What Conflicts of Interest Exist in Real Estate?
- 5 years ago
Typical Conflicts of Interest in Real Estate: http://www.hauseit.com/conflict-of-interest-real-estate
Save Money with a Hauseit Buyer Closing Credit: https://www.hauseit.com/hauseit-buyer-closing-credit-nyc/
Conflicts of interest do exist and real estate agents are paid on commission, meaning their focus is on closing deals.
However, customer satisfaction is important for most serious agents because referrals are their main source of business.
Listing Agent Conflict of Interest
Preference for a Direct Buyer Listing agents prefer direct buyers because they can keep all 6% in commission without having to split it with a buyer’s agent.
Selling Faster for Less
Because agents are paid on commission, they are incentivized to sell a home faster, even if they could have gotten a slightly higher price if they marketed it longer.
Laziness After Receiving an Offer
Agents might get lazy after finding an acceptable offer. Even though offers can fall through at any time before contracts are fully executed, a listing agent might get lazy and stop showings or actively pursuing other bidders.
Focus on Easier to Sell Listings
An agent might lose motivation if a listing is too hard to sell. If the property is priced too high or otherwise lacks attractive features, a listing agent may lose interest or focus and decide to spend more time on other opportunities.
Boycotting of Discount Brokers
A listing broker will likely resent a discount broker who’s openly offering commission back to buyers. Given the option of working with a direct buyer or a traditional broker who isn’t out to “disrupt” the industry, why would a listing broker cooperate with a discounter?
Pro Tip: Fortunately for buyers at least, they can avoid the stigma of working with a discount broker by signing up for a Hauseit Buyer Closing Credit. Hauseit’s partner brokers are some of the most experienced, reputable traditional real estate brokers in NY who never openly discount their services. As a result, you can discreetly save thousands on your purchase without risking your deal.
Buyer Agent Conflict of Interest
Preference for higher priced properties
Buyer agents tend to steer customers towards higher priced listings so they can make more commission.
Preference for Listings with Higher Co-Brokes
Buyer agents steer their clients towards listings that offer higher co-brokes in the MLS.
Preference for Condos vs Co-ops
Buyer agents steer clients towards condos vs co-ops because they are dramatically easier to close. Co-ops take not only longer to close, but take significantly more work due do the co-op board approval process.
Preference for Easy Going Listing Agents
Buyer agents prefer to work with easy going listing agents. This makes a whole lot of sense because a difficult counterparty can not only kill a deal, but can make it absolute hell.
Reduce Your Buyer Closing Costs in NYC: https://www.hauseit.com/hauseit-buyer-closing-credit-nyc/
#hauseit #hauseitnyc
https://www.hauseit.co
Save Money with a Hauseit Buyer Closing Credit: https://www.hauseit.com/hauseit-buyer-closing-credit-nyc/
Conflicts of interest do exist and real estate agents are paid on commission, meaning their focus is on closing deals.
However, customer satisfaction is important for most serious agents because referrals are their main source of business.
Listing Agent Conflict of Interest
Preference for a Direct Buyer Listing agents prefer direct buyers because they can keep all 6% in commission without having to split it with a buyer’s agent.
Selling Faster for Less
Because agents are paid on commission, they are incentivized to sell a home faster, even if they could have gotten a slightly higher price if they marketed it longer.
Laziness After Receiving an Offer
Agents might get lazy after finding an acceptable offer. Even though offers can fall through at any time before contracts are fully executed, a listing agent might get lazy and stop showings or actively pursuing other bidders.
Focus on Easier to Sell Listings
An agent might lose motivation if a listing is too hard to sell. If the property is priced too high or otherwise lacks attractive features, a listing agent may lose interest or focus and decide to spend more time on other opportunities.
Boycotting of Discount Brokers
A listing broker will likely resent a discount broker who’s openly offering commission back to buyers. Given the option of working with a direct buyer or a traditional broker who isn’t out to “disrupt” the industry, why would a listing broker cooperate with a discounter?
Pro Tip: Fortunately for buyers at least, they can avoid the stigma of working with a discount broker by signing up for a Hauseit Buyer Closing Credit. Hauseit’s partner brokers are some of the most experienced, reputable traditional real estate brokers in NY who never openly discount their services. As a result, you can discreetly save thousands on your purchase without risking your deal.
Buyer Agent Conflict of Interest
Preference for higher priced properties
Buyer agents tend to steer customers towards higher priced listings so they can make more commission.
Preference for Listings with Higher Co-Brokes
Buyer agents steer their clients towards listings that offer higher co-brokes in the MLS.
Preference for Condos vs Co-ops
Buyer agents steer clients towards condos vs co-ops because they are dramatically easier to close. Co-ops take not only longer to close, but take significantly more work due do the co-op board approval process.
Preference for Easy Going Listing Agents
Buyer agents prefer to work with easy going listing agents. This makes a whole lot of sense because a difficult counterparty can not only kill a deal, but can make it absolute hell.
Reduce Your Buyer Closing Costs in NYC: https://www.hauseit.com/hauseit-buyer-closing-credit-nyc/
#hauseit #hauseitnyc
https://www.hauseit.co