What the realtor ads don’t tell you

January 30, 2008

You may have seen one of the ads recently put forth as part of a $40 million ad campaign by the National Association of Realtors. The spots attempt to sell you on the long-term benefits of being a homeowner (you know, maintenance, repairs, property taxes…).

But Advertising Age says the ads may be misleading:

On the [related Web] site, an “equity estimator calculator” suggests a $20,000 home down payment turns into $124,600 in 10 years for a 623 percent return. The Web site includes the same claims as the two spots and adds a few more noting, for example, that that prices have risen an average of 6 percent every year. Like each of the spots, the site does come with a small warning — that local market conditions can vary and consumers should seek counsel from a local real-estate agent.

However, in the light of the current market the “housing-market facts” could also be read as a historical look at an overheated market rather than a good predictor of what’s to come.

Here’s descriptions of the two ads: Building Wealth and Home Values.

What do you think? Is becoming a homeowner still a surefire investment?

JACKIE SAUTER, Multimedia Editor

Image courtesy of National Association of Realtors

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Posted by Jackie Sauter | Filed Under real estate 

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