Jonathan - Ugh, I just may get speakers for my computer here at work after all.  Trying to make out the 'impression' these videos are portraying to the public without sound is like trying to shoot pool with a rope.

Jonathan,

I am a Realtor.

Those ads are offensive, specious, and frustrate me.

I do not support them.

Jonathan...Were you planning to write more?  I'm trying to figure out what it is specifically that you didn't like about these ads.

My least favorite ads from NAR were televised some years back when they promoted the "Real Estate is My Life" slogan.  Real estate is not my life, never was, and never will be.  It is part of my life.

Cheers,

Kathleen

Oops, forgot to first save the post in draft mode while I was working on it.  

Since the post was already published I just finished it off.  The idea I was trying to get across is not refined, but hopefully I will help to refine it through the comments. 

I don't like these ads at all. Every market IS different and the message should be: Trust a Realtor to help you navigate your specific market based on the facts. I tell my clients when it may NOT be the right time to buy or sell as often as I encourage them to move ahead.

I am their ADVOCATE - NOT their salesperson!

I really didn't see any harm in this ad, a lot of it is true. The glass is always half full not half empty.

Sir Rain Maker...

These are the times that I find most embarrassing.

Ads like this one are exactly why the Consumer accuses our Industry of manipulating the market place.

Let's all hold hands and sing Kumbia now :) 

P.S. Who knows how to spell that any way? Certainly not Google or myself :)

TLW...ROAR!

Okay...

So I had you open before this post changed to just the one video. 

To the second one I say "What a load of crap"...

I can't believe we pay for the crap.

Crap should be free of charge :)

I am going to go buy another house and spend the equity now :) 

TLW...ROAR!

Jonathan,

I agree with Jay...I thought it was a great ad...slightly slick and Madison Avenuey, but those things are expensive and I thought it could be a stimulus for some to buy...Of course it doesn't portray the pain and suffering of foreclosures or the present market on those of us in the real estate related industries, but Hey!!! Thanks,   Fran

P.S. My son just bought a new home...and got a great buy with a fantastic mortgage rate!!!

Oh I don't even want to start. on this, I'll be going the rest of the day.  You said it correctly, the public does see through this and I think it make the Realtor look so desperate they would lie about anything to sell homes.

And what really sucks is that they are spending our dues money producing these things.

Jonathan, I found this ad better than the "graet time to buy and sell real estate" crapola. I'm in one of the worse markest in the country and just last week negotiated a deal for abuyer at 30% below market value!!! That's a pretty good deal and should be low enough to protect from a further market decline.

But I certainly agree we need to give the consumer the facts not the fluff. That's hard to do with a national ad campaign though.

Why don't we have a contest right here on AR and see if we can come up with something better?

I want my money back....let's have US do a commercial.... 

I am with Jennifer on this one....

She says, "Every market IS different and the message should be: Trust a Realtor to help you navigate your specific market based on the facts".

And that's the way it is. 

P.S.....because at some point it becomes a personal preference.....and if it sucks to buy...then it sucks to sell....

Thanks Sal... glad you've got my back! Great minds think alike....

MWA!

What is too disagree with? All they said is More choices, and lower interest rates?

I agree, as we bought our first home when interest rates were 15% and land contracts from the sellers were the way to go. We were thrilled to get an 11% land contract.

This is directed at buyers, and I just don't see the problem. People are now able to afford a home that they couldn't have afforded 3 years or so ago.

Our starting home price was in the 220's in Ann Arbor and everyone went outside to purchase their first house. Now Ann Arbor is affordable.

I love you, Jonathan but I disagree that it is a bad ad. 

The buyers need to stop waiting and go for it while the market is in their favor. :) 

 

I don't even have to plug my speakers in.  I know the NAR line.  "Real estate is a good investment." 

IT IS NOT! !    At least not yet. 

We are, however, now at a range where a family looking for a home can buy and not see their value evaporate.  We're down about 10-15% for the past year and the agents and brokers I work with negotiate another 10%.  So, our buyers start with a little room.

I got a call from a military relocation today who is active duty with a 3 year duty assignment here.  I advised them to rent. 

The message should be - consult with your Realtor to find out what's best for you. How long do they plan to own the home? What's the local market like? What's the reason for buying/selling? The answer is different for each person.

Every market IS different and in my market for a buyer it's a great time...for a seller it just sucks. Prices here are much more affordable than they have been in years and we're seeing multiple offers again. Sharon is right... The message should be - consult with your Realtor to find out what's best for you.

I don't like the message because I believe it focuses on fitting every (circle) buyer into the same (square) hole. Some people buy homes for the primary reason that it is a good financial investment, however I believe that most people do not.  Most people purchase homes for the security, privacy, and sense of ownership. Many people buy homes that they never plan on selling.  

All I am saying is that our role as real estate professionals, is not to be the cheerleader for the real estate market. Our role is to assess every buyers individual needs and do the best we can to guide them in the right direction to fulfill those needs.

Right on Jonathan.  In my market my clients need my help assessing the market. I have advised some not to buy and many not to sell. Every market is different.

Jonathan...I think it is a good time to buy.  Why are we calling it a buyer's market?  I wish I could buy more property.  

Do you all think it is going to get even worse???  If so, I don't know if I want you to tell me.  Let me keep my head in the sand.

Kathleen 

I am with Kathleen in the sand....  Ad is just cheesy as so many before but other then to blog what can we do?!

Jonathan - like others, I don't see what the problem is with this ad at all.  Lower interest rates, multiple choices - all true.  Real estate IS local and there are some markets that are really great and some that rea doing horribly and then everything in between.  Using Zillow to disprove the merits of this ad don't cut it to me.  Their z-guesses are way out of whack for many areas, and if that's what some are using to 'prove' the market stinks, well they need to clue in to their own market by actually talking to their local REALTOR to get a real report on their local market.

It IS a GREAT time to buy in many markets - those buyers need to work with a professional who can assess their needs and be their advocate for what their goals are.  Buyers buy for different reasons, and they need to take that into account as well.

Ann

It must be my computer or did u remove the add.

Why are so many of us forced to join NAR just to hang our license Jon?

Didn't see the second commercial I see mentioned here, and I'm too busy working to watch TV anyways.

Is it the best time to buy? Let's see: historically low rates and historically high inventories. I guess it just depends on who you are and why you are buying, where and under what professional advice.

