Friday, March 23, 2012

If you wanna dance, you gotta pay the band. Sellers beware.

This blog is not for anyone who is convinced they're educated and cleaver enough to buy and sell real estate in B.C. without the help of a great Realtor.  (Although before you leave the blog you may wish to ask any great home builder, investor, mogul or land baron if they use a Realtor!)

This blog is for all those savvy sellers and buyers who need no convincing on the value of working with a great Realtor.  Over and over again we prove our worth both by saving you heartache and pain from a bad property and in your wallet by knowing the market and negotiating the best possible prices for you.

Gaining some momentum in some towns is the discount business models.  In this model, it is assumed that the listing brokerage can drive down the remuneration of the Realtor who has worked diligently to bring a qualified buyer.  This has been propelled by the thought that buyers don't pay commission.

Guess again!  You are going to be seeing more and more buyers' agency contracts which assures the hard working Realtor that they will be paid in accordance to their worth and in most cases, what they offer to the other Realtors working to bring buyers to their listings! 

What will this do?  Simply, when your Realtor not getting the amount they charge through the home sale, buyers will be asked to top up the amount. 

What will happen?  Buyers will bid less on the home knowing they might be financially out of pocket by buying this property?

What else might happen?  Buyers will decide that it is far easier to work with listings offering their Realtor a generous commission so that through the sale proceeds everyone is happy.  In this case, the buyer will be guided to bid accordingly.

You do get what you pay for!

You listing clients who think your saving money by listing at a budget rate may discover that in the end, your home sells for less, sits on the market longer and you are asked for a premium rate commission by the buyers' anyway!

But we're going to let the market decide!

Seller's beware.

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