It appears that a substantial portion of the fund set aside as aid for the communities impacted by the BP oil spill will go toward helping out real estate brokers and agents in impacted areas, many of whom report not having made a single sale since news of the leak first broke[1]. While claims on real estate and properties themselves are limited largely to damaged and destroyed property, brokers and agents fall under damages to business and livelihood.
Rumors indicate that the $60 million might be dispersed by the National Association of Realtors (NAR), but thus far the organization has denied these claims, with representatives insisting that neither NAR nor Kenneth Feinberg, oil spill “Claims Czar,” will be directly involved in the distribution. At this time, there is no official word on how the monies can be applied for and assigned.
Do you think that brokers and agents should be compensated for the loss of sales activity in the impacted areas, or is that part of the business?
Thank you for reading the Bryan Ellis Real Estate Letter! Your comments and questions are welcomed below.
[1] http://blog.al.com/live/2010/08/60_million_to_be_set_aside_for.html
With the government involved it is all just going to turn into one more giant slush fund just like the Stimulus package, the Teacher Unions bailout, the _____________ (fill in the blank) bailout.
Obama has done almost nothing for the Gulf. They kept photographers from taking photos of most areas. Restricted people’s movements so there was no opprotunity for a truthful look at what was going on. We have only some government idiots that know nothing about what they were doing telling us how great and good of a job they were doing and did, when the facts have never supported any of their claims.
The govenments reponse was slower than mollasses and caused as much harm as the spill itself and now the tap is turned off, and so is any interest by Obama to help those people out.
So maybe the realtors deserve some kind of monetary compensation but the lies associated with the disturbution of this money makes me say who cares if they get anything! It is just one more shady deal by one more Czar we have no control over in any way, telling us how things are going to be. Hello Mother Russia, never thought I would see the day!!
Don’t worry, any real estate agents filing claims must undergo serious scrutiny.
It is NOT as easy as raising one’s hand and requesting pay-out (or payoff).
A good personal friend of mine is a top-level manager with the claims administer. These guys are very good at what they do – bogus, fraudulent claims easily will be weeded out.
Mike
As this administration goes “don’t let a crisis go to waste!” Oil boon-
doggle is another one. Anyone read the other day; ” Their is a plume
20mile long, underwater and invisible.”This is the mainstream
press release. Does anyone see the lie? INVISIBLE… The sea bed
of the Carribbean leaches out more oil per year than 10 of the BP
well did. Another non event taken to the front pages. You should be
paying attention to the brainwashing material being taught to your
children. Dept of Education is as good as the DOE, whose job
was to make us less dependent on foreign oil. Has cost us billions,
of course we no longer use foreigh oil. Brokers and Realtors in a very
depressed market are trying to be as big theives as the Government.
Since when did the government ever have any idea of how to weed out bogus claims?!? And being good at it, who is kidding who here?????
They have no ability with Social Security, none with MediCare, Medicaid. Hell it has taken over two years for them to get started on Rangel!! If that is all the better they are heaven help us all, we wil be lucky if we have our underwear left before this is over!!
To be honest about this, everyone in the oil spill area has probably been effected. I do not believe that Real Estate people should be compensated. The government cannot be looked upon to be the solver of all the problems people face.
Back when that peanut from Georgia was in office, I actually went 9 months without witing an offer and only sold one property during that time AND I had to come out of pocket with $6 to get it closed.
I sure as H_ _ L did not get any help from anyone.
I had to figure it out myself and moved to another state where I could make a living.
Realtors are entrepreneur and resiliant and likely will figure it out for themselves.
I wish them good fortune.
@Chris Claims administrator apparently is (not) the government on this one. If it were the government, I’d be inclined to agree with you. My friend who is in management with the claims administrator does NOT work for the government.
Anger over any government program today is very understandable.
Mike
Why should this business be treated any different than any other business in the area. BP damaged your business, it should be required to pay.
I’ve worked with several real estate offices in NW Florida as sales support. We are directly impacted by the oil spill, HOWEVER…
Times were pretty tough here for realtors before the spill, so a claim of a downturn in the market is going to be difficult to apply just to BP. Those firms that have been affected are those actively engaged in property management, and vacation rentals of homes and condos. That business had been sustaining many realtors during tough times, but had a real drop off once the spill hit.
Anyone who files a claim is going to have to show that their market was damaged directly by BP, such as the vacation rentals, and commercial real estate for restaurants and fishing businesses along the coast. Just saying “It’s all BP’s fault” likely will not go over – and if it does, SHAME on the government for letting it through.
I agree with cmsvmom – Realtors not making sales is “related to the housing downturn and not the oil spill” will be the mantra justifying the usual bureaucratic ‘no’ the majority of the claimants will receive in response to their claims. BP adjusters will find any loophole they can use to deny such claims, knowing full well that if they grant Realtor claims they can expect a deluge of other spurious claims to hit their desks.
I live here in the “Oil Spill Central” area… our beach is Pensacola Beach.
Yes, realtors here did have quite a slow down, BUT, the slow down was mostly on the Waterfront areas…yes, the inland sales slowed down too, but to be fair, they still had other types of sales such as short sales, etc..
Should they receive some sort of compensation?
Hmm.. let me ask you this?
If it were YOUR area, and YOUR beach, and YOU had to go through what our area has been through… wouldn’t you want some kind of compensation? Especially when you factor in that this was NO fault of those of us that live here.
Also, please factor in, that, yes, this area has slowed down with the economy just like other areas, BUT… have those other areas had to clean up and come back after numerous Hurricanes like we have?
This Oil Spill has been an “Insult added to Injury” for our area.
My husband, along with others that wanted to help, went to work doing BP oil beach cleanup.
I can tell you first hand, there was, and still is, so much waste and abuse and mis-use of the money that has come in…
I am not so sure that those who REALLY need it will get it, and of course those that don’t need help… I fear they will “know somebody, that knows somebody,” and they will get it.
What we really need down here on the Gulf Coast are your prayers that we do NOT have a Hurricane this year!
Just a comment from one of the “Small People” down here on the Gulf Coast!
Where is the Money? 60 Million?
Who is distributing it?
When and Where and to Whom can you apply for damages?
I believe….
each situation needs to be evaluated for legitimate loss and avoidance of fraudulent claims is essential.
As a Broker/Realtor we too have suffered losses and deserve the same rights to present our claims for reimbursement just like any other business…..My concern is the fairness and validity of the process however and bureacracy
involved!