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Buyers would have to look at so many more homes.
Sellers would have so many more showings.
Buyer's agents would have to write so many more offers, many failing.
Listing agents would have to juggle multiple offers.
But sellers would know they're getting market value.
All around more intense competition and work.
I know some people think agents are not worth their salt, but with this model, all agents work their butts off.
You would have to take out the willing & able buyer clause in your listing agreement, b/c your agent earns his commission the very first time someone offers you that below market price offer.
You would have to take out the willing & able buyer clause in your listing agreement, b/c your agent earns his commission the very first time someone offers you that below market price offer.
in my state, that's already taken care of.
Brokers don't earn a commission unless it is accepted and closes. Merely bringing an offer does not entitle either broker to a commission.
Our contract states-
Quote:
If during the Listing Period, or any extension, Broker, cooperating broker, Seller or any other person procures a ready, willing, and able buyer(s) whose offer to purchase the Property on any price and terms is accepted by Seller, provided the Buyer completes the transaction or is prevented from doing so by Seller. (Broker is entitled to compensation whether any escrow resulting from such offer closes during or after the expiration of the Listing Period, or any extension.)
It does work in some areas, and it drives up the price. It only works in a hot market though.
Theoretically it works in any market. The idea is that you will get "market value" for your home.
The only issue is that the seller may not like the market value, especially those who think their home is worth more than it really is.
I like the contradiction that exists in something being OVER market value.
What is Market Value? The amount for which something can be sold on a given market
Market value shoud be defined as:
The highest price a willing buyer who is willing to buy (but not compelled) would pay and a willing seller who desires to sell (but is not compelled) would accept, both being fully informed, and the property being exposed for sale for a reasonable period of time
The reason OVER market value exists in real estate and many other things is emotions. Emotions run high, people get competitive, and people get tired, so they just pay what it takes.
Lots of people buy/sell real estate for above and below market value for a variety of reasons, whether they are sentimental, based on necessity, or just because they are stupid. But just because one person will pay a price does not mean that the price paid was "market value" I know some people who loathe shopping for cars, so they just take the first price out of the salesman's mouth. That is not even close to what I would pay, and I dont consider it market value....
Market value is set by the market which tends more often than not in the big picture of things to ignore the outlier high's and lows.
That's not a new idea, it happens all the time. Underpricing, causing a bidding war, the result being a sale for well over the market value.
I know it happens.
I'm just asking what people think if it happens more often, or in the majority of sales. More bidding wars which don't necessarily result in buyers overpaying.
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