SOME Minnesota Realtors Growing Fat From Selling Overpriced Homes To African Immigrants (Minneapolis: foreclosures, rental)

[Camden Northsider]

I'm not saying discrimination against immigrant/minority persons doesn't happen in the Twin Cities, because it does (like everywhere else in America, basically), but your claim of unscrupulous realtors "getting fat" off of selling overpriced homes to immigrants has no merit based on the two anecdotes you shared.

If the realtor was representing both the seller and purchaser, then you might have a case that they're pocketing more fees and could have a conflict of interest in pricing a home/listing. But generally a buyer's agent has nothing to do with the pricing of a home, and the prices you listed are very low for area for the number of beds, baths, square feet you listed. It's actually a lot more likely that their realtors did a really good job for them and did them some favors based on the information you've supplied.

The MSP Metro has MUCH higher wages, on average, than probably anywhere in Texas. The local services, quality of life, educational system, etc. is generally better in most regards (granted, I don't know about the specific neighborhood your friends moved to) relative to most places (and assumedly all metros) in Texas.

Pricing of real estate generally has a lot more to do with a home's location than the actual structure and its condition or how much it would cost to build the home. And at the prices your friends got homes, it's safe to say they're likely not located in a highly desirable neighborhood by virtue of the fact that they were so affordable.

If your friends weren't ready to buy a home, and are having trouble with a $100K mortgage, then they probably shouldn't have bought in the first place. If they are able to manage their mortgage and stick around in their homes for a handful of years, the potential upside for them is that their homes are probably a lot more likely to increase in value here in the MSP metro compared to your TX location.

With all of the above said, you didn't mention what the terms of your friends' mortgages were- e.g. did they get subprime loans, gouged interest rates, baloon products, etc. that is making it hard for them to manage payments? I would guess it's a lot likelier they fell victim to predatory lending schemes vs. a predatory real estate agent. If so, there are resources out there that assist them with financial counseling and potential refinancing of their homes.

[Beenhere4ever]

Hey, I'd never deny that realtors get fat off less critical customers. Salespeople are legendary for that. But so what? The Romans said "caveat emptor". You're supposed to assume no one cares about your finances as much as you do. I hope the Africans here aren't sending messages home about the incredible honesty of sales people in America. I know that some living conditions in the Twin Cities must seem like heaven if your last stop was Mogadishu, but that doesn't mean we are entirely populated by angels. Fact is the more money you are commiting, the more diligence you need to apply. There is no lazy way to a good deal, despite what the infomercials lead you to believe. Those infomercials are themselves a big con to make the expert real estate guy rich off anyone he can sucker into his get rich quick scheme. I'm sorry, but you have to lower your estimate of humanity at some point and realize you are the guardian of your wallet. You can sue, you can write the attorney general, but first and foremost you must exercise prevention. Don't get INTO a jam by being too quick to believe you are getting a "deal". 9 times out of 10, no one is offering you a "deal", just the opportunity to believe you are getting one so he (or increasingly SHE) can get a commission.

[moving123456]

Originally Posted by Genise1953

You are more than correct!

For $100,000, you can get a badass house in a good neighborhood in Texas...compared to the average house in Brooklyn Park...especially in the 55443 zip code.

IMO...for $100,000, I had better see a brick house...not a wood frame house...which is par for Brooklyn Park.

Aren't the newer Texas brick homes still wood frame, just with bricks covering the outside instead of other types of siding?

Brick homes are rare in MN, I am not sure why. I thought maybe it had to do with winter until I visited the Toronto area and saw both new and old brick exterior houses everywhere. MN home builders love vinyl siding.

[QuietBlue]

Originally Posted by Genise1953

The "tired old discrimination complaint" is not an idle complaint, especially down here in Texas.

If one is paying $100,000+ for a home, then said home should reflect that price...i.e.said house shoud be the "bomb" IMO.

But they aren't!

Why is that?

And why should immigrants or non-immigrants settle for less?

From what I've seen, such houses aren't worth the money.

