A List Price that Would Make P.T. Barnum Proud…

Finally, RMLS – our local multiple listings service for real estate in Vancouver and Clark County – has caught wind of a tricky tactic that was happening way too often.

Recently, we noticed some real estate listings that simply looked too good to be true.  I mean, I realize short-sales are all the rage, and there have been some screamin’ real estate deals for smart buyers out there.  But the “List Price” on some of these left me scratchin’ my head and searchin’ for my checkbook.  (Right, like I could have done any damage with the latter of the two, but I digress).

First, some school: List Price is defined as a published or advertised retail price of something that can often be discounted by the seller, or a basic published or advertised price, often subject to discount, or even the price at which a product is usually sold to the public.

In all of these definitions, it is an established price, and for the most part, one which a buyer can assume is somewhat negotiable.  Of course, normally – and especially in this market – one would assume the negotiations could generate a reduction from the list price. But there’s the rub. In a questionable marketing ploy, some listings seem to have been priced to simply generate buyer leads.

Sure, there have been real, stupid-cheap real estate deals out there (usually with some big strings attached), but in some cases, listings seem priced simply to pull buyers out of the woodwork, with no true intent to sell at that price.

Well, now according to the MLS for Vancouver, “Listing a property at a lower price than what your seller is willing to accept is a violation of RMLS™ Rules and Regulations (see section 8.5).  Properties listed for less than the seller will accept obviously attract attention because they are literally too good to be true.  Enticing buyers with false information is unethical.” (emphasis mine).

Good. The last thing we need is bait and switch, loss leader tricks in this business. From now on, when you see that house on Craigslist, priced tens of thousands below market value, think twice, and then give me a call or shoot me an email… we’ll get the real story, and you won’t have to worry about being fodder for P.T. Barnum’s historical phrase. (which, by the way, did you know he never actually said…)

It’s Not a License to be Repulsive… When Agents Cross the Line

Those of you who know me remember the personal debate anguish I went through when I was evaluating the professional options in the real estate industry. Like lots of folks, I had an unfavorable perception of many in the industry. In fact, I am definitely not alone as the results of this Harris Interactive Poll of professions shows. (Hint: Agents don’t rank very well). But I really liked helping people with what was likely their largest personal investment. And there was a real, palpable sense of accomplishment in bringing buyers and sellers together to accomplish mutual goals. However, there was that pesky Washington Real Estate law that prohibits an individual from earning compensation without being duly licensed, which provided, shall we call them, challenges to doing things any other way.

Now mind you, I did have choices. I could a) do all the real estate activity I wanted, helping tons of folks along the way, for free, or b) get licensed, become a Realtor and actually keep my wife and three kids clothed and fed and all those other basic things that for some reason I felt an obligation. So, Realtor license it was.

Fast forward to the present. After seven years and helping hundreds of people (those are called transaction sides by some in the business), I understand that I made the right choice (the “work for free” part was really unappealing), BUT I still have to deal with that negative stereotype that unfortunately many licensees perpetuate.

Example “A” for the Prosecution is this unbelievable “marketing strategy” employed by one agent in Florida.

This from TMZ.com via the TheRealEstateBloggers:

TMZ got an unbelievable pitch from a big-time Florida Realtor, and here it is, verbatim – “I have a FABULOUS piece of property for sale DIRECTLY across from Tiger Woods new property on Jupiter Island (Being built) When a tabloid pays JLO $6mil for photos of her first born, I would think that $4mil for a fabulous piece of property for unlimited photo opts of Tiger would be quite valuable!”

Ugh. Now look, my sellers know that I will likely do more for them in my efforts than any other real estate broker in town… but I would simply call “no mas” on this one. I realize that it is a competitive world out there, both for sellers and for agents, but c’mon, a guys gotta be able to sleep at night.

Please know, I have come to find that there ARE – really – loads of great people out there in this profession, (if you don’t believe me, scroll through my Blogroll someday). But unfortunately it comes back to the old adage that one (or many) bad apples can spoil the bunch. All I can do is continue to pursue my goal of changing people’s perception one person at a time.

Methinks thou Doth Protest too Much…

Look, I am big fan of the glass-half-full, rose-colored-glasses concept. I appreciate folks at the NAR (National Association of Realtors) are doing spending my ever increasing dues. I applaud the efforts of the local builders and their association who scream (not so subtly) that NOW is the time to buy.

But really, to paraphrase Billy Shake, “methinks thou doth protest too much”.

Sorry, but to the average Jane homebuyer out there, the Association of Realtors and the Builders sitting on loads of inventory are not the greatest, most credible source for, shall we say, unbiased information. They want houses to sell, NOW. And don’t get me wrong, so do I (and Mrs. Broker would like me to sell a house or two, as would baby, who needs a new pair of shoes.)

But you can’t push a string. You can lead a horse to water, but… Well, you know the clichés. And I think you get it. Not sure I can say the same for those with the much deeper ad pockets than me.

Candidly, it may get worse before it gets better. I don’t know for sure. Anyone who tells you they know for sure that NOW IS THE TIME to buy… well, I’d say “run Forrest, run”, away, as fast as you can. I’m not going all negative here, but call me a realist.

I will say, the one thing we know we have little (any?) control over is the future. Are interest rates going up? Will that house you absolutely love still be on the market in six months? My point is, while I don’t think you can make a blanket statement that NOW is the time to buy, if you find the right home, at the right price and you can get the right financing (read: NO teaser rate, negative amortization deals) then sure, it would be the right time to buy. But NOT because someone else told you to.

So despite my words of caution, there are deals out there. But what I am finding is that only the very best deals are getting done. Priced really right, staged right, marketed right, managed right. No room for errors. But I’m all good with that, because that’s how we’ve always done things. We just find we’re now doing more work, for a longer period of time, than we were in the heat of that unhealthy frenzy of 2003-2005.

But fortunately, since we removed those rose colored glasses, we think we can better assist those folks who need straight answers, not just a well-tuned and deep-pocketed marketing message.