{"id":2181,"date":"2007-11-08T08:35:02","date_gmt":"2007-11-08T15:35:02","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=2181"},"modified":"2007-11-10T23:02:45","modified_gmt":"2007-11-11T06:02:45","slug":"a-consumers-guide-to-the-divorced-real-estate-commission-will-the-negotiating-their-buyers-agents-compensation-make-buyers-more-practical","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2181\/a-consumers-guide-to-the-divorced-real-estate-commission-will-the-negotiating-their-buyers-agents-compensation-make-buyers-more-practical\/","title":{"rendered":"A consumer’s guide to the divorced real estate commission: Will the necessity of negotiating their buyer’s agent’s compensation make buyers more practical?"},"content":{"rendered":"

Part II: How buyers can finally take a seat at the grown-up’s table<\/b><\/p>\n

When a potential home-seller calls me to set up a listing appointment, very often the first question I will hear is, “How much do you charge?” A motivated seller is done with the house, and now all that matters is money. Sellers — usually — are practical, phlegmatic and open — if not at first then eventually — to logical persuasion.<\/p>\n

Buyers, on the other hand, are giddy and emotional and mercurial and fun. They are on a safari to capture something big and exciting, and mere matters of finance are the farthest thing from their minds. This applies even to move-up buyers, people who are also selling their current home to buy the next one. On Friday evening, meeting about the house they are selling, they are coldly rational. On Saturday morning, shopping for the new house, they are swept away by their emotions.<\/p>\n

Why do sellers pay the buyer’s agent’s commission, with or without sub-agency? Because it works. Buyers get to look at houses “for free.” The agent will set up searches “for free,” driving the buyers from house to house “for free.” And when it comes time to write a contract, the more the buyers pay for the home, the more the buyer’s agent will get paid. The seller is paying a percentage of the sales price, so the buyer’s agent’s pecuniary interest is aligned with that of the seller, not the buyers, his nominal clients. But — what the heck? — it’s all being done “for free.”<\/p>\n

In the feast of residential real estate, buyers sit at the kiddie table and they don’t even know it. If a buyer even thinks to ask who is paying for all these free gifts of information, transportation and advice, the buyer’s agent will blow him off by saying, “Oh, the seller pays me.” We like to think we are smart shoppers, suspicious if not outright cynical, but no one ever thinks to ask, “The seller pays you for what?”<\/i><\/p>\n

There’s more. Since the advent of buyer brokerage, the claim has been that Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Part II: How buyers can finally take a seat at the grown-up’s table When a potential home-seller calls me to set up a listing appointment, very often the first question I will hear is, “How much do you charge?” A motivated seller is done with the house, and now all that matters is money. Sellers […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[6,5,30],"tags":[],"class_list":{"0":"post-2181","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-marketing","7":"category-real-estate","8":"category-supplanting-the-nar","10":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":2755,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2755\/practical-dual-agency-in-real-life-it-is-possible-to-have-a-fiduciary-duty-to-your-sellers-that-you-cannot-get-away-from-that-feels-like-a-complete-betrayal-of-your-buyers-what-then\/","url_meta":{"origin":2181,"position":0},"title":"Practical dual agency in real life: It is possible to have a fiduciary duty to your sellers — that you cannot get away from — that feels like a complete betrayal of your buyers. What then?","author":"Greg Swann","date":"March 12, 2008","format":false,"excerpt":"There is a debate on dual agency going on at VARbuzz. This is my contribution to the conversation. I abhor dual agency -- notoriously so. I make no distinction between one licensee or two in the same brokerage, and I am more than prepared to be suspicious if there is\u2026","rel":"","context":"In "Blogging"","block_context":{"text":"Blogging","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/blogging\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1999,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1999\/ask-the-broker-how-can-the-seller-paying-the-buyers-brokers-commission-be-fair-to-the-seller\/","url_meta":{"origin":2181,"position":1},"title":"Ask the Broker: How can the seller paying the buyer’s broker’s commission be fair to the seller?","author":"Greg Swann","date":"October 3, 2007","format":false,"excerpt":"Here's a truly fascinating question from an agent working in Nassau County, Long Island, New York. The idea of buyer brokerage is just being introduced there, and our interlocutor is understandably mystified:I am a bit confused, to say the very least. If I write up a listing contract with a\u2026","rel":"","context":"In "Ask the Broker"","block_context":{"text":"Ask the Broker","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/ask-the-broker\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1753,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1753\/black-pearls-two-practical-uses-for-video-in-real-estate-marketing\/","url_meta":{"origin":2181,"position":2},"title":"Black Pearls: Two practical uses for video in real estate marketing","author":"Greg Swann","date":"August 6, 2007","format":false,"excerpt":"Someday soon I'm going to write a post with a title like \"Why all available real estate video solutions suck eggs.\" Here's the one-word summary as a teaser: Bandwidth. In the mean time, here are two ways of using video in real estate marketing that are actually useful and practical\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1899,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1899\/appraisal-inspection-could-swing-the-balance-toward-sellers\/","url_meta":{"origin":2181,"position":3},"title":"Appraisal, inspection could swing the balance toward sellers","author":"Greg Swann","date":"September 7, 2007","format":false,"excerpt":"This is me in the Arizona Republic (permanent link): \u00a0Appraisal, inspection could swing the balance toward sellers It's not fun to be a home seller right now. We've talked about why your home must be priced right, prepared right and presented right in order to sell. But -- guess what?\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":487,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/487\/butterflies-might-be-free-but-home-buyers-pay-for-real-estate-advice-whether-they-know-it-or-not\/","url_meta":{"origin":2181,"position":4},"title":"Butterflies might be free, but home-buyers pay for real estate advice — whether they know it or not . . .","author":"Greg Swann","date":"September 29, 2006","format":false,"excerpt":"Ardell raises some questions at Rain City Guide about my column in this morning's paper on negotiating the buyer's agent's commission. I'm going to address some of her remarks here, but my fullest statement on the topic is quite a bit more comprehensive. In the newspaper, I get 350 words\u2026","rel":"","context":"In "Blogging"","block_context":{"text":"Blogging","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/blogging\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":16907,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/16907\/the-sweet-spot-pricing-real-estate-the-guerrilla-marketing-way-to-maximize-the-sellers-net-as-soon-as-possible\/","url_meta":{"origin":2181,"position":5},"title":"The sweet spot: Pricing real estate the guerrilla marketing way, to maximize the seller\u2019s net \u2013 as soon as possible.","author":"Greg Swann","date":"September 5, 2020","format":false,"excerpt":"I am a passionate lister, and I have argued forever that everything matters in the listing praxis \u2013 but nothing matters more than the listing price. And: As you may have noticed, I could go on forever about pricing, but there is one idea that matters to me above all\u2026","rel":"","context":"In "Flourishing"","block_context":{"text":"Flourishing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/flourishing\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-content\/uploads\/2020\/09\/daiji-umemoto-f0aE-bu7sco-unsplash.jpg?resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-content\/uploads\/2020\/09\/daiji-umemoto-f0aE-bu7sco-unsplash.jpg?resize=350%2C200 1x, https:\/\/i0.wp.com\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-content\/uploads\/2020\/09\/daiji-umemoto-f0aE-bu7sco-unsplash.jpg?resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-content\/uploads\/2020\/09\/daiji-umemoto-f0aE-bu7sco-unsplash.jpg?resize=700%2C400 2x"},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/2181","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=2181"}],"version-history":[{"count":0,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/2181\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=2181"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=2181"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=2181"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}