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I'll try to make this really simple. Let's say your house is listed for 200,000 because after 4% of commission you get 192,000, which is the minimum cash you are willing to walk away from the house with. Now let's say a buyer can't afford 200,000 and can only pay 198,000. To close the deal, the brokers are willing to cut the commission from 4% to 3% so the buyer pays 198,000 and you get the same 192,000. Now, did they buyer pay more, or less, or the same as the commission got smaller?
First of all, GOOD LUCK with the bolded part.
That is the part that will be the problem.
If it ever happened, the seller would be the one expecting that extra 1% since the seller is the one who has the contract to sell the house.
I understand the point you're trying to make, but no matter the size of the deal, everyone thinks that the commission comes into play and that houses are priced accordingly. Then you'll have people who forego an agent just to "save the commission". The fact is, if you go to an agent who specializes in high end properties they are going to have a good chuckle about you in the office. I know you think you're special at that price point but on Long Island, there is still plenty of wealth and those deals get done in that market all the time with the full freight commission. Like I said though - good luck. You never know.
Guess how else I'm being disturbingly cheap? You're not going to believe this, and I expect nothing but ridicule, but: I'm also shopping for the lowest mortgage interest rate available! Can you believe it? I am actually looking for the best deal for me and my family that results in me paying the lowest amount of money. I know, I know, I have a sickness and should probably be treated by a psychologist. I know, the banks with the higher interest rates probably "deserve" that extra money and who am I to decide that they don't? I'm not really "educated" on the mortgage market so what do I know? Also, they probably have to split the money with employees and pay other costs! Think of how awful I'm being to the poor depositors who get lower savings account interest because I won't overpay for my mortgage loan! And I'm not even using a mortgage broker, I went straight to the banks, even though the banks would pay the broker (not me!) out the higher origination fee they'd charge if I used a broker. Oh the shame!
Guess how else I'm being disturbingly cheap? You're not going to believe this, and I expect nothing but ridicule, but: I'm also shopping for the lowest mortgage interest rate available! Can you believe it? I am actually looking for the best deal for me and my family that results in me paying the lowest amount of money. I know, I know, I have a sickness and should probably be treated by a psychologist. I know, the banks with the higher interest rates probably "deserve" that extra money and who am I to decide that they don't? I'm not really "educated" on the mortgage market so what do I know? Also, they probably have to split the money with employees and pay other costs! Think of how awful I'm being to the poor depositors who get lower savings account interest because I won't overpay for my mortgage loan! And I'm not even using a mortgage broker, I went straight to the banks, even though the banks would pay the broker (not me!) out the higher origination fee they'd charge if I used a broker. Oh the shame!
Did you really think you would get away with posting this thread WITHOUT receiving any cheapo comments? Really?
Guess how else I'm being disturbingly cheap? You're not going to believe this, and I expect nothing but ridicule, but: I'm also shopping for the lowest mortgage interest rate available! Can you believe it? I am actually looking for the best deal for me and my family that results in me paying the lowest amount of money. I know, I know, I have a sickness and should probably be treated by a psychologist. I know, the banks with the higher interest rates probably "deserve" that extra money and who am I to decide that they don't? I'm not really "educated" on the mortgage market so what do I know? Also, they probably have to split the money with employees and pay other costs! Think of how awful I'm being to the poor depositors who get lower savings account interest because I won't overpay for my mortgage loan! And I'm not even using a mortgage broker, I went straight to the banks, even though the banks would pay the broker (not me!) out the higher origination fee they'd charge if I used a broker. Oh the shame!
Now you're just being ridiculous and your sarcasm is novice at best. One has nothing to do with the other.
I understand the point you're trying to make, but no matter the size of the deal, everyone thinks that the commission comes into play and that houses are priced accordingly. Then you'll have people who forego an agent just to "save the commission". The fact is, if you go to an agent who specializes in high end properties they are going to have a good chuckle about you in the office. I know you think you're special at that price point but on Long Island, there is still plenty of wealth and those deals get done in that market all the time with the full freight commission. Like I said though - good luck. You never know.
He is going to send out emails.
Imagine the comments attached to those "forwards" that the real estate people send to their colleagues.
When you go to your favorite restaurant - do you ever ask the waiter if he'll split his normal 20% tip with you because you know the menu well, can read the specials to yourself, fold your own napkin when you are done, and are an easy patron to serve - all requiring less effort/time on his part?
When you go to your favorite restaurant - do you ever ask the waiter if he'll split his normal 20% tip with you because you know the menu well, can read the specials to yourself, fold your own napkin when you are done, and are an easy patron to serve - all requiring less effort/time on his part?
Oh of course!
Especially if I'm at a restaurant with a big group where they automatically add the tip to the check.
I say to the waiter, "Listen here, you can have 10% of the 20% your restaurant will add to our check and you give me 10% just for the pleasure of doing business with us. Otherwise, we are going to another restaurant! Everybody already knows what they want to eat anyway because we already read the menu your restaurant posted on the internet. We will be so easy to serve! See how simple your job is now that there is internet research available?"
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