Realtors rally to 'protect the American Dream'

Industry group draws about 15,000 members to Washington, D.C., event to show support for the NAR's advocacy of housing policies.

By Teresa at MSN Real Estate May 17, 2012 1:33PM

Uncle Sam holding a model home (© Peter Gridley/Getty Images)More than 15,000 real-estate professionals descended on the Capitol in Washington, D.C., on Thursday for a "Rally to Protect the American Dream."

 

The event, organized by the National Association of Realtors, drew an additional 12,706 virtual participants on Twitter and other social media.

 

"The housing market was the beginning point of the spear going into the recession, and it will be the spear leading us out," Sen. Johnny Isakson, a Georgia Republican who is a real-estate agent, told U.S. News before the rally. "It's that gross domestic product that needs a boost, and it's housing that's going to take us from where we are to where we want to go."

 

Post continues below

 

The rally is part of increased political activity by the NAR and other groups over proposals in Congress or before federal agencies that they fear will hurt the housing industry.

 

The National Association of Home Builders expressed its concerns with a new website, called Protect Home Ownership. The builder group is sponsoring local rallies around the country.

Among the issues that are raising the concern of real-estate professionals and builders:

  • Rules requiring larger down payments on mortgages.
  • Proposals in Congress to eliminate or limit the tax deduction on mortgage interest.
  • Suggestions that the $500,000 exemption from capital gains tax for couples who sell their homes (it's $250,000 for single home sellers) be eliminated or curtailed.
  • The future of the National Flood Insurance program.
  • The future of Fannie Mae and Freddie Mac and the role of those government-supported entities in making mortgages available.
The NAR increased its annual dues $40 last year to raise $80 million for political advocacy in the next two years, Inman News reported. The rally was part of a week of lobbying in Washington on housing issues.  
 
64Comments
May 18, 2012 11:32AM
avatar
I'm so tired of the blame game.
There are plenty of groups that contributed to the economic downturn but no one single group caused it.
Our government (both Republicans and Democrats), rating agencies, Wall Street, banks, mortgage brokers, Realtors, appraisers.  People in all of these industries played a role in some respect.
However, it is so convenient for consumers to deny any and all culpability.  For every banker or mortgage broker who pushed consumers into bad loans there was someone who just had to keep up with the Joneses and knew exactly what type of loan they were getting and they did it anyway.
For every Realtor or loan officer who was pushing appraisers for maximum value there was a consumer doing the same so they could use their equity to go on vacation or buy a boat or some other toy.
So to all the people on this thread vilifying the housing industry take a look in the mirror.  Consumers are not innocent in all this.
And, personally, I think Realtors are the least complicit. The economic downturn is/was about bad loans and, frankly, Realtors know very little about the mortgage side of the business.
And I am not a Realtor.
 


May 18, 2012 1:59AM
avatar
Please. NAR participates in false reporting of sales data, and is a conduit for the illegal and criminal bankers who are attempting to cover up massive fraud. The realtors and the media like to characterize it as "paperwork problems". No, it is massive fraud that the mortgage bankers have committed in securitizing the mortgages. They have separated the notes from the mortgage loans, and now have no standing to foreclose. Any smart attorrney or homeowner in a "judicial review" state knows this--- just ask the bank to produce the note--- most likely they can't. That is why the criminal banks have gone after foreclosures in "non judicial" states. Massive criminal conduct has resulted in the damage of the trust and title deed system, but to the media and NAR it is called a "paperwork problem". NAR also came out and said that they "overstated" sales by 15% over the last 3 years--- again cheerleading a false "recovery". NAR + Bankers== CRIMINALS.
May 17, 2012 7:50PM
avatar
A good realtor will do their best to get you your best deal on a  real estate transaction..  That being said, realtors do not have a crystal ball that will forecast the future.  A  real estate transaction is at a specific point in time.  Sometimes markets go up, sometimes they go down.  If you have a long term goal in mind, you can factor in the possibilities to determine if a specific home is for you.
May 17, 2012 7:36PM
avatar

I am a Realtor and have been for over 27 years. I do not think most of us are parsitic. We facilitate a sale. If every home were sold by owner, someone else, like attorneys would make the money and in the long run, we are cheaper than if an attorney handled everything. Most homeowners have one house to sell, which tends to turn off many buyers. I work hard to bring the right buyer and seller (property) together. This could not happen without an agent to bring the two together. Just think of how may dealerships you visit to find the right car. Imagine if that were the way homes were sold.

