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Old 05-01-2018, 03:19 PM
 
Location: Raleigh NC
7,740 posts, read 6,110,007 times
Reputation: 6867

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Quote:
Originally Posted by El Senor View Post
No, it doesn't.. however, what's the price of time? You might be 30 days into the process now, over $7K. Do you think your next offer is going to come in at 100% of list?

Having spent the last 9 months immersed in a couple of markets that are the bubbly side of warm, 30 extra days on market starts bringing out the lowballs.
the Seller has the opportunity to decide whether it's worth it to them or not.

They already made that decision once when they accepted the offer, since it was better than any other offer they received.

Now, if the LISTING agent thinks "Hey Mr Seller you probably ought not do that. We are so close to top price that 1% could make a difference" ... then it's the listing agent's job with the Seller to cover that possibility.

I haven't heard of many situations where the house value came to down to 1% though.
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Old 05-01-2018, 03:20 PM
 
3,780 posts, read 1,721,467 times
Reputation: 2136
Quote:
I must disclose however that should you make an offer, the seller has decided to only offer 2% commission, and you and I have agreed that I earn 3%. I'll do my best to work it out so it's includedin the purchase price. But you must realize that it's possible that at closing you'll have to write a check for the 1%".
you going to let them see the house without you using an agent that would be happy with the 2%? are you going to give them that option if they so choose?
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Old 05-01-2018, 03:26 PM
 
167 posts, read 72,514 times
Reputation: 371
Quote:
Originally Posted by BoBromhal View Post
as an example .... let's say you put the $1.7MM investment property on the market, and you have your agent offer buyers' agents 2%.

And for whatever reason, 90 days later it hasn't sold.

Then an agent comes with a buyer, and their written offer is for $1,700,000 with the agent getting 3% instead. As you negotiate over price, or maybe you just get mad that they asked for something other than what you offered, another agent proclaims they have a buyer with interest.

Upon being advised of the existence of an offer, and being told to "bring your highest and best, we're not screwing around", Buyer 2 produces an offer for $1,650,000, says they've done the numbers and this is what it's worth, and the 2% compensation.

$1.7MM - 3% = $1,649,000
$1.65MM - 2% = $1,617,000

which offer are you accepting?
If the numbers say it's worth 1.65, why would they offer 1.7 for only 8.5K in extra commissions? A buyer doing that is being taken for a ride.
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Old 05-01-2018, 03:28 PM
 
Location: Raleigh NC
7,740 posts, read 6,110,007 times
Reputation: 6867
Quote:
Originally Posted by illtaketwoplease View Post
why could it not be reversed with the 2% agent bringing in the 1.7MM offer? -- or both agents bring in the same price offer -- which one do you think they'd take?

the game of "what if's" never ends. everything being equal -- a seller will always net more when the agent takes less -- not to mention it gives them greater flexibility during negotiations.
of course they'd take the one that nets them more, the 2% agent with the equal or higher offer. that's elementary. It's also not the question at all, is it?

I'd certainly laugh at the agent who brought me 3% offer vs a 2% offer and wanted to net me less. Those are the folks you'd tell to pound sand.

Now, don't think there aren't agents out there who believe they're something special and act aghast at a Seller that wouldn't accept their clients worse offer, since it's from that Realtor.
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Old 05-01-2018, 03:30 PM
 
Location: Raleigh NC
7,740 posts, read 6,110,007 times
Reputation: 6867
Quote:
Originally Posted by El Senor View Post
If the numbers say it's worth 1.65, why would they offer 1.7 for only 8.5K in extra commissions? A buyer doing that is being taken for a ride.
a property is worth different amounts to different parties. that could be from choosing different comps, on an investment property it could be wanting a higher return. and it can be emotion.
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Old 05-01-2018, 03:32 PM
 
167 posts, read 72,514 times
Reputation: 371
Quote:
Originally Posted by BoBromhal View Post
the Seller has the opportunity to decide whether it's worth it to them or not.

They already made that decision once when they accepted the offer, since it was better than any other offer they received.

Now, if the LISTING agent thinks "Hey Mr Seller you probably ought not do that. We are so close to top price that 1% could make a difference" ... then it's the listing agent's job with the Seller to cover that possibility.

I haven't heard of many situations where the house value came to down to 1% though.
True. It's highly unlikely.

Almost as unlikely as an agent saying that they'd accept taking 99% of list for altruistic reasons.
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Old 05-01-2018, 03:34 PM
 
167 posts, read 72,514 times
Reputation: 371
Quote:
Originally Posted by BoBromhal View Post
a property is worth different amounts to different parties. that could be from choosing different comps, on an investment property it could be wanting a higher return. and it can be emotion.
So. Buyers can be emotional and that's just perfectly fine - they "want" that house, but sellers can't?
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Old 05-01-2018, 03:46 PM
 
Location: Raleigh NC
7,740 posts, read 6,110,007 times
Reputation: 6867
Quote:
Originally Posted by illtaketwoplease View Post
you going to let them see the house without you using an agent that would be happy with the 2%? are you going to give them that option if they so choose?
my Agency agreements are typically exclusive agreements, so that's not an option.

And what you're either forgetting, ignoring, or not understanding - the compensation part of my agreement states the customary amount in my market. So, if 2% is customary, then the agreement is for 2%. And the Seller offering 2% isn't a problem.

Please don't feel that I'm some grand adversary in this. In my very first post, I told the OP it was an issue between the Buyer and their agent.

Now, if some want to blame the agent no matter whether they're the buyer or the seller, then that's introducing emotion and bias.
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Old 05-01-2018, 03:47 PM
 
Location: Raleigh NC
7,740 posts, read 6,110,007 times
Reputation: 6867
Quote:
Originally Posted by El Senor View Post
So. Buyers can be emotional and that's just perfectly fine - they "want" that house, but sellers can't?
Where do you believe that most asking prices come from? Seller emotion.
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Old 05-01-2018, 03:53 PM
 
Location: Raleigh NC
7,740 posts, read 6,110,007 times
Reputation: 6867
Quote:
Originally Posted by El Senor View Post
True. It's highly unlikely.

Almost as unlikely as an agent saying that they'd accept taking 99% of list for altruistic reasons.
I'm sorry, I can't say that I understand what you're stating.
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