[quote=Ferris Bueller]deekay is the kind of guy that tells his clients to pull cash out of their homes (for the deduction) then invests it into long term variable annuities.  Whenever I get asked the question from a client about paying off their house, I tell them to PAY OFF THE HOUSE.

I know this post is old, but I felt compelled to reply anyway. I am an Investment Wealth Adviser/RR and Realtor. It infuriates me when someone bad mouths either of these professions.

Thinking a realtor is a scam is lunacy. If you believe that statement, you’re just as likely to believe a registered rep charging 1% (or more) per year on your money is an even bigger scam. These people argue that you pay this recurring fee for no service when you could buy a no-load mutual fund from Schwab with the same result or better.

Both professions are invaluable because of their expertise and advice. You want a financial adviser to monitor your specific investments, asset allocation, guide you through turbulent markets, adjust your risk tolerance over time, plan for taxes and responsibly plan for future financial commitments.

A realtor has much of the same expertise. List and sale price based on when you need to move the property, your expected closing costs and the tax consequences, current state of the market and the appropriate competitive price to move a property quickly, negotiating with buyers/sellers (not to mention listing/buyer agents), and answering questions regarding title, insurance, mortgages etc.

I will agree you need to have an educated individual in both professions and many people have trouble recognizing the good advisers and realtors from the bad. Nonetheless, a proficient expert is invaluable in both professions.

In all honesty, as a Realtor myself, Realtors are a scam.  Why should you pay 6% to basically have someone put your house on a website and sit there a few Sunday afternoons.  All you really need is a site like craigslist or a FSBO site that’s inexpensive and a copy of your yellow pages, and possibly a google search or two.  The whole “You can’t buy or sell a house without using a Realtor” line is a joke.  Realtors are one big racket.  And this is coming from a Realtor.

I know this post is old, but I wanted to respond because it surprises me Financial Reps would bad mouth the real estate industry so much. A majority of wealth is obtained or retained through real estate holdings. I have a series 7, 66 and a Real Estate License. I am a sales agent for new construction in Boston. I sell exclusively for my myself and one developer. I do not market to my wealth management clients that I sell real state. I use my real estate license as a tool to purchase, redevelope and then sell real estate I own or have an investment stake in. I have made more in the last 3 years through real estate that I made in my entire career in the financial industry.

Unfortunatley my compliance department recently decided I can no longer hold my real estate license. They are considering it a conflict of interest now. I will likley quite my financial career and focus on real estate alone now given the potential for growth. Many of the skills I use as financial advisor I also use as a realtor. Honestly I think the careers are very similar. There are many shitty financial advisors out there and even more shitty realtors. A good realtor is hard to find and extremly valuble once you do.