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I still don't understand this mechanism... the buying agent takes his fee as a percentage of the total house price? Doesn't this mean that both the selling and

by setr 8y ago

I still don't understand this mechanism... the buying agent takes his fee as a percentage of the total house price? Doesn't this mean that both the selling and buying agents are incentivized to drive up the price?

scarface74 8y ago
In reality, neither is incentivized to drive up the price of the house. It’s all about selling fast. Freakonomics talks about this all of the time. http://freakonomics.com/2008/02/26/real-estate-agents-revisited/ http://freakonomics.com/2008/02/26/real-estate-agents-revisi...
scarface74 8y ago
A better link. https://www.nachi.org/forum/f11/exerpt-freakonomics-book-regarding-real-estate-agents-57929/ https://www.nachi.org/forum/f11/exerpt-freakonomics-book-reg...