Tuesday, March 23, 2010

Freakonomics; KluKluxKlan and Real Estate Agents

What an interesting correlation. The author's once again took an outside the box look at two old institutions. The section on the leaking of KKK information to "main stream", for the time, media and it's effect on membership, attendance and activity was eye opening to say the least. The fact that once the Klan's activities became public whether due to social pressure, fear factor or maybe just that if everybody knows it's not a secret anymore mentality drove members or prospective members away.

The second section was very good as well. How interesting that the same Real Estate agent that urges you to sell is the same one who will wait an additional 2 weeks for an extra 10 thousand dollars. Not surprising when the study puts things in black and white. When selling your house for an extra 10 thousand dollars the agent only makes $150. So when he/she advises you to sell what's the motivation. Is it; "I need to pay bills and I need the money now" or "$150 isn't enough to make me want to answer another 20 phone calls and do another 5 showings over the next 2 weeks". I have heard agents talk like that. One agent told me in conversation that she "probably could have gotten $20k more for a particular property" but at the time she hadn't sold anything in 4 weeks, her husband was laid off of his job and her mortgage was due. She rolled her eyes and said it hurt her to advise the sale. I never thought about the poor guy who just took her advice and didn't get the extra money to pay his bills.

Another great chapter. Am looking forward to the next one.

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