{"id":627,"date":"2006-11-10T09:21:03","date_gmt":"2006-11-10T16:21:03","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=627"},"modified":"2006-11-10T09:21:29","modified_gmt":"2006-11-10T16:21:29","slug":"excessive-buyers-agents-commissions-at-new-builds-killer-deals-often-come-with-payoff","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/627\/excessive-buyers-agents-commissions-at-new-builds-killer-deals-often-come-with-payoff\/","title":{"rendered":"Excessive buyer’s agent’s commissions at new builds: “Killer deals often come with payoff . . . “"},"content":{"rendered":"

This is my column from today’s Arizona Republic<\/i><\/a> (permanent link<\/a>). I don’t write the headlines, and I don’t think this one is terribly representative of the article, but it is what it is. I asked the paper to change the attribution to use BloodhoundBlog’s web address rather than my phone number, so maybe the poisonous phone calls will turn into poison-pen letters instead.<\/p>\n

 
Killer deals often come with payoff<\/b><\/p>\n

I have clients who are closing escrow on a new-built home soon. They’re moving from a house of about 1,725 square feet to a home of about 2,100 square feet.<\/p>\n

Because it’s a new build and because of when they’re buying it and, most especially, because it’s a spec home — a home specified by and started for another buyer who has since canceled the purchase — they’re getting a smoking deal.<\/p>\n

The builder is trying to close on absolutely every spec home, so it’s making great deals. It’s giving my buyers a $75,000 upgrade package, plus throwing 6 percent of the purchase price toward their down payment.<\/p>\n

If the Valley’s real estate market gets back to normal soon, they’ll have a ton of equity fairly quickly. And even if not, this home is an incredible bargain — an unrepeatable opportunity.<\/p>\n

Here’s the kicker: The builder’s sales rep told me in private that the buyer’s agent’s commission is 8 percent. Unbelievable!<\/p>\n

I strive to be a vigorous champion for my buyers, but builders leave precious little room for a Realtor to effect any meaningful buyer’s representation.<\/p>\n

In effect, taking a party to a new-home subdivision is a referral. That could explain why so many builders and Realtors treat it that way.<\/p>\n

For my part, I’m doing everything I can to defend and protect my clients’ interests, and that still won’t be very much.<\/p>\n

So how much should I get paid for doing not very much work as capably and professionally as I can?<\/p>\n

Surely not 8 percent. I won’t even take 3 percent on new construction.<\/p>\n

Here’s what I did for this home: I conceded 6 percent to my clients, keeping 2 percent for the brokerage.<\/p>\n

They didn’t have to ask for this, nor should Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

This is my column from today’s Arizona Republic (permanent link). I don’t write the headlines, and I don’t think this one is terribly representative of the article, but it is what it is. I asked the paper to change the attribution to use BloodhoundBlog’s web address rather than my phone number, so maybe the poisonous […]<\/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],"tags":[],"class_list":{"0":"post-627","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-marketing","7":"category-real-estate","9":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":12653,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/12653\/an-effective-alternative-to-the-team-model\/","url_meta":{"origin":627,"position":0},"title":"An Effective Alternative To the Team Model","author":"Jeff Brown","date":"July 16, 2010","format":false,"excerpt":"I love the team concept as it's executed corrected by some in the business. However, most of them, IMHO, and through first hand observation, produce pre-tax income less for most team leaders than most think. Going even further, I'd say those workin' by themselves or partnered, using only assistants, not\u2026","rel":"","context":"In "Flourishing"","block_context":{"text":"Flourishing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/flourishing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":16008,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/16008\/did-you-seymour-glass-its-a-perfect-day-for-an-iphone-killer\/","url_meta":{"origin":627,"position":1},"title":"Did you Seymour Glass? It’s a perfect day for an iPhone killer.","author":"Greg Swann","date":"June 27, 2012","format":false,"excerpt":"Project Glass. Too much to love. Phone with no hands. Video with no hands. Internet with no hands. I can use an iPad when I need it, but 80% of what I'm doing with mobile computing, this can do. Here is where we'll miss Steve Jobs. Google is better than\u2026","rel":"","context":"In "Innovation"","block_context":{"text":"Innovation","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/innovation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1872,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1872\/what-can-sellers-do-differently-to-get-their-houses-sold\/","url_meta":{"origin":627,"position":2},"title":"What can sellers do differently to get their houses sold?","author":"Greg Swann","date":"August 31, 2007","format":false,"excerpt":"This is me in the Arizona Republic (permanent link): \u00a0What can sellers do differently to get their houses sold? There are three houses for sale on my street. All three are comps to each other -- around 2,000 square feet, three bedrooms, two baths. They're priced within a thousand dollars\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":11013,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/11013\/apple-tablet-computer-annoucement-liveblogging-now\/","url_meta":{"origin":627,"position":3},"title":"Apple tablet computer announcement liveblogging now…","author":"Greg Swann","date":"January 27, 2010","format":false,"excerpt":"...at Engadget. It's called the iPad... Dear Brad Inman, while you weren't Vooking, Steve Jobs stole your lunch: \"Embedded video inside of articles that can be played.\" Don't weep, though. It's a Kindle-killer, too, as expected: How free does information want to be? The marginal value of digital content is\u2026","rel":"","context":"In "Flourishing"","block_context":{"text":"Flourishing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/flourishing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":9869,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/9869\/google-voice-ready-for-primetime\/","url_meta":{"origin":627,"position":4},"title":"Google Voice: Ready for Primetime?","author":"Damon Chetson","date":"September 27, 2009","format":false,"excerpt":"Greg's written: \"The trouble with free software, is that you don\u2019t really explore what you\u2019re getting with it.\" When I read that, I thought, \"True, but...\" The \"but\" being Google, a company whose free products I've (mostly) explored to death, even when they're not very good. I'm looking at you,\u2026","rel":"","context":"In "Technology"","block_context":{"text":"Technology","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/technology\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1485,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1485\/steve-jobs-at-all-things-digital-what-people-want-is-the-real-internet-on-their-phone\/","url_meta":{"origin":627,"position":5},"title":"Steve Jobs at All Things Digital: What people want is the real internet on their phone","author":"Greg Swann","date":"May 30, 2007","format":false,"excerpt":"Stay with it to the end. The last line is a killer. More: Steve Jobs and Bill Gates together on the same stage. 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