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I cannot speak for you specifically, but it is the overwhelming norm that an agent is paid more for selling an in-house listing.
In your defense, it is also the overwhelming norm that an agent will want to build their business using best practices and the "Golden Rule", which is as you say, to serve your client's best interests, which means finding the home for them that best fits their needs.
Like Mike's company, my company does NOT pay more to agents that sell "in house" listings.
I'm not sure where you get your information or if it is something that you have "heard".
Kinda reminds me of the neighbor that tells everyone in the n'hood that he sold his house for full price! It ain't so!!!
VickiR, I do not want you to take this personally but since you've quoted your examples, I'm responding to them.
Quote:
Originally Posted by VickiR
You are incorrect that an Agent would push their own listings. My last listing was priced at $164,900. I had buyers this past weekend that were looking to purchase a home in the $250,000. And that wasn't the only criteria that didn't match up so why would I try to push my own listing???
There are 1000 ways to justify why expensive home makes more sense, especially when you're not the buyer.
Now let's see, the commission @ 2.4%...
$165k = $3957
$250k = $6000
Difference of $2043
To the OP,
Both the agents make money only when the sell happens. So it's advisable for the agents to have such "fruitful" partnerships with fellow agents. In almost all the cases, the negotiation takes place over at least two rounds of transactions. Expect the first offer to get rejected & second, close to your upper limit.
I'm not saying that you should not have an agent. What I'm saying is that, do your own research, ask for references, go with your instinct & more importantly, stick to your limit!
Last edited by HitsOfMisses; 01-27-2010 at 11:04 PM..
1st time home buyer chiming in here...
My husband and I bought our first home in September 2008. I did all of my own research up front on what we would afford, talked to the banks, etc. My parents thought we were crazy to get a real estate agent; thought we would pay more than if we went searching on our own. We even ended up buying new construction WITH an agent! I am SOOOO very glad we had them. Throughout the process I really felt like they were on our side while building the home. They went with us to all the walk throughs pointing out things we would have missed, really really pushed for us during negotiations and on a side note, they were also there for the emotional support (I had NO idea I could get so emotional during this process!). Prior to putting an offer in on the new construction, we were getting close to an offer on another house. We knew we were competing with another offer and they never pushed us to offer more than we were comfortable with.
In the end I feel like we got a great deal on our new home and I would NEVER do this again without an agent. In summary, I vote got an agent every time!
VickiR, I do not want you to take this personally but since you've quoted your examples, I'm responding to them.
There are 1000 ways to justify why expensive home makes more sense, especially when you're not the buyer.
Now let's see, the commission @ 2.4%...
$165k = $3957
$250k = $6000
Difference of $2043
To the OP,
Both the agents make money only when the sell happens. So it's advisable for the agents to have such "fruitful" partnerships with fellow agents. In almost all the cases, the negotiation takes place over at least two rounds of transactions. Expect the first offer to get rejected & second, close to your upper limit.
I'm not saying that you should not have an agent. What I'm saying is that, do your own research, ask for references, go with your instinct & more importantly, stick to your limit!
Hmmm... Following that "logic...."
Last year...
I had a listing at $559,000.
I had buyers who wanted to pay about $240,000 for a house.
I guess some consumers would think I was eager to push them into my own listing?
Seemed like common sense and good service to me to work within their means and get them into a home that met their criteria at about 10-11% below what their maximum budget was.
Vicki alluded to the reason to not bother a client with a $165,000 listing when they have expressed a budget in the $250,000 range: "And that wasn't the only criteria that didn't match up so why would I try to push my own listing???"
The assumption that a higher commission was the motivation is erroneous. The less expensive home did not meet the criteria established.
The price of homes sold/bought generally reflects the desires of the consumer, as long as the consumer is at least comfortable with a starter home price, or higher.
Some buyers spend more than they originally budget, when they see that the market offerings within their original budget do not deliver what they want. That is their right, and always their choice.
Some people are able to meet their criteria well within their budget.
And sometimes we find that they have budgeted more than they need to and they are delighted to find homes for less than they ever expected to. That is a "win" all around.
It feels absolutely great to call someone and say, "Hey! Are you guys free tonight? 123 Elm Street just went on the market and it might be perfect for you. The price is great for you, if the home fits you."
The work is about client service and satisfaction.
I work with clients who increase, decrease, and hold tight to their target budgets. That is fine. And sometimes they compromise, either on property criteria or price limits. That is fine. And I get paid when they consummate a transaction. That is fine.
Sometimes they do not buy, because the market cannot fill their basic needs within their budget. That is fine. And I don't have a payday. That is fine.
What I don't care for is to have someone else's values on money and service, which I find disgusting, projected on a forum as my values.
I am not saying that all Agents are created equal. I just feel helpless for those that have had a bad experience with an Agent and then want to trash all Agents. I want THEM to understand the difference.
