Comments on: Do you really want that discounted broker’s commission? http://theapplepeeled.com/sellers/do-you-really-want-that-discounted-brokers-commission/?utm_source=subscriber&utm_medium=rss&utm_campaign=rss Manhattan Real Estate from the Inside Out Thu, 02 Feb 2012 18:39:02 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Honeycrisp http://theapplepeeled.com/sellers/do-you-really-want-that-discounted-brokers-commission/comment-page-1/#comment-441 Honeycrisp Mon, 27 Sep 2010 15:00:15 +0000 http://theapplepeeled.com/?p=1017#comment-441 First off, let me say I'm loving your name, Golden Delicious :) Second, it should come as no surprise that incentives drive behavior, not? Freakanomics did a great job of pointing out the unintended (or intended) consequences of incentives. A good agent will therefore always incentivize the other side in the best interest of his/her seller. As for the pays scale, true - for a job poorly done or an inexperienced agent, the pay may seem out of line with the results. However I believe that if you interview most sellers (as 85%+ of them in NYC have chosen to use a broker), I'm certain you will find that their feedback would be: "a good agent is priceless". This post is meant to outline what a good agent does, and the hard work put into a listing (vs a poor agent). Lastly, I don't disagree with the general observation that the industry is lagging the times - I am of the personal view that each side (buyer and seller) should pay for its own services, to better align interests all around (buyers pay for buy-side service, and sellers do the same). Unfortunately, such payment is currently only due upon the consummation of a transaction, versus services rendered, which I believe lies at the heart of many issues. ... Thoughts? First off, let me say I’m loving your name, Golden Delicious :) Second, it should come as no surprise that incentives drive behavior, not? Freakanomics did a great job of pointing out the unintended (or intended) consequences of incentives. A good agent will therefore always incentivize the other side in the best interest of his/her seller. As for the pays scale, true – for a job poorly done or an inexperienced agent, the pay may seem out of line with the results. However I believe that if you interview most sellers (as 85%+ of them in NYC have chosen to use a broker), I’m certain you will find that their feedback would be: “a good agent is priceless”. This post is meant to outline what a good agent does, and the hard work put into a listing (vs a poor agent). Lastly, I don’t disagree with the general observation that the industry is lagging the times – I am of the personal view that each side (buyer and seller) should pay for its own services, to better align interests all around (buyers pay for buy-side service, and sellers do the same). Unfortunately, such payment is currently only due upon the consummation of a transaction, versus services rendered, which I believe lies at the heart of many issues. … Thoughts?

]]> By: Golden Delicious http://theapplepeeled.com/sellers/do-you-really-want-that-discounted-brokers-commission/comment-page-1/#comment-423 Golden Delicious Mon, 20 Sep 2010 23:11:02 +0000 http://theapplepeeled.com/?p=1017#comment-423 Oh, forgive me, but this is truly a specious article shilling for the real estate industry. When the sales were booming, these same agents posing as impartial writers were explaining to the great unwashed why it made sense to pay a full-service brokerage. This is all just anecdotal blathering without any hard evidence. You can buy a million dollars worth of real estate on the NYSE for $5 commission, but somehow the NYC agents should make $60,000 for a few weeks work. What's really going on is that real estate agents, especially ones in NYC, are being dragged kicking and screaming into the real world. Given their financial clout and lobbying, they'll manage to resist for years to come. "A solid financial incentive (or split) for the buyer’s broker may very well make the difference between your property being shown and recommended … or not. " The above quote is a roundabout way of saying the agent will violate his legal obligations to show his client what is the best interest of the *client*. You, the owner, are supposed to worry about what is in the best interest of the agent, the middle-man, with respect to your assets. And if you don't, the agent will punish you by breaking his oath of conduct. This is sadly true, but dressing it up as incentivizing [sic] is a bit rich. Lastly, suggesting that $52/hour is small beer for a job that requires no college degree or special training or previous experience borders on the delusional. Our country is in for a long, hard sluggish economy if we don't get rid of this kind of insane, ludicrous sense of entitlement. Oh, forgive me, but this is truly a specious article shilling for the real estate industry. When the sales were booming, these same agents posing as impartial writers were explaining to the great unwashed why it made sense to pay a full-service brokerage.

This is all just anecdotal blathering without any hard evidence. You can buy a million dollars worth of real estate on the NYSE for $5 commission, but somehow the NYC agents should make $60,000 for a few weeks work. What’s really going on is that real estate agents, especially ones in NYC, are being dragged kicking and screaming into the real world. Given their financial clout and lobbying, they’ll manage to resist for years to come.

“A solid financial incentive (or split) for the buyer’s broker may very well make the difference between your property being shown and recommended … or not. ”

The above quote is a roundabout way of saying the agent will violate his legal obligations to show his client what is the best interest of the *client*. You, the owner, are supposed to worry about what is in the best interest of the agent, the middle-man, with respect to your assets. And if you don’t, the agent will punish you by breaking his oath of conduct. This is sadly true, but dressing it up as incentivizing [sic] is a bit rich.

Lastly, suggesting that $52/hour is small beer for a job that requires no college degree or special training or previous experience borders on the delusional. Our country is in for a long, hard sluggish economy if we don’t get rid of this kind of insane, ludicrous sense of entitlement.

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