Kamala Harris’ housing plans, a new era in real estate commissions and a new assault on phony online reviews. From the wild and wooly world of real estate, here are the Hits and Misses for the week of Aug. 12-16.
Miss: Thus Spoke Kamala. After weeks of silence on what she could enact as president, Vice President Kamala Harris finally laid out her plan for addressing the challenges facing the housing market. Unfortunately, Harris’ approach involves more government involvement in the housing market, including a federal goal of building 3 million new housing units in four years plus a new tax incentive for builders that create properties for first-time homebuyers. Harris doesn’t say how she’s going to pay for those new homes, and it appears that she ignored builders when they complained about the federally mandated obstacles that are preventing them from building affordable homes. But while Harris may be offering a bad plan, at least it is a plan. Former President Donald Trump took the opposite route by offering no specific plan except the insistence that the economy will instantly snap back to pre-Biden normalcy if he is back in the White House.
Hit and Miss: Come Saturday Morning. Aug. 17 marks the beginning of a new era in the real estate profession as the practice changes in the National Association of Realtors’ (NAR) historic settlement go into effect. To its credit, NAR has been highly proactive in clearly explaining the practice changes to both its membership and the public. But on the other hand, it is difficult not to be disappointed in NAR’s willingness to settle rather than appeal the case. It is no secret that NAR lacked the finances and patience for prolonged legal battle, but the Sitzer/Burnett case was riddled with problems and the organization should have stuck to its proverbial guns to fight the good fight.
Hit: Slapping Back at Phony Reviews. This week, the Federal Trade Commission (FTC) announced a final rule to “combat fake reviews and testimonials by prohibiting their sale or purchase and allow the agency to seek civil penalties against knowing violators.” As any hard-working and honest professional will attest, there are few things more unfair and irritating than phony and negative criticism published about a business or individual on a review platform. Other aspects of the rule also prohibit certain reviews and testimonials written by company insiders that fail to identify the critic’s connection to the business – yes, people write phony positive reviews, too. The FTC didn’t spell out the enforcement penalties, but it is easy to imagine the first round of punishments could be handed out sooner rather than later.
Hit and Miss: Full Steam Ahead, Disney-Style. Less than a week after reporting weaker than expected returns from its theme parks, the Walt Disney Co. unveiled what it promoted as “an unprecedented slate of projects including new attractions, lands, and more” designed to bolster the strategy of using the company’s real estate holdings to boost revenue. This included what the company billed as the “largest land expansion” at the Magic Kingdom within the Walt Disney World Resort in Orlando, along with new attractions and lands at Disneyland in Anaheim, California. It is an exciting strategy, to be certain, but the company did not offer an explanation on how it would pursue these goals amid ongoing concerns about elevated prices at the theme parks. Will prices drop in the near future when the new attractions open, or does Disney expect visitors to continue paying exorbitant prices out of brand loyalty?
Hit and Miss: This week, Detroit resident Krystal Davis was sentenced to two years of probation relating to her shenanigans where she conducted business as an unlicensed real estate agent and accountant. In June, Davis entered a no contest plea to one count of Accounting Violations-Unlicensed CPA (a felony) and two counts of Occupational Code-Unlicensed Real Estate Agent (a misdemeanor). While it is good news that Davis did not get away with her chicanery, it is very disappointing that she is not being required to pay any financial penalties for her crimes. Yes, justice was served – albeit in an over-easy manner.
Hit: A Fraudster Exposed. Another woman is facing the justice system, and hopefully she won’t get off lightly. Lisa Jeanine Findley was arrested for coordinating the bizarre scheme to steal the ownership of Graceland, the grand estate of Elvis Presley, by using forged documents claiming that her make-believe company called Naussany Investments & Private Lending LLC obtained the property after the singer’s late daughter Lisa-Marie Presley defaulted on a loan. Findley tried to cover her tracks by making it seem a Nigerian identify thief was responsible – the Missouri native was charged with mail fraud and aggravated identity theft. We’ll keep you updated on Findley’s fate.
Phil Hall is editor of Weekly Real Estate News. He can be reached at [email protected].
Photo: WPIX-TV
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Clearly Harris expects not to deport illegal aliens, but to build housing for them to continue to live off of taxpayers and feed them all as well.
The major issue with the terrible settlement made by NAR is that they represent all these licensed agents and brokers and did not meet confer or even allow a vote – rather than just agree to an unjust and unreasonable settlement. It hurts buyers, especially first time, buyers, and caused unnecessary damage to the professional businesses of the realtors they represent. All properties have to appraise all commissions are negotiable, but what they came up with is ridiculous and all with no viable help to any parties they were trying to “protect”. The average real estate agent earns only $52,000 a year, and yet the unlimited amount lawyers can make absolutely makes this an unsound, unjust issue.
Bingo Brian , I’ve felt all along the NAR attorneys were weak and worthless.
I think it’s a bigger plan to allow the mega Corp investors to further control where rents end up and make it harder for the little guy and gal to get a leg up.
They want control of our food, power, internet and now housing.
They’re all in bed together.