Is it a good time to sell? Only if either the bank will take it anyways or your moving into a better house that depreciated as much as yours has.

Around here, there are some nice buys, but you still have to be professional about it. Why does our industry reputation such, it isn't NAR. But, 'I saw the enemy and it was us' comes to mind. Stupid, corrupt, greedy agents, loan officers, appraisers, buyers, sellers and lenders got this market where it is today.

So, let's make it a better day, and make sure you only do the right thing.

I think we need some positive out there.  The national media has everyone totally freaked out.  There are those folks out there with money and need so why not encourage them to buy, especially while interest rates are low.

I do NOT support these ads ! I don't understand why they are spending millions in advertising but yet you see press releases like I did yesterday where they ( NAR ) states the market is yet to hit bottom. Which is it...? They really should make up there mind. In my eyes NAR is causing the controversy and as a Realtor trying to educate the consumers this gets really frustrating !

Jonathan you should know that real estate is very local.  While it may indeed suck in some markets, it's a great market on Maui.  If you don't believe it, come on over and buy something now .... in 5 years you will be so glad you did buy, before it gets so expensive you won't ever be able to afford it.  There's so much selection, coupled with low interest rates, that a qualified buyer should be very happy with the market right now.  And I know a good agent to show you around too!

Do you really think anyone pays attention to those ads?

Jon,

What's so bad about the ad?  It's factually correct.

“Be Fearful When Others Are Greedy and Greedy When Others Are Fearful” - Warren Buffett

PS:  Where's the cool photoshopped pic? 

 

Hi Jonathan - I am not going to take the time to read through the comments, sorry to the commenters before me. I am not certain what you find offensive about this ad. It is true. The market is GREAT for buyers and we want them to buy homes. Isn't that the business you are in?

You say, "They know that the real estate market sucks right now."

Could they think that because you are telling them that??? I think it is a great market and wish I was in the position to pick up a bargain or two.

I disagree with you. The market has values that have been the lowest in several years. I would prefer to purchase my investments at a low so I can make money as they appreciate. Wouldn't you? There are better values out there today than there were when the market was booming upwards and appreciation was at a peak.

Good luck to you!

I dont see anything wrong with this ad. It is all amtter of perception in the eyes of the buyers and sellers. Right now the market is definately in the buyers favor. I believe that for the most part, the market responds to the media.... the big question is... should we? I think we should just contiune to do what we do on a daily basis and believe that we will prosper. I am a firm believer that we get what we most think about.

I agree with Kathleen. Now is the 'then' many will be talking about in the next few years... I should have bought 'then' - when the prices were the lowest in a long time and the interest rates were the lowest in a long time. But you can not buy thinking as many did a few years ago as a way to catch up on loses in other areas of investment, and think that if "I" only do it, and not others that all of us would not be affected. I really don't think anyone was watching or caring what the others were doing and thinking it thru to a conclusion when Greed was in control. Now apathy, and a great loss of consumer confidence is gripping decisions to move forward. Not wanting to wait because it might cost more if you did, drove the market up the hill, and now being over cautious in moving on even the best deals causes a sense of 'not wanting to be the first to act'. The bottom of the market is causing resistance in allowing the prices to drop further, but no one in leading and taking the reins and saying 'Yes - now is the time to find the gems in the pile and start to stabilize the market. All of the great market reports here highlighting all the many areas that do have good values have never been so easy to access and analyze. This great site with all the talents and backgrounds and experiences should be exploited to the hilt by the buyers. That is want we want and we must be more proactive in telling our audience that it is okay to contact someone with the knowledge and desire to help them get thru the muck that is currently clogging everything.  Real estate is local - but a lot of locals are what make up the bigger national market - and isn't NAR national??  It is up to the local experts to gain the confidence and trust of the public again and haul all our asses out of the current conditions we find ourselves. Thank you Jonathan for establishing such a great platform on which all the combined talent I see available can thrive.

Sorry but I disagree. I'm an NAR Director and we approved these ads last year as a way of promoting professional real estate as well as doing something to counter the negative media publicity that is eviscerating our market right now. If you look at a national map, about 80% of the country is doing fine right now, posting appreciation and modedrate sales while about 20% is in serious trouble - but with the exception of Michigan & Ohio, the trouble spots are also the ones that have done the best the past few years. It's a natural cycle.

Our area leads the country in foreclosures right now - 1 out of 9 homes going under. Sales are off 74% and prices are down 30-40%. But we also grew the fastest between 2001 - 2006 posting 155% gains. Inventory is at a 20 year high for us so buyers have choices, interest rates are near all time lows and the job market is strong. My fiance and I are buying a house this summer and I'm buying another for my second kid because the time is right. Hey, if we don't tell our positive story, who can we expect to trumpet the fact that there is good housing news? Certainly not the mainstream media.

Don't wait to buy real estate - buy real estate and wait.

"our role as real estate professionals, is not to be the cheerleader for the real estate market. Our role is to assess every buyers individual needs and do the best we can to guide them in the right direction to fulfill those needs."

Jonathan, I couldn't agree more with your comment.  If you are expecting NAR to advocate for buyers, however, you may end up waiting a couple more decades.  The entrenched real estate establishment treats buyers like second class citizens. 

I don't disagree with Richard - he just snuck that in whilst I was writing mine. I disagree that the ads are a mistake. We do have to be pro-active in helping turn this market. It's our livelihood as well as the American Dream. If we don't take the lead sure as hell nobody else will.

"when you have a family, it's always a good time to buy"

I'm not so sure about that.  In fact, if you have a family, 2005 was still a horrible time to buy in San Diego because you gave up your kids college tuition to make an unaffordable payment..

"It's a great move up market "

This is VERY true.  When prices are down, across the board, you may have lost 20% on a $200,000 home but you're saving 20% on the $400,000 home- that's a net savings of  $40,000

In this market, there's a lot of options

Very true

Interest rates are still low

Relative to most home buyers' lifetimes, it's true.

Working with a REALTOR took all the guesswork out.

I don't think, I KNOW that's factually correct.  It's worked for me some 8-9 times. 

This is the best market...in years...in terms of choice. 

That's true.  In many areas, prices have reset to 2002-3 prices and are quite affordable.

Gene - I did not know that I was a 'snucker'  but thank you for the agreement!