I'm not saying that all buyers NEED a buyer's agent, either. Based on what I have SEEN, I think they are nuts to try to do it alone BUT let's say that you have an UNEVENTFUL sale. You are happy, the sellers are happy and all is well.
However...let's say you were my last buyers.
They purchased a house that is 11 years old. "I" didn't like some of what I saw but they wanted the house. I pointed out my concerns. They wanted the house. "I" put a very low ($1500) repair contingency in the offer. I was surprised when the seller's agent accepted it.
We did inspections. There were A LOT of concerns. They wanted out of the contract. I was able to get their earnest money back because of the low repair contingency amount. Not to mention the arguing I had to do with the seller's agent. Even the seller called me! Would my buyers been able to deal with all that? Probably not. Would theyhave gotten out of the contract? Probably. Would they have gotten their earnest money back? Doubtful.
There are SO MANY instances like that when a good buyer's agent will save you THOUSANDS. So when I hear people saying they don't NEED a buyer's agent, I actually worry about them. But hubby says that I can't change EVERYONE"S opinion of Realtors so I should stop trying. Since WHEN do I listen to HIM?!!
Buyers agent was very helpful when I bought my house.
It's pretty obvious if they are pushing their own companies lists. But it's also tough sometimes not too, My agent worked for a large realtor SO of course a lot of the houses I saw were listed by their company. I will also say the realator didn't have a whole lot of say in what houses we saw, sure they suggested some, but I suggested the majority of houses we went to see.
In fact the buyers agent urged us to see a house we previously passed over, which we ended up buying which was another company's listing. So in the end we ended up changing our mind last minute passing over a house listed by our buyers agents company for a house listed by another company at their advice.
Sorry they aren't a clayton agent of I would DM their name.
I think it's laughable to claim agents don't push their own listings. However, if the thought that it's because they make more money is truly an old wives' tale, there could be other motivations. If you list a home and then sell it quickly (possibly due to going out of your way to avoid showing newbie buyers FSBOs or outside listings in favor of your own) then the sellers will be happy and continue to recommend you to both buyers and sellers. The seller isn't going to care if you push their listing, and the buyer might not know what they're missing. Just a thought.
I'm not saying you'd push a $500K house on someone who told you they were looking in the $200K range or the $900K range. But if two similar houses came up and one was yours and one wasn't...
I think it's laughable to claim agents don't push their own listings. However, if the thought that it's because they make more money is truly an old wives' tale, there could be other motivations. If you list a home and then sell it quickly (possibly due to going out of your way to avoid showing newbie buyers FSBOs or outside listings in favor of your own) then the sellers will be happy and continue to recommend you to both buyers and sellers. The seller isn't going to care if you push their listing, and the buyer might not know what they're missing. Just a thought.
I'm not saying you'd push a $500K house on someone who told you they were looking in the $200K range or the $900K range. But if two similar houses came up and one was yours and one wasn't...
Why laughable?
Are common sense, good business acumen, and good client service such foreign concepts that they need repeated interpretation?
It is not a perfect world in any profession, but cynically assuming that everyone in any profession is dishonest or unethical is short-sighted.
If two similar homes came up and the agent shows both his listing and the other listing, is that pushing his own listing?
Should an agent show his own listing at all if it fits the criteria? Would that be pushing the listing?
If the buyer sees the listing and determines the agent's listed home is the best home for their needs, is that pushing the listing?
If the agent is concerned that the buyer may feel pushed if the agent mentions his own listing, so he decides to not mention it, is the buyer served well?
Discussion of how the buyer and agent will handle any listings the agent or firm have is good to work into the engagement interview. It can clarify things. Buyers need to attain a comfort range on the topic.
Various people have various motivations. I don't actively seek dual agency.
It is easier for the agent if another capable agent is involved in the transaction. And with thousands of Realtors members of the Triangle MLS, it is more likely that any of them will bring a buyer regardless of the listing agent's efforts to find a good fit.
I have not done dual agency without another agent from my firm since 2007. But, if a home I have listed fits the criteria, I show it, and hope for benefit for buyer and seller.
And I let the client know we would be in dual agency, or that it is my own listing before we even agree to view it.
Buyers have access to a fair amount of market information, some good and some pretty sloppy.
The last thing any agent wants is for the buyer to notice a better deal or superior property that was overlooked or avoided in the midst of a transaction. No one wants to hear, "Why didn't I get to see this home?" two weeks into the deal.
So the agent needs to be focused on the best fit at the most agreeable price point.
It's a great phone call when talking to a client a couple of years later and being able to say, "You know, I think we did all right down there. Not much has come close to the deal you got." And having the buyer agree, because they have been checking.
Again, the work is about client service and satisfaction. The rewards, including monetary, are barren without happy clients.
Last edited by MikeJaquish; 01-29-2010 at 05:10 AM..
I recommend getting a buyers agent. This helped us tremendously when we purchased our home here. We had not previously used on the other homes we had purchased. It was not really common practice in Massachusetts then and the realtor was always working for the seller.
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