In my last post I talked about real estate agents and blogging. But, that post was really about clueless real estate agents and how they market their message to investors.

I’m going to finish my real estate agents who blog thought here.

Now, before I make a lot of enemies here I want to say there are a few real estate agents who have blogs that are informative, useful and timely. But, most of them are just crap. They spout platitudes instead of facts and try to hype anyone looking to buy or sell a home. They talk about things they know little or nothing about.

Here is a little fact to chew on. A real estate agent or broker is the only licensed professional in this country who requires you to acknowledge anything they tell you in any way is probably incorrect and you will not rely on it as part of your decision making process.

No other licensed professional can hide behind that. If a construction engineer gives you bad advice and your house falls because of it you have recourse against the engineer. If a lawyer or doctor gives bad advice and you suffer damages because of it, again you have recourse.

If a real estate agent tells you a property is a great buy and you will do well with it over time and it turns out to be wrong, well, tough. You agreed to not rely on anything they told you.

Does this mean all real estate agents lie to get a listing or make a sale? Of course not, but enough of them do to get them all lumped into the same group.

I kind of feel for them there because real estate investors, good and bad, get the same treatment. There are enough dishonest investor types to taint the image for all of us.

This leads me to a comment posted to the previous post. In it a link to this was included…

Sure, let’s just not see real estate as an investment that you can live on in your later years through a reverse mortgage.

Let’s forget about the fact that real estate forces people into saving.

Let’s ignore all the information out there that suggests people really are happier mowing lawns because the lawns are their own.

Let’s forget all about the American Dream.

Let’s turn a blind eye to the reality that most millionaires either made their millions in real estate or hold their millions in real estate.

Let’s not hedge against inflation.

Let’s feel uneasy about the safety of our own real estate investments only because 2 - 3 people out of 100 have had their homes forclosed.

Let’s just let fear run the real estate market, shall we?

Suits me. If you want to rent my houses for 30 years, I might just let you!

That is exactly what I meant. In my opinion, based solely on her post, I think she either knows precious little about what she is talking about or she hides her knowledge well.

1. Reverse mortgages are rarely the best option.
2. If owning real estate forces people to save, why do we have the lowest savings rate in the industrialized world yet homeownership rates are among the highest in that same group?
3. Her third point is just dumb.
4. Owning a home is the American Dream? Silly me, I thought it had something to do with freedom and self government.
5. Her fifth point plays on a myth the dishonest guru types put forth. It just isn’t true. I encourage you to read The Millionaire Next Door by Thomas Stanley and William Danko if you want the truth about that.
6. Real estate is not a hedge against inflation. Historically, appreciation barely keeps up with inflation. See Appreciation is not the play for more.
7. She doesn’t understand the market forces driving the foreclosures right now and if people rely on her to help them figure out which home is a good investment for them, they might have a lot of reason to worry about the safety, security and wisdom of their ‘investment’.
8. This one stands on its own. Read the Forbes article and then compare that to her screed.
9. You know, I’d be very nervous renting from someone like that, but that’s probably just me.

She later posted her reflection on real estate blogs on July 10th

Okay, thank you all for your comments on the previous post.

I understand real estate is an issue that gets very passionate responses from everyone - on both sides of the argument. I, for one, will never - repeat never - favor the stock market over real estate.

This blog is my opinion, from what I have read, and what I have experienced.

It is meant as an educational tool and does not supplement your own research.

It is a starting point, for the un-jaded, if you will.

And I AM willing to put my money where my mouth is.

Let’s just agree to disagree, shall we?

Yep, it is probably wise to just agree to disagree. But, we could agree to compare success stories in say, five or ten years? I’d be happy to compare success stories from the last five, ten or even twenty years too!