DRAFT: April Fool’s Day 2008

Time to begin a discussion about systemmic flaws and conflicts of interest in the current real estate transaction, and cost of blind bidding wars, not just to individual buyers but to society. 

If attorney general office m

Two years ago: 

Is designated agency an April Fool’s Day joke?

http://realestatecafe.blogs.com/real_estate_cafe/2006/04/is_designated_a.html

RealEstateCafe

August 16, 2007 02:15 PM

What do real estate agents think about "bad brokers?"

http://tinyurl.com/2ryrdd

Speaking as a buyer agent, I hope it is just a matter of time before
the press begins asking if questionable real estate brokerage practices
contributed to the overvaluation of housing markets and unfolding
mortgage meltdown.

Here’s an example of another kind of "bad broker" from our blog post
entitled, Double Bubble: How counterfeit buyer agents inflated the
housing bubble:

"My so-called buyer’s agent (who promptly switched roles at contract
signing without explanation), initially advised me to bid $750,000 for
my house of choice, which was listed at $699,900. When I told her that
such an offer was beyond my price range, she was quite adamant that I
not offer anything under the list price. When I finally backed out the
deal because of her bait and switch scam, I later heard that the house
in question sold shortly afterwards for $682,000–in other words,
nearly $70,000 less than the bid suggested by my so-called buyer agent."

"This type of price inflation (caused by seller’s agents
masquerading as buyer’s representatives) must have a very distorting
impact on housing costs. The economic fallout is enormous: ordinary
citizens are forced to move out farther in search of decent, affordable
places to live, which leads to a host of problems connected with
traffic congrestion, suburban sprawl, etc."

"As I perceive it, the real estate cartel’s use of dual agency
[a.k.a. "designated agency"], which works to the detriment of the
average consumer while enriching dishonest agents through the practice
of double-dipping, contributes significantly to the manifold problems
we see in the residential housing market and therefore should be fully
exposed."

The homebuyer above concluded, "Isn’t there any investigative team
or media personage with the courage and tenacity to shed light on this
problem?"

Full blog post online at:

http://tinyurl.com/yp8ocw

Proof of concept: Managed competition:  Auto insurance

Related:

Buyers Market? Or Are People Still Getting Into Bidding Wars?

http://boston.redfin.com/blog/2008/01/buyers_market_or_are_people_still_getting_into_bidding_wars.html

The plan would not rein in practices that have been linked to the housing and mortgage crisis,
http://www.nytimes.com/2008/03/29/business/29regulate.html?_r=2&th=&adxnnl=1&oref=slogin&emc=th&adxnnlx=1206800377-XrHnQjZrPW0bGrDdpjup4g&oref=slogin

April Fool’s Day 2008
http://daily.hotpads.com/hotpads_daily/2008/03/the-greatsfunny.html

Posted in Commission Reform

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