3 ms·

> Real estate agents only have the sellers interests in mind because the higher the selling price, the more they make. Hmmm...is that always true? What if the

by MarkMc 9y ago

> Real estate agents only have the sellers interests in mind because the higher the selling price, the more they make. Hmmm...is that always true? What if the seller is asking $1 million for a house, then I approach the agent and say, "My offer is $850,000. If the buyer accepts this offer I will give you, the agent, $50,000". Wouldn't that be a problem?

concede_pluto 9y ago
This. If a 5% lower price makes a sale 10% faster or more likely, that's what a full-time real estate agent wants to recommend.
- ars 9y ago
  That's the hope. In practice there are many more complications. For example: Negotiations - you would expect your buyers agent to negotiate with the seller for the best (i.e. lowest) price. They'll never do it unless you make them. It's not all roses on the seller side either: The sellers agent is highly motivated to sell fast (i.e. less work for them). Like you said, 5% lower, 10% faster. So the sellers agent will tell the seller to list at a lower price than they should, to get a faster sale. This is not to the benefit of a seller who has time to wait for a good offer. So, like I said earlier: Real Estate is the poster child for why these laws are worthless. Just get rid of commissions, and switch to fee-for-service (possibly paid after sale). Each time they show the house they get a fixed fee, things like that.
ars 9y ago
> If the buyer accepts I assume you meant the seller here. > I will give you, the agent You don't pay the agent, the seller does. So you don't have the power to offer a negotiated rate. Your example just reinforces my point. A real estate agent only has the seller in mind, even if it's a buyers agent. So never tell a buyers agent anything you would not want the seller to know (for example when negotiating with the seller, never tell your agent what your true upper limit is, or surprise surprise, that's exactly how much you'll pay). Go ask a buyers agent about "for sale by owner" if you need proof. Since it's for sale by owner, you will have to pay your buyers agent, and they will make you sign all sorts of papers before ever showing you such a house.
- MarkMc 9y ago
  > I assume you meant the seller here. Sorry yes, I meant seller > You don't pay the agent, the seller does. So you don't have the power to offer a negotiated rate. I don't understand this statement. If there is no law against it then I can offer anyone anything, can't I? And I can give money to anyone I choose. Are you saying that the seller's agent would always reject my offer?

by MarkMc 9y ago

concede_pluto 9y ago

This. If a 5% lower price makes a sale 10% faster or more likely, that's what a full-time real estate agent wants to recommend.

ars 9y ago
That's the hope. In practice there are many more complications. For example: Negotiations - you would expect your buyers agent to negotiate with the seller for the best (i.e. lowest) price. They'll never do it unless you make them. It's not all roses on the seller side either: The sellers agent is highly motivated to sell fast (i.e. less work for them). Like you said, 5% lower, 10% faster. So the sellers agent will tell the seller to list at a lower price than they should, to get a faster sale. This is not to the benefit of a seller who has time to wait for a good offer. So, like I said earlier: Real Estate is the poster child for why these laws are worthless. Just get rid of commissions, and switch to fee-for-service (possibly paid after sale). Each time they show the house they get a fixed fee, things like that.

ars 9y ago

> If the buyer accepts I assume you meant the seller here. > I will give you, the agent You don't pay the agent, the seller does. So you don't have the power to offer a negotiated rate. Your example just reinforces my point. A real estate agent only has the seller in mind, even if it's a buyers agent. So never tell a buyers agent anything you would not want the seller to know (for example when negotiating with the seller, never tell your agent what your true upper limit is, or surprise surprise, that's exactly how much you'll pay). Go ask a buyers agent about "for sale by owner" if you need proof. Since it's for sale by owner, you will have to pay your buyers agent, and they will make you sign all sorts of papers before ever showing you such a house.

MarkMc 9y ago
> I assume you meant the seller here. Sorry yes, I meant seller > You don't pay the agent, the seller does. So you don't have the power to offer a negotiated rate. I don't understand this statement. If there is no law against it then I can offer anyone anything, can't I? And I can give money to anyone I choose. Are you saying that the seller's agent would always reject my offer?