Comments on: Two Myths For the Price of One

By: Jim Duncan

Jim Duncan — Thu, 31 Jan 2008 20:16:47 +0000

Maybe a difference of 1% this way or that doesn’t matter a great deal, but you’re throwing an unknown variable into the mix.

And we don’t know accurately what they are today … we just use our best educated professional guesstimate.

By: Jonathan Dalton

Jonathan Dalton — Thu, 31 Jan 2008 20:14:02 +0000

You may do it but I don’t the unrepresented sellers do it themselves. “Let’s see. Bob’s house sold for $200K but he paid commissions so we’ll price it at $185,000 (or whatever.)” More often than not the house is priced at the last sale (if they’re even close to aggressive and/or serious.)

>In that case, I do pull the commissions out.

Except you never absolutely know what the commissions are. Maybe a difference of 1% this way or that doesn’t matter a great deal, but you’re throwing an unknown variable into the mix.

By: Jim Duncan

Jim Duncan — Thu, 31 Jan 2008 19:31:30 +0000

I know.

I’ve yet to run into an unrepresented seller who looks at all the comps then deducts the commission that’s not coming out of their net.

That depends on where they’re pulling their comps. If I’m taking an offer on an unrepresented seller’s house I do an full CMA that does in fact take into account commissions, or lack thereof. In that case, I do pull the commissions out. Determining market value is an artful science, and all of the factors have to be weighed.

If we were to break for simplicity and have the sellers pay their representation and the buyers pay theirs, I argue that we would all benefit.

By: Jonathan Dalton

Jonathan Dalton — Thu, 31 Jan 2008 19:27:10 +0000

Wasn’t arguing that was a reasonable commission, Jim. But you know that.

Just using a random figure that doesn’t coincide with the random numbers that everyone else seems to use lest the impression be given that there’s a set commission rate. Which there isn’t.

By: Jim Duncan

Jim Duncan — Thu, 31 Jan 2008 19:10:26 +0000

. Let’s say the average commission in some area was 10%.

It would be inhabited almost entirely by Realtors.

By: Lani Anglin

Lani Anglin — Thu, 31 Jan 2008 18:28:56 +0000

It seems to me that anyone can get a few pieces of information and then have the magical ability to speak from an omniscient standpoint as an expert and make assertions based on their few facts (or opinion blogs) they’ve read, as I feel the author of the “myths” did. In this environment, everyone is trying to “revolutionize” something. Enough.

Real estate has been tweaked and re-tweaked but it is still recognizable whether the “business model” is good or bad. The author proves that just like he/she did, buyers and sellers can read an unimaginable amount of information online, access countless data points, but still be confused and overwhelmed which is why the professional will always be employed at full price- THEY know how to translate the massive info dump online (among other places) to the specific buyer or seller’s needs and that service will never be $395.