Jonathan

I am not sure you can be serious,  If you don't think it is a good time to buy in this market then what kind of product are you selling.  Yes, service is first, however, if people didn't need a home they wouldn't need our service!!

I would have to say I agree with a few of the ActiveRainers that said that it is a great time to buy and that you CAN find a great deal and a great mortgage.  I would also say that because service is the first thing that I have to sell before I could ever sell a piece of real estate I have definitely told seller's that if they did not have to sell NOW, that it would be better to wait. Oh, wait a second I even told a buyer that!  in December!!  A money hunger lender was trying to push something that never should have been pushed!!  Jerks.  All's I can say is that NAR is trying to combat ALL THE BAD PUBLICITY that the market has been given.  Part of the reason we are in this mess is Media....( i said part )

I know this is so because I see people just walking from house because the values have gone down....I think it's our personal values that have gone down!!!  People that can make their mortgage payments are leaving because their house isn't worth what they paid...WELL, GEE let's flood the market even MORE!!

SIMPLE SUPPLY AND DEMAND!!!

I went to realtor.org to see their perspective. They want to counteract the negative attention about the market. I can understand that. But I can't understand why they made it sound as though consumers are idiots. Every area is unique, and issuing blanket statements make us all look incompetent. FYI - NAR is planning on surveying members and consumers about their perceptions. I'd like to be part of that!

"...IN TERMS OF CHOICE." 

Did ya miss that part of the quote Jon? Play the video again and listen a little bit more closely. Everything in that video is, as Brian stated above, factually correct.  If you have good credit, decent savings, are not looking for quick flips, and are ready to buy a home for the long haul, there has NEVER been a better time to buy.  There's more inventory in this market than virtually ANYONE has EVER seen.  With the FED looking to cut rates again....I mean, are you kidding me? We might soon see 4% loans for those that qualify.

Your headline and comments are right up there in the realm of most major media outlets.  And that would be deceptive and misinforming. Qualities that are typical of headlines that fail to inform the reader of the correct information.  That video was SPOT on correct, especially for those who are actually financially responsible.

Also, making a brash assumption about what consumers see, and then throwing up a Zillow graph...nice.

Tell me, when a customer walks into your office and says they really need help selling their home, due to a family issue, job placement, or some other important matter, let me guess.....you say "Sorry bub, THE MARKET SUCKS, bye."  Is that the extent of your professional knowledge when a real estate consumer comes into your place of business looking for help?  "Hey, I'm being honest."  Pffst..cmon now.

One more thing...not all consumers....ready for this, I know this is shocking.....

...DON'T HAVE A COMPUTER or 'gasp' ACCESS TO THE INTERNET.

Your job as a professional real estate agent, IN ANY MARKET, is to indeed BE HONEST, but in the same breath you need to be concerned about the needs of your clients, REGARDLESS of what the market may or may not look like.  Buyers included.  If I need my home sold, you have ONE and only ONE responsibilty if you plan on helping me...and that's TO SELL IT, no matter WHAT.

Just because it's no longer easy to sell homes the way you may have been used to, it's no excuse to promote negativity and a hopelessness for people who truly want your assistance.  We have plenty of agents in our company right now who are making deals happen.  One gentleman in particular has 6 closings this month and another agent with 5 this upcoming month.

Good news is out there and it would help if people actually took time to spread it.

One further point - if consumers don't see us as being their advocate then SOMEBODY has been falling down on the job of educating the public. I am extremely proud of our local, state and national associations for the outstanding advocacy job they do. Consumers have NO better advocate for private property rights - whether you're a seller OR a buyer than the association of Realtors. Much of the current legislation aimed at helping homeowners is NAR driven. NAR was advocating raising conforming loan limits years ago which would have eliminated much of the sub-prime fiasco in higher end markets. NAR was advocating tighter supervision on lenders, especially unlicensed lenders and we were thwarted by Alan Greenspan.

If you don't think NAR advocates for you and your clients, you need to attend a few state or national meetings and find out what's going on. There are a lot of people working very hard to make your life easier and to make sure your clients interests are represented in DC.

 

Well, at least they mentioned that each market is different.  I would agree with the ad in my market place.  It is a great market, with many options.  My market, however, is completely different than most and performing differently than 90% of "the market".  This ad could have been more effective IMO if the agent wouldn't have said what a great market it is. 

Bad ads? The media fuels the market in more ways than we realize. In the sellers market they fueled buyers needs to buy now at any price and any cost. They bit and went wild. Now they say doom and gloom is the way to feel. They bit again. In actuality it makes more sense for a buyer to buy now. Good versus bad media? It would just be nice if the media would just stay out of it and let us do what we do best, find the right house and the right loan for a buyer no matter what the market is.

I heard this on the radio today as well (the NAR commercial). 

EEEEEKKKK our area isn't 'horrible' but its not 'great' either.  I agree, let us narrow down our areas, you can't squeeze everyone into the square pegs with a round hole.

I agree that if you don't listen closely it could leave the listener with a very negative feeling.  What they say is that this is the best market in years in terms of choice. That is a factual statement.  We do have a lot more inventory than we've had in the past several years.

I can't speak to anyone else's market but mine (Silicon Valley), but here it IS a good time to buy. You cannot time the "exact bottom" of the market. I do believe we are close to it. Homes are selling at 10-20% off the last time they sold. I don't believe they are going to go down much further - but of course they may.

For about 8 years, we've had a seller's market with overbids, sales always "as is" and so on. For once, buyers can chose and get repairs done.

Yes, that ad DOES apply to the San Francisco Bay Area's "south bay" or Silicon Valley or San Jose market.

It really IS a good time to buy in Santa Clara County.

Run, don't walk....

I know the ad says it is "the best market in years in terms of choice." But that is not the point.  The best market is subjective to the home buyer/seller and their specific needs. 

We are not cheerleaders. We are advisors. Making ads that cheerlead the housing market does not bring us closer to our goal of positioning ourselves as the local market real estate expert/guide. 

It's a great time to buy here - plenty of inventory, low rates, and extra incentives and real bargains on many homes. Smart buyers are buying. I've been busier since mid-Jan than I have since 2004!

You lost me when you threw up the Zillow chart! Talk about something not having any credibility! Their data is useless.

Zillow??? Whaaaaaa?

Ok, so I MAY have been embarrassed by the NAR's commercial, but Zillow?  Again...Whaaaa?

