Experts; What does it take to be called an expert? April 28, 2008Posted by shaferfinancial in Uncategorized.
Tags: economy, experts, naysayers, net worth, real estate agents
Bad news travels fast. Real Estate market is lost for a generation. Stocks falling in the face of a recession (depression). Interest rates dropping on CD’s, annuities, savings, etc. Yea, it is all out there now. Every naysayer with a keyboard is opining about the “fall of the empire.” Just a few years ago it was opposite. All these keyboard experts were talking about “flipping houses,” the stock market rebound, and “trust deeds.”
And then everybody, I mean everybody had a real estate license. The other day my neighbor had a city exterminator over to catch a rodent. He saw her for sale sign in the yard. Suddenly, this guy, a self disclosed part-time real estate agent was rendering advice. “I predicted this bad real estate market,” he says. “You should take your home off the market and sell in 2011.” No comment on whether he sold houses to folks in the 2003-2005 period while he was predicting a market devaluation.
Truth be told, the majority of real estate agents ignored the truth of what they were doing. They knew they were selling homes, lots of them for over market values. They knew how the appraisers were appraising homes over value. They knew their clients couldn’t afford the homes, got questionable loans, etc. Yet, they just smiled and sold homes. I suppose you could argue that since so many of the agents were new or part-time they were incapable of seeing the truth. Just like those internet keyboard experts, they were making judgements without knowledge or experience.
Folks, if you follow the herd, you will be hurt. If you don’t figure out how to think independently, or at least hire folks who can think independently for you, you will be hurt.
I talked to two folks over the weekend about the Shafer Wealth Academy(www.shaferwealthacademy.com). It was interesting. They started to tell me about the economy and what to invest in. I asked them what their net worth was. Neither of them had a positive net worth. Think about this, you call someone up who is offering to help you build your net worth, and start to tell them about good investments. Yet, you are poor. Oh, and by the way, they were both “former” real estate agents! So far I have talked to several real estate agents, mortgage originators, mutual fund/insurance salesmen, a CPA, and a stock broker. All were basically broke. Think about that the next time you get advice from a so-called expert!