Thursday, June 11, 2009

What Your Agent Won't Tell You About That Home You Want To Buy

Buying a home is not something people do very often. For this reason, most people rely on their buyer's agent for good advice.

Problem is - most agents will hide negative information from their clients because the agent wants that commission and wants it fast.

Take the Laguna Beach home market for example. Thanks to our friends at Trulia, the direction of home prices in Laguna Beach is readily apparent. Down. Down. Down. Down. Down.

The Trulia chart, with the red trend line I added, shows an amazing decline in median home prices in Laguna Beach. The decline shows no sign of stopping. The decline HAS NOT STOPPED.

You'd think every agent in town would be saying "If you buy, you should know you are buying a DECLINING asset. You know, like a car?" But, I'm guessing you have NEVER heard that from an agent. Right. I have only heard one agent even hint at this, and I know A LOT of agents. My conclusion is that greedy Agents are hiding important facts from buyers.

More likely, you've heard many agents say "Buying a home is a long term investment." These are the real estate agent code words for "You will lose money, and lose money quickly, but I won't tell you that."

Am I wrong? Or right?

8 comments:

Anonymous said...

I actually had a Laguna Beach realtor intimate it.

Mitch said...

http://www.bloomberg.com/apps/news?pid=20601109&sid=aXQ2MXGoSysw

‘Millionaire Homes’ May Lose Value Until 2012: Chart of the Day

apotter said...

Hello. My name is Angela and I'm an online editor with the Orange County Register. I wanted to let you know that we've added a link to your blog on our Web site and are also pulling an RSS feed from it, as we do with a range of local bloggers.

Please let me know if you do not want your blog linked to from our site. And if you know of any other local bloggers we should be linking to, please let me know!

Thank you,

Angela Potter
The Orange County Register

Mr. Blue said...

Angela, what you propose is certainly fine with me! Thanks.

Anonymous said...

Blue Moon,
I saw you standing alone, without a dream in your heart, without a love of your own!

Anonymous said...

What a dumb ass!

Jes Sierra, B.Sc. Realtor® said...

Home values are going to drop that is a given in this down economy. Some home buyers know this and some don't. It all depends on their real estate agent or Realtors'® guidance. Some home buyers are fine with this and will deal with it until property values raise and can decide to stay, upgrade or downgrade.
Buyers and sellers trust real estate agents, there are ethical and unethical agents.
It's up to consumers to check DRE license numbers and interview real estate agents. And not stick to one agent if they are not working out.
We are all human and buyers buy with emotions not calculations at times.

Best Regards,

Jes Sierra, B.Sc.
Chino Hills, CA
Realtor®

Anonymous said...

I find it funny how many realtors put out blogs and ads that say there is no better time to buy.They say the buyers credit is a great reason. But they never seem to mention the millsions of foreclosures already in the pipeline and the 7 million that will arrive over the next 2-3 years.