Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Taikun who wrote (60214)	8/18/2006 3:49:55 PM
From: Broken_Clock	Respond to of 306849

U would think. In reality, commissions get shaved when the market is super hot and the seller's are making huge profits. the greed factor overlays onto the commission. sellers want it all to themselves. Once the market turns then the sellers greed is replaced by fear and then they are the ones asking the agents to do anything to get them a buyer. We've had many sellers tell us one of the following: Can't you offer the coop agent a bonus(typically they suggest $5,000 to $10,000) or Increase the commission from 6% to 7 or even 8%! the listing agent gets 3 and the buyer's agent gets 4 or 5%. This is getting more common. We rec they simply reduce the price but strangely they don't want to do that, even though the net to them at closing might very well be the same. They "don't want to leave anything on the table"(lost profit). Makes no sense at all since in the current market they are losing 1% or so in valuation each month. Of course, the most successful investors I've met always leave something extra for the buyer. They are rarely greedy and happy to turn a profit and go find another winner deal.