‘Selling Sunset’ Star Warns California Wildfire Victims Of ‘Pure Greed’ From Realtors Gouging Prices

Lead broker of “Selling Sunset” and founder of Oppenheim Group provides evidence that alleged price-gouging California realtors are acting not only unethically, but illegally, in the wake of devastating wildfires.

“It’s pure greed,” Oppenheim told Fox News Digital earlier this week. “It’s insensitivity and lack of community, and it’s a desire for personal gain.”

He added: “We are a capitalist society, and I fully understand, in normal circumstances, taking advantage of the imbalance between supply and demand.” “But there is a reason for price gouging laws, and people need to be made aware.”

Oppenheim is part of a larger group of Los Angeles area realtors who have noticed and called Predatory behavior by landlords in the housing and rental market demanding higher prices amid property destruction due to wildfires.

California wildfires: Essential phone numbers for Los Angeles area residents and how you can help them

Fires Started 12 days agoFOX Weather reported that strong Santa Ana winds carried the fire that started in the Pacific Palisades neighborhood. Tens of thousands remain displaced in Los Angeles and Ventura counties, and remain under a state of emergency. The wildfires, which have killed at least 25 people and destroyed about 12,000 homes, businesses and schools, continue to cause disasters.

“I was up late a couple of nights ago or last week, and I was looking at leases and I kept seeing up arrows on the (Multiple Listing Service), which you rarely see people raising rental prices, especially when we were in a soft rental market,” Oppenheim explained. “.

“So I drew a map around the surrounding Altadena area and the surrounding Palisades area, and I sorted by price increases, and dozens and dozens of price increases. And I was blown away,” he said. “I imagine it should be illegal.”

Using his legal background, the broker found Section 396 of the California Penal Code, an anti-price gouging law that limits the amount of price increases during a state of emergency.

More specifically, the law states that “landlords cannot increase rent by more than 10% during a state of emergency, unless the increase is due to additional costs or a pre-existing contract.”

“These people have suffered the loss of their property and are now vulnerable to price gouging,” Oppenheim chided. “And even my clients, that was really what blew me away, to be honest… I sent a client to see a house that was asking $13,000 on the MLS. He offered the owner $20,000 and six months down, and the owner I confronted my client for $23,000 a month, which is almost double The value of the house and I was in shock and frustration.

“It’s pure greed. It’s insensitivity and lack of community. It’s a desire for personal gain.”

-Jason Oppenheim

“Intentionally taking advantage of someone who has suffered is not appropriate,” he continued. “Landlords who have done this who have above-market rents, I would be surprised if they don’t listen to the district attorney or the district attorney, or at the very least, receive a letter from the tenant within a few months once the tenant learns of the situation, they’re going to have to pay back all that money plus Penalties in addition to potential criminal liability.

Also weighed on Discuss homeowners insuranceOppenheim pointed his finger at finding bureaucratic solutions versus blaming providers for their actions.

“It frustrates me when I see these celebrities superficially attacking insurance companies. It’s just virtue signaling to attract clicks,” he said. “Does anyone like insurance companies? No, probably not. But sitting there and superficially blaming the insurance companies, do you know why the insurance companies left California? Because our politicians, in all their infinite wisdom, dictated that they weren’t allowed to.” “It raises interest rates, and (insurance companies) lose billions of dollars due to previous fires.”

“What do you expect them to do? Come here and insure us at rock-bottom rates while they pay billions of dollars in damages?” Assume the median. “This is stupidity piled upon stupidity. What we have to do is find out why they left.”

One of the Golden State’s top real estate leaders says — along with an official letter signed by more than 45 others — California Exposition Plan Its liability must increase from the current $3 million to $6 million to adequately insure those homes in Palisades and Malibu.

Get FOX Business on the go by clicking here

“Most of the homes in Malibu weren’t even able to get any insurance because California wouldn’t offer it to them. So it seems hypocritical that the state of California isn’t willing to cover them, but then they somehow blame the insurance companies,” Oppenheim said.

“Let’s bring in more insurance companies. Let’s create an efficient market. Let’s get California into the insurance market. This isn’t rocket science. There’s a lot of inefficiency. It’s frustrating.”

Read more from Fox Business