The Manti Te’o hoax exposes how journalists rush to publish a story. The public has come to accept the shallow, TMZ-type sensationalism, and rarely do you see any in-depth examinations of topics that deserve such.
Here are real estate topics that should get more attention, and be examined regularly – who knows, the resulting stories might be sensational too!
1. Banks Not Foreclosing – Every day we see the media claiming that foreclosure counts are dropping, but they don’t ask why – they just assume it’s because people are making their payments. Have you heard any reporter ask whether the banks have just stopped foreclosing, and letting defaulters live for free?
2. Prices Going Up – When the median sales price is adjusted, everybody assumes that means “prices are going up”, and reporters leave it at that. There is no other discussion.
3. Short-Sale Fraud – Lenders (and taxpayers) are being defrauded of millions of dollars every day by realtors – has anybody looked into this? If you walked into a bank and tried to steal money, you’d go to jail – but in real estate, not only is nobody going to jail, but it is a practice that is encouraged by everyone in the industry.
4. The 6% Myth – It would be really helpful to examine how the commission rate relates to the service provided – a reporter would find very little connection.
5. Angelo Mozilo – How does this guy exist without the media chasing him around like a Kardashian? It was Countrywide’s standard policy FOR YEARS to fund loans with NO documentation as long as he buyer had a decent credit score and a 10% down payment. We saw towards the end how he was selling $17 million in Countrywide stock every five days, all while talking up the company. Yet he lives in obscurity, playing golf every day.
We as consumers don’t demand much, if anything, from the media – thus, they are beholden to advertisers and ratings. Think of the ratings if there were in-depth stories published about topics that affect people every day – or you could ask deadspin about theirs!
I couldn’t agree more with every point you’ve listed. The real estate market has become the most unreal place to invest.
Don’t forget that Flippers are able to lie about what they paid on tax rolls and nobody seems to care.
Don’t forget that Flippers are able to lie about what they paid on tax rolls and nobody seems to care.
I’m sure that the county recorder doesn’t have a clue, and would fix every other problem in his office before getting around to adjusting downward the flipper’s sales prices to actual.
Topics on the B-list:
Real estate licensing – to help people with their biggest investment in their life, an agent is required to score 70% on a 150-question, multiple-choice test. Enroll in one of the private “real estate schools”, and you’ll be taught the answers to the test (they send in moles to take the tests, and write down the questions).
Realtor training – none required, other than passing two flimsy continuing-education classes every four years that have nothing to do with selling real estate.
Realtor supervision – supposed to be done by the brokers, but the big franchises are motivated to stock hundreds of agents in each office. One manager can’t keep his eye on all his agents, let alone properly supervise them. Besides, realtors are independent contractors, and are running their own business – anyone see a potential for problems there?
Someone could take a good look at the government stumbling around too.
The mortgage-rescue plans have been duds, for the most part, and now they write 804 pages on Qualified Mortgages and never mention a down payment being required?
http://www.bloomberg.com/news/2013-01-18/housing-industry-awaits-down-payment-rule-for-mortgages.html
> We as consumers don’t demand much, if anything, from
> the media – thus, they are beholden to advertisers and > ratings.
When you realize that the viewers are the product, and the advertisers are the customer a lot more stuff makes sense.
> Think of the ratings if there were in-depth stories
> published about topics that affect people every day –
Economics (or percieved economics) don’t really favor real news. There was a bit on the Daily Show about this on the 14th.
http://www.thedailyshow.com/full-episodes/mon-january-14-2013-roger-waters
http://www.thedailyshow.com/full-episodes/mon-january-14-2013-roger-waters
Viewers can change the channel, or turn it off altogether.
But we don’t, we sit there and take it.
Those stories are too hard for the reporters. They’d rather take one of the real estate story templates throw a couple published statistics in it and call it a day. With the local media hurting financially it doesn’t surprise me that they go with the cookie cutter stories. Funding real investigative journalism is expensive. I wouldn’t be surprised if some automated or outsourced solution isn’t generating most of these stories.
Heck maybe they should just pay you to use Jim the Realtor blog content. It’s better than anything they seem to be producing.
Thanks livinincali – I hope they do!
yes its scary some of the people who are licensed who dont have a clue. they should give these folks some more training. they have the ability to sink a persons finances.