Why Doesn't The St. Pete Times Correct Real Estate Mistakes?
I cannot fully express my dismay, anger, and confusion with the St. Petersburg Times.
Actually, that's not true. I can fully express my dismay, anger and confusion with the St. Petersburg Times. Just read the story below.
I realize that a newspaper has to be something of a sounding board for various viewpoints within the community. That's as it should be.
But a newspaper should also strive for accuracy and seek to correct misconceptions held by readers who send in letters to the editor. If the paper does not correct these misconceptions, it gives tacit approval and support to errors held by the reader and the paper serves only to compound the error and help to spread it throughout the community.
I am referring directly to the letter to the editor written by one Tim Shepherd of Palm Harbor that was published by the Times on January 25, 2009.
By publishing Mr. Shepherd's remarks, the paper has once again shown its true colors regarding its feelings toward real estate agents and brokers, and those feelings are clearly negative and apparently based on the paper's own lack of knowledge regarding real estate laws and practice. As such, the paper should no longer make any comments about real estate matters without first seeking to understand the subject they are writing about and having their articles edited by someone well trained in real estate matters, such as a Realtor or a real estate attorney. Clearly real estate is a subject the current writers and editors of the Times are not qualified to discuss.
Mr. Shepherd has opened his letter to the editor with these words: "Real Estate Buyer's Rule No. 1: Never trust a realtor -- they usually aren't working for you."
That is an absolutely false statement and has been false in Florida for many years.
Of course, the Times did not bother to explain why Mr. Shepherd's statement is false and misleading. I guess that neither Mr. Shepherd nor the editors and writers of the St. Petersburg Times have ever heard of a buyer's broker or Buyer Brokerage -- that is, a real estate agent or firm who represents the interests of the buyer to the exclusion of the interests of the seller in a real estate transaction.
In Florida, a real estate agent can represent either a buyer or a seller through a legal concept called Single Agency. The agent can also represent both sides in the transaction through a concept called Transaction Brokerage. What's more, the agent must disclose which side of the transaction he represents to anyone who asks, and the disclosure must be in writing.
This blog article would be too long for me to get into an explanation of these three concepts, so let me just say that the old-fashioned idea that the real estate agent always represents the seller since the seller pays the real estate commission is an outdated concept and has not been Florida law in many years. Perhaps it is the law back where Mr. Shepherd used to live, or perhaps his great knowledge about real estate is not as up-to-date as it should be. Don't believe that some agents only represent buyers, Mr. Shepherd? Check with your attorney. Or better yet, Mr. Shepherd, go to real estate school so you can speak with some level of authority.
In his letter, Mr. Shepherd admits that he is a relative newcomer to this state, having lived here only six years. He admits that he has never trusted Realtors. He admits that since moving here, he has been a renter rather than a buyer.
As a renter, Mr. Shepherd pays $1,250 per month according to his letter. He claims that by paying rent, he has avoided the ups-n-downs of the recent real estate market. He claims that compared to an interest-only mortgage, his renting has saved him $72,000.
Bad economics there, Mr. Shepherd. If you've lived in that same rental house for six years at that rental rate, you have spent $90,000 on rent in that time. Know what you've got to show for that expenditure? Cancelled checks. Know who made out well in the past six years? Your landlord who has profited to the tune of $90,000 on your false economic position, and has gained even more equity on the property you are paying off for him. Given that bit of information Mr. Shepherd, do you trust your landlord more than real estate agents? I'm sure your landlord told you he's giving you a great deal. And it is a great deal -- for him.
Had you bought a house six years ago in 2003, even with an interest-only mortgage, the value of that house likely would have appreciated beyond the amount lost in the recent downturn and you would be seeing an equity return by now. The people who are suffering financially are those who bought a house near the top of the real estate market in 2005 and 2006. They likely overpaid. Simple as that. But if you had the opportunity to buy in 2003 and passed on it thus missing all that growth during the real estate boom, well, you can't blame a real estate agent for your poor judgement.
