“We went to a Chinese restaurant near Main St. and who was booming real estate advice to a middle-aged woman but this crazy realtor. He showed her how, using his hand like an airplane, the real estate market would go down by 5%. Then, plane angling up, it would go back up again and that at the end of 10 years it would not lose any money. (Why again are stock brokers forbidden from making similar comments on the market but RE agents aren’t?)
He then tried to sell her on a condo downtown telling her there were good deals there as prices were down (dunno… maybe part of the predicted 5% dip). Then, she said something, we couldn’t hear, and next thing you know he said condos would go nowhere for the foreseeable future and they weren’t a good deal, a way to lose money. The best deal now was a house with a yard. Eventually I had to drown him out by putting my chopsticks in my ears. I don’t know how I managed to digest dinner.”
– mac at VCI 23 May 2012 10:12pm
Realtors are salespeople, and are unwise to be making predictions about market direction.
What if clients took them to task on these predictions later?