Making ads that cheerlead the housing market does not bring us closer to our goal of positioning ourselves as the local market real estate expert/guide

Jon, I heard advice on that commercial, sound advice.  You should own for the same price as renting. Admittedly, that's hard in many markets but it's sage advice. I heard that a REALTOR takes the guesswork out; that's good advice.  I also heard  that it's always a good time to buy if you have a family; that's not so great advice.

I"ll be the first to criticize the NAR for bad advice but I didn't hear really bad advice. 

A more honest sales pitch would be: "Why rent when, for the same monthly cost, you can buy a large, highly-leveraged asset that will probably decline enough in value in the next 12 mos to swallow your entire down payment and more, leaving you upside-down, in a worse situation than when you were renting?"

Two thumbs up!  Both are mine :)

I see nothing wrong with it

Gee,

Ya think just like a good agent, John......

Telling the truth and helping someone purchase a
home for the LONG TERM will get homes bought...
and sold.

Flipping is for investors, NOT home owners....

;-)

I really have a hard time writing that NAR check when I have to see this type of thing on TV.  90% of America translates this type of ad to:

"You thought we would tell you anything to make money?  You're absolutely right!  Now just sign here - I'm off to take a short sale class so I can handle my clients from '06".  They love me, and in two hours I'll be an expert!"

The only way to tell the truth is . if someone is qualified to purchase a Property , Yes the interest Rates are low . and yes , it is a great time to buy.

However not all the people are qualified for the home they might buy.

 

Great poste

Jonathan,

If the best advice to a buyer is not to buy when prices are low, they have the most choices and interest rates are favorable, then what advice do we give?  Certainly NAR has to give the blanket statement about all markets are different, because they are!  Some are fairing well and some aren't, but the ones that aren't are being more impacted by the negative media than they are from the foreclosures.  If we can convince some of the buyers that were planning on buying to get their heads out of the sand and look at the opportunity rather than the gloom and despair being spewed, we would'nt need to worry about an economic stimulus package.  The only ones I see being hurt by the market are those that bought high and need to sell without having lived in the home very long.  But again, the blanket statement because that is not true in all markets either.

I don't have to be a cheerleader to give out proper advice.  Sellers that have owned their homes for more than a few years may be thinking they are losing 20-30%, but compared to what?  Last year, 2 years ago?  Many have seen increases of up to and above 80%.  So have they lost 20% or gained 60%. 

Your statement of: Most people purchase homes for the security, privacy, and sense of ownership. Many people buy homes that they never plan on selling.  I believe is flawed, unless you're saying that people would want security, privacy and sense of ownership knowing that they could have all that and don't want their home to be worth anything when they do sell and many as you say that don't plan to ever sell, do!  I agree that we buy for the things you mentioned but certainly being a good investment is the major incentive.  It's certainly hard to have pride in ownership while you watch your investment in your home go down the toilet.

I'm sorry I don't get the angst over this ad. I have been in this business for 22 years and 20 years ago rates were at 10% at 2 points. So what on earth would you like to have in your perfect market? It is one thing to blow smoke up the ol' kazzuuu and the media demagogues adequately beat up this market to death (speaking of blowing smoke) and frankly folks the smart set as we speak are pawing through picking out the good deals and buying them and some are appearing on my desk and I know others are seeing them in our area too.

Your job as Realtors are to advise the client what a good deal and what a bad deal is and obviously you all know that. BUT if you are going to categorically say it sucks out there that too is blowing smoke.

Buying real estate is not for everyone that is a fact. You certainly can advise your clients to wait until the rest of the lemmings appear and then fight over what is left over. What ever happened to buy low sell high? Isn't it odd that now when the market is depressed the rush to find a deal sit on it fix it up then sell it for a profit down the road is gone? Why do people only look for the deals when it is an over heated market? So when is a good time to buy again? Nobody knows when the actual bottom will hit but are you telling me if you sell a home to one of your clients today they will be upside down in five years? Really?

In the years I have been doing this I have never seen so much crapping on your own industry in my life. I can only guess the people crapping have not been in the business long enough to see a down market.

 

I'm a firm believer that real estate markets are local markets with individual trends.  Because of this I simply have a hard time understanding why NAR feels the need to run national ads such as the one you illustrated.  

I have also been asked more in the last year "Is it a good time to buy?"  then in all of my years as a real estate professional.  My response is always "If it is right for you".   

NAR is out of touch with reality.  That shouldn't be a surprise to anyone.

Lets see, rates are great...

There is more choice than recent years...

and your problem is?  when buyers ask you about buying, do you tell them to wait for 24 months until prices go upppppp?  Geez, Louise.

I think it is a good ad as far as ads go. It is factual and every market is different. In my market prices have gone up (11%) in 2007 and inventory is down.

How can a national ad campaign preach the buy, buy, buy message when real estate is a local investment? Pass the Kool Aid all the way around. Spill the wine and drink that girl.

People have to have the right professional working for them to make an informed decision before they make the next move. We may call this a propaganda ad and some may say it's a true waste of time and money. But if at least will get someone to think maybe THIS is a good time to make a decision on purchasing. As it has been said in numerous comments above people are very smart. Sometimes they need a nudge to get the ball rolling.

Seems the ad is controversy is reflected well in the comments...

Our market is chugging along beautifully.  We do have a problem with half our inventory overpriced and half of our underpriced inventory being short sales, however.  You are absolutely correct in saying not every buyer fits!

 

I would prefer ads that depict the difference between "Realtor" and real estate agent. Too often, the words are used interchangeably. We subscribe to a code of ethics, I would wonder why others don't.

Also, as an aside, if you think your Realtor dues are wasted, think again. If it wasn't for NAR's powerful lobby, everyone, including banks and securities brokerage firms, would be selling real estate legally RIGHT NOW!

Jonathan~

TOTALLY...as you said..." Our role is to assess every buyers individual needs and do the best we can to guide them in the right direction to fulfill those needs.) "

I am thinking this morning that if each of us keeps this very thought in mind, the whole industry will be better for it.

I wish that NAR would do something that could really help Realtors, like maybe a group health insurance option. But instead they run this misleading drivel.

Sorry, Jonathan, but the market does not suck right now.

Okay, I know I'm in the minority here but.....

