Real Estate Brokers Take Heed

Every now and then, I get this uncontrollable desire to do some editorializing --- especially when a subject arises that makes me realize something just isn't right. This content is definitely filed under the heading of "What Will They Think of Next?" However, it's been composed more as a precaution for realtors and brokers everywhere, only because this issue has the real possibility of becoming an epidemic if left unchecked and something isn't done immediately to prevent the spread of it.

Not being the political activist that I used to be in the 60's and 70's, I'll surrender the responsibility of preventative action to the National Board of Realtors and interested brokers. Oh I still have the long hair and the activist attitude, but I have chosen to leave the course of action up to the experts. The purpose here is to open the eyes of those who may not be aware of what has happened in the RE industry recently as well as the future implications that the issue carries with it.

The other day, a close acquaintance of mine and RE broker forwarded me a copy of an article that recently appeared in the New York Times. Evidently, in the state of California, a man and his wife sued their real estate broker and appraiser on the grounds of false valuation of property. What's even worse is that there is a gentleman who is now making a career (and no doubts tons of money), out of writing and publishing guides to help consumers sue their RE brokers. Oh, and then there's the attorney who is lining his pockets as well. Let's not forget that part of the equation.

The couple in question is claiming that the appraiser, who was named in the original suit, was guilty of altering the calculations in his report so as to make the house appear to be worth the purchase price when in reality it wasn't. The discrepancy in value was estimated at between $100,000 and $150,000. They are also claiming that the broker had knowledge of the appraiser's actions so they too were guilty of the infraction as well. Or so the accusations (and the New York Times article) would have you believe, and these allegations became the prosecution's grounds for the suit.