California Association of Realtors: Serious sellers only

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Random item: In projecting today a further weakening of California’s housing market -- to the lowest level of sales in 22 years -- C.A.R. President Colleen Badagliacco again urged homeowners to think twice before listing their homes for sale: “Now is not the time for homeowners to ‘test the waters’ –- only serious sellers should put their homes on the market in what will continue to be a challenging sales environment.”

This advice -- which we’ve noted before -- raises a couple of questions:

Is it good advice? We understand the advice is directed at homeowners who have unrealistic expectations about the value of their home -- these are the sellers who refuse to lower their prices, and their homes don’t sell. But what’s the harm to that person in learning that they are wrong about the value of their home?

Is it legal? We wonder about the legal issues raised by this advice. Let’s say strawberry prices are falling. Can the strawberry growers association legally urge farmers to think twice before they sell their strawberries? Not a good example, you say. OK, let’s say the value of new and used cars is falling sharply, and there is a glut of new and used cars for sale and Detroit is in a panic -- can the automotive lobby legally urge Americans not to ‘test the waters’ on prices for their used cars?

We spoke briefly with Ms. Badagliacco today and she told us, ‘At first blush I don’t see a legal issue -- that is just advice.’ She points out the C.A.R.’s guidance is just that -- guidance to Realtors and potential sellers about what works, and what doesn’t, in this market. What doesn’t work, she said, is when unrealistic sellers insist on listing their homes at prices well above current market value.

We’d like your thoughts on this -- serious thoughts, not just random Realtor-bashing.