Aren't many of the people shooting down this ad the same people who complain that all we see in the media is how BAD the housing market is?  I personally am glad to see anything that says it is a good time to buy and encourages people to call a Realtor. 

And it IS a good time to buy - a GREAT time.  Mortgage rates low, tons of inventory at lowest price in many years.  In fact if you are a first time home buyer you should be jumping for joy all day long!

 

 

A more honest sales pitch would be: "Why rent when, for the same monthly cost, you can buy a large, highly-leveraged asset that will probably decline enough in value in the next 12 mos to swallow your entire down payment and more, leaving you upside-down, in a worse situation than when you were renting?"

Untrue, Robert.  That's an "opinionated", not honest sales pitch.  UNLESS....

you think we're in a long-term deflationary cycle akin to the Great Depression.  Is that your prognostication, Robert? (hold that thought, Sir)

Barring that, your statement shows neglect inasmuch as it assumes that real estate markets are not granular. While Southern California goes through "price discovery", Manhattan and Seattle boom.  When they decline, there will be values that develop in Las Vegas and Phoenix.

I sense that you're a brilliant guy, Robert but  your comments aren't rooted in much else than traditional bubble-talk.  I, for one, am hoping you post your economic predictions on your Active Rain weblog so we can better understand your comments.   I sense brilliance bubbling within that cauldron of despair you peddle but you have to open the lid. 

While I am not always a fan of the NAR, I do not think this ad is in any way mis-leading or 'fluffy'. If now is not a good time to buy then please tell me when it would be. More inventory to chose from, favorable interest rates and lenders re-adjusting their practices. Correct me if I'm wrong but isn't this the best time to contact the investors in our database and tell them why they should buy now? I have always been under the impression that buying low and selling high was a good thing.

This is a good market for good agents. Did we tell sellers it was a bad market when they had mutiple options? Why are we so upset when buyers have multiple options? This how the markets work supply and demand.

You are right about one thing. It's time for realtors to step up to the plate and give their clients sound advice.

Reading the comments it's almost fair to say it's a 50/50 split. All markets are not the same and as professionals our jobs has been to always give the best advice possible. Since most consumers only half hear the message of any ad, and the visuals are what spark the interest, (don't we just love those Super Bowl ads?), the message here was to get people thing about real estate so that at the very least our phones might ring.

Reading the comments it's almost fair to say it's a 50/50 split. All markets are not the same and as professionals our jobs has been to always give the best advice possible. Since most consumers only half hear the message of any ad, and the visuals are what spark the interest, (don't we just love those Super Bowl ads?), the message here was to get people think about real estate so that at the very least our phones might ring.

I like the positive message of the ad.  It is a good time to buy for buyers who were priced out of the market a couple of years ago, buyers looking to move up, investors.  It is not a good time for speculators.  Inventory is higher and there is more to chose from.  This ad is targeting buyers, is it a good time to sell a house right now?  Maybe, it depends on the indivual.

I disagree, I don't see any harm or misconceptions in this AD. This being a "buyers market," what better time for potential buyers to buy, when the prices of homes go back up? I agree with Diane McDermott when she says, "the market isn't good or bad, the market just is."

From this AD I got:

When you have a family it's always a good time to buy.
In this market there's a lot of options.
The interest rates are low.
It didn't makes sense spending the same amount of money renting when we can own it.
This is the best market in years in terms of choice.
Home choices have increased, and prices are favorable.
Every market is different, call a Realtor today.

Where did this AD go wrong?

I actually did not mind this ad at all.  I have heard a lot from consumers, though, about how they don't trust NAR because they feel it is too biased on the side of Realtors.  So from that standpoint, it would be hard for a consumer to trust that ad. 

We are in the Triangle Area in NC and the market here is still thriving.  I agree with Mike Elliott, what should buyer's do, wait until the rates and prices go up?  The ad is ok, it's not the best, however, now is the right time to buy!!!!  We expect the market to get better, homes appreciate in the future and if not why are we in this business?  Why not just get out now if things are so bad....

Hi Jonathan.  I am with you.  I have been a realtor for 2 1/2 years, after 15 years in financial sales.  I have been surprised to find that many realtors (including my own "training") treat selling real estate much as I used to sell stocks. 

Sure, homes are great investments over time.  However, if buyers would look at purchasing a home that they loved, they would live in it long enough to profit from it.  However, if the look at it as an investment, they will be looking for an exit point.  This leads to trouble.

Keep rocking,

Ken

Hi Jonathan.  I am with you.  I have been a realtor for 2 1/2 years, after 15 years in financial sales.  I have been surprised to find that many realtors (including my own "training") treat selling real estate much as I used to sell stocks. 

Sure, homes are great investments over time.  However, if buyers would look at purchasing a home that they loved, they would live in it long enough to profit from it.  However, if the look at it as an investment, they will be looking for an exit point.  This leads to trouble.

Keep rocking,

Ken

It's not that bad in Central Denver but it seems that other parts of the country are struggling from overbuilding but if you have a job and money in the bank and need a place to live or are renting than its a great time to purchase a home. Go For It!!

I'm sorry Jonathan but I completely disagree with you.  Maybe you missed the point of the commercial. It is aimed at buyers.  It is a better time to buy if you are a buyer than let's say 3 years ago.  Falling prices means more people can afford a house.  I live on Long Island, NY and it was getting ridiculous here.  You couldn't touch anything here for under $500,000, how is a young couple going to afford that?  Not to mention 10K in property taxes!

grat post. I am looking at eah and everyone's individual circumstance. We do have a lot government jobs here that people usually only stay for two years\

 

Hey guys, keep telling your buyers not to buy!!!!! Great Idea. I am a landlord. Guess what??? more demand for my product. Guess what else I'm going to do. I'm going to raise the rent. Or why don't you suggest the kids that want to buy stay home with their folks until things change. I'm sure their parents will love that suggestion.

What a bunch of crybabies. I have been at this for over 30 years. So have some of you. Did you forget when interest rates were 18%. When you could buy a single family home new for under $100,000. Are you going to wait until prices drop to that level?

Everyone is screaming about being professionals. Well how about acting like one. Our job is to be counselors, but how about being a little positive about your livelihood. Some of you have no idea how hard NAR and the NAHB worked over the years in getting legislation passed to protect the consumer as well as the members in the housing industry.

