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 one client that if they would have written the offer they submitted on the home they purchased with ShopProp would have not won the bid and also received a huge rebate! I also don’t know of one client that left our firm to list with another company and achieved a higher price. I don’t know of any firm that consistantly achieves higher prices than it’s peers even though they may claim to with padded data. That being said below are some abuses you should be aware of.
You can easily establish if your real estate agent is part of this 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:
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.
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)