/mecca) When they lose control of each outer ring the prices and profits drop. These guys (realtors/bankers/brokers) are all swimming up stream and the power of the flow of water is gaining immense strength. That's when they revert to drastic measures to stay in the swim for survival.

They want these outer most rings to remain high for as long as they can. It allows them to bank as much as they can and all at the detriment of anyone who they can get their hands on.

THERE'S TRUTH TO THE UNITED WE STAND AND DIVIDED WE FALL. THAT'S HOW THEY OPERATE. If we're to stand a chance on normalizing the market at all, then we too need to stand together and lead them as opposed to being lead. After all, we are their employers. When my buck stops paying them their paycheck stops. Remember, they're to blame for all of this. They represent the root and not the branches. I for one am going to hold off on buying a new home until the market really normalizes.

Ok guys, I give up trying to convince you that all real estate agents aren't corrupt or evil! They're aren't, but I can see your minds are made up. I am not, btw, "employed" by a broker. We are independent contractors who rely on our repuations for referrals. That is how we make a living. Here, anyway, reputation is very important. My license is held with a boutique DC brokerage that would sever a relationship with any agent who DID do the things you suggest in this blog. Marketing is one thing, breaking the rules, laws or acting in an unprofessional manner is another. I wish you all luck and hope things improve for you soon. : )

Please understand that realtors do not have your best interests at heart, they have their own. Also, you will often not be privy to a house until the realtors, bankers, builders, appraisers and their friends and relatives decide they don't want it. Good luck.