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According to Freaknomics, realtors get about 3% higher average closing prices on their own properties than when they're representing you as a customer. That is
by jgeada 3y ago
According to Freaknomics, realtors get about 3% higher average closing prices on their own properties than when they're representing you as a customer. That is the delta when it is their money on the line vs yours.
- OJFord 3y ago3%? That's like a minor 'I want this to be done now' or someone else is coming for a second viewing tomorrow type bump, if that's even statistically significant, frankly that seems fine?
- sjf 3y ago3% of a big number is... still pretty big. It's easily going to be five figures in most markets.
- aiisjustanif 3y ago18k on a 600k house. Not anything to shrug at.
- OJFord 3y agoI'm not shrugging at it, I'm saying it's within the range of typical offers, e.g. that someone will offer 20k more to get it done.
- polygamous_bat 3y agoConsidering a house purchase is one of the biggest expenses for the average person, 3% can be quite a large amount indeed.
- doytch 3y agoA lot of the time a seller is not really trying to maximize their sale price. They start out trying to but then time drags on and they “just want it to be done.” At that point the seller is also prioritizing a deal over maximization. Agents, since they’ve gone through a tonne of these processes, are more immune to the mental load the sale takes on them. I’d bet they’re less likely to try and blow through those final steps. You can see this kind of thing play out across industries. In SW, a comparison may be the seasoned dev has no problem ripping apart their candidate solution and rewriting it since that process takes them less effort than the junior.