Who Ruined the Real Estate Market?
I will tell you exactly who is to blame. Each of the above are to BLAME. Not just one but all three. Many may think how is this possible. Its actually very simple to understand.............here is how it played out.
The Realtors(not all but some) are to blame because they did many misleading things to confuse the lending institutions. By inflating property values by not putting them on the MLS(Multiple Listing Service). Allowing consumers to get cash back. Many Realtors would say the money back was for repairs. When in reality it was to entice consumers to buy the house. The money was almost like a kick back to the consumer(that they were paying for). Unfortunately, the first thing most consumers did when they got these monies where not repairs.
The mortgage industry is to blame for several reasons. You don't loan people $300,000 when they only make $50,000 a year. You don't have appraisers clam a place is nicer than it really is, or have them add an extra bedroom that really isn't there. Even better yet, having the Account Executive calling to tell you what to say to get around an issue. Believe it or not this has all happened.
Last of all the consumer. The consumer needs to be smart enough to know whether or not they can afford a home, its not rocket science. Just because someone is willing to give you the loan, does not mean it is a good idea.
It my opinion and my opinion only everyone in this scenario is to blame.
I'm not trying to say that all these people have done bad things and thats why the real estate market has bottomed out. That isn't the reason why at all, but the fact is enough of these people have done it. This and this alone has caused the real estate market to be soft for many years to come.
Published by morgan
25 year old real estate/contractor. I am very educated in sales, real estate, computers, finances, etc...Feel free to email me with any questions you may have. View profile
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2 Comments
Post a CommentTO Jeff
Thanks for your reply....and I agree . GREED is not only ruining the REal Estate market, but this COUNTRY as well.
You know, what surprises me most is how many didn't see this coming...over two years ago I was in Florida as could see that market had about as much future as a mayfly. Your article is right, but it is really much simpler, only one thing to blame..greed. Good old-fashioned American greed. Take two measures greed, salt heavily with stupidity, and there you have the recipe. And it is far from over. When Georgie boy attacks Iran, look for real estate to take another big hit as reprecussions filter through the economy.