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As someone who used to sell services to real estate agents... Their incentives are not aligned with the seller or buyer of the home but with their ability to g
by fweespeech 11y ago
As someone who used to sell services to real estate agents...
Their incentives are not aligned with the seller or buyer of the home but with their ability to generate a commission per hour of labor.
Selling your house at $180,000 in 30 hours is far more lucrative than selling your house at $200,000 [fair market value] in 90 hours.
A substantial number of them will opt for the former rather than properly advising the seller.
The buyer's agent will do the reverse as their commission size is based on making the sale and the larger the dollar figure, the greater their commission. [e.g. Nudge you in the direction they think will maximize their reward for effort, such as encouraging you to pay $205,000 on a $200,000 property so there isn't any real negotiation.]
- jcdavis 11y agoI believe it was Freakonomics had a section that covered this - When real estate agents themselves sell their own houses, they stay on the market longer than average.