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Message
re: Realtor Negotiations
Posted on 7/23/18 at 2:03 pm to lynxcat
Posted on 7/23/18 at 2:03 pm to lynxcat
quote:
When buying or selling, an extra $5,000 means a lot more to you than it does to the agent
This is the part that always makes me a little crazy. Its where the motivations of buyer/seller and agents are clearly out of line.
HYPOTHETICALLY, A $5,000 difference in price makes about a $75 difference to the agents.
5,000 * 6% = 300
300/4 = $75 (assuming an equal split between listing broker, listing agent, buyer's broker, buyer's agent)
5,000 is a lot of money. 75 is not.
1
Posted on 7/23/18 at 2:54 pm to AUjim
quote:
HYPOTHETICALLY, A $5,000 difference in price makes about a $75 difference to the agents.
Not even really a "hypothetical"...it's the actual payout in the given use case you described. It is a fundamental flaw to the conventional way the residential RE market works.
I also do not believe that selling a $250K house takes any extra effort than a $200K house, so why should the agent receive pay that varies based on a generally irrelevant factor. We have already established that the agent is incentivized to move your house at a lower price more quickly than a higher price that requires longer.
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