FINALLY – I’m no longer the sole “Paul Revere” alerting the public of the REAL ESTATE GREED pandemic that has swept the real estate industry.
In my book, The Warren Buffett Approach to Sell Real Estate, I talk about this in-depth. (Read Chapter 1). But finally, I’m no longer alone. Brad Inman, of Inman News, he seems to agree with me. The industry is corrupt from top to bottom.
This past week he unleashed a “Twitter Storm” of truth. A truth that NAR (National Association of Realtors®), individual agents and brokers, have long been in deniable about—that the real estate industry, as a majority, is not an industry that can be trusted. Don’t get me wrong. Good and bad apples exist in every industry. But most industries, unlike real estate, the “people at the top” don’t profit from bad apples. A bad employee, in most cases, hurts the company. Not the case in real estate. Real estate is a free for all. Then there is a “government” (NAR) that tries to manage the million-plus independents.
Here’s the easiest way to think about NAR. In real estate terms, NAR is equivalent to the United States government. Does the government want more taxpayers, or fewer taxpayers? Of course! More taxpayers. So does NAR. More agents, regardless of their ethical or moral compass or competence level, mean more membership dues. More money.
This what Inman meant by his tweets, shown to the right. That the entire industry from the national level to the local level is setup to profit, the most, when as many agents as possible are able to secure a real estate license. So how do you facilitate that? Your drop the licensing requirements so low that anyone with three brain cells could, theoretically, become a real estate agent. Naturally, by doing this, more people get into real estate as a hobby! Which means more money is funneled to those who lobby to make the rules.
You must understand, NAR, is a lobbyist group—in fact it’s one of the largest lobbyist groups in Washington—that fights for the best interest of the agent, and those in power, themselves, not for what is in the best interest of the client or general public. Again, Inman hinted at this:
Folks, can I tell you something?
In regards to REAL ESTATE GREED, this is why I’ve been so outspoken. I have written and published articles on this topic non-step for over a year. Because until now, not enough people, especially high-profile people, like Brad Inman, have been willing to have this conversation. And it needs to be had.
If you think reporting your Horror Story to some kind of real estate commission is going to do you any good. Protect you. Or give you retribution for the damages you suffer. You may want to rethink that… The agent, if anything happens to him at all, is likely to get a slap on the wrist or face a small fine. It’s unfortunate. But nobody at the “regulating committee” cares about you or your poor experience.
This is what Inman basically states in his tweet storm. They, first and foremost, take care of their own, especially when “their own” is who they profit from. Let’s face it, to them your complaint is just an annoyance. “How can we make this go away?” They ask.
And while Inman believes the solution is: “tougher rules, tougher penalties, consumer watchdogs in regulatory roles, change in the broker biz model and leadership from NAR.” I kindly disagree. Inman’s prescription would be akin to the federal government trying to fix all the problems that it has created. Not likely!
Instead, from a trust perspective, the industry must be fixed from the bottom up. It starts with people like Brad Inman and I, writing and speaking about the problems that pose great threat to the public.
By publishing articles such as this, and writing books—as I have done—the public becomes more informed about how to protect themselves. They become more leery of real estate agents, and less tolerant. And, hopefully, more critical of the process of how they select their agent.
Only when the public demands higher professionalism from agents, by boycotting the use of the majority of agents—thus, forcing agents without competence, ethics or skills from the industry, meaning fewer and fewer dues-paying members—will NAR, or anyone in a position of power, start to listen.
It’s sad. But that’s the only solution.
For a more in-depth discussion on this topic, go to: www.eugenefreebook4charity.com. There you can request a FREE copy of my forthcoming book “The Warren Buffett Approach To Sell Real Estate: How to protect yourself from Real Estate Greed & bank an extra $30K in profit by taking a Value-Driven Approach.