<![CDATA[SUBHIR UPPAL, MBA - Blog]]>Sun, 12 May 2024 05:34:31 -0700Weebly<![CDATA[Self serving interests in real estate reporting in the media]]>Wed, 21 Feb 2024 18:57:46 GMThttp://subhir.com/blog/self-serving-interests-in-real-estate-reporting-in-the-mediaThere are a few common themes whenever you read an article on real estate:
  • The market is always heating up or bouncing back with prices expected to soar and break new records
  • Interest rates are going to be cut “very soon” 
  • There is usually some generic mention of  ‘supply and demand’ principles resulting in housing shortages typically blaming a hot topic issue like immigration

The story is always the same: we need to brace ourselves for another real estate boom and jump in the market before we miss our opportunity. The fear of missing out (or FOMO) is real, and it is pretty easy to cleverly manipulate market statistics to really build on these fears. Buy now or be priced out forever!

Why are we seeing this constant, fear mongering coverage in the media on real estate? Real estate itself is pretty boring. You take a look at a few homes, find one you like, make an offer, and then you close and move in. As a broker, I get great satisfaction in helping people find their dream home, but I realize this doesn’t make headlines. Real estate boards and lobbying associations are pushing these FOMO stories because they get media coverage. You can’t blame them for catering to their membership.

It doesn’t help when this sentiment is also echoed by an industry that has very obvious and clear motivations. The real estate and mortgage industry relies solely on the number of real estate transactions. Realtors and mortgage brokers are typically compensated by commission on the sale price or mortgage amount after the closing of the transaction. The more transactions that close, the more money there is to be made. So it is pretty obvious why those with vested interests in real estate are often suggesting that now (or any time for that matter) is the perfect time to buy or sell real estate. 

I am not saying the whole industry is plagued by greedy salespeople that will say whatever needs to be said to make a sale. Realtors and mortgage brokers are essential to the process of buying and selling real estate. I am suggesting that you, as the consumer, need to be careful on where you source your information. At the end of the day, the money comes from your pocket and you cannot depend on self-proclaimed experts to always have all the answers and solutions for you. You need to understand the risks and consequences of haste financial decisions, especially one as large as purchasing a real estate asset, as you will be the one footing the bill.