Parents Magazine says its all our fault and NAR agrees?!

By
Real Estate Agent with Realty World Alliance

WHAT?

You heard right - Parents says the housing crisis is to blame on real estate agents!parents cover

Quotes from the Parent's Magazine Article:

"In recent years, many home buyers have gotten in over their head because they let a real-estate agent tell them how much house they could afford.  In some cases - unscrupulous professionals urged buyers to take on loans they couldn't handle."

When did I, as a Realtor, become responsible for qualifying people for a mortgage, verifying their income, assets, liabilities, credit score, and ability to repay, and selecting their loan program?  I thought that was why I got them to talk to banks and Lenders, who you know, actually DO tell them how much house they can afford?

I don't see where a real estate agent caused these folks to get in over their head!  They come to us, we get a pre-approval, they say they want to look in X to X price range and as long as the pre-approval supports that and they say they like that payment, we find them a home.  We do not talk buyers into more than they could afford, we sell them a home they qualified for with a mortgage professional!

Even worse, to me.  The sentence directly following this is a lovely quote from one of our NAR leaders:

"Now more than ever, you need to figure it all out yourself." says PeggyAnn McConnochie, a vice-president of the National Association of Realtors.

So here we have an article saying we're to blame for the mortgage crisis, and it appears, by virtue of the fact that she gave a statement not denying this, that our own NAR thinks it's Realtors fault? And tells them not to trust us, but to figure it out on their own?  Thanks NAR!

This isn't the only place the article slams us.... Further on:

"Because shopping for a house is a tough job, you need to enlist the help of a real-estate agent."  (well that's not bad, right? Just wait a few more sentences in...)

"Whomever you choose, understand that an agent's interest is in closing a deal and collecting her commission - not necessarily getting you the best price on a house."

Could Parents say it any more clearly 

 The agent, though you need her, is going to screw you royally.

Last time I checked, our code of ethics, and our Buyer Agency agreements clearly state that we are working for the best interest of our buyers.  If I don't get my buyer's the best price that I can for them on a home, I'm not doing my job correctly! 

The article starts out with the typical rhetoric that the housing market sucks and the world is ending.  I started reading it with just the normal 'yes, but it's all local' mindset.  But then I got a sucker punch with the fact that blame got laid squarely on the shoulders of real-estate agents!!  Then a round-house when a quote from dear NAR shows up to support that!  I barely felt the knee-kick later when they decided we were all commission eating scum and would screw our clients over a few bucks!

I would encourage anyone who reads the article (I am trying desperately to find a copy of it online) in the June Parents magazine, page 91, by Julia Lawlor, to please send in a rebuttal to mailbag@parentsmag.com and by golly, send one to NAR too.  I'd love an explanation of their statement in this article.  Infocentral@realtors.org

Please, if anyone can find a link to the article, I'd be most grateful.  Otherwise - run out and borrow/buy the June Parents, folks!  On 2nd thought - don't buy it, I don't want them rewarded for this shameful behaviour!  Go to the bookstore and browse it! Although they might not have the June's out yet....

The article itself

Posted by

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Tags:
parents
nar
bad pr

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainmaker
250,474
Joel Weihe
Realty World Alliance - Wichita, KS
Helping you to use your VA home loan benefits

John- Thanks for your input!  It is good to see NAR on top of this.  Hopefully you saw the statement from the editor on my followup post:

http://activerain.com/blogsview/519346/Yes-we-said-Agents

Basically PeggyAnn said it was taken out of context, but the editor contends that it was not and she has the transcripts to prove it. 

I am definitely more inclined to believe PeggyAnn than Parents, considering the rest of the article's misrepresentations. :)  They are the ones who noted her as a Vice President. I couldn't find her on staff.

And heck yeah, that'd be a commute!

