Jim the Realtor

I don't even know how I stumbled on this youtube channel, but it's amazing.  Jim was a high end realtor in California, but when the market tanked he ended up selling foreclosures for the banks.  He takes us on a tour of homes on the market.  He has the most sarcastic, dry sense of humor.  He is so honest, there is no sugar coating a piece of crap house.  The best part, often he is the realtor trying to sell the house!  Some examples:

I had no idea that people would actually trash their homes when it goes into foreclosure.  Some of the homes people take all the doors, fixtures, appliances, and anything of value.  One guy even took the toilets and then poured concrete down the drains.

Last weekend I was sick laying on the couch watching his videos.  I learned so much about the why the housing bubble burst and why things aren't going to improve quickly.  Here's why, a house goes into foreclosure, then the bank tries to sell it.  A realtor lists the house for the bank for less than the vlaue of the house, but doesn't allow for the house to be shown, and it gets no offers.  But they aren't worried about it because they already have a buyer lined up.  So then they go to the bank and say look, it hasn't sold, so let's lower the price.  The bank agrees.  Then their buyer offers less than the current listing price, and the bank accepts it to get rid of the debt.  The bank assumes the realtor has done their job, and the price is an accurate value for the house because there was no interest at a higher price.  So now the banks have lost money on that house (and lend less money out because they are losing money on foreclosures).  But the real problem is that now that selling price becomes the new benchmark for the neighbourhood.  So then the next house that lists uses that shady dealing to price their house.  Jim the realtor drives around and showes how this is driving the prices down, and how it is causing people to become up-side-down on their mortgages.  So interesting!