re: Are Realtors Scumbags on Average?

This is totally ridiculous.

If the house doesn't appraise, no lender will give the buyer the money to make up the difference. It is the lesser of the sales price or the appraised value and they will get a percentage of that lower number.

So what would you do? In a situation like this, the deal almost always falls through. The reason being:

1. Buyer finds out they are overpaying and changes their mind.
2. Buyer wants the house and agrees to price but can't make up the difference.
2. Buyer now doesn't trust seller and feels that they were being taken advantage of, just quits returning phone calls.

Unless there is an overinflated market where people are willing to pay cash over for a particular reason (i.e. special property, location, ammenity, sentimental value, famous owner, history, whatever), then the deal will usually fall through. No realtor is going to fix that. Since 2008 a lender will almost never take another appraisal. People rail on here about inflated appraisals, it wasn't only the brokers pressuring appraisers, which no one mentions the realtors part in the sub-prime debacle.Lenders would rather pass on a deal than take the risk on another appraisal; this would easily be a deal to pass on. The buyer would be more apt to walk away, since they would be severely upside down (they basedecisions on risk, not persistant realtors). So unless a realtor was both the lender, appraiser, and the owner; how would they fix it?

I was in the mortgage business, not a big fan of Realtors because they are like home inspectors, there is always something wrong,unless they came up with it. Also, Realtors can get away with far mor underhanded things such as receiving gifts from Attorneys, appraisers, lenders, etc. However, they serve their purpose.

This example is just ridiculous.