One of the reasons I found real estate attractive was that no one could take away the product I help people buy or sell. Unlike many sales related jobs, the manufacturer couldn't discontinue the product line because the supply came from all those sweet homeowners who at one time or another need or want to sell their home. This was the perfect business model... until recently.
Today, the supply of homes is largely controlled by banks and asset management companies.The result is a dramatic shift in the supply chain. Since an estimated 80+% of Arizona homeowners are upside down in their homes, the bulk of the supply is either bank owned or short sale requiring bank/investor approval.
I believe the shift from a open supply chain (homeowners) to a rather closed one (banks) has dramatically shifted the way real estate is practiced and not in a good way.
Since banks own the much of the supply, they control who sell homes through limited broker agreements, they regulate commissions and most alarming, they have eliminated many home buyer's rights and protections through special addendum to the residential real estate contract. The last change is perhaps the most egregious and dangerous for home buyers and the practice of real estate in general.
Today is a tough time to be in the practice of real estate. Banks have changed the rules of the game. Home owners, home buyers and real estate agents are all affected by bank policies. Personally, I can't wait until we get back to a more honorable practice where corporate conventions no longer supplant civility.
Gene Urban
The Urban Team at Realty Executives
602-234-5777