May 22, 2008 11:46 AM #59
Rainer
88,902
Jimmy McCall
TheHappyCottage.com - Cunningham, TN
The Ex-Mortgage Consultant

Sheree,  Logic tells me to go get pre-approved before I start looking.  But, buyers don't think that way. The first thing a buyer does after surfing the internet is to find a Realtor.  "Most Realtors" (and there are thousands of them) are happy to have a warm body and start showing.  I see this attitude in a number of blogs hear in the Rain Example: Jennifer Allan  

My office gets more requests for pre-quals after an offer has already been submitted than we do prior to shopping.  Now most of the agents we work with do their best to get pre-qualified buyer but, even some of them will show a house out of fear of losing that warm body. 

If Realtors were not commissioned sales people this article would not have been printed.  So, I can see why the article was published.  I must admit, it is nice to have a little heat taken off us Mortgage guys.

 

May 22, 2008 11:47 AM #60
Rainmaker
250,474
Joel Weihe
Realty World Alliance - Wichita, KS
Helping you to use your VA home loan benefits

Jimmy - I'm happy to have a warm body too, but I will not submit offers without a pre-qual and estimate of costs.  The Real Estate Commission here requires that we let them know the costs involved AT TIME OF OFFER.    I bet it's nice!  It's not all the mortgage world's fault either!  I hate having these broad strokes paint all of us! 

May 22, 2008 12:17 PM #61
Rainer
48,033
Jessica Bigger
RE/MAX Humboldt Realty - Eureka, CA
Realtor - California Coast Real Estate

Sheree - Hey thanks for bringing this to our attention.  That's just awful.  One thing to keep in mind though, since I used to be in PR for three radio stations - sometimes the magazines misquote or take a quote like the one we read out of context. Who knows what the entire interview with PeggyAnn said.  She may have defended our group, but the whole conversation was never included in the article.  Trust me, I can't tell you how many times our local papers misquoted me or someone in my organization - it happens and it's a total bummer when it does.

May 22, 2008 12:26 PM #62
Rainmaker
390,945
Eric Kodner
Madeline Island Realty - La Pointe, WI
CRS, Madeline Island Realty, LaPointe, WI 54850 -

I'm just puzzled why NAR seems to consistently have so much trouble getting their message across.  The media likely misquotes everybody.  But the bigger question is one of competency.  Who are our spokespeople and are they qualified and capable to put their message out in a public forum?

You can be sure if the National Rifle Association had the same problem, they'd be making staff changes.  Charlton Heston was their spokesman for decades and their message was controversial, but he managed to avoid being misquoted or misrepresented all the time.

May 22, 2008 02:07 PM #63
Rainmaker
250,474
Joel Weihe
Realty World Alliance - Wichita, KS
Helping you to use your VA home loan benefits

Jessica - i do hope it was a misquote, and PeggyAnn says it was!  The  Editor says she's got transcripts and it was not.  but I can certainly see a misquote.  Also the misrepresentation of PeggyAnn as a vice president of NAR.  I just think these need to be corrected, by NAR or Parents or both! 

yes people get misquoted, but NAR hasn't seemed to really care about correcting these either.

Eric - I'm sure NRA would at least be requesting a retraction, reprint, or opportunity to rebuttal the misquote, ya know?

I'm sure they can also probably say that since the article references real estate agents vs NAR's REALTORS(r), then it's a moot point.  REALTORS(r) have a Code of Ethics we adhere to and agree to, real estate agents in general, do not.

May 22, 2008 02:22 PM #64
Ambassador
720,672
Mike Frazier
Carousel Realty of Dyer County - Dyersburg, TN
Dyersburg Tn Real Estate

I agree to a small degree. Some real estate agents(not professional REALTORS® did contribute significently to the mess we are in now!

May 22, 2008 02:33 PM #65
Anonymous
Melissa Grant

Mike, How can you say that Realtors would have anything to do with this. We do not qualify people ! We show them the homes within their qualifications it is up to them to decide what home they choose. This is not our doing.

May 22, 2008 02:43 PM #66
Rainmaker
250,474
Joel Weihe
Realty World Alliance - Wichita, KS
Helping you to use your VA home loan benefits

Mike - I think it'd have to take a group effort... I mean you'd need an unscrupulous real estate agent, plus an unscrupulous loan officer, plus an unscrupulous appraiser, in order to get someone into a house that they could not qualify for, wouldn't you?

