RE: I still have to figure out how to serach the comments, but I have written about this in the past.You call three agents:Agent 1: I have lots of buyers willing to pay $110,000.Agent 2: I can get this sold for $100,000, but it's going to take some time.Agent 3: Price it right at $90,000, and it should sell.The discount rate comes in. What is the difference in discount rates of the agent and seller? Which one is higher? The seller will always get a piece of the action (i.e. the seller is always a party to the transaction in some form, excluding foreclosure, etc.), but the agent risks not getting the contract. Also if the home does not sell, the agent is paid nothing.(Yes, I have made some assumptions about fee structures, and so on, but I hope this illustrates the point. Also the range of stories attached to the price estimate are also varied.)Which agent should the seller pick? Lies are difficult to prove, but are any of the three agents dishonest?I have also claimed that the discount rates of the seller and agent should be similar, but these are difficult to measure. Rate this comment: 0 0
by Emilia 05:08:50 AM 2012.11.03 |