"There are good reasons to be skeptical of the profession, but there is also plenty of confusion out there about what we are and are not responsible for." - Realtor Kira Mason
Appraiser here. Good agents are a godsend. I never get a phone call from a good agent during a transaction because they understand everyone's job during a transaction and how the system works. They price the listing mostly correctly, take time to explain to the clients that the appraised value may not meet the contract due to the wild market conditions, know how to read an appraisal, and know that the lender may call for specific repairs that need to be addressed. Instead of calling the loan officer or appraiser to complain they just get the job done or present actual data to back up any true complaint they might have. Like most jobs you do have to learn by doing, so many bad agents will become good eventually through experience. It would be beneficial if everyone in the transaction between agents, lenders and appraisers saw each other as coworkers instead of enemies but I suspect as Kira says the root of some problems might be the pay commission structure. Flat fees would probably weed out most bad apples.
No one is to blame for the housing bubble but the government. Everyone else involved is just making the transaction happen within the banking rules, even if we think you're paying a stupid price lol. Problem is when it all comes crashing down no one wants to take personal responsibility for deciding to pay $500k over asking and instead wants to sue the agent, lender, or appraiser for not stopping them lol
Awesome contribution, thanks for your insight! Right on. In regards to agents, appraisers, and lenders working more collaboratively... I dream of a future in which listing data is more standardized (no room for agent fibs) so that comps will be more direct, for appraiser, agent, and consumer benefit.
A good real estate agent is worth their weight in gold. The problem is it’s just hard to “know” who is a good agent, and who is not. I love the comments by Mr. sub prime, (I am an appraiser too, as well as a realtor, and see both sides) I agree with Mr Sub-Prime 100%.
Kira, I admire you for your bravery and honesty! The Feds were asleep at the wheel this time. Appraiser’s are the boots on the ground and see what is happening before everybody else does. Now, computers do the same, and if the Feds were paying attention, they could’ve caught this sooner rather than later. ( That’s a simple version but there’s lots of other things in play.) My concern is the typical average homebuyer keeps getting the short end of the stick.
My agent team for my last home purchase was invaluable. Whether or not they revealed all the details or sold me a story, the fact was they got previous owners to move on our reasonable offer. The owners had a well established history of holding out for an unreasonably high selling price in that market era. We got the impression the listing agent was getting tired of carrying the listing just to avoid selling due to unreasonable expectations.
Excellent interview. Integrity has and always will be the ultimate currency. Unfortunately for most it’s a short game. Grateful for the incredible amount of value provided in your podcasts and substack
Dime a dozen??? A bit harsh. A lot of bad apples for sure but some really good ones.
The biggest problem are huge real estate firms ‘selling’ a dream to a ‘married mother of three’ that she’ll kill it and she has the time to manage all of it. Truthfully, they just need a few transactions out of her to make ‘their investment back’ and any additional transactions are money in the bank. They don’t care about turnover because they are constantly recruiting new suckers. They never stop!
The turnover rate is ridiculous. I live in the Triangle Region of NC. At one point last spring we had roughly 10,000 agents in Wake County and less than 400 active resale homes available. We could easily manage the entire region with probably 80% fewer licensed agents. Hopefully 2023 will weed out a lot of marginal agents and the firms that keep selling them a steaming pile of BS.
I think that the coming years will definitely thin out the oversupply of agents. As for brokerages "selling" a promise...at least in my area, I haven't found this to be the case. It's more common for that mother of three to see some R.E. influencer in Instagram, or perhaps a friend who made a career change and did particularly well, and decide to get her license based on that. If you work part time, you'll make part time money. The opportunity to earn a lot is always there, but those who go into this expecting to make a quick and easy buck on the side are soon disappointed. It's a full time plus kind of job.
And as for the positioning of brokerages, the wonders of capitalism tend to make those offering the best support and commission cuts to their agents the most popular. There are certainly recruiters that try to bring you over to their brokerages once you have your license, but I'm not sure I've ever seen them advertising to the general public or selling inflated promises. Perhaps it's different in your area.
Living in one of the fastest growing areas in the country brings the vultures out in droves. I’m ready for a healthy pullback to bring the ship back to earth.
Guys this is BS. Fiduciary? LOL. Most realtors will turn greedy in a split second and abandon all ethics— don’t even bother writing your article. The system is rigged with usurious interest rates and regulation. Banks must first be disbanded.
