It seems that the media is really coming down hard on the real estate industry. As if the one-sided "report" from 60 Minutes on CBS the other night wasn't enough, Fox 5 in Atlanta has exposed real estate "reality show" Flip This House as a fraud.
I admit to being a little embarrassed about that. I thought I had a handle on these "reality" shows. One of my
favorites is HGTV's Designed To Sell. Love that Clive & Lisa. Especially Clive. But anyway...I thought "Yeah, they only showcase the homes they design successfully...we never see the 'Designed to Expire' homes."
But now, in light of the Sam Leccima scandal, where the entire show seems to have been fiction-labeled-reality, I wonder...how many of them on Designed to Sell ever sold at all? Is the Flip This House scandal limited to just A&E? (Which brings me to another point: Sam is clearly going to be the fall guy here, but the real bad guys in this mess are the ones managing the production of this show, that not only let this crap happen, but that helped it happen!)
Sam's response when questioned about this scam? "Hey, it's a TV show." Yeah, it is, but it's a TV show that's marketed as truth.
Time and time again, the media has duped the public. The latest target seems to real estate agents, maybe because the media is a little tired of whacking President Bush for the moment. Doesn't anyone see the patterns? They just ride on one thing after another, over and over, till the public gets tired of it, then they move on to the next "big thing."
A few years ago, the media had us believing that the movie JAWS was
prophetic. Or that there are child molesters behind every shrub. Or that...[insert next hot topic here]. And we all gobble it all up like candy. Has the nation forgotten that CBS has a reputation for falsifying and twisting "reality" to get ratings? And is it just CBS?
The reality is: real reality is boring! Yes it is! The mundane, everyday life of a typical real estate agent, while exciting to me and to other agents, would never make a good TV show.
Nobody would rush to turn on the channel just to see an agent searching tax maps, calling zoning officers, and getting quotes on new septic pumps. They would not find trolling the MLS hotsheets riveting (though we agents tend to find the MLS more entertaining than TV, and the sad part is, this IS reality!). The stuff I find enteratining bores my husband, children, and friends to tears.
"What??!! Another addendum? Are you kidding? We are not signing another extension! You had your chance! Get it signed by Friday or the deal is off! I faxed it to you three times! How many more copies do you need? You said all they needed was the appraisal! Now they need records of all their wages for the past year? We're supposed to close on Friday!"
Who wants to watch this stuff on TV? Nobody...probably not even me! So the TV mogul creates "false reality." But since the public doesn't really want to watch house flipping or other stuff like this unless it's "true", they call it "truth", when there's very little truth to it.
The reality is: beautiful homes may sit on the market for a year, even though they're beautifully decorated, aggressively marketed, and properly priced. The false reality of these shows, which imply that slapping $2000 down for some cosmetic work will get you a ton of offers over asking price harms everyone who believes it! The sellers expect the same results, the agents are under pressure to perform like the adorable, affable Clive...(maybe we should all adopt a British accent...that might work!)
The reality is: no agent really collects 6% on a listing, unless he/she happens to be the listing agent, selling agent, and broker rolled into one (or if he happens to be on a 100% commission split...and then there's the desk fees that have to be paid...)
The reality is: your typical agent will get significantly less than $20,000 net after selling $1,000,000 worth of real estate. The agent usually has to share this commission with at least three other parties: the other agent, the other broker, and his own broker. Let's not forget all of the expenses involved in being a competent real estate agent; the hundreds of dollars in quarterly fees, dues, and charges; advertisement costs, wear and tear on the vehicle, gas expenses, required continuing education classes, lock box fees, replacing stolen/damaged signs..it goes on and on! What about the countless hours spent studying, researching, carting buyers around, going on wild goose chases for people who just want to use your free CMA to get an idea of what they should charge Uncle Billy for the property they never intended on listing with you in the first place...
Yet, people watch these TV shows and "news specials" and think agents are just rolling in the dough, laughing all the way to the bank. People don't know about all the wasted miles driven, taking buyers out to show them 50 houses over a four week period, just to have the buyer say "We've decided to wait a year" or "We put an offer in on another house in New York last night, sorry!"
The public doesn't know about the seller you just could not keep happy, who rejected offers that were "too low", who then relisted with someone else...and accepted the first offer that came in...that happened to be less than the offer they rejected when you had it listed...
Nor do they know about the seller that refused to drop the price even though the agent knew it was $30,000 above what the market would bear...who then said the agent obviously couldn't sell the property, so the seller went somewhere else...and then, the next thing you know, the home is relisted on the MLS with a new low price, which they wouldn't consider when their original agent suggested it...
This is the reality of my career. I am not complaining about the challenges I face. I just wish that the reality of it all was truly known by all.
Real Estate Reality, ©Copyright 2008 by Karen E. Rice. All rights reserved.

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Karen E. Rice is a real estate agent working in Pike & Wayne County of Northeastern PA in the Poconos. Lake Wallenpaupack is one of Pennsylvania's most popular destinations for vacations, retirement, and purchasing a home.
Pike & Wayne County PA Real Estate - Home Sales ©Copyright by Karen E. Rice. All rights reserved.