Bay Area Sweet Digs

March 30, 2008

As Expected, NAR Commercials Biased and Irresponsible

As I sit and watch the NCAA Tournament on CBS, I have to endure repeated advertisements by the National Association of Realtors stating why it’s a good move to buy a house this year. Please.

It’s not that I am surprised at all I guess. I shouldn’t be. Just look at the wonderful books the NAR’s former chief “economist” (and I use that word loosely in this case) David Lereah had written in recent years before his exit:

2005: “Are you Missing the Real Estate Boom? Why home values and other real estate investments will climb through the end of the decade, and how to profit from them.” (Long title much?)

2006: “Why the Real Estate Boom will not Bust–And How You Can Profit From It. How to build wealth in today’s expanding real estate market.” (Shorter title, but equally terrible message!)

Not much of a track record for guiding the general public, wouldn’t you say? If you followed the advice of the former Chief of the NAR when these books were published, you are likely in major financial trouble now. Are you sure it’s a good idea to listen to the NAR now? Never.

See their new website for supposed housing market “facts.” I couldn’t even finish looking it over.

Posted by david.g on March 30, 2008 1:23 PM | del.icio.us | Digg

  • david gordon
    Yes, and the sad thing is these people probably actually believe what they are preaching. They have succeeded in brainwashing themselves!
  • Red
    I still see adds trumpeting how homes double in value every ten years, so buy now, and "Own for less than Rent", but the monthly is interest only 5 year buydown rate without including HOA and property taxes.
    The NAR seems to have set the standard of ethics, I'm afraid.
  • David
    Stockbrokers would be banned from the securities' industry for making the claims R.E. agents do.
  • david gordon
    April Fool's - that would have been appropriate! :)

    Great point you make, Janis. What good is an industry association if it is full of BS? Most of their claims can easily be shot down with real data.
  • Just chiming in about NAR's reputation. Those two book titles are hilarious. You should have posted this on April 1! NAR needs to be accurate and realistic or it will lose all credibility.

    Many industry associations give honest assessments of how things are going with their markets. Just as one example, the head of an association for storage centers told me that market is "mature," a polite way of saying there's lots and lots of such centers competing with each other and not much growth.

    That's an example of bieng honest but still being discreet. As it is, NAR is starting to look like the anti-Chicken Little, cheerily chirping, "Prices aren't falling!" despite all the evidence.
  • david gordon
    I think they could use the message in this commercial and refine it - say, add something in there about working closely with your financial advisor, broker, lender, everyone to really see what you can afford and how long you think you will stay in that house. Mention the risk of foreclosure if these things are not paid close enough attention to. Then, I could live with the message. They obviously need to push their product.
  • gfw
    The NAR commercials made me nauseous as well.
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