Comments on: Real Estate Agents Don’t Understand Finance

By: Vernon | Fiberglass Exterior Doors

Vernon | Fiberglass Exterior Doors — Sat, 21 Nov 2009 01:24:19 +0000

I’ve been watching the real estate industry pretty closely these days (in the business), and I’ve got to say that there’s a lot of financial misconceptions out there about what’s possible or not with respect to these investments. Mathematically speaking, the ROI has got to be one of the biggest trip-ups for many folks! Not only that, most folks don’t even have a realistic view of ROI. Once I read this article that a woman bought a house, did some wall papering and fixing-up over a week, and told the newspaper interviewer that she thinks it’ll appraise for an increase in $100K! I mean, ROI or not, this sounded outlandish!

By: The Financial Blogger » Blog Archive » Finanical Ramblings

The Financial Blogger » Blog Archive » Finanical Ramblings — Sat, 14 Nov 2009 19:15:11 +0000

[...] Real Estate Agents Don’t understand Finance By Wisdom Journal (in fact, they don’t understand much ). [...]

By: Kent Hu

Kent Hu — Thu, 12 Nov 2009 22:57:48 +0000

Great post Ron – it’s just simple MATH, any relator or CPA should understand it

By: Ron

Ron — Thu, 12 Nov 2009 21:52:30 +0000

Excellent point, though more than just Realtors missed that one.

By: ctreit

ctreit — Thu, 12 Nov 2009 20:36:42 +0000

I would also suggest that many real estate agents don’t understand real estate, either. They are in the business of earning commissions for themselves, which does not necessarily require a good understanding of the real estate market. How many real estate agents do you think had an idea that the bubble was coming to an end a couple years ago? Even the head economist of the National Association of Realtors was so blinded by his business that he thought real estate prices would keep going higher.

By: Credit Card Chaser

Credit Card Chaser — Thu, 12 Nov 2009 19:40:03 +0000

Haha so true – it is quite funny to see real estate agents talking about ROI on TV when they likely struggled with even the basic math that is required to get a real estate license (nothing against the Realtors out there with above average financial knowledge but being a Realtor is certainly not an indicator of financial knowledge).

By: Joseph @ DebitversusCredit

Joseph @ DebitversusCredit — Thu, 12 Nov 2009 17:24:27 +0000

Thank you for this post! You’re so right! In the age of HGTV it’s so easy to get caught up thinking that doing this and that to your house will give you a huge return on your money when you finally sell your home. In reality you’re lucky to break even on what you spent. Fantastic post!