There are a TON of things wrong with the industry. I don’t even know where to begin. There are some absolutes that to me seem very basic. This is all my opinion so take it with many grains of salt…
First off I feel that the financing business should be totally detached from the real estate industry. To much room for conflicts of interest. The VAST majority of transactions that I have had go south seem to have a mortgage broker on the other side rather then a realtor.
The appraisal process is such a crucial lynch pin in all of this as well. It is hard for me to apply a useful critique to this industry because I do not have as much insight into it as Bugs and the other appraisers on the board. I know that it is competitive.
The real estate reporting mechanism needs to be scrubbed. Sales information is readily available and can be compiled in a much more accurate manner but it is not. Every reported sale should include credits, commission costs, repair costs, etc… this would really help identify the value of homes in a more accurate manner.
As far as the white lies part that just sucks. To me there is no such thing as a white lie… either you lie or you do not lie. As real estate is a second biz of mine, I have way to much to lose by not disclosing things and going by the book. This is not a plug for myself but my commissions are not enough to justify taking any chances and possibly risking my other assets due to a lawsuit. I have had to cancel listings or not take other listings because of situations that I did not want to put myself in.
That said, there are lots and lots of sales agents, who do what you are talking about above…. Or they don’t ask.. Kind of a don’t ask don’t tell…
