Readers of real estate blogs – buyers, sellers, consumers among them – already know the how wrong the claims made in the article are (as do the commenters on your blog).The word “disappointing” keeps coming up in comments referencing the Wharton article.dis·ap·point·ingfailing to meet expectationsThe clear lack of knowledge and awareness about the real estate profession indicts the entire article.Misdirected blame and clearly wrong arguments from prestigious institutions and leaders such as Wharton do great disservice to all involved – the Realtors, the buyers and sellers, the lenders and I would argue themselves and their students as well as policy makers who may trust such business education leaders’ opinions – and then we all may suffer.Thanks to Greg for sending the traffic and to everyone who commented here on yesterday’s post about the article posted at Wharton’s blog, The Subprime Blame Game: Where Were the Realtors?Seeking to level blame on some Realtors is one thing – there are unscrupulous individuals in every profession…. There is plenty of culpability to go around, but to argue that all 99% of Realtors were advocating on behalf of the Sellers is liable to give some apoplectic fits.Greed is the primary culprit – greed that affecting the decision making ability of people in every camp – buyers, sellers, Realtors, lenders, appraisers, inspectors, title insurance companies …… Promote the interests of the buyer by” and then this – a sample Exclusive Right to Represent Buyer’s Agreement can be found here.The author and professors make one accurate argument accidentally – until the real estate industry, mortgage industry, HUD, etc. embrace divorced commissions, we have a long way to go…. Until this is fixed, the perception will exist amongst those who don’t know any better – whether by unfamiliarity or neglect (as would seem to be the case in the Wharton professors’ cases) – that true representation does not exist.I come not to condemn the professors (I have read the Mortgage Professor site for years), but to enlighten them to the wonderful world known as the 21st century and Buyer Brokerage.
you searched for dual agency
Green building in Charlottesville is about to (hopefully) take a major step forward
but they are certainly on the right track (in spite of the recent negative press).A few notes and thoughts on yesterday’s presentation for Realtors:- None of the floorplans (not yet online) are more than 3,000 square feet. This is a huge accomplishment for the developers – recognizing that buyers want smaller, smarter and high quality space is surprisingly innovative for such a large development.- Realtors who are representing buyers will have to be more educated on this development than they would have to be on other developments – there is just more “to it.”… They will be building 800-1200 square foot cottages in the development.While the current data don’t clearly demonstrate this trend locally:In 2004, 52% of homes sold in Charlottesville/Albemarle were less than 2000 square feet finished and in 2007, the percentage was 56%.In 2004, 27% of homes sold in Charlottesville/Albemarle were more than 2500 square feet, compared with 25% in 2007.The trend is there and will grow.Bacon’s Rebellion has a post today about Belvedere as well as a more in-depth story that points out a major hole in the development:The project will not include a grocery store…. More tomorrow.Update 18 October 2007: The presentation was the same, but the questions from the audience were new.- There is a persistent them that the development will be “family friendly.”- Concerns about the soccer facility came to light – there will be traffic to and from the fields and this likely will be a concern for some, although the benefits far outweigh the negatives.- Streets will be narrow to encourage slower traffic and more walking – “activating the street” as they say.- The buzz around this facility is unique.
Hindsight is 20/20
This story from the Washington City paper probably rings true for far, far too many people.Even more than subprime, it highlights the perils of working with a lender who is owned by the builder, and often times there is no Realtor involved, nor attorney representation for the buyer, as part of the “package” is that the buyer uses the builder’s/seller’s/lender’s title company for Closing…. And they didn’t have the papers reviewed by a lawyer or real estate expert, a common but tragic mistake made by many home buyers, advocates say.Such a review would have turned up a number of red flags. The Washington City Paper asked two experts to review the Rioses’ home purchase: …”This is a predatory lending case. This is probably one of the most classic cases that I’ve seen,” says Sherman.If you either don’t have an agent or have a “dual agent” you likely don’t have full representation, or worse – the perception that you do.Too few recognized these dangers while in the midst of the storm.
Community Forum on Lending – Why do African Americans pay more in Central Virginia? Part 3 of 4
If communities can share in the knowledge base (remember, many African Americans do not have parents that have owned a home), understand that they can seek out additional loan options and fully understand the loan product that they are considering, the individual members will make wise decisions…. As much as Alex Gulotta would like to credit for pushing for licensure of loan officers and brokers (By the way, Alex, brokers are licensed, requiring experience level among its owners, must pass an oral exam and be examined by the Commonwealth every 18-24 months), Central Virginia Mortgage Professionals (CVaMP) is way ahead of you…. In that case, he or she is prohibited from telling the appropriate agency, whether it is Housing and Urban Development or Veteran’s Administration or Freddie Mac or Fannie Mae about the violation.Finally, many states are enacting a “tangible benefit†law…. Tomorrow I will list the action items that I will propose to our legislators, to Piedmont Housing Alliance and other community organizations, to the Charlottesville Area Association of Realtors, to CVaMP and to our own brokerage, Compass Home Loans.
What do you tell those who bought six months ago?
A new construction development in Albemarle just reduced prices on a few remaining townhomes in increments of $25k and ~$40k. The same models sold six months ago for significantly more than new models are currently being sold for* – in some cases $20-$40k more than new ones’ asking prices. In effect, all surrounding, similar properties have been theoretically devalued. Related reading*I hate ending a sentence with a preposition, but sometimes it’s necessary.
Why Blog
At a Realtor function the other day in the midst of asking for money, another Realtor mentioned that she was trying to start a blog…. I have learned so much from the reading and researching that I do on a daily basis that I am far more aware and knowledgeable than I was before I started blogging…. Starting to blog with the sole purpose being to make money and business is, in my opinion, the wrong reason to do so. One of the best aspects of the blogosphere is the transparency that comes with writing in public – if you’re wrong, they will tell you so…. (There are plenty of real estate “blogs” in the Charlottesville area to which I could refer you).Blogging is rewarding because of the relationships that are formed with other bloggers – real estate and otherwise…. Blogging gives one the opportunity to form relationships with others whom you may never meet, but who contribute via insightful and consistent commentary…. Technology, agency (dual and single), land use and development, local and state politics, market trends, emerging trends, these are subjects about which the avThis is not a derivative post of Greg’s recent post – it’s just a coincidence…. A fuller answer is more complicated than that, but the whole issue is trumped by an even larger point: I don’t care.I agree wholeheartedly.
Water
That they are requesting the public’s input is a credit to Tom Frederick, the Executive Director of Rivanna.Get involved (so long as you have an educated opinion!)Dear Interested Party:As you are aware, the Rivanna Water and Sewer Authority (RWSA) is in the process of selecting a preferred alternative for expanding its water supply system.
…With respect to streams, sites that are typically most suitable for restoration include previously channelized streams (channels that have been excavated, straightened, and deepened to prevent unusually frequent overtopping of their banks) or streams that have become highly eroded due to changes in the watershed (deforestation, development, new stormwater discharges, etc.)…. Even channels that have a lesser degree of degradation, are acceptable candidates for restoration.With respect to wetlands, sites for consideration would most likely include low meadows or farmlands adjacent to stream channels that have been manipulated so that the hydrology of the system has changed over time (for example, through ditching or draining). Sites that are wooded, and are more mature are not generally preferred, while a site that has experienced changes in hydrology more recently may be a better candidate.While stream and wetland restoration or creation projects would form the foundation of the mitigation plan, there are other actions that could lead to improvements or protection of the aquatic environment which could be included as a component of the Plan.