Appraiser here. Good agents are a godsend. I never get a phone call from a good agent during a transaction because they understand everyone's job during a transaction and how the system works. They price the listing mostly correctly, take time to explain to the clients that the appraised value may not meet the contract due to the wild market conditions, know how to read an appraisal, and know that the lender may call for specific repairs that need to be addressed. Instead of calling the loan officer or appraiser to complain they just get the job done or present actual data to back up any true complaint they might have. Like most jobs you do have to learn by doing, so many bad agents will become good eventually through experience. It would be beneficial if everyone in the transaction between agents, lenders and appraisers saw each other as coworkers instead of enemies but I suspect as Kira says the root of some problems might be the pay commission structure. Flat fees would probably weed out most bad apples.
No one is to blame for the housing bubble but the government. Everyone else involved is just making the transaction happen within the banking rules, even if we think you're paying a stupid price lol. Problem is when it all comes crashing down no one wants to take personal responsibility for deciding to pay $500k over asking and instead wants to sue the agent, lender, or appraiser for not stopping them lol
Awesome contribution, thanks for your insight! Right on. In regards to agents, appraisers, and lenders working more collaboratively... I dream of a future in which listing data is more standardized (no room for agent fibs) so that comps will be more direct, for appraiser, agent, and consumer benefit.
A good real estate agent is worth their weight in gold. The problem is it’s just hard to “know” who is a good agent, and who is not. I love the comments by Mr. sub prime, (I am an appraiser too, as well as a realtor, and see both sides) I agree with Mr Sub-Prime 100%.
Kira, I admire you for your bravery and honesty! The Feds were asleep at the wheel this time. Appraiser’s are the boots on the ground and see what is happening before everybody else does. Now, computers do the same, and if the Feds were paying attention, they could’ve caught this sooner rather than later. ( That’s a simple version but there’s lots of other things in play.) My concern is the typical average homebuyer keeps getting the short end of the stick.
Banks will always win, no matter what.
My agent team for my last home purchase was invaluable. Whether or not they revealed all the details or sold me a story, the fact was they got previous owners to move on our reasonable offer. The owners had a well established history of holding out for an unreasonably high selling price in that market era. We got the impression the listing agent was getting tired of carrying the listing just to avoid selling due to unreasonable expectations.
On Thursday I close the purchase of a new house in Sioux Falls. My real estate agent has been invaluable through the whole process.
Excellent interview. Integrity has and always will be the ultimate currency. Unfortunately for most it’s a short game. Grateful for the incredible amount of value provided in your podcasts and substack
Dime a dozen??? A bit harsh. A lot of bad apples for sure but some really good ones.
The biggest problem are huge real estate firms ‘selling’ a dream to a ‘married mother of three’ that she’ll kill it and she has the time to manage all of it. Truthfully, they just need a few transactions out of her to make ‘their investment back’ and any additional transactions are money in the bank. They don’t care about turnover because they are constantly recruiting new suckers. They never stop!
The turnover rate is ridiculous. I live in the Triangle Region of NC. At one point last spring we had roughly 10,000 agents in Wake County and less than 400 active resale homes available. We could easily manage the entire region with probably 80% fewer licensed agents. Hopefully 2023 will weed out a lot of marginal agents and the firms that keep selling them a steaming pile of BS.
I think that the coming years will definitely thin out the oversupply of agents. As for brokerages "selling" a promise...at least in my area, I haven't found this to be the case. It's more common for that mother of three to see some R.E. influencer in Instagram, or perhaps a friend who made a career change and did particularly well, and decide to get her license based on that. If you work part time, you'll make part time money. The opportunity to earn a lot is always there, but those who go into this expecting to make a quick and easy buck on the side are soon disappointed. It's a full time plus kind of job.
And as for the positioning of brokerages, the wonders of capitalism tend to make those offering the best support and commission cuts to their agents the most popular. There are certainly recruiters that try to bring you over to their brokerages once you have your license, but I'm not sure I've ever seen them advertising to the general public or selling inflated promises. Perhaps it's different in your area.
Living in one of the fastest growing areas in the country brings the vultures out in droves. I’m ready for a healthy pullback to bring the ship back to earth.
real estate agents are a dime a dozen
So are day traders
LOL right
He's got a point.
Excellent article! Thank you!
Very good article, will be linking it today in my economic news @https://nothingnewunderthesun2016.com/
Thank you! I'm glad you enjoyed.
Guys this is BS. Fiduciary? LOL. Most realtors will turn greedy in a split second and abandon all ethics— don’t even bother writing your article. The system is rigged with usurious interest rates and regulation. Banks must first be disbanded.