REAL ESTATE SALES ARE RIGGED - POST # 57 (29 OCT)
There are many aligned parallel railroad tracks in a train yard, the fact that one locomotive is hauling cattle, another lumber. a passenger train and a auto carrier are all on the move . . . is involving a lot of commonality (forget the cargo) all these have a lot in common, and really, there is nothing unique involved by cargo type.
Similarily, selling or appraising, or inspecting a house is akin to doing the same to an automobile, a boat or RV, a race horse or airplane . . .there is a lot of commonality (forget the investment type) all of these have a lot in common, and really, there is nothing involved by investment type.
A home appraiser, a home inspector, Marine Surveyor, Pilot/mechanic, Motor Home technician, or Auto Dealer all do the same thing within their realm, they observe, inspect, evaluate, and set valuation/opinion for legal, financials, pre-sale, pre-purchase, insurability, replacement and sale.
They all (within their realm of expertise/knowledge) are driven by the same credo of rules, legitimacy, fairness and honor-codes (no prejudice, influences, distortions, intentional oversites, or Submitting to the will of the agency calling/paying for the process) in producing their end document for use.
Really ? do you believe that ?
As a 35 year veteran of multiple inspection/valuation - modes in Marine and Petro-Chemical/Stationary Capital equipment, let me clear the deck . . . deals are made, reports are modified, and Payola is alive and well, the competence and knowledge, field experience, diverse exposure, and honor of some "huge" percentage (50% ?) of those wearing the "expert" hat are VERY questionable and illigitimate.
I once worked for a Real Estate in Los Gatos (a gated community), the contractor who hired me to help him do electrical and finish carpentry had a Broker-wife (with a different sur-name), who would hire him to do sale enhancing, post inspection fault upgrades, and renovation pre-sale repairs on homes she would short-sale to her sister (another different sur-name), the appraiser . . . her brother, (another different sur-name) was the appraiser, and, the Mortgage company underwriter was a father (yes, with a different surname).
This loop of connected-different sur-name process was exactly the same as the San Pedro Harbor scenario, and a few corporate scenarios I worked with (Shell Oil, for one), the process is replicated all over the land, Ohio, Minnesota, Florida, California, Oregon, Washington.
A in distress sale house (death, divorce, jail, walk-away, etc;) is found by the RE Broker, she has it appraised, and a inspection repair list made to document its sorry condition of almost no market value then there is an offer to buy, (encouraged by the real estate), the financing goes through, very surprisingly, the in-house contractor wins the bid (does the repair/renovation), the home gets relisted at 600-800% of the invest ment price .... sold, and its on to the next.
This Real Estate operation was only three years old, and already worth millions !! The same identical scams went on in the oil and fishing industries all over north and central/south America, I was there !
Bonuses, phantom work crews and phony materialle billings, faked bloated work hours and pay-ins for letting contracts, it was the same in all industries, And I am sure (Positive) the same in Washington DC politics.
I sold the current Oakridge Property for my full asking price (at a price established by a real estate agent and broker who wanted to list higher than I did) but yesterday it appraised for $10,000.00 Less than the asking price !!
I decided to walk... what an insult ! but "magically", in an hour, the price had increased by $ 5,000.00 (for the furnishings I was leaving), meaning this estimated property value and sale-price determined by a 30-years-in-the-local-area business Real Estate Agent was incorrect, and now I am to believe that they were "wrong" ?, and the appraiser (from 50 mile away city-Eugene) is correct. ? ... ahem !
So, I end up leaving around $7,000.00 on the table., but accept the deal..... You see I am soooo naieve, I know nothing of the complexities of valuation and/or appraisal, and doing a house sale is "entirely-completely" different than anything else on the planet (and needs a lot of education and training to become certified), why, I did not know that . . .did you? these guys are professionals and their opinions/decisions are beyond reproach .... ask no questions, we are professionals ! (my real estate agent told me that).
Pretty disappointing. But, an end to Oakridge...and, I will take it !!