Agent Buyer or seller agreement (sales, value, property, transaction)
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And, we again may get into seller subagency, where the agent's function is to extract from the buyer price and terms which will most benefit the sellers, along with no expectation of any level of confidentiality for the buyers' personal or business information. The agent owes allegiance only to the seller.
That may look great on paper, but in reality we all know who the sales person is working for... HIMSELF! The salesman wants a commission. To hell with holding out for the best deal for the seller if that means possibly jeopardizing a commission.
That may look great on paper, but in reality we all know who the sales person is working for... HIMSELF! The salesman wants a commission. To hell with holding out for the best deal for the seller if that means possibly jeopardizing a commission.
What about the buyer's agent?
Buyers want the lowest price and sellers want the highest price. Buyer agent commission hangs in the balance based on sale price.
Last edited by howard555; 11-18-2021 at 07:38 AM..
That may look great on paper, but in reality we all know who the sales person is working for... HIMSELF! The salesman wants a commission. To hell with holding out for the best deal for the seller if that means possibly jeopardizing a commission.
I know it will surprise you, because you don't think this way, but I want a happy customer more than anything. If someone pays an extra 10k or whatever, that's generally peanuts at 2.5 or 3%. If that person refers a future client, it's gold. Yes, I do want a commission, but I get a commission when my buyer purchases a home whether it's home A, B, C, or D.
That being said, sometimes we have to protect people from themselves and their emotions, and remind them about the big picture. An example of that is someone willing to walk away from a 300,000 house over a $100 repair.
Listing side, we are reactive by nature. We have to wait on an offer and all we can do is try and get the best deal we can from the buyer. But ultimately, regardless of how we advise, the decision always remains with the consumer.
Anyway, just because you'd shaft your client for an extra $300 doesn't mean all agents would.
What about the buyer's agent?
Buyers want the lowest price and sellers want the highest price. Buyer agent commission hangs in the balance based on sale price.
BOTH agents' commission hangs on the making of a deal. It doesn't matter which side they represent, they're both looking for that commission check. The actual price is largely irrelevant to both agents. They just want a DEAL!
I know it will surprise you, because you don't think this way, but I want a happy customer more than anything. If someone pays an extra 10k or whatever, that's generally peanuts at 2.5 or 3%. If that person refers a future client, it's gold. Yes, I do want a commission, but I get a commission when my buyer purchases a home whether it's home A, B, C, or D.
That being said, sometimes we have to protect people from themselves and their emotions, and remind them about the big picture. An example of that is someone willing to walk away from a 300,000 house over a $100 repair.
Listing side, we are reactive by nature. We have to wait on an offer and all we can do is try and get the best deal we can from the buyer. But ultimately, regardless of how we advise, the decision always remains with the consumer.
Anyway, just because you'd shaft your client for an extra $300 doesn't mean all agents would.
Are you under the impression that I'm a real estate agent???? LOL! That's the funniest one I've heard in a long time.
I actually agree with most of what you said in your post. In fact, you're making my point for me. An extra $10k or $20k in selling price means nothing to the agent. Getting both sides to agree to a deal (which means a commission check) is what each agent is concerned with regardless which party they represent.
BOTH agents' commission hangs on the making of a deal. It doesn't matter which side they represent, they're both looking for that commission check. The actual price is largely irrelevant to both agents. They just want a DEAL!
A few months ago a listing reaches my mail box so I ride by just to take a visual look. There were people there. When the couple left (obvious buyer) no one there but me and the agent who showed them. I was told it's ok for me to do a walk through. I did. We talked and though the asking was $95K this agent told me with no hesitation that it will go for $110-$115. I had to use their opinion on price to think about an offer I might make. It sold for $102.
A few months ago a listing reaches my mail box so I ride by just to take a visual look. There were people there. When the couple left (obvious buyer) no one there but me and the agent who showed them. I was told it's ok for me to do a walk through. I did. We talked and though the asking was $95K this agent told me with no hesitation that it will go for $110-$115. I had to use their opinion on price to think about an offer I might make. It sold for $102.
I'm not sure what your point is. For the past 12 to 15 months, it doesn't take a genius to predict the selling price of a house is going to be a little higher than the asking price. In some markets, it may be considerably higher than the asking price, but again, that doesn't take an expert to predict.
But it's also worth noting that today's residential real estate market bears little resemblance to the market that has existed for the past 50 years as far as selling price and buying frenzy are concerned. The late 70's were the closest time that even remotely resembled today's market, and we all know (or should know) what happened after that. Interest rates went through the roof in 1980 and 1981. History may not always repeat itself, but it often rhymes.
If I had believed their opinion on price I'd likely offered near the 110-115. On these low priced houses the difference in price may not mean anything to the agents but it can to the buyers. $275K house yes $10K doesn't mean much to buyer or seller or agents.
That may look great on paper, but in reality we all know who the sales person is working for... HIMSELF! The salesman wants a commission. To hell with holding out for the best deal for the seller if that means possibly jeopardizing a commission.
Eh.
Posts like this typically reflect the posters' values as much as agency dynamics.
Are you under the impression that I'm a real estate agent???? LOL! That's the funniest one I've heard in a long time.
I actually agree with most of what you said in your post. In fact, you're making my point for me. An extra $10k or $20k in selling price means nothing to the agent. Getting both sides to agree to a deal (which means a commission check) is what each agent is concerned with regardless which party they represent.
LOL...you're funny. I know know know you aren't an agent. You don't like agents but you do like to troll agents.
You aren't wrong that we want a closing but you conveniently ignore that we want a happy client, and the client makes decisions, not the agent. Also convenient that you ignore the important part of my post and cherry pick something slightly out of context based on the entirety of the post.
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LOL! That's the funniest one I've heard in a long time. 
