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A perfect blueprint founded in integrity and experience certainly is not nonresponsive just because of repetitive posting.
The truth behind it, and the market embrace of that truth, speak volumes.
This was a direct question about a different method of compensation; none of the things you wanted to talk about was asked.
Ahhh... I see. A lower price does not save a buyer money.
We are far apart on that point, as I would contend that any "knowledgeable buyer" recognizes that they save money with a lower contract price. That is precisely why we attempt to negotiate for a lower price.No lower price was identified and no method of increased compensation for the agent was identified.
Now, after recoiling in indignation and revulsion multiple times at the mere mention of inclusion of "integrity" as an agent incentive, you would consider mutual integrity to be a core component in the relationship, whilst also stipulating that a lower contract price does not save the buyer money.
Huh?There was no revulsion at the mention of integrity; it would only arise at the absence of integrity but again, such discussion was nonresponsive to the compensation question which seems to inspire revulsion on your part.
And, please define "knowledgeable buyer," and how the agent would reach that conclusion.
That concept, and assuming a level of client knowledge carries immense liability for the agent.
Would there be a standard, formal test to document "knowledgeable?" No, there would simply be a meeting of the minds. Please do not expect us to believe that a man of your experience and insight cannot tell which of their clients has any idea of what is going on.
And:
Seriously?
Yep. You missed it twice. Here is one clear answer in Post #446:
"Dunno" is not responsive but certainly indicates that you are oh so comfortably ensconced in the status quo and would not willingly depart from it come hell or high water.
I wonder why you have invested so much time in nonresponsive chit chat here. I believe I have said somewhere here that this certainly would not be a viable plan for every agent so find it hard to understand the vehement opposition. It's hard for me to believe there are no agents confident enough in their negotiation abilities to not put themselves in a position to gain much higher rewards for doing the same thing they do every day. Perhaps they are simply out doing their jobs rather than spending so much time on the internet.
"Dunno" is not responsive but certainly indicates that you are oh so comfortably ensconced in the status quo and would not willingly depart from it come hell or high water.
I wonder why you have invested so much time in nonresponsive chit chat here. I believe I have said somewhere here that this certainly would not be a viable plan for every agent so find it hard to understand the vehement opposition. It's hard for me to believe there are no agents confident enough in their negotiation abilities to not put themselves in a position to gain much higher rewards for doing the same thing they do every day. Perhaps they are simply out doing their jobs rather than spending so much time on the internet.
You commented that you didnt get any takers to discuss your idea when you first posted it.. Mike commented :shrug:
I'll play. How do you reward an agent when it's multiple offers and the buyer pays over asking price? Is there an expected minimum pay with a bonus for a "better deal"? How is the deal deterimined - appraised value, asking price, bpo, etc?
If seller A is grossly overpriced and eventually sells for 15% below asking price and Seller B with a comparable home prices it slightly below market value and generates multiple offers resulting the home selling for over asking price but for the exact same price as seller A, which agent negotiated the better deal?
Now lets complicate more: Seller A's home is an easy close. Seller B is a difficult transaction the agent puts in overtime and masterfully navigates the challenges. Which agent did a "better" job and why would agent A deserve a bonus for negotiations while agent B makes less? If you're going to reward negotiation are you also going to reward problem solving or extra work to get closed?
when I read #511 again just now, I couldn't help but think -
if folks vetted their agents and used a really good agent, then they wouldn't be so tortured over worrying whether their agent is out to get them to pay the most or buy the fastest so the agent could get paid more or faster.
the idea of developing a base price for each house AFTER you've viewed it, and having a different compensation equation for each house as well, is just so cumbersome and unrealistic. Even in a "everything wallows on the market" ... what would happen if you and your agent disagreed over base prices?
I don't think the idea of "offsetting against the compensation the Buyer would get" would work anyway because ...
if your agent is happy earning the given commission from a given sale in the given market ...
what advantage do you as Buyer gain by a unique model for your agent that might, under the best circumstances and the simplest situation possible (% of $ below asking price), reward them above their expected compensation? Beyond the peace of mind that you know the agent you don't really really trust isn't convincing you to pay more than you should have to through better negotiation?
And I'll repeat - I would be happy to work on an hourly basis and upfront retainer. This would be earth-shaking to the commission model, yes? And I've heard MANY agents say they'd do the same.
What I posted way back on #415 still holds true:
Quote:
Our job is to help get the Buyers the house they want, at the best price and terms possible.
...
At the end of the day, it's a relationship built on trust. If you don't trust your current agent's motives, find another. If you believe your agent is only trying to get you to pay a higher price than you're comfortable with, then you should find a new agent.
Your plan would create a perverse incentive. If the possibility of higher pay incentivizes your agent then she will be well-served by focusing on over-priced listings for you.
You haven't been paying attention. Your scenario would not work to garner more commission.
I'll play. How do you reward an agent when it's multiple offers and the buyer pays over asking price? Is there an expected minimum pay with a bonus for a "better deal"? How is the deal deterimined - appraised value, asking price, bpo, etc?
If seller A is grossly overpriced and eventually sells for 15% below asking price and Seller B with a comparable home prices it slightly below market value and generates multiple offers resulting the home selling for over asking price but for the exact same price as seller A, which agent negotiated the better deal?
Now lets complicate more: Seller A's home is an easy close. Seller B is a difficult transaction the agent puts in overtime and masterfully navigates the challenges. Which agent did a "better" job and why would agent A deserve a bonus for negotiations while agent B makes less? If you're going to reward negotiation are you also going to reward problem solving or extra work to get closed?
Have at it Nutty. I'll wait.
If you're going to ask questions, please at least read the outline of the proposal first. "Asking price" is irrelevant to the formula.
Which does absolutely nothing to propose a system that gets him more money as the contract price goes down rather than up.
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