Quick comment too - PeggyAnn emailed an agent within my office, who had sent her a harsh message about all this.  PeggyAnn still claims she was taken out of contect and that the initial interview for this was in 2007!  also that she was VP back in 2007 when the interview was conducted. 

Her NAR history:

http://www.achconsulting.com/resume.htm

I feel bad for her getting into this quagmire!!

May 22, 2008 03:30 PM #67
Rainmaker
250,474
Joel Weihe
Realty World Alliance - Wichita, KS
Helping you to use your VA home loan benefits

Pat V Coombs of NAR also just emailed the agent in my office that their public affairs team was all over it and would be talking to Parents magazine! :)

May 22, 2008 03:32 PM #68
Ambassador
720,672
Mike Frazier
Carousel Realty of Dyer County - Dyersburg, TN
Dyersburg Tn Real Estate

Melissa,

In my area there are quite a few feal estate agents(some very unethical) chasing the almighty dollar. I did not say Realtors did this!

May 22, 2008 04:18 PM #69
Rainer
26,122
Joshua & Kathy Schmidt
ERA Henley Real Estate - Cabot, AR

Wow, that is about all I can muster right now.  Will come back to comment later!

May 22, 2008 04:33 PM #70
Rainmaker
250,474
Joel Weihe
Realty World Alliance - Wichita, KS
Helping you to use your VA home loan benefits

LOL Josh/Kathy - kinda how I feel about all this right now!

May 22, 2008 04:46 PM #71
Rainmaker
51,767
Kelly Turbeville
Century 21 Award-Superstars - Lake Forest, CA
Real Estate Possibilities in the Saddleback Valley

Horrible!  I guess my fingers will be typing tonight!

May 22, 2008 07:31 PM #72
Anonymous
Anonymous

Stop pretending the realtors didn't participate. Every office has at least one agent that shoehorned tons of buyers into loans and homes during the last four years that are now being foreclosed.

The brokerage firms give rewards at the yearly sales meetings to those unethical realtors. Yes, they do belong to NAR. Guess what? The same agents are now doing short sales, which once again is defrauding the banks. It's enough to make you vomit.

May 22, 2008 09:23 PM #73
Rainmaker
1,490,483
Sally K. & David L. Hanson
Keller Williams 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Short Sale - CDPE, REDS

Everyone has to blame someone...why take responsibility and be ethical when you can blame someone else...Ya gotta wonder why we HAVE to pay dues to organizations that are less than supportive and professional,hmmm ?

May 23, 2008 06:33 AM #74
Ambassador
2,466,760
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Real estate agents are about as responsible for bad home buying decisions as Parents Magazine is responsible for bad parenting on the part of subscribers to their magazine.

May 23, 2008 09:19 AM #75
Anonymous
Anonymous

Totally disagreed with article. However due to some greedy and unethical agents(less than 10%),  realtors are balmed for housing crisis.

PS: Check Fresno and other major cities short sale and foreclosures.

May 23, 2008 10:54 AM #76
Rainmaker
114,930
Susan Hilton
CENTURY 21 Beal, Inc. - College Station, TX
Texas Aggie Real Estate, College Station Bryan Texas Real Estate

I agree with you - Since when is it my job or RIGHT to decide what someone can have? I don't see anyone standing in front of a car dealership saying they should buy a smaller model....

May 23, 2008 01:14 PM #77
Rainmaker
662,797
Jim & Maria Hart
Brand Name Real Estate - Charleston, SC
Charleston, SC Real Estate

You know, I skimmed through that article and didn't even take notice of the atrocity that was written in it.  I guess our one year old had my attention once again!

May 25, 2008 10:48 PM #78
Post a Comment
Spam prevention
Show All Comments
Rainmaker
250,474

Joel Weihe

Helping you to use your VA home loan benefits
Have you ever served in the Military?
*
*
*
Spam prevention

Additional Information