There isn't anything much I can say to get a man like Mr. Shepherd to change his view and suddenly start trusting real estate agents. I guess that somewhere along the way in his life, some real estate agent did something that Mr. Shepherd feels was dishonest to him or some member of his family way back when and way back home. I can't change that. I know some real estate agents I don't trust very much too. Of course, I know some lawyers, doctors, accountants, and restaurant owners I don't trust either. But I don't condemn every lawyer, doctor, accountant and restaurant owner because of the actions of one of their kind. Mr. Shepherd apparently does. Quite small-minded, wouldn't you say? Oh, well.
Mr. Shepherd ends his letter by saying that he might now be willing to buy a house since prices have fallen about 40-percent. But, he still won't trust a Realtor to help him buy it.
I could give this man a hundred reasons why he should hire a real estate agent to help him find, negotiate, and close on his new home but I won't waste my time. He wouldn't believe me anyway. So, I'll let Mr. Shepherd tie his own tail in a knot with some seller, and then I'll let him deal with the lawyers he'll need to represent him in the lawsuit he is likely going to be faced with as a result of not trusting real estate agents.
As for the St. Petersburg Times, what have real estate agents done to you people that make you dislike us so much? Why would you publish such a foul, misleading and foolish letter about real estate agents from somebody whose comments and ideas clearly run counter to common sense and Florida law. I mean, c'mon guys, consider the source of this man's comments and his misguided and ill-informed concepts. Gosh, can't you at least try to publish something that is accurate and objective?
Most importantly, why don't you write a column that corrects Mr. Shepherd's false and misleading statements so that the rest of your readers have accurate information about how real estate agents work in Florida. I'm not asking you to do anything that supports real estate agents -- that would clearly run counter to your editorial position and attitude toward the real estate industry. Just write an objective story about who agents represent in a transaction and correct this fellow's misleading comments. Frankly, your readers deserve the correct information on this subject. Or would that be too much like responsible journalism?
For more information on real estate in the Tampa Bay area, please visit my website at http://www.thestpeterealestatesite.com/.
Actually, that's not true. I can fully express my dismay, anger and confusion with the St. Petersburg Times. Just read the story below.
I realize that a newspaper has to be something of a sounding board for various viewpoints within the community. That's as it should be.
But a newspaper should also strive for accuracy and seek to correct misconceptions held by readers who send in letters to the editor. If the paper does not correct these misconceptions, it gives tacit approval and support to errors held by the reader and the paper serves only to compound the error and help to spread it throughout the community.
I am referring directly to the letter to the editor written by one Tim Shepherd of Palm Harbor that was published by the Times on January 25, 2009.
By publishing Mr. Shepherd's remarks, the paper has once again shown its true colors regarding its feelings toward real estate agents and brokers, and those feelings are clearly negative and apparently based on the paper's own lack of knowledge regarding real estate laws and practice. As such, the paper should no longer make any comments about real estate matters without first seeking to understand the subject they are writing about and having their articles edited by someone well trained in real estate matters, such as a Realtor or a real estate attorney. Clearly real estate is a subject the current writers and editors of the Times are not qualified to discuss.
Mr. Shepherd has opened his letter to the editor with these words: "Real Estate Buyer's Rule No. 1: Never trust a realtor -- they usually aren't working for you."
That is an absolutely false statement and has been false in Florida for many years.
Of course, the Times did not bother to explain why Mr. Shepherd's statement is false and misleading. I guess that neither Mr. Shepherd nor the editors and writers of the St. Petersburg Times have ever heard of a buyer's broker or Buyer Brokerage -- that is, a real estate agent or firm who represents the interests of the buyer to the exclusion of the interests of the seller in a real estate transaction.
In Florida, a real estate agent can represent either a buyer or a seller through a legal concept called Single Agency. The agent can also represent both sides in the transaction through a concept called Transaction Brokerage. What's more, the agent must disclose which side of the transaction he represents to anyone who asks, and the disclosure must be in writing.