I can't imagine what some of your are doing to the other members in your offices with the negative attitudes you are exhibiting. Time for a career change. Get into retail or better yet the media.

I can assure you if you worked in my office, it wouldn't be for long.

To me the ad is geard toward the buyer, not the seller. I think the ad is okay. In my area buyers are buying properties at or below assessed values, which were never heard of before. And of course we are going to help the buyer when a deal is not a deal and may advise aganist purchasing a certain home.

I do disagree with the beginning of the ad, it is not always a good time to buy.

 Interest rates are low. In my area prices are favaorable for a buyer. Owning a condo in this area is sometimes cheaper to own then to rent.

Personally, I like the spot and think the NAR has produced a good message. Letting consumers know that the combination of increased supply and low interest rates equals a great time to buy is factual and honest. I also appreciate our organization promoting us and trying to overcome the media's one sided story of this market. The spot also clearly points out that each market is diffirent so contact a local Realtor to find out about your market. If you really listen to the message it covers many points that are not being covered by the national media. Thank you NAR for helping to get a positive message out there!

One wonders who write these ads and what is going thru their minds.

Lets imagine that you had a crystal ball that allowed you to glimpse into the future of the housing values in your market over the next two years, and lets assume that you were able to see that the market continued to stink and house prices dropped an additional 20% from where they are today?

Would it still be a "good time for families to buy"?

I believe the answer is, "It depends".   

This ad paints real estate professionals into a corner, and worse yet it takes away our position as the trusted professional. 

If blanket statements can be made that it is always a good time for families to buy, then why consult a professional Realtor?  

Since I don't need the local market expertise of a Realtor to help me decide whether now is a good time to buy, I might as well use Redfin, at least they will rebate 2/3's of the buyer's commission back.

You tell em LOL.....oh, and under your Video is a really great one with the Grinch...now that one might not piss you off quite so much, as it is more along the lines of the Market :)

I loved the ad.  It states that you have lower interest rates and more choice than ever before.  True!!!!

Everyone should not buy a home.  People don't need NAR to tell them that but for the people who are interested in home ownership, this is a great time.  I am sick of the negative spin of the media.  No need for us to dig our own graves.

OK OK... I would love to finish reading the entire log of comments above, but I must move on. Here is my two-cents....

What is so wrong with this ad? Could it be that you are looking deeper into this message than need be? Would the consumers look deeper into it, I don't think so. I am not even suggesting to look deeper! The message is simple, Great rates, yes we do, great choices (inventory), yes we do! It also said, EACH MARKET is different, yes it is!  What is so wrong again? If you are looking for the bad in this message then I have to question what you are doing in real estate to begin with (Sorry Jon, I like you and I just don't see the untruth in this particular ad)....  Ok... looking from the lighter side of things. I don't condone lying to buyers, I don't suggest to not look at the seriousness of many of our markets, I just say, TRUST an Agent/Broker and if you are ready to buy, then by all means...step up, Now is a great time with so many options and choices! Some options we didn't have a few years ago!  There I said it...

Jonathan wrote:    Lets imagine that you had a crystal ball that allowed you to glimpse into the future of the housing values in your market over the next two years, and lets assume that you were able to see that the market continued to stink and house prices dropped an additional 20% from where they are today?

Jonathan - let's imagine that crystal ball says the market has bottomed out and prices INCREASE 20%, half of that in the next 12 months?  Boy, if I were your client who you told the market sucks - for heaven's sake don't buy for at least another year I'd be pretty angry.   My point is that no one has a crystal ball, one can't see the bottom and upswing start until it's happened already and that long term real estate is always a good investment. 

 If blanket statements can be made that it is always a good time for families to buy, then why consult a professional Realtor?  

First of all, in my opinion, it is always a good time for families to buy if they want a home in a certain area in which to live for many years.  It is not a good time for flippers or investors. As to why consult a Realtor - people don't consult a Realtor to ask if it's a good time to buy.  They consult them when they have already decided it is a good time for them to buy.  They consult a Realtor to help them find the right neighborhood or house and negotitate the best deal.

If someone is a Realtor and truly believes none of their potential clients should be buying or selling, that person should probably find a different occupation.

Well said Amy.

It's never good practice to be misleading, and in that sense, I too am frustrated by many of my colleagues.  Several reports have been issued recently that point to an overall increase in prices in my local market in 2007 (Charlotte, NC).  Almost all of the Realtors I know have been quick to jump on this and decry the national media for harping on the falling home prices so much.  Almost none have taken the time to examine the situation closely.  I wrote a blog post about this which is on my profile.  The gist is this: our prices are falling too.  They're just behind the national trend.  They also won't fall as far because we didn't have as much "froth" in our market.  But to continue to insinuate that we have our own little impermeable bubble is not only ridiculous, it makes ALL of us look bad.

In addition, for MOST buyers needs, it doesn't matter very much if a market is falling or gaining.  This is because presumably you're buying in the same market you're selling into, and if you're ONLY buying, you can take advantage of the lower prices and "buyer's market."  I suppose you could be hurt in a down market if you're only planning on selling, but let's be honest, how many homeowners want to sell their homes so they can rent?  Not many (though I've seen a few exceptions).

In any event, perhaps we should focus a little harder on our responsibilities as fiduciaries, and a little less on acting like common salespeople.  If you wish to be regarded as a professional, you must first act like one. 

Amy,

If you were my client, I would ask you why you are buying. Once I knew your motivation I would be in a good position to consult you on an individual basis about the specific geographic market that you are buying in and how it will likely suit your needs.

Maybe you are planning on buying and holding your property, and you were just waiting for an opportunity where the market cooled enough and interest rates were low enough that you could get in.

Maybe you are planning on buying property to fix up and flip.

There could be one hundred reason why you specifically want to buy a home.  Depending on those reasons and the market that you are looking at buying in, I will give you custom, one on one, professional advice.

When I make blanket statements like "Now is a great time to buy", it cheapens my word.  And when we as an industry make those blanket statements to the entire market, it cheapens the word of every professional in the industry. 

Right on Jonathan. Dubya said today there is no recession. And remember when global warming was a conspiracy? Same ballpark. You've got a whole lot of active pros right now doing everything they can to educate each of their local markets... and this kind of crap comes out.

They are not us at NAR, nor are they us in Washington. What else is new?

