Real Estate Agents Fiduciary Responsibilites Questioned

2008 started with stock markets plummeting around the world. This distracted many people from the ongoing credit crises, and brought about fear and a panic sell off, which resulted in huge losses over only a few days trading.

In the Campaign debates there is much reference to what can be done to keep homeowners in their homes, and who is most likely to achieve it. As many homeowners, feeling poor from the loss of equity in their homes, and the loss of asset value in the stock market, sit and watch all this going on around them, they have begun to ponder: how did I get here ?

With home prices falling in almost all parts of the country over the last eighteen months, in some places double digit declines, here comes the the next question: Was my realtor negligent, or did he/she fail in their fiduciary responsibilities when representing the value, or the future value of a home ? If so, what can I do about it ?

Well, articles like these are seen more frequently, and if there is ever a conviction, then realtors, watch out, and be very careful of what you say !

Stay tuned ......

Reale Estate sentiment in 2008 ...

There has been so much attention given to the sub-prime mortgage mess, crumbling lenders, falling real estate prices, and rapidly increasing foreclosure, its no surprise that buyer sentiment is dazed ..... confused, and buyers are possibly more than a little freaked out! I've heard seasoned real estate agents say the next cycle won't start until 2009. I disagree.

The Countrywide bomb exploded last week, with Bank of America diving on top of it just before it was too late. In the same way JPMorgan will come to the rescue of Washington Mutual, the time has come for the big banks to bail out those in need. Federal regulators are not going to stop these mergers, as there is simply too much at stake. There is no longer any need to speculate on the extent of the Sub-prime mess ... it went all the way to the top ! with Countrywide having to merge with Bank of America to stay afloat ! How much damage was there along the way ? 218 banks and lending institutions (50 000 jobs) have gone out of business in the last 15 months !! Yeah, I'd say there was some damage.

Looking forward, the Bush Administration is discussing a stimulus package, Federal Reserve Chairman, Mr. Bernanke, has assured the Nation (and the World) that the Federal Reserve will do whatever is necessary to maintain liquidity in the banking system, and the Feds are on the verge of dropping interest rates again. Fantastic ! The stock market is all over the map, which is another indicator that real estate may come back into favor sooner rather than later.

My disagreement with above mentioned realtor's is that the there is now consolidation in banking, investment groups have already taken their write-downs, and while prices will remain soft for some time, there is more incentive for buyers to put pen to paper. You gota remember, opportunity is constant.

Time will tell, stay tuned.

Real Estate up in 09 ?

With articles like this one suggesting real estate prices won't recover nor will buyer sentiment change until 2009 .....I disagree.