     Let us get this clear. Real Estate agents did not (in the whole) talk people into over paying. The "market" did that. There were multiple buyers for each listing and competitve bids drove the price. The lenders were offering loan products with very little or no qualification. Theri appraisers were "encoraged" to support that price. These loan products were not the real estate agents' ideas. They were lender products. People who never thought they would own a home did so - and often could not maintain the ownership.I will not go into detail on what happended to the mini qualification loans, but basically they had a high default rate. Investors had bought these loans as well qualified loans, which due to repackaging (look this one up, your brain will fry) ended up mis represented. A lot of loan paper (think product) was now devaluled significantly. Compare this to buying stock of a company who did not disclose their acurtal financial failure. Worthless stock/wothless mortgage paper! Do not blame the Realtors for this. We were reacting to, not driving the market.

   Think now what fewer homeowners mean - more landlords!! In our area investors are driving the market with bidding wars and the investor leading the pack. We have seen rents increase 20% to 50% in the last few months. My relatives in Siberia live in government owned homes with inflated rents. where 3 generatiions are living in 500 sq ft. We need to be careful of that. Due to higher rents, we have more people living together with many more than the landlord knows.

    Every week we get new tighter guidlines on loans for home buyers. Fewer loans, fewer buyers, Realtors are working to try and protect home ownership. Don't knock it, support it -- unless you are content to be a renter for the rest of your life!

 

 

May 17, 2012 7:13PM
avatar
Forgot to mention...I lost about $250k out of pocket selling that house at closing not including the real estate commission! Before that it was a loss of $50k on my last house. Both for job related moves. I will rent housing for the rest of my life before I sink my kid's college funds into another home ever again.
May 17, 2012 6:21PM
avatar

I'm one of those blessed few with enough income in this God awful economy to actually qualify for a premium mortgage to buy one of those McMansions you all dream about selling. I just sold one in St Louis for 7 figures, but I have enough intelligence to know that a home will never be an investment again in any of our lifetimes, ALL of you have screwed that up forever. The only people who will ever benefit from real estate in the next 100 years will be the banks, the real estate agents, and the title companys, and their lawyer...PERIOD.  

 I'm the person you REALTORS need to buy a home to kick start the market but I would be out of my damn mind to do it and all my colleagues know the same damn thing!!

I had a great agent in St Louis, but she contributed as much to the closing as the 9 year old kid across the street. It was all on us to set the price and negotiate all the offers and prep and show the home! Now agents are restricted from giving you any truly relevent information you actually need. The stuff you can't figure out on the internet, the best schools, the best location, the lowest taxes, and the most unstable and stable zip codes but they can't do that anymore! 

There is absolutely no longer any need for agents in the purchase transaction. You can get absolutely everything you need from a good inspector, a good title company, an attorney and an internet connection  and save a 6% real estate commission for the loss in investment you will suffer in the first year of ownership!!

May 17, 2012 6:19PM
avatar

I'm one of those blessed few with enough income in this God awful economy to actually qualify for a premium mortgage to buy one of those McMansions you all dream about selling. I just sold one in St Louis for 7 figures, but I have enough intelligence to know that a home will never be an investment again in any of our lifetimes, ALL of you have screwed that up forever. The only people who will ever benefit from real estate in the next 100 years will be the banks, the real estate agents, and the title companys, and their lawyer...PERIOD.  

 I'm the person you REALTORS need to buy a home to kick start the market but I would be out of my damn mind to do it and all my colleagues know the same damn thing!!

I had a great agent in St Louis, but she contributed as much to the closing as the 9 year old kid across the street. It was all on us to set the price and negotiate all the offers and prep and show the home! Now agents are restricted from giving you any truly relevent information you actually need. The stuff you can't figure out on the internet, the best schools, the best location, the lowest taxes, and the most unstable and stable zip codes but they can't do that anymore! 

There is absolutely no longer any need for agents in the purchase transaction. You can get absolutely everything you need from a good inspector, a good title company, an attorney and an internet connection  and save a 6% real estate commission for the loss in investment you will suffer in the first year of ownership!!