Way to go... and copy the clowns on this, and the comment trail.

cheers 

When times are good, you think they will last forever, and when times are bad you feel the same way.  When we were in the middle of the market surge, many of us advised our clients to buy, buy, buy.  We as an industry have to shoulder much of the blame with the current market conditions.  Lenders got creative, and buyers got greedy, but we and REALTORS were the ones that should have been the voice of reason, but we too were caught up in the hype.  Lets not fall prey to this again by letting the negative hype that is going around cause us to again advise our clients to sit on the sidelines and wait.  The market right now is a self fulfilling prophesy in my eyes.  The longer buyers wait, the more prices will drop, and the more prices drop, the longer buyers will wait.  NAR is trying the ease the minds of buyers who are wanting to buy, but can't get past all the negativity in the media, and from the sounds of this blog, half of the industry out there.  I agree with many, you don't have to be a cheerleader, but you also don't have to promote doom and gloom.  Be honest, and work hard, the good ones will survive this market.

There is nothing in that ad that is untrue or misleading.

Interest rates are low and there are lots of choices in homes. I helped a nice young couple buy their first home 2 weeks ago and their new house payment is a couple of hundreds less than they were paying in rent.

I agree that in some areas the market is in the toilet but in other areas it is not.

What would you have them say: "The national market is horrible; don't buy a house!"???

I wouldn't like that ad.

Personally, I think we have all over analyzed the whole post.  Each of us have different opinions on everything that could be interpreted or assumed out of the post and the ad.  That's why in this business it is OK to agree to disagree.  Above all the comments, we are here to advise our clients professionally and ethically, and as Jonathan said and I do agree that we need to consult our clients on their reason for purchasing a home and advise accordingly.  However, that also brings me back to NAR's statement of consult your Realtor as each market is different.  Overall though saying it is alway a good time to buy is I believe referring to owning vs. renting.  Putting money in your own pocket is always better than someone else's.  If the market goes up or down doesn't mean you have to sell at that time unless you want to.  The choice is up to the seller as to when they want to sell.

I didn't find this ad offensive.  It stated that this is the best market in years in terms of choices, and the other reasons why it's a buyer's market, e.g., interest rates are low, inventory is high.  As Realtors, I would think most of us would encourage qualified buyers to own rather than rent, as does this ad.  And, of course, the NAR encourages buyers to use a Realtor to help them, which is good advice.  I've been sending the same message to potential buyers in my market.  Sure hope no one has taken offense!

While the ad has several good points, the conclusion is just ludicrous.  For some buyers, this is the greatest market they could hope for.  For many others, this is the worst time they could think of to move.  Trying to make everyone fit the same profile is short-sighted and not in the best interest of the average consumer. 

Honestly, I think the ad is pretty good.  This is a far better market for a home buyer than we've had in the past five years.  Better prices, much more inventory, and great interest rates.  Buyers don't feel rushed to buy a home they feel is overpriced just because it's the only home in their price range.  I don't see anything misleading in this ad - it's geared toward home buyers - and it's a buyers market.  Now, if it were trying to paint a rosy picture for home sellers, that would be misleading.  Just my 2 cents.

Is the market really that bad in Bellevue?  I thought it was still appreciating over there.

I alwasy preach that our market is local and not global. The East coast, West coast problems are NOT the same in my market. I liked the commercial. I have listings that I want buyers to buy. The more buyers out there in MY market, the happier I am.

It's a decent ad. Not every market is the same, some are in terrible shape, some are still appreciating.

Jonathan,

If you are renting? How much interest do you pay?  100%.  Please.....we don't shovel real estate like, like ditch diggers move earth.  We educate.  Ever been to any of the many many many other countries where property ownership is not possible.  Ever think we could live in a country where we are not allowed to buy, land, earth and piece of space in a building?  19 countries 4 continents in 16 years, I spent procuring property for the cellular business.  People getting shoved off land to build towers.  Here, we lease it, rent it buy it, what ever.  Its earth, can't find oxygen on any other planet we have gotten to?  Buy it here, buy it for what you can, get as much as you can buy, sell only after you have improved it and get it paid for to contract it to somebody else.  Read your history, the have and the have nots...start with the dirt they stand on.  Help me focus those who think not this way.  If not, get out of the way, if it's for sale and you don't want it, I am educating those that will one day imagine the tragedy of not getting it today and help me for the responsibility of those I did not get through too.  As for me and my clients, buyers will buy, sellers will sell, if somebody is selling low, someone is buying low.  If interest goes to 14% and you are renting, how much do you pay in interest?  Oh that will never change, as you rent you will always pay 100% of someone elses interest gaining them free equity.  Haves, have nots.  Get your star bellied printing machine moving, as some will want the stars removed and others will want them put on.   Good luck my friend, life isn't fair, but it always gets even.

Honestly speaking,I didn't see anything wrong with this ad. It was short,stated good points and got its message across. I liked the ad. Matter of fact,they need to air this ad more during primetime everyday. That would be very nice. Great post. 

I wonder how much they paid her to smile and wear that pin and say it's the best  market? May be they weren't talking about the any market on Earth? LOL 

I don't watch much TV and this is the first time I have seen this ad. It works for my area. Portland was #2 in the nation in appreciation last month.

I have to respond again to some of the inaccurate statements made regarding NAR. I think many of the negative posts here have been by people who haven't been in the market long enough to see a cycle or two and are wondering just what the hell happened to their easy paychecks when they could tell their buyers to buy-buy-buy on the upswing. Those are the people getting bloodied now, not people who bought on the downswing and held. They're the ones with equity. Did you do your buyers a favor encouraging them to buy last year, two years ago? Even if they bought an affordable house in their price range, they're upside down right now. Unless your timing is impeccable, real estate is not a short term investment.

Regarding NAR comments - one writer said - why don't they provide us a national health-care product instead of this drivel? They have tried. Did you respond to NAR's red alert last year regarding the small business health-care bill before congress. Who do you think was spearheading that on behalf of Realtors and ALL small businesses. That was narrowly defeated last year and hopefully will be passed this year. Maybe you'll help out this time around, eh?

One writer said - I'd rather see an ad about the difference between Realtors and agents. Again, that was the NAR campaign last year or the year before. Like most businesses, they change up their campaigns every so often so consumers don't just tune it out as same old-same old. This years campaign is specifically geared toward combating some of the negative press the market is bombarded with by the mainstream media. While it may not be applicable in every situation or to every potential buyer, it does serve a purpose.

