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Suze Orman Speaks Out

02/26/08 | Vivian Lacy | Category: Atlanta Real Estate, Buyers, Mortgages, Sellers

Vivian LacyI was channel surfing a few nights ago and came across the Suze Orman show, the personal financial expert for CNBC . Suze was providing financial housing advice to a young couple from Oregon who found themselves in the situation of owning two homes, and paying two mortgages.

Simply put, the couple purchased a second home before selling their first home, and wanted advice on how to fix their problem.

Suze was visibly outraged. She lectured the couple that they should have never purchased a second home without first selling their home. And then she screamed into the monitor, to everyone listening,“You should never ever under any circumstance purchase a home before selling your first home. And, if you do, never, ever without a contingency.”

As a Realtor, I agree with this advice — with the exception of “under any circumstance.” There are several circumstances where people choose to buy before selling.
However — what sat me straight up on the edge of my chair — was what came out of Suze’s mouth next. She asked the couple, “If you didn’t have to pay the real estate commission, would you at least break even?” The couple lit up like a light bulb, and cheerfully answered, “Yes!”
Suze went on to say, “Your real estate agent gave you some bad advice by allowing you to purchase before selling, and clearly placed his/her own interest above yours. Because of that bad advice, this is what I want you do. Go back to your listing agent, and demand that they market and sale your home — minus their commission — because they are the reason you are in this situation.”
I sat straight up in my chair in disbelief. What!?

My issue with Suze’s advice to this couple are many, but here are just a few.
  • First, she obviously thinks a real estate agent has the power to force the consumers to buy or sell homes.
  • Second, Suze was not privy to the couple’s decisions as to why they chose to buy a new home, or sell their old home.
  • Third, she was not present for any of the conversations and counseling the Realtor provided to this couple.

It wasn’t clear if the listing agent was also the selling agent. Perhaps the couple listed their home for sale with one real estate broker and purchased a home through another. Suze assumed it was the Realtor’s fault that the couple now has two mortgages.

And, to solve the problem of carrying two mortgages, Suze not only told this couple, but everyone listening that may be in the same situation, to demand the Realtor to pay for the couple’s mistake by working without compensation.

I say Suze shouldn’t receive her salary for that episode of bad advice. What do you think?

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