This blog article would be too long for me to get into an explanation of these three concepts, so let me just say that the old-fashioned idea that the real estate agent always represents the seller since the seller pays the real estate commission is an outdated concept and has not been Florida law in many years. Perhaps it is the law back where Mr. Shepherd used to live, or perhaps his great knowledge about real estate is not as up-to-date as it should be. Don't believe that some agents only represent buyers, Mr. Shepherd? Check with your attorney. Or better yet, Mr. Shepherd, go to real estate school so you can speak with some level of authority.
In his letter, Mr. Shepherd admits that he is a relative newcomer to this state, having lived here only six years. He admits that he has never trusted Realtors. He admits that since moving here, he has been a renter rather than a buyer.
As a renter, Mr. Shepherd pays $1,250 per month according to his letter. He claims that by paying rent, he has avoided the ups-n-downs of the recent real estate market. He claims that compared to an interest-only mortgage, his renting has saved him $72,000.
Bad economics there, Mr. Shepherd. If you've lived in that same rental house for six years at that rental rate, you have spent $90,000 on rent in that time. Know what you've got to show for that expenditure? Cancelled checks. Know who made out well in the past six years? Your landlord who has profited to the tune of $90,000 on your false economic position, and has gained even more equity on the property you are paying off for him. Given that bit of information Mr. Shepherd, do you trust your landlord more than real estate agents? I'm sure your landlord told you he's giving you a great deal. And it is a great deal -- for him.
Had you bought a house six years ago in 2003, even with an interest-only mortgage, the value of that house likely would have appreciated beyond the amount lost in the recent downturn and you would be seeing an equity return by now. The people who are suffering financially are those who bought a house near the top of the real estate market in 2005 and 2006. They likely overpaid. Simple as that. But if you had the opportunity to buy in 2003 and passed on it thus missing all that growth during the real estate boom, well, you can't blame a real estate agent for your poor judgement.
There isn't anything much I can say to get a man like Mr. Shepherd to change his view and suddenly start trusting real estate agents. I guess that somewhere along the way in his life, some real estate agent did something that Mr. Shepherd feels was dishonest to him or some member of his family way back when and way back home. I can't change that. I know some real estate agents I don't trust very much too. Of course, I know some lawyers, doctors, accountants, and restaurant owners I don't trust either. But I don't condemn every lawyer, doctor, accountant and restaurant owner because of the actions of one of their kind. Mr. Shepherd apparently does. Quite small-minded, wouldn't you say? Oh, well.
Mr. Shepherd ends his letter by saying that he might now be willing to buy a house since prices have fallen about 40-percent. But, he still won't trust a Realtor to help him buy it.
I could give this man a hundred reasons why he should hire a real estate agent to help him find, negotiate, and close on his new home but I won't waste my time. He wouldn't believe me anyway. So, I'll let Mr. Shepherd tie his own tail in a knot with some seller, and then I'll let him deal with the lawyers he'll need to represent him in the lawsuit he is likely going to be faced with as a result of not trusting real estate agents.
As for the St. Petersburg Times, what have real estate agents done to you people that make you dislike us so much? Why would you publish such a foul, misleading and foolish letter about real estate agents from somebody whose comments and ideas clearly run counter to common sense and Florida law. I mean, c'mon guys, consider the source of this man's comments and his misguided and ill-informed concepts. Gosh, can't you at least try to publish something that is accurate and objective?
Most importantly, why don't you write a column that corrects Mr. Shepherd's false and misleading statements so that the rest of your readers have accurate information about how real estate agents work in Florida. I'm not asking you to do anything that supports real estate agents -- that would clearly run counter to your editorial position and attitude toward the real estate industry. Just write an objective story about who agents represent in a transaction and correct this fellow's misleading comments. Frankly, your readers deserve the correct information on this subject. Or would that be too much like responsible journalism?
For more information on real estate in the Tampa Bay area, please visit my website at http://www.thestpeterealestatesite.com/.
-30-
posted by Terry Ward at 4:28 AM
1 Comments:
Some of the important discussions on st petersburg real estate.
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