{"id":4348,"date":"2008-09-13T19:23:28","date_gmt":"2008-09-14T02:23:28","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=4348"},"modified":"2008-09-13T19:47:11","modified_gmt":"2008-09-14T02:47:11","slug":"some-days-its-not-worth-chewing-through-the-restraints","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4348\/some-days-its-not-worth-chewing-through-the-restraints\/","title":{"rendered":"Some Days It’s Not Worth Chewing Through the Restraints"},"content":{"rendered":"

In addition to our discussions here at Bloodhound, if you’ve been reading the blogs lately, the commission debate continues.\u00a0 Jonathan Dalton’s post on Agent Genius<\/a> has recently spawned a long series of comments regarding how agents are compensated.<\/p>\n

One comment (below) got me thinking,<\/p>\n

“… I fully believe that my service is worth 6%. Clients in my area seem to be less concerned with getting a \u201cdeal\u201d on their commission rate than they are with getting an EXPERT to work for them.”<\/em><\/p>\n

I am not questioning the agent’s value – it’s hard to debate that consumers want an expert. The issue I have with the comment is “I fully believe my service is worth 6%.”<\/p>\n

Why? <\/p>\n

What is the significance of 6%?\u00a0 As we discuss the issue of commissions, why are we stuck on a percentage of the sale? Why isn’t the number 10% or higher – or in some cases, lower?\u00a0<\/p>\n

In actuality, if you’re cooperating with a buyer’s agent, aren’t you really saying you’re really worth only 3%?<\/p>\n

Indulge me for a moment as I share a little story…<\/p>\n

In early winter 2007, I happened to represent a client in the sale of his 3-flat in Lakeview – highly desirable area north of Lincoln Park – the building generated solid rental income. I listed the property and generated 2 offers within the first 20 days on the market. The first deal fell apart due to an over-zealous inspector who told my clients the building was worth no more than land value, <\/p>\n

Pardon me, but you’re an inspector, not an appraiser. <\/p>\n

But that was the least of my problems …<\/p>\n

The second deal blew apart 3 days prior to closing. The zoning certificate was incorrect – issued by the city. Chicago stated that that building was a 5-flat. My client was thrilled – LOOK! We can now ask for more! Um – excuse me, but no. When he purchased the building 2 years prior, the city correctly issued a zoning certificate indicating that the building was in fact a legal 3-flat. <\/p>\n

The attorney and I discussed Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

In addition to our discussions here at Bloodhound, if you’ve been reading the blogs lately, the commission debate continues.\u00a0 Jonathan Dalton’s post on Agent Genius has recently spawned a long series of comments regarding how agents are compensated. One comment (below) got me thinking, “… I fully believe that my service is worth 6%. Clients […]<\/p>\n","protected":false},"author":47,"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":[5],"tags":[223,531],"class_list":{"0":"post-4348","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-real-estate","7":"tag-agent-compensation","8":"tag-disintermediation","10":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":1478,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1478\/separating-the-buyer-agent-commission-from-the-listing-commission-is-a-really-stupid-idea\/","url_meta":{"origin":4348,"position":0},"title":"Separating the Buyer Agent Commission From the Listing Commission is a REALLY stupid idea","author":"Russell Shaw","date":"May 28, 2007","format":false,"excerpt":"This is a continuation of Jeff Kempe's thoughtful post below. At first, I was going to reply to his post via a comment. But as I thought about it I realized there was way more I wanted to say. First things first: Welcome Jeff, Lani & Morgan! I'm delighted to\u2026","rel":"","context":"In "Dual Agency"","block_context":{"text":"Dual Agency","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/dual-agency\/"},"img":{"alt_text":"thinkingcap","src":"https:\/\/i0.wp.com\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-content\/uploads\/2007\/05\/thinkingcap1.gif?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":3070,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/3070\/im-in-business-to-make-money\/","url_meta":{"origin":4348,"position":1},"title":"I’m in Business to Make Money","author":"Sean Purcell","date":"May 8, 2008","format":false,"excerpt":"One of the best parts of BHB for me,\u00a0is taking the ideas and the round tablediscussions that happen here and bringing them to the street.\u00a0 (I must admit an occasional\u00a0guilty pleasure taken, when I use the knowledge I glean from BHB to steer and even dominate these discussions.\u00a0 I am\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":1827,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1827\/the-odysseus-medal-a-challenge-to-the-mind-and-a-challenge-to-the-way-things-have-always-been-done\/","url_meta":{"origin":4348,"position":2},"title":"The Odysseus Medal: A challenge to the mind and a challenge to the-way-things-have-always-been-done","author":"Greg Swann","date":"August 20, 2007","format":false,"excerpt":"We had a lot of truly great posts this week. I'm not the kind to pick three posts for first place and six for second place, but I do understand the temptation. Steven Groves, for instance, has much to teach us with MLS2.0 - What is the future of real\u2026","rel":"","context":"In "Blog Carnivals"","block_context":{"text":"Blog Carnivals","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/blog-carnivals\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":650,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/650\/an-argument-for-dual-agency-%e2%80%93-part-1\/","url_meta":{"origin":4348,"position":3},"title":"Dual Agency Smack-Down: An Argument FOR Dual Agency – part 1","author":"Russell Shaw","date":"November 18, 2006","format":false,"excerpt":"This is a stupid subject. This is a necessary subject. There are a lot of different viewpoints on this subject. A lot of the viewpoints that seem to matter came from lawyers, court decisions (judges who are also lawyers), and other people who are also wrong. Back in the days\u2026","rel":"","context":"In "Dual Agency"","block_context":{"text":"Dual Agency","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/dual-agency\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1011,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1011\/ask-the-broker-what-do-we-do-if-we-cant-find-the-listing-agent\/","url_meta":{"origin":4348,"position":4},"title":"Ask The Broker – What Do We Do If We Can’t Find The Listing Agent?","author":"Doug Quance","date":"February 7, 2007","format":false,"excerpt":"We (my fiance and I) put in an offer on a condo priced way below market, and the seller would like to take us up on the offer. However his agent is absent, disappeared w\/o a trace. The seller is bound by contract to his listing agent. Since our agent\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":2968,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2968\/its-1000am-do-you-know-where-your-realtor-is\/","url_meta":{"origin":4348,"position":5},"title":"It’s 10:00AM; Do You Know Where Your Realtor Is?","author":"Barry Cunningham","date":"April 14, 2008","format":false,"excerpt":"Do you know that the Realtor who you have your house listed with is actually still earning their living as a Realtor? That was the concern recently voiced and posed to us by a concerned agent in Poinciana, Florida. \"In Central Florida, for example, over 50% of real estate agents\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"Real Estate News } Real Estate Radio USA","src":"https:\/\/i0.wp.com\/www.realestateradiousa.com\/blog\/wp-content\/uploads\/2008\/04\/missing.jpg?resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/4348","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\/47"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=4348"}],"version-history":[{"count":8,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/4348\/revisions"}],"predecessor-version":[{"id":4413,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/4348\/revisions\/4413"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=4348"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=4348"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=4348"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}