May 17, 2012 6:15PM
avatar
Realtors made a lot of money during the housing bubble. They also talked clients into houses and financing they couldn't afford. The prices are still to high in some aera's. Nobody wants to buy a falling knife. 
May 17, 2012 6:11PM
avatar
Not the American dream any more...More like the American and world nightmare!
May 17, 2012 6:08PM
avatar
remember people,you pay big wopping unimaginable prices for house,and when you try to get a home equity loan,they appraise your home real low,all a bunch of crap!!!!!
May 17, 2012 6:00PM
avatar
so does all this mean we should over pay for our houses?
May 17, 2012 5:55PM
avatar

Real Estate agents and mortgage originators also do a ton of work without being paid a dime. They only get paid a commision when and "if" the deal closes. Alot of would be consumers test the market by putting realtors and loan consultants to work only to withdraw their offer for whatever reason. There are also quite a few FSBOs (for sale by owner) opportunities in just about every market if you dont feel like paying any commisions and have all cash to purchase a property that fits your specific needs. I can make my own clothes, change my oil and paint my own house, but I enjoy having the choice to pay someone with alot more experience for these products and services using a little research, common sense and lessons learned from the housing bubble days.

.

May 17, 2012 5:48PM
avatar
I find it interesting that some of the comments blame 'parasitic Realtors'.  While there are some agents that are not professional, the vast majority of agents are honest hard working people looking out for the best interest of their clients.  I have worked with clients and in cases talked them out of buying or selling a home because it was not a good move for them.  We have a code of ethics that Realtors are required to abide by.  I have served several associations in the area of professional standards where there were cases of Realtor misconduct, appropriate measures have been taken.  Try working for months with a client showing them home after home and for whatever reason they change their mind or decide not to buy.  We still have bills to pay, business expenses etc.  Many of us put in 6-7 days a week working for our clients.  There will always been instances where agents did not act in the best interest of clients.  This can be said for just about any service business. 
May 17, 2012 5:38PM
avatar
floridarealtor,then you wont mind your clients submitting bids for homes based on what they feel the value of the home should be,instead of the overinflated price!!! i have to get my hipwaders out,its getting deep now!!! i didnt know they could stack **** that high!!!
May 17, 2012 5:33PM
avatar
I gotta ask...does it cost more to list and sell a $500,000 house than a $150,000 house? Realtor fees should be a flat-rate and not percentage based. Percentage based commissions give realtors a vested interest in overselling expensive homes, whether they work for a seller OR buyer. This drives realtor greed and forces short-term home buyers to artificially inflate the selling price of their homes to cover the ridiculous costs. Flat-rate commissions would force them to only be interested in selling you A home, not some overpriced, "keeping up with the Joneses" McMansion.
May 17, 2012 5:28PM
avatar
I am reading all these comments and I just can't believe how misinformed most of you are.  It wasn't the realtors nor the mortgage brokers that caused the real estate bubble.  Thank your government when in the early 90's they wanted everyone to be able to buy a house and they muscled the banks to create these mortgage products for everyone to be able to purchase a home.  I have been a real estate agent for many years and most agents are just not thinking about the commission.  So what drove the prices up were the many people who the government allowed to buy into the market and purchase homes, causing inventory to deplete.  So all of you who think it was the real estate agents and the brokers - start looking at President Clinton who started the American Affordability Act.   
May 17, 2012 5:17PM
avatar
Sorry but realators have nobody's best interet in mind except for their own
May 17, 2012 4:41PM
avatar
dan jenson,penny stocks are a ripoff to,your just another scammer on here trying to steal peoples money!!!!!
May 17, 2012 4:34PM
avatar
Realtors have monetary incentive to have these programs. Further, if anyone buys a house for the tax credit they are indeed crazy. Why would you spend thousands of $ to get a tax break worth half that? Wake up people, bail outs and government subsidies are part of the problem, more are not the answer. Everyone wants something for nothing.
May 17, 2012 4:05PM
avatar
Who will save us from parasitic Realtors while reaching for our dream?
These guys have nothing to offer and are part of the problem that killed the housing market. There's no escaping reality.
Report
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
Categories
100 character limit
Are you sure you want to delete this comment?

FIND YOUR DREAM HOME OR APARTMENT

or

WHAT'S YOUR HOME WORTH?

HOME IMPROVEMENT PROFESSIONALS

Find local plumbers, electricians, contractors and more.

from our partners