Next time maybe you should get involved on the FRONT end and provide some input instead of just whining about it afterwards. Do you know your local, state and national directors? They are always looking for input. We are a grassroots driven organization and you are those roots. Get involved or get out of the business.

Don't wait to buy real estate - buy real estate and wait.

Hi, It might be my cold medicine making me slow...but this ad doesn't bother me.  The "great time" part is qualified by there being a lot of choice of houses  now.  Cheers, Harley

Jon... lol... I am not laughing at you. I started reading this at 11 am this morning when it already had 50 to 60 comments. I clicked on the video and it froze like twice... then I just got busy.

In any case, I read about half the comments and I also don't have a huge problem with this video. Do I think the NAR is at fault for not always portraying an accurate or true story? Yes... in this case, I don't think so. Yes, each market is different. But is this commercial any worse than the Countrywide or Di Tech commercials that are very vague in their statements? 

My one problem with this add and any add the uses the phrase, "rates historically low", is what gets me.  Lenn Harely and I think alike on this one. I think it's misleading, but it can be open for a different interpretation by so many. I wrote about this.... Historically LOW Rates - FHA or Conventional -- The Misconception

Overall, not trying to hijack this, but I read two of Brian Brady's comments and I thought he was right on for the most part. And Brian and I always don't agree, but I do here. Maybe NAR has just left a bad taste in your mouth because of what they stand for and how they go about it... the dues that they collect, but what do they actually do for the average realtor?  Maybe that is another blog in itself.  I'll be back later to read more and possibly comment more... giving a more clearer view of my points. I am just tired and burnt out. But great discussion here.

And before I go...  wow... Gene right above me makes some awesome comments. Since I am not a realtor nor to I pat that much attention to NAR, he makes some great points...at least in my opinion. 

you think we're in a long-term deflationary cycle akin to the Great Depression.  Is that your prognostication, Robert? (hold that thought, Sir)

Not a deflationary period and not the Great Depression. We're on the brink of a stagflationary period. Inflation is here. We've begun shedding jobs. It's not 1919, it's 1972. We've got a rough 6-8 years ahead.

This is a terrific time to make a lot of money, but the vehicle isn't real estate.

 

Re: Manhattan. Look at the 1990s. Manhattan crashed 2 years after the market at large. Why? Manhattan's cash comes from Wall Street and banking and both lag the general economy by about 2 years.

Re: Seattle. I have no idea what's happening in Seattle! (Haven't looked)

Re: Interest rates. If they rise significantly, prices will drop even more more. Higher rates put downward pressure on prices. Everyone here knows the relationship between rates and prices, they just seem to be forgetting it right now.

Jonathan,

I didn't read any previous comments and went straight for giving my opinion. which agrees with you.  I'm not a warm and fuzzy girl who paints roses on doo-doo.  Never have, never will. 

NAR is a joke when they come out with their optimisitc propaganda when all hell is breaking loose around us.  Haven't they heard of Bill Clinton lying about Monica.  Wouldn't it have been better if he had just said, "I did it, fogive me."  Putting lipstick on a pig isn't the way to handle this market and sure as heck isn't the way to treat my clients.  I wish NAR would get real.

Something just seems weird to me when a National Association comes out with commercials that are more Salesy then informational. Who can forget the $40 Million dollar ad campaign that came out in November of 2006 when it was a good time to Buy and Sell Real Estate? --> http://www.realtor.org/RMODaily.nsf/pages/News2006110701?OpenDocument

Sticking to educational/statistical information would go a long way towards credibility. The commercial is certainly right --- it is a better time to buy then the November of 2006 campaign. (For Las Vegas anyways.)

Could you imagine if the American Bar Association was running commercials that it's a great time to sue or the American Medical Association saying it's a great time to get surgery?

Personally, I think assocations should concentrate on improving/maintaining the credibility of the professionals that make up the association and not running self serving commercials.

Personally I have no complaints about my local market.

 It's been better and it's been worse and it will probably be that way again someday. ;-)

 A lot of times one's perception of the market is based between your ears rather than in fact.

The facts are that some market are pretty good right now and some are downright awful. 

I don't see anything wrong with this ad. As with any market, be it stocks or some other investments, including gas, groceries I may add, BUY WHEN IT'S LOW!

Quite a comment stream you've got going here...and a discussion well worth having.  I watched the ad.  It did not strike me as blatantly dishonest.  There seemed to be qualifiers in place to clarify the position.  That being said...it is an advertisement with the expressed intention to persuade towards a certain opinion or action.

In West Michigan, we did not experience the wild swings of exalted pricing that some other areas of the country did.  Property prices on the average went up between 3-7% on the average overall over the past decade...some areas experience more, some less.  It was stable, rational growth for the most part.  With the economic issues related to the loss of manufacturing jobs, we've seen steep declines in housing prices. 

Over the past 24 months, the average price in Grand Rapids, Mi is now 20% less than it was in 2005!  So, in this market with double the inventory levels, a decline of 20% and significant steps being taken to re-invent the economy by bringing in bio-medical jobs and green technology...it is probably smart to be thinking or researching your buying options.

I think we need to be prudent in our discussion regarding steps being taken to address the problem at hand.  Generalizations usually miss the mark...

Sorry, I am going to disagree with you here, Jonathan.  I actually liked the ad.  To my way of thinking, it IS a great time to buy because there are lots of choices, prices are reasonable and interest rates are great.  And that is what the ad said.  I believe that every market is good for SOMEONE.  And this one is no different.  In my area, rents are going up and rentals are getting harder to find - it just makes sense to buy instead of rent,  Consumers need to know that, too - not just the talking heads stating doom and gloom.

I'm not a real estate agent.  Just a regular consumer.  The ad is ridiculous, transparent, and misleading.  Anyone in a bubbly area knows that house prices are laughably out of whack with historical income and rent ratios.

Consumers are savvy.  We appreciate transparency.

From an economical standpoint, say I'm looking at a $250k house.  With a 10% decline, that house will be worth $225k next year.  So, by simply waiting a year, I "make" $25k.  Given the fact that many people can't get loans (thereby demand is decreased) and that supply is high (meaning supply and demand are not in equilibrium) I just don't see how prices could do anything but decline, at least where I live.