White Lies in Real Estate

[latesummer2008]

Having been a Realtor years ago, something has always bothered me about the industry. White Lies, or omitting important information, is widely accepted in the business. Essentially, it is answering questions and not offering information that is known, unless, specifically, asked for it. Yet, often times, the most successful salespeople are experts at this. I believe, it becomes a disclosure issue. Airport noise, pending construction project next door, pumping up the “high” and omitting the “low” comparable sales to get a listing etc, etc.. Fortunately now, everyone has access to important sales information through Zillow, Dataquick and other real estate data reporting sites.

My question is, can anything be done about it? Or is just “Caveat Emptor” (Buyer beware).

http://westsideremeltdown.blogspot.com

[NotCranky]

I don’t understand why those would be white lies? Why not just lies and manipulation?

[NotCranky]

I don’t understand why those would be white lies? Why not just lies and manipulation?

[Anonymous]

Lies and manipulation are fundamental characteristics of the sales profession. Real estate agents are salesmen, nothing more nothing less, so what do you expect?

[Anonymous]

Lies and manipulation are fundamental characteristics of the sales profession. Real estate agents are salesmen, nothing more nothing less, so what do you expect?

[Bugs]

You don’t expect a car salesman to give you the real history on a car. You don’t have that expectation because regardless of what comes out of their mouth you know they are an advocate for selling that car.

Knowledge is power, and the best realty agents know the key to increasing their customer satisfation and build their reputations is to empower those clients with as much knowledge as it takes for them to feel comfortable with their decisions. Different people have different needs as far as what it takes to get to that comfort level.

As an example, if I wasn’t in the business myself I would still be a pretty cautious buyer. Not so much as a negotiation fanatic but in looking before leaping. You should see what my wife and I go through before we buy furniture or when I’m buying a car. I very much want to know what it is I’m getting, much more so than worrying about the price.

I’d want to check out the schools if I still had school aged kids, I’d want to check out freeway access and commute times, I’d want to see some sales data and drive by them to get a reading on pricing, I’d want to look at the structure and get a home inspector of my own choosing. I don’t need or want to be told; I need to be shown where I can find the information I’m seeking so I can see it for myself.

I’m pretty sure that if faced with a buyer like me, sdrealtor and SD Realtor would both recognize that I was seeking that type of hand-holding and they’d match their game plans to suit. I’m also sure that they know that the game plan that worked for me would overwhelm and throw off other types of buyers.

Regardless, I wouldn’t work with an agent who wasn’t in tune with my style; and I think this is where some of these buyers and agents fail to exercize common sense.

[Bugs]

You don’t expect a car salesman to give you the real history on a car. You don’t have that expectation because regardless of what comes out of their mouth you know they are an advocate for selling that car.

Knowledge is power, and the best realty agents know the key to increasing their customer satisfation and build their reputations is to empower those clients with as much knowledge as it takes for them to feel comfortable with their decisions. Different people have different needs as far as what it takes to get to that comfort level.

As an example, if I wasn’t in the business myself I would still be a pretty cautious buyer. Not so much as a negotiation fanatic but in looking before leaping. You should see what my wife and I go through before we buy furniture or when I’m buying a car. I very much want to know what it is I’m getting, much more so than worrying about the price.

I’d want to check out the schools if I still had school aged kids, I’d want to check out freeway access and commute times, I’d want to see some sales data and drive by them to get a reading on pricing, I’d want to look at the structure and get a home inspector of my own choosing. I don’t need or want to be told; I need to be shown where I can find the information I’m seeking so I can see it for myself.

I’m pretty sure that if faced with a buyer like me, sdrealtor and SD Realtor would both recognize that I was seeking that type of hand-holding and they’d match their game plans to suit. I’m also sure that they know that the game plan that worked for me would overwhelm and throw off other types of buyers.

Regardless, I wouldn’t work with an agent who wasn’t in tune with my style; and I think this is where some of these buyers and agents fail to exercize common sense.

[SD Realtor]

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…

SD Realtor

[SD Realtor]

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…

SD Realtor

[PerryChase]

One of the things I hate about real estate, is when you look at ads for new homes, in the newspapers or online, you can never tell where the development is until you read the fine print. The map is way not to scale to make you think that the development is close to town. In reality it’s out in the boonies somewhere.

I want to be able able to glance at an ad and see where the development is. No need to waste my time on something that’s too far.

[PerryChase]

One of the things I hate about real estate, is when you look at ads for new homes, in the newspapers or online, you can never tell where the development is until you read the fine print. The map is way not to scale to make you think that the development is close to town. In reality it’s out in the boonies somewhere.

I want to be able able to glance at an ad and see where the development is. No need to waste my time on something that’s too far.

[Author]

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