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 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!
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 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 bad 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:
The funny thing is most old School agents that seller overpay won’t show the home to a perspective 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 perspective 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 gauging 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 our 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 buyers 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 buyers 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
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.(see chart below)