Posted by Tim Burrell -

We had a lot of good responses to the question of why the Media covers real estate in the manner that it does.  We had some people say it is the liberal media trying to make trouble for the incumbent Republicans.  We had some others saying it was the financial medial trying to make trouble for the Democrats.  We had others saying that they try to make stories that look like watching a train wreck, as that is what gets people's attention.  But the best explanation came from a member of the media who asked not to be identified.  So, here is what that member of the media had to say:

I think the most accurate media bias offered thus far is one on negative stories.  Compelling news stories are usually those with conflict, or intense human interest.  They are not always easy to find.  They are not always the best reflection of the community.  But there's time to fill. So the news is always looking for and accentuating the conflicts. "Housing market doing well" - not a conflict.  And there's no human interest in that.  "Housing market tanks" is a conflict.

Those pumping the "liberal media" bit are listening to a lot of Rush Limbaugh.  WRAL is owned by Jim Goodman, no bleeding heart liberal, from what I've heard. WRAL was the station of Jesse Helms, for goodness sake.  WTVD is owned by Disney.  NBC-17 by Media General.  Both publicly traded companies which treat local TV stations as ATM's.  The agenda is money, not politics.  Whatever sells. Conflict, real or imagined, sells.  That's all that is.

Besides, here are some provocative growth stories the "liberal media" has not covered:  1) in heat of drought, local water rules did not make big business do anything about conservation.  Not one water mandate. Zip.  2) Paul Coble v. Rodger Koopman in County Commissioner race in 2006.  Coble funded by developers who don't want to pay anything toward public school construction.  Koopman calling for impact fees, which have been the law in California for 20 years.  Coble could pay for TV spots.  Koopman could not.  Coble creamed Koopman with developer money.  If Koopman had won, the school funding debate in Wake County would be very different.  He'd be driving the agenda with three other Democrats on the Wake County Commission, who are a puzzling very silent minority.  No media other than the Independent touched it.   3)  Your NCAR $50 mandatory assessment to raise $10M to fight future real estate transfer tax ballot measures.  Is the assessment legal?  Is it coerced funding for political action?  The complaint is now filed with the State Board of Elections -by one of your realtors. NCAR claims the coerced assessment for political purposes is tax deductible.  I wonder what the IRS thinks of this?  But the story is too remote for our TV news taste buds.

 As for realtors and media:  1)  Your PR is not good.  Every month, the Triangle realtors release the stats (usually on a Friday afternoon, which looks like they are trying to bury the news), but then don't offer up their "take" on the numbers.  The MLS officials are not available.  I can't remember when I've seen the head of the Triangle MLS quoted in the N&O.  He's never been available for me.   No one is obligated to talk, but if they don't, the media may find someone to do it, and they might be less qualified.  Same goes for Durham Realtor head. They call back 10 minutes before you go on air.  It's so transparent.  2) I may be wrong, but I think a big barometer of the housing market is the comparison of median EXISTING HOME SALES from the same month the previous year.  I see lots of big press focusing on that. WSJ, LA Times, CNBC.  But why, why in the past has the Triangle MLS included NEW homes in that figure?  That is very misleading.  New home prices are not a very good indicator to answer the question, "How is this market effecting the value of the home I own now?"  Other MLS's can extract the NEW HOME SALES.  Why not Triangle MLS?  3)  I can't tell you how many Pollyanna interviews I've gotten from realtors.  They just can't bring themselves to say, "Now might actually be a better time to rent."  Or  "Flipping real estate for the quick turn might be a little more difficult right now."  You won't get it.  I do get, "It's always a good time to buy."  I had one realtor tell me now was a good time to buy because interest rates are going up.   There are credibility issues to say the least.  4)  Realtors love to trumpet the AVERAGE HOME PRICE number if it's going up.  But that too can be problematic.  It can be misleading when lower end homes are not selling.  And right now, the lower end homes are not selling.  And in many places, it's the low-end buyer who has been hit by the sub-prime riptide.  Highest foreclosure rate in America - Merced, California - where buyers are lower income. You're right about RealtyTrac.  I've read an interesting WSJ story which explained RealtyTrac foreclosure numbers are inflated, problematic and self-serving.  At the same time, CNBC and the WSJ use them.  So what do you do?  Use the numbers from Administrative Office of the Courts?

My advice:  if you have to deal with the media, I'd seek out specific reporters you trust.  Remember the news bosses are probably looking for a negative story.  But you can use that to your advantage.  If the negative peg is legit, admit it for credibility's sake.  But then also offer up your silver-lining.  Maybe insist before hand that if you are quoted, they must include your positive advice as well.  Hey, if the market is down, it is a good time to buy if you are going to hang onto the property for a long time.  And if you are mis-quoted or misrepresented, hit them hard.  Call them.  Call their boss.  Threaten never to talk to them again.  If you are a valuable source to good reporters, they will want to treat you right.   But hey, the media is a pain in the ass.  And they are some of the least accountable in the community.  Problem is they always have the last word.  And they usually have a bigger megaphone. 

 BOTTOM LINE:  Blaming the media for the real estate mess is... a bunch of whining bull----.There, I've said it.  This downturn was soooo predictable, with all the loopy mortgages, no-doc this, liar loan.  I had one mortgage broker tell me- "You find your house, we'll find the loan to get you in it."  That guy has skipped town and moved to Texas.

( I deleted some material here as it would have allowed the reader to figure out who this member of the media is).  You don't sell the home, you don't sell the neighborhood, you sell the school district.  ... thinks public school impact fees are legit.   I am suprised you realtors have hitched your wagon to the home builders to oppose impact fees.   KB Home and all the other national builders pay school impact fees in CA.  They have for decades.  And the homes are not so much more exensive out there because of the impact fees.  People pay more because of the weather.  And they don't have school over-crowding crisis in new sub-divisions.  And realtors can HONESTLY tell home buyers where their kids will go to school next fall.

This is Tim again.  While I disagree with some of what this person says, I enjoyed looking at the situation from that point of view.  I get a lot of reporters calling me for information on the Raleigh real estate market, so this was a good education to see how the medial looks at my profession.  I am a stong believer in completely free press, so even if I disagre with what you say, "I will defend to the death your right to say it."  What do you think?