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I think most of us agreed a good counter offer would be that if the buyer's agent wanted the additional 1% it should be tacked onto the purchase price. The seller should NOT pay the difference... the buyer should.
And that would be fine. But that can have its own pitfalls. I didn’t have time to read every response.
I think most of us agreed a good counter offer would be that if the buyer's agent wanted the additional 1% it should be tacked onto the purchase price. The seller should NOT pay the difference... the buyer should.
Of course.
That has been the point from the get go.
Uh....
90%+ of the listings in my local market are offering 2.4% to buyers agents.
What are the terms of the 3% transaction you are asking about?
What did I do for the client?
Did I sell their house and this is the buy of a new house?
Interesting. I recently looked at maybe 20 homes in the "other" market in NC and probably 90% were offering 3%. The other 10% were 2.5%, 2.4% seems kinda random.
For the transaction I'm asking about, a guy named Justin Becalls found you on city-data. No sale, just a purchase and he asked you many questions via really long emails along the way. Toured 10 houses total, but he had to cancel one other contract because he thought the listing agent was insulting his language skills.
Interesting. I recently looked at maybe 20 homes in the "other" market in NC and probably 90% were offering 3%. The other 10% were 2.5%, 2.4% seems kinda random.
For the transaction I'm asking about, a guy named Justin Becalls found you on city-data. No sale, just a purchase and he asked you many questions via really long emails along the way. Toured 10 houses total, but he had to cancel one other contract because he thought the listing agent was insulting his language skills.
LOL
Good one.
I work for free for pathological wards of the state.
House doesn't appraise at the inflated price, deal falls apart.
Buyer's remorse sets in during option period over paying their agent more, deal falls apart.
Slippery slope paradox: Is it acceptable to just inflate commissions at the buyer's expense, driving up home prices, adding fuel to a fire that is creating issues for many in home affordability - just to sustain a model that may not be the most effective? That comp will be a comp for six months. Yeah, yeah - I know... sellers "shouldn't care". Except sellers are also buyers somewhere else. To me, inflating the price simply to pay a higher commission rate isn't acceptable.
Then again, I've always been in a position to walk away from a deal I didn't like.
Interesting. I recently looked at maybe 20 homes in the "other" market in NC and probably 90% were offering 3%. The other 10% were 2.5%, 2.4% seems kinda random.
...(Howl and LMAO)...
Wake County NC.
90% of residential resale listings offer a 2.4% co-broke to buyers agents.
Agents claw to climb over them to make multiple offers on new listings.
Just searched. 1564 of 1744 residential resale listings are at 2.4%. 89.7% of them.
(Another 1344 are at 2.5%, but the bulk of those are new construction and that is their most common split. I did see three builders offering 4%. They must be dragging at hitting their numbers.) And, the 2.4% spills into a few surrounding counties as a most common co-broke.
Orange County and Durham County and points west still have many agents clinging to a 6%, 3%/3% model, but that is starting to erode a little.
6%, 3%/3% is the "Heritage Price-fixing" model.
6%, 3.6%/2.4% is the "Nouveau Price-fixing" model.
When buyers agency was introduced to the region 35-40 years ago, it was resisted by many large established firms.
One barrier to buyers agency was to go to a 60/40 split, and to pay agents a bonus for selling an in-house listing as subagents.
Nasty stuff, that, but I think it has gone by the wayside.
The 2.4% has stuck around, though, and is the most common split locally to me.
What exactly are the agents doing additionally at 6% that they aren’t at 4%?
They are showing and selling the property with a 6% commission, and the property with a 4% commission is not being shown and no effort is going to be used to sell the cut rate commission property. It just sits there month after month.
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