A consumer’s guide to the divorced real estate commission
Hey all -
A friend of BiggerPockets, Greg Swann of Bloodhound Realty, recently put together a free e-book on divorcing real estate commissions that I thought you might be interested in.
According to Greg, As long as consumers know nothing about this, the fleecing will go on.
Here's an excerpt:
Question #1: “Potential buyers for our home ($800K - California) have a realtor but he did not find our home for them. The buyers did and have visited both times without him. He has played no role whatever in bringing us these buyers. If we accept their offer why on earth should we give him 3% ($24K) of our home’s equity for contributing nothing whatsoever?â€Question #2: “When looking at homes on our own and calling the listing agents ourselves to set up appointments, does that obligate us to go with the listing agent if we decide to place an offer on the property?â€
Question #3: “Since the amount of work involved doesn’t really differ according to the value of the house, financially, it seems like the percentage commission would make higher prices more favorable from a buyer’s agent’s perspective. If this is the case, why would the buyer’s agent be motivated to help negotiate the price down?â€
Now, there are nice, long, complicated answers for each of those questions, and nice, long, complicated answers are the very essence of a certain type of salesmanship. It’s called Tap-Dancing, and it works — at least if you’re easily confused. But here are much shorter, much more truthful answers to those three questions:
Find out more about the ebook or Download the free PDF here.
Any thoughts on the subject?