Letters to the Editor
Say goodbye to multiple offers and no money down -- for nowBy Inman News, Tuesday, October 23, 2007.
Re: 'Agents' mistakes push them overboard' (Oct. 17)
As usual, Inman is ahead of the story; this time by floating this comment by Mary Jo Quay. Between this quote and the pricing letter from the teacher at the college, a pretty dismal frame of reference is definitely established.
The fact is, people I have spoken with on the subject believe that we are in for a shrinking of the agent population over the next two years by 30-40 percent! My own personal guess is about 30 percent attrition.
Things like this are never without great pain and loss, but it is evident that the new realities in real estate cannot support an overgrown population of Realtors any longer. Unlike some, however, I see this as a good thing in the long run, as it will allow the true professional to consolidate their positions and to be able to succeed mightily when the turnaround comes, as it inevitably will.
Once the stock market goes through its inevitable correction, and with banks paying interest rates that just don't cut it, where will all those investment dollars go? A good portion will go back to real estate. It's all simply a giant cycle, and if we learn anything from this one, it should be that a world where multiple offers over asking price are solicited by agents, where no money down is an expected benefit by a buyer, where no one need actually qualify for the loan they apply for, and where there are two Realtors on every street corner has passed.
We need these things to happen if selling real estate is to be a viable career choice.
Michael E. Parker
Corona del Mar, Calif.
Re: 'Fed cut expected on Halloween' (Oct. 19)
Way to go, Lou, right on the money.
I kept telling my clients that after 17 rates increases something had to give, just give it time. You can't raise the price on anything without screwing it up. Government is to slow to react.
With all the 5/1 ARMs resetting next year, it will be interesting to see where we go from here. Most of those borrowers will see their payments double unless rates come down. It does not look good.
Fairview Mortgage Capital Inc.
Coto de Caza, Calif.
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