In the words of my daughter:

"They paid that much for that?"

Just out of curiosity, have you researched what comparable homes in other parts of the Twin Cities go for?

I highly doubt discrimination was a factor here. For one thing, you'd have to show that other people in this market were paying less money for very similar homes. What people pay in Texas is irrelevant.

[golfgal]

Originally Posted by moving123456

Aren't the newer Texas brick homes still wood frame, just with bricks covering the outside instead of other types of siding?

Brick homes are rare in MN, I am not sure why. I thought maybe it had to do with winter until I visited the Toronto area and saw both new and old brick exterior houses everywhere. MN home builders love vinyl siding.

Brick isn't common here because way back when transporting it wasn't cost effective and wood was readily available. Places in the south where brick is made, makes it a cheep building material, same reason you see a lot of brick homes in Chicago, big brick factory there.

[StanleyVegas]

Originally Posted by QuietBlue

I highly doubt discrimination was a factor here. For one thing, you'd have to show that other people in this market were paying less money for very similar homes. What people pay in Texas is irrelevant.

Markets vary wildly by state. I know someone who recently sold a home in the heart of Silicon Valley, CA for nearly $1.5M - A nondescript 4 +2 ranch (rambler), not a custom executive home in a gated community - just a regular neighborhood in a desirable school district.

[Beenhere4ever]

That's why I say it helps to know media home price. Brooklyn Park Home Prices and Home Values in MN - Zillow Local Info
According to this page, the median price bottomed out at $135k in 2012 and is up to about $160k now. So $100k seems to be a home with some serious marketability problems.

[Genise1953]

Originally Posted by Ghengis

they should have bought the cheaper home in Texas and stayed there

Oh my goodness!!!...my exact thoughts!

But that's other people's business...not mine...not my place.

Could be that they are missing their families and friends alot...and wanted to be near them.

Some people are like that.

[Genise1953]

Originally Posted by Beenhere4ever

I don't think they should BUT this thread proves they did. THEN they complained! What it means to ME is that they had very little clue how to properly shop a house. It isn't rocket science to find out the median home price. If there are FLAWS in a house, you send in a professional inspector or assessor to find them, they produce a report, and you (1) find out if the home is even legally saleable and (2) you decide if you can justify moving into said house. Let's get serious. This is about the biggest "investment" the average person makes. Would you put $100,000 into a stock you knew nothing about? Immigrants assume too much about business people. And even that isn't justifiable because they don't show up here never having experienced dishonesty overseas. There's no earthly reason for them to expect any sales person, no matter what is sold, is honest. They should expect MORE from themselves!!! This may be the promised land for the poor of the world, but it is riddled with dishonesty.

You are very correct when you say they had very little clue how to properly shop a house. But African men, in general, are very proud, and would never admit ignorance when it comes to making decisions as head of household.

IMO...the "foolishness" came about due to...

...ignorance

...Machismo...African style

...income...as you've already pointed out!

Good insight!

[Genise1953]

Originally Posted by Beenhere4ever

I don't think they should BUT this thread proves they did. THEN they complained! What it means to ME is that they had very little clue how to properly shop a house. It isn't rocket science to find out the median home price. If there are FLAWS in a house, you send in a professional inspector or assessor to find them, they produce a report, and you (1) find out if the home is even legally saleable and (2) you decide if you can justify moving into said house. Let's get serious. This is about the biggest "investment" the average person makes. Would you put $100,000 into a stock you knew nothing about? Immigrants assume too much about business people. And even that isn't justifiable because they don't show up here never having experienced dishonesty overseas. There's no earthly reason for them to expect any sales person, no matter what is sold, is honest. They should expect MORE from themselves!!! This may be the promised land for the poor of the world, but it is riddled with dishonesty.

Come now...let's be honest.

Here you are, an African immigrant, from humble means, trying to realize the "American Dream", with barely a clue on how to attain it...and getting snookered in the process.

On the other hand...experience is the best teacher...or so it's said.