Ask anyone how they feel about the housing market, and you can expect a mixed response. Not many people out there today feel that the real estate sector is humming along perfectly. However, the one group that you would think would be the happiest right now, qualified buyers, are actually feeling pretty frustrated with the market and the buying process, according to a survey conducted by the Consumer Federation of America and other associated groups. In fact, they were able to review more than 250,000 complaints lodged with regulators in 2010 to establish from clear, problematic trends[1].
For starters, real estate consumers feel that they are, in many ways, dealing with a sub-par inventory – even though they definitely have their pick of that inventory. “Bad construction work, failure to begin or finish a job on time [and] problems with rebates” topped the consumer complaint list, closely followed by misrepresentations about appliances. On top of building issues, consumers expressed frustration with the people “helping” them finance their homes, voicing concern over mortgage-, credit- and debt-relief fraud and predatory lending. Finally, many consumers expressed concern about renting conditions as well, saying that often buildings were unhealthy or unsafe and not repaired in an acceptable span of time.
While all this sounds pretty bleak, it’s important to keep it in perspective. While the real estate industry isn’t always perfect, according to the same survey, it’s got it in spades over the auto industry, which came in first thanks to leasing issues, towing disputes, faulty repairs and “misrepresentations in advertising and sales”[2]. What are your current complaints about the real estate and housing sector? Is it as terrible as people say?
Thank you for reading the Bryan Ellis Real Estate Letter!
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[1] http://realtormag.realtor.org/daily-news/2011/08/09/top-housing-related-gripes-customers
[2] http://rismedia.com/2011-08-07/consumers-top-10-complaints-guess-which-is-no-1/
Just say thank you to the government for putting it’s two cents (two trillion) in where it doesn’t belong. Government policies (interfering policies) started the inflation of home values and led to the decline in home prices. That led to loss of jobs in a few sectors and spread to loss of jobs in many other sectors (except government who think they are a protected species).
It is difficult to find people to help you find financing because the government again has interfered.
They have eliminated many good people from the mortgage business, escalated the cost of doing business for non-bank lenders (huge increases in costs) and further discourage non-bank lenders from even being in the business. They are eliminating the competitive marketplace and soon you will only have the government loans to choose from.
I dare say if you are not an ‘employee’ you will have a very difficult time to obtain any approval for a loan.
then, to top it off, dare you go to a private lender, the government thought it would be a good idea to limit their activities as well. They are limiting the rates and fees that the lenders can charge. While it sounds good for you, it is only good if the lenders choose to remain in the lending business. With too many limitation, the private lenders will choose not to lend.
So, for all you you who like the hand of government giving you all sorts of assistance in any form, be it welfare, food stamps, free college (based on anything buy academic genius), even extended unemployment, just remember… the government that gives is the government that can take away, and they will as they are beginning to do.
Take personal responsibility. Eventually, without government interference we can achieve personal economic independence and pass that message on to as many others as possible.
You see, if we do not need them to feed us, it will be harder for them to control us.
As for the quality of inventory – the frustrated buyers can opt to build new. They will pay the current rate for labor and materials and will find that it is substantially higher than the cost of buying a short sale, a foreclosure or some other distressed property. If you want a new car, you don’t go shopping at the used car lot. If you can’t afford a new car, do the best that you can and don’t complain about the inventory. If you find that intolerable, save more money and then buy.