Watch out for Scare Tactics

You can buy your dream home and sell your current home at the best price without being coerced into paying high commissions.

Scare Tactics, collusion and coercion are just a few of the abuses bad or predatory Agents use in an effort to keep commission high.  The good news is a well-written offer still wins and homes that are listed are still sold at the highest price without having to pay high commissions (ask us to prove this with real MLS data in your area), but we can do better by having a completely open transparent market!

See the true math behind real estate commissions! 

Let me preface this with not ALL agents use scare tactics, collude and coerce clients but it’s fairly widespread. There are great agents and firms.  Also, I know from experience that there is work involved when it comes to buying or selling a home and people have the right to charge and to pay as much commission as they want. I am however against anyone that tries to employ tactics to close off the market for the sole purpose of charging higher fees. 

The good news is that I don’t know of one home buyer that if they would have written the offer on the home they purchased with ShopProp versus another agent not only would have won the bid but also received a huge rebate! I also don’t know of a home seller that left our firm to list with another company and achieved a higher price. I don’t know of any firm or agent that consistently achieves higher prices than it’s peers even though they may claim to with padded data. So if you are selling your home you don’t have to be coerced into paying a high commission. That being said below are some abuses you should be aware of.

You can easily establish if your real estate agent is a predatory agent and part of the effort to close the market off to the public so they and the industry can keep commissions high by the tactics they use. Do they:

  • Tell you that only the seller pays the commission? Don’t tell you you can share in the commission when buying a home?
  • When selling your home they operate as a dual agent or have someone in their office/company act as a dual agent and get paid two commissions, the listing and the buying agent commission. These agents will set up frontman and call them buying agents, but in actuality, it is simply another person on their team or office that is being paid a commission. I can tell you for a fact that this charade has cost home owners billions. Often these agents will not do the best to represent you and are more concerned about collecting two commissions. At ShopProp you will notice when we operate as a dual agent our clients only pay the listing side (1 commission). These predatory will also make false claims like they sold the homes they listed when in actuality they listed it and another agent brought the buyer.
  • Tell you how they have an in with other agents and somehow you will get a better price? Tell you agents won’t work with certain agents or take certain offers.
  • Tell you how complicated and risky buying or selling a home is? Try to scare you into thinking that some offers get better consideration than other offers.
  • Try to scare you into the idea that agents will not show certain listings? Tell you that you have to work with a local agent or a particular agent to get the best price when buying or selling. Limited service companies/platform companies where there is no commission offered are exceptions because there is no incentive for the agent.
  • Tell you they have pocket listings or they belong to some kind of insider listing service? Make false claims of getting higher prices with padded data.
  Anytime you feel afraid or an agent tries to make you feel like they are part of an insider real estate market your con artist radar should go off. 95% of home buyers start their search online and every site has the same homes on it for sale. You can check for your self by doing a search on different sites. You can see if there are really any pocket listings by seeing how many sold listings in your area don’t have MLS numbers attached to them (most of these are For Sale By Owners, not pocket listings). You can check how many agents are receiving a higher price than others by looking at sold listing and who has it listed. You will find out there is little to no difference. You can check on what homes sold for and you will find out the BEST offer ultimately won not the one that was presented by a particular Agent.

The funny thing is most old School agents that seller overpay won’t show the home to a prospective buyer that is working with another agent because they want both sides of the commission. Call a listing and tell them you are working with a buyers agent and ask them to show you the home. Most old school agents will not show the home to a prospective buyer that is working with another agent even though you hired them to sell your home. That doesn’t make sense to us! ShopProp will show your home to anyone that wants to see it even if they are working with another agent.

It is my opinion that the real estate industry/agents have been price gouging for years and now with the help of wall street have been trying to come up with new gimmicks to potentially work over unsuspecting sellers and buyers. IBuyer or an offer to buy your house immediately is a new wave in the industry in hopes to keep profits high for agents and wall street. The real estate agent you higher guarantees a certain price for your home if they can’t sell it. The price is low enough that had they done their job and marketed it correctly they would have found a buyer 9 times out of 10 at a higher price. These firms are working with wall street investors in hopes to get the homes sold to them under market.

The other thing to watch out for are Gimmick exchanges that are popping up that are trying to compete with the MLS. Competition is great if they are trying to open the market up not limit the market to their exchange. These exchanges provide less exposure but claim lower fees. You can list on ShopProp for example and pay $0 commission if you sell on your own and get the exposure of the MLS, zillow and other exchanges. With the ShopProp Guarantee, we will beat any verified published price including prices on these new Gimmicky exchanges. With ShopProp you can pay out as little commission as you want to the buyer’s agent so the old rule of 2.5-3% buying agent commission is not in play. If you listed with us, for example, you can offer $500 to the buyer’s agent for example and pay the ShopProp listing fee and you would pay less commission than any of the new exchanges and get more exposure.  We utilize the massive MLS exchanges and all the other NON MLS sites that are already there.  We just charge lower fees.

Please don’t misunderstand me, as I said there is work involved when buying or selling a home and I am not against anyone being able to charge or pay someone any amount they want. I am against an industry or agents using scare tactics in an effort to limit competition to keep commissions high in a market that most of the public is involved with.

Rob Luecke CEO

ShopProp Inc.

I personally believe Real Estate Commissions have translated into billions of dollars of losses for consumers. I also believe it was part of the 2007-2008 crash. We just saw a steep drop in June 2018 and it was quick in noticeable due to the commission. The longer and faster the trend up the more commission is in Home Prices. (see chart below)


“I am thankful that this service was available to us because listing with a traditional agent would not have been as profitable for us.”


“This was a great experience. Rob helped out with a very difficult agent on the other side of the transaction and made it work for us.”

Full Service

Technology has made it less expensive and easier to market, negotiate, and close real estate transactions. ShopProp passes the commission savings on to our clients! Unlike most agents, we don’t lock you into a contract or charge you any upfront fees.

Money Back in Your Pocket

To our buyers we provide a service where the public can buy real estate easily, efficiently, and compliantly at the best purchase price possible while sharing in the majority of our commission.
To sellers we provide a low-cost solution where the public can sell their property easily, efficiently, and compliantly for the highest price possible but at a fraction of the traditional full-commission cost.

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If you are looking for real estate investments we can help you find, analyze and acquire investment properties.
If you are looking for a more passive approach the investment side of our firm is OurCapitalGroup. We buy, sell and develop real estate on a short term basis in Orange County and the greater Seattle area to earn profits for us and our real estate investing partners.

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