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I am that agent. (?)

Really?

Is this the way it’s going to be?

I have to read someone slamming my chosen profession?

From Sunday’s Globe magazine:

… Real estate agents in recent years helped many people buy homes they could not afford.

I don’t hear agents talking about this or chewing on the consequences. Instead, I hear that the good times will return again if home buyers will just . . . buy . . . homes.

Perhaps I’m listening in the wrong places. Perhaps somewhere sits a real estate agent slumped in a chair, hands around coffee, saying, “Listen, that home is too expensive. The market is really bad. I think you should wait.”

Nah. I’m probably just being optimistic.

I guess that’s supposed to be a criticism. That real estate agents push people to buy homes. Or, homes they couldn’t afford. (Maybe you’ve heard this one before.)

Where would these supposed conversations take place? Do people just wander into coffee shops and hear agents mumbling in the corner, “You should (not) buy a home …”

Most people only talk with real estate agents … when they are looking to buy a home!

The problem with the reporter’s comments is that they seem a bit naive.

Fundamentally, he reflects an opinion of someone who seems to have very little knowledge of how the market (and business) actually works.

I have never had a conversation with a buyer about whether or not this is a good time for him or her to buy a home. How would I know? Unless it’s someone in my own family, I have no idea what’s in my clients’ past or in their futures. I don’t know my clients’ financial situation well enough, I don’t know their tolerance for risk, I don’t know their psyche.

That’s not what a real estate agent does.

This is how it usually works: Most people, most couples, sit around, slumped in a chair, hands wrapped around cups of coffee, saying, “Honey, do you think we should move this year, or wait until next? We need an extra bedroom, and another bathroom, but it looks like you might lose your job, next round of cuts, so should we move or stay where we are?”

Well, at least that’s the types of conversations I assume most Boston Globe reporters have been having during the past year. No?

Source: The (Always) Sunny Side of the Street / No matter the market conditions, real estate agents say “Buy now!” Their profits may rise, but not their stature. – By Binyamin Applebaum, The Boston Globe

Read other posts about: Boston real estate - buying a home

10 Responses to “I am that agent. (?)” »»

  1. M.
    Comment by M. | 03/16/08 at 6:26 pm

    Following the logic of this story, it’s also the responsibility of Best Buy clerks to quiz people buying home theatres whether they’ll be paying it off in their next credit card billing cycle or adding to their credit card debt. The Globe doggedly blames the problems with real estate and mortgages on everyone except the homebuyers. Maybe someday the paper will print a story quoting some homebuyer who refinanced a bunch of times and now has a mortgage three times what the house is worth saying, “It was a stupid thing to do and it’s entirely my fault.” Nah. I’m probably just being optimistic.

  2. Comment by Xmasisnewthisyear | 03/16/08 at 7:43 pm

    isn’t this the same Globe guy that wrote a while back that he didn’t think title insurance was worth the cost?

    don’t think his articles are worth the paper or bandwith they’re written on.

  3. Comment by confused | 03/17/08 at 6:08 am

    Wow, I really would have thought that it would have been something an agent would do. Out of curiosity, have you checked to see if any places you have sold have been foreclosed on?

  4. Comment by John A Keith | 03/17/08 at 8:21 am

    No, I haven’t checked to see if my clients have lost their homes. I think they would contact me if they did. I’ve been in the business since 2001 and most of my clients have stayed in touch.

  5. Comment by John | 03/17/08 at 4:16 pm

    No but the fine print of Best Buy’s “36 month No Interest” deals on anything Bose will kill you. Miss a payment (or late on a payment?) and they charge you 27%APR since the day of purchase. I doubt they point that out.

    “Interest will be charged to your account from the purchase date if plan balance is not paid in full within 36 months or if minimum monthly payments are not made.

    Variable Default APR: 27.4% as of 03/01/2008″

  6. mel
    Comment by mel | 03/17/08 at 6:49 pm

    Agents do not know the details of their customer’s finances. Agents don’t know if the customers have student loans to pay off, expensive car leases, daycare expenses, etc. They do not qualify them for mortgages, nor do they verify their bank balances or incomes. That’s what mortgage brokers do, and that usually happens BEFORE a customer hooks up with an agent. There aren’t many of us who will spend time with a customer who hasn’t been prequalified, or at least preapproved.

    None of us want to waste time showing people houses outside of their price range, or on deals that won’t close.

    Agents have helped people buy houses they wanted, but it’s the buyers themselves who knew whether or not they could really afford them. It’s easy to blame people in the RE profession for the increase in foreclosures, but most of the blame should really fall on those that made the risky choices (I’ll refinance when the rate changes, I’ll sell the house for a profit, I’ll save my downpayment and buy a new car, etc).

  7. Comment by confused | 03/17/08 at 9:26 pm

    well mel, if you’re going to be hostile …I just thought that when a person is making the most leveraged purchase of their life and paying the largest commission of their life (Lets not kid ourselves, the buyer pays the commission), that the person receiving said monies would have a moral obligation that the purchase was not a form of financial suicide. I’m not saying that it’s only on the RE professionals, there are others that should halt spending beyond ones means well before an agent closes a deal, but for the 9K commission per median transaction I would hope that a sales agent is a last line of defense. Am I wrong in expecting that. If so why? Am they not payed to represent ones best interests? Why would you not know if your customers have student loans to pay off, expensive car leases, daycare expenses, etc. I give you that there are people that wanted to buy because prices were going up and were going to refinance and cash out till they could do it no more (i.e. today). You could have screamed until you were blue and they would have bought beyond their means. But why are you exempt from trying to stop them from harming themselves?

  8. Comment by John | 03/19/08 at 1:24 pm

    If you want to rely on salespeople to rein in people’s spending, good luck.

    I can see it now…
    Based on the way you are dressed, sir, I don’t think you can afford this big screen tv.
    You should be saving for college for your kids not spending money on FIOS.
    Patriots tickets, ha ha, watch it in your living room.
    You need more education, not a nicer car.

    A long time ago, I was at the Registry doing some research. At the table next to me was a real estate closing. After they were done, I asked the buyer’s lawyer if people understand what they are signing. The lawyer said that no one wants to understand. They interupt and tell him to just show them were to sign. Some don’t even speak English.

    I sure feel sorry for them when things don’t work out.

  9. Comment by GlennScottRyan.com | 03/19/08 at 5:48 pm

    The news that’s not fit to print. What a bunch of crap. Buyers and renters come to me with a price range in mind. I honor that and if the range is too low for what they are looking for I will advise them on current market rates for the size and location home/apartment they are seeking.

    A good agent thinks of their clients needs first and their paycheck second.

  10. Comment by David Reznikow, CMPS | 03/22/08 at 3:27 pm

    I’m sure there are some agents that have tried to push buyers in order to make a commission. I am also sure some unethical mortgage brokers assisted.

    With that said if you go the local mortgage broker route be sure to ask if they are a Certified Mortgage Planner. This is called a CMPS designation and separates those of us that are committed to a new set of industry standards vs. others who treat the mortgage process more like a comodity. See http://www.cmpsinstitute.org to find out who in your area is certified.

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