Shame on the Media

As a realtor in today’s market, my job has been hampered by the “bad market” cliché. Everyone seems to have the Chicken Little “the sky is falling” mentality. I definitely agree that lenders have tightened their lending criteria. However, there are still transactions being conducted on a daily occurrence. . When I prospect for clients the first question they ask me is “Is the market as bad as the experts say?” My reply is yes and no. Yes, because where foreclosures are high in numbers usually results in vacancies and short sales plunging the market south in depreciation. No, because there are markets that are high in demand and home appreciation is on the rise. Think about it, the two things that the United States government endorses is small business and home ownership. Lending across the board is tough now. Legislation is proposing new laws that will definitely make lending a problem. The media plays a significant role in the public mindset. The information from television, radio, and the Internet can be very misleading.
Case in point, I overheard a television network weighing in on the real estate market situation. They commented on how much our market (Los Angeles area) has depreciated, however the comparables were disparately different. The comparables used were between a one bedroom, one bathroom townhouse compared to a single-family house three bedroom, two bathrooms. Every realtor knows not to make such a comparison. It is like comparing apples to oranges.
Today’s headlines are filled with predatory lending accusations, realtor misrepresentation, and misconduct. Without a doubt this is sabotaging our market. It will make home sellers and homebuyers gun shy to pull the trigger on a deal. You can enlighten one or two but the media can poison 10 or 20 at the same time. The ordinary homebuyer and home seller will get mix signals about the market. It is common today for everyone not in the industry to try and educate the realtor, so being knowledgeable in your real estate market is the name of the game. Without the expertise and knowledge of a realtor consumers will be picking and guessing when to sell or when to buy. I constantly educate my clients with the latest and “correct updates” in the industry and put to rest any misconceptions about the market.
.