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Note: Sharp Stick Fridays is an every Friday Feature where I tear apart the conventional, sleepy wisdom of the RE.NET.   We are taking the behaviors of Realtors/Lenders to their logical end product.  A chance, maybe to channel my inner Housing Panic.

We Know What You Take, But What Are You Here To Give?

So many real estate agents, mortgage brokers,  and hangers on came into this business around 2001, and made a fortune.   Was a 6 year run that people were able to drive German Automobiles, eat fine wine, and make every dime they wanted to. 

But there was no gratitude.  The assumption was never that this was a novel time that was not to be repeated.   There was nothing more than a sense of entitlement throughout the industry.  Realtors said, “My buyers lied to me, and had me show 23 houses and wound up buying with someone else.”

Mortgage people said, “What, the Realtor* is getting paid 3% and he had a problem with me making two upfront points.”  (And probably 3 out the back, but that’s neither here nor there)

The industry brought compensation far beyond the level of skill that the practitioners were forced to exhibit.   So, all sense of proportion was lost.  The famous quote about George Bush was that he was ‘born on third base, but thought he hit a triple.’   They thought they had earned ‘every penny,’ of the largesse that the industry brought to anyone on the coasts that was practicing Real Estate at the Right time.

Let’s list a ton of houses, let’s be hard to reach, and pretend that this success is sooooooooooooo stressful.   Let’s treat our clients like numbers, and let’s pretend we’re more important than we are!   Comeuppance is always a bitch. 

Realtors, were, by and large terrible at their jobs, provided self centered advice (Oh, sure, buy that slab PUD for 600k, it’s a GREAT find, what bubble, I need my $18k)

Mortgage Brokers, by and large, were committing INDUSTRY SANCTIONED fraud.   Let’s make sure that we acknowledge this.  It wasn’t a few bad actors.   It’s everyone.   I don’t know a single realtor who didn’t have a deep knowledge of “stated W2″ suicide loans.   And even though Option Arms were never really popular here in Ohio, they still existed.  The fraud was not even considered fraud.   It was something else, business as usual, the way deals get done, whatever.   Stated loan abuses were the worst–I heard a phone conversation from a reasonably honest loan officer in 2006…”Well, the question isn’t what you made last year, it’s what you intend to make this year…”   Under that standard, then I qualify for Buckingham Palace.

Mediocrity, pompousity,grandiosity, and probably obtusity had been the rage. I myself was guilty.   You get real confused when you’re making money and think that’s a reflection of the vitality of your soul.  It’s easy to do.   Look at PacMan Jones. 

Also consider: It’s not that novel or difficult to score $250,000 a year.  Really.  But if you’re an incessant shill, who is alone on the weekends, what the hell does it really matter how much money you’ve earned?   The money part doesn’t make any of us special.

So now that the jig is up, the news is out, and they’ve finally found you, how do you move on?

First, Last and Always, The Client’s Best Interests

You might have been a lead monkey in the past.  Hell, you might have been the guy that caused this mess.

The deal is that you’re probably not getting prosecuted.  You’ll probably be allowed to keep your business, your license, if not your house.  And if you learned the right lessons (the wrong lessons being the Moral Hazard), you can use this to make some money.  

Get out of fantasyland.  The days of overcompensation may return, but not for a while.  And in the mean time, there are people that need us more than ever.  A good practitioner that gets in the habit of being a Fiduciary, will not have any shortage of deals or clients.  Sometimes the best move for the client is no move.  And you can’t fake honesty, people have B.S. detectors.  If you lie as a habit, people will figure it out, find out and resist your every move.  So don’t lie.  

Our industry bred an army of middle aged obtuse boomers with a serious entitlement attitude.   So be grateful.  Don’t have your neurons fire ad infinitum on what things you “deserve” because, seriously, how much of yourself was used to help people?  How many times have you treated citizens as things to close instead of people?   Sew something great, and give of yourself, and you’ll reap spectacular rewards.

Your checkbook balance isn’t the sum total of your life.

…

Monday the podcast starts…

And then we’re doing a conference call in just a few days.

Go sell something.  And be humble and grateful for the opportunity.

OH–In Case you don’t see the stuff I see:

Jeff has impeccable taste in music.  So much so that I don’t rely on myself to find any music anymore, I just snag what he likes.  My new-favorite-band is the Hold Steady.  They are unlikely to make it huge.   My second favorite is Dan Bern.  Sometimes Dan is my favorite.  Probably most of the time.  But anyway, Chips Ahoy! is a great tune.   Maybe Eric will dig this one, although Certain Songs is more summery.

And Housing Panic totally wears me out, but this post won me back.

*Realtor is a trademark of the National Association of Realtors that they are doing EVERYTHING THEY CAN TO DEVALUE.

Presumably Related Posts:

• What He Said.
• Face/Lift Part 2
• Blogging More Effectively w/Google Docs.