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Strategies & Market Trends : The Residential Real Estate Crash Index
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To: Broken_Clock who wrote (60153)8/18/2006 3:34:13 PM
From: TaikunRead Replies (1) of 306849
 
The problem in a dropping market is that the few home buyers that are left must buy feel they're overpaying, and if the seller won't drop the price one easy place to cut a chunk of money is the realtor's commissions.

The market was still pretty good when we sold, but I think that if it were this year the buyer would be asking me to either subtract the saved commissions from the price or at least share them.

So if there is an FSBO house say $20,000 cheaper in a buyer's target area they might buy that and not other homes, the seller gets the same amount of money (or more if they share the savings).

The issue for the realtors and financiers is that now the new comp for the area is lower by $20,000 (in a 200 house community thats a wealth extraction of $4m in collective household wealth), and the easiest way for sellers to move forward is to cut out the realtor.
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