Quote:
Originally Posted by Realtor 1
Rules prohibit from saying commission will be X amount if sold for this and you will get x amount as a bonus if you sell for more.
As for the open house situation, I do not know where the stats are from but personally don't believe them. You have no way to tell if someone came through your open house as a resident of the community who then tells a friend or family member about it. They then check it out on the internet, book a showing and all of a sudden you have an offer that started from the open house but there would be no way to find out.
As winsor said, too many agents will take any listing despite the sellers asking price. More times than not this place sits on the market for 3 months and then they go with another agent who prices the property properly and it sells after a month.
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Sure. But the rules don't prohibit a commission structure of 3% on the first 250k and 35% of everything over 250k...
A commission structure like that would provide a stronger incentive for realtors to get the last 10k out of a listing, because the commission would materially change. In the current system, the realtor gets half of 3% of the last 10k, which equates to $150. Any rational realtor would want to sell for a slightly lower price and take the guaranteed thousands in commission, versus holding out for slightly more money that doesn't affect their income substantially.
Academic research also bears this out. A study at the University of Chicago showed that realtor's listing their own homes got slightly more money, and kept their homes on the market ~10 days longer than homes they listed for clients.
http://citeseerx.ist.psu.edu/viewdoc...=rep1&type=pdf