As if we all didn’t see this coming. Discount brokers are hitting hard times in the market and Foxtons out of New Jersey has stated that it might be headed for bankruptcy. Foxton’s announced that they will be laying off approximately ALL of their staff. I wonder if I can buy one of those cool minicoopers at a good price?

Discount brokers can only thrive in a market that is hot and where the liquidity of real estate is fast paced. The problem is that real estate is NOT a liquid asset, except in a boom such as the one we just had.

The reason owners pay a 6% Realtor commission is because in traditional markets, you need a professional to help sell your house. They have an in, they know of people looking to move in to the area, this is what you are paying for.

Although I know we all have mixed feelings on Realtors, I can assure you that the value of a good Realtor is becoming more important than ever.

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What is wrong with this country? Now the government has decided to enable Fannie Mae and Freddie Mac to bail out homeowners.  Uncle Sam is not responsible for buyers who over extended themselves. The market needs to let this play out and unfortunately people need to get hurt for this correction to work. The proposed government bailouts are nothing more than temporary solutions, while at the same time telling the public its ok to screw up and not read what you sign.

Come on people.. if you are old enough to sign a legal document, then you need to be responsible enough to read what you sign! Ever here of the saying “Buyer beware”?

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