Real estate is largely unregulated as compared to other asset classes. Real estate is an asset class whether you like it or not. The US put in licensing requirements and fiduciary responsibilities for financial advisors (brokers).
Compare a series 7 exam with RE license ‘exam’ and you’ll get the point. Why should RE brokers get special treatment?
In no other asset class, can you get 3/6% of the sale price while being so unethical / unaccountable. Real estate is top #3 when it comes to political donations. You think they do this b/c they care about politics? It’s how they keep the license to steal/misrepresent/defraud.
If people (and banks) who bought crappy RE really get stuck holding the bag, then I wouldn’t care. But you and I know that is the taxpayer who gets to eat the loss. So starting cutting the speculative problem off at the start with the brokers and mortgage bankers.
Better (liable/trained) brokers = less problems down the road.[/quote]
First, I can assure you that I am 100% non-realtor and I am not at all related to the business. I think some realtors, like sales persons cheat. But that is not my point. Yes, real estate is largely unregulated, but what about car dealership, they are neither regulated, so what?! As a big-ticketed item buyer, you just have to be careful of what you are buying.
You are exactly right that it is the taxpayers who are now holding the bag, we should not have allow irresponsible buyers to buy because with their careless decision, we are the one who is going to suck it up. This substantiates my point that the stupid buyers or flippers should not buy, or they should take what they deserve as a consequence.
You tend to see that the problem stems from realtors, I feel that the regulatory agencies, lenders, realtors, and buyers should all share the responsibility. But because the first three have been debated, but the forth was never mentioned,therefore, I want to also draw attention to this group of the problem, and that is what I want to say.
