Here’s an email I got regarding this week’s Arizona Republic column, detailing how the buyer actually pays the “seller paid closing costs”:
Hello Greg,
I was incensed at your first article about the buyer paying for everything but I didn’t feel the need to waste my time writing to you.
However, now you seem to just be digging yourself a deeper hole. You have now enraged BOTH the buyers and sellers. Good for you!
Obviously, if you had such a response to your article by agents and brokers, I would think that you would take time to pause to realize just what you did to our industry. But now you insist on pounding your ridiculous theory yet another week. You’re only making a fool of yourself. And buyers and sellers will realize this too.
It’s sad to see someone like you in the industry. Your article about dual agency was also way off base. Remember, we’re all in this together. So maybe you should just sit back and keep your mouth shut.
Regards,
Cindy KingeryCindy Kingery, Associate Broker, e-Pro
Windermere Real Estate/Surprise
Just as a matter of reference, the calls I get from ordinary people, not Realtors or brokers, are overwhelmingly supportive. But also as a matter of reference, the calls I get from Realtors and brokers are almost always line-blocked, and rarely do I get so much as a first name out of those callers. Cindy is to be commended for putting her name behind her words.
That said, I disagree that “we’re all in this together”. I think that attitude perfectly encapsulates what is wrong with real estate brokerage as it is currently practiced. I work for — and only for — my clients. If other Realtors make money as the result of my efforts, that’s a secondary consequence. My entire loyalty is owed to my clients. After that, I owe a duty of honesty to everyone. The buyer pays for everything in a real estate transaction. That’s the truth. To say anything else, or to “keep [my] mouth shut”, would be dishonest.
I have better surprises for you, Cindy. This week I plan to disclose how much commission buyer’s agents are taking from new home builders. Sometime soon, I hope to teach buyers in the West Valley how to negotiate commissions for buyer representation.
No secrets, no lies, Cindy. Not now and not ever. The real estate industry is not a criminal conspiracy against the consumer — no matter how much it acts like one…
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ardell dellaloggia says:
I came over to tell you “Why that’s a fine kettle of fish you’ve gotten us into”. Was that Laurel and Hardy? Anyway, I only have a couple of flies over at RCG today, you my friend are in the kettle.
You are half right, by the way.
September 9, 2006 — 3:40 pm
Greg Swann says:
> You are half right, by the way.
Yeah, so are you. The problem is that the Buyer-Broker Agreement has to be written so that both parties are better served with it than without it. I actually don’t do them right now until I’m writing a contract, but that’s a pattern I need to change.
September 9, 2006 — 3:56 pm
Andrew Breese says:
Awesome!!
The real estate industry is not a criminal conspiracy against the consumer — no matter how much it acts like one…
September 10, 2006 — 2:17 pm
Greg Swann says:
> Awesome!!
Bless you, sir. Thank you.
September 10, 2006 — 2:23 pm
Robert Cot says:
I remember buying my first home. First home but not my first real estate property. It was unbelievable. The sellers and banks and agents were dictating terms, times, conditions, etc. We had scheduled closing before Dec 31st for tax reasons. The sellers realtor (and friend it turns out) deliberately missed some paperwork and blew the closing. Wouldn’t you know, come Jan 2nd she’s all hot to make it up to us and rush things through if we just dance alittle. The majority of my reply is unprintable but suffice it to say it included the fact we were no longer in any hurry, indeed so little hurry that any screw up again on her part would blow the deal.
Anyway your statement that the buyer pays theclosing costs has been correct for so long people forget it isn’t lways the case. The people bringing money to the tablee are the ones paying the closing costs and other expenses. Look, this is even more simple than your excellent narrative. Only one party brings money and that is the person paying. When there’s profit to split up twixt all the other parties as has been the case for a decade than it is indeed the buyer. When the seller brings acheck to the closing as is extremely likely in coming years then the formula changes. Then there is the possibilty of seller and buyer paying. If there is also a short sale then a bank may be paying as well. See? So the short answer truly is; The people taking money from the table are not paying the sales costs.
September 10, 2006 — 5:25 pm