Due to the nature of their business, real estate agents are very much tied into the same fate as the home seller. The offer accepted determines their payoff just as much as it does the seller’s capital return.
This presents a conundrum: Let’s say that the seller is really interested in getting rid of their house because they’re supposed to move to another city for a job next week, okay? And really, they would take any reasonable offer as long as it wasn’t a complete rip off. Then you’ve got the realtor, who is sort of aware of the fact that the seller is in a hurry to sell but not so inclined to take any offer that walks in the door. They’re looking for asking price or better.
It’s not uncommon that—in this scenario—the agent wouldn’t necessarily tell the seller about the offer that was 10K lower than the asking price they received last week from a buyer interested in moving in quickly. That would greatly reduce their commission rates, even force them to renegotiate their commission given the lower selling price. The seller working with the agent would have no idea of the offer and be wondering why no one was even sniffing at the property. This would of course send them into a manic episode of despondency and oblivion, forcing them to reconsider their new position in the company in a new location, their ability as an employee, father, husband, son, and lover, and ultimately catapult them into a deep, profound, downward spiral of loneliness and desperation.
Just kidding—that won’t happen…I hope. If it does then maybe you shouldn’t move in the first place. The bottom line is that not every agent does operates with this sort of clandestine self-interest, but they are out there.
Who can blame them, really? They probably know that somewhere down the road, a substantial offer will come along—it’s just going to take time.
Such are the pitfalls of working with an agent. You are at their will and they sometimes don’t operate with the sellers’ best interests in mind.
COMING UP NEXT:
WHAT AGENTS SAY BEHIND YOUR BACK, and…
THE BEST OF HOLIDAY HOMES!!!
STAY TUNED…
PREVIOUS:
1.
2.
Archive for the ‘Uncategorized’ Category
3. Agents Don’t Necessarily Tell You About Every Offer
Sunday, December 19th, 2010Saturday, December 11th, 2010
In the name of the season, we’re going to have a little fun here at Yigdigs.com’s blog. I’ve decided to post pictures and provide a little background of some of the nation’s best and brightest Christmas displays.
A Note from YIGDIGS BLOGGER
Sunday, October 10th, 2010Hello all out there in YIGDIGS land.
I’ve been doing this for over a year now and have enjoyed much of it. And I must say that I’m delighted at the progress of the site. We have gone from the bottom of the list to page 1 on Google searches (that’s a big deal!).
Thanks to those who read and write. I will try to provide more pictures.
I haven’t been posting much as of late and I apologize. Life is moving very quickly this fall and this last week and a half just seemed to get away from me. Plus, there’s not much to write about unless you want to hear more about how the market is crashing–just kidding : )
I thought I would go ahead an let you know that I am going to be out of town for the week now (a much needed vacation to Colorado) so don’t be upset if there aren’t any posts until at least this weekend. Then, I’ll be back and on schedule again. Promise.
Golf Course Real Estate
Tuesday, April 6th, 2010Ah, yes. The marriage of leisure sport and refined real estate.
One of the many benefits of the housing boom of the 80s/90s was the major influx of golf course real estate. According to Golf Digest’s Chris Millard, architects and developers were trying to figure out ways to spend money building golf courses that offered green-side housing a decade ago. Now, they’re looking for a return to the “old way”.
With the recession and all of that other economic stuff the U.S. is having trouble absorbing the hundreds upon hundreds of golf courses that have sprung up. It is estimated that we were building nearly 300 courses a year in the 90s—a “country club for a day” mentality as Millard so bluntly puts it—and now projections estimate that many will now be forced to close out of necessity.
It worked out like this: A site was designated for a neighborhood of luxury homes and in between the yards, course architects squeezed in courses that lacked sustainability. They were built on unsuitable land by modern construction techniques and kept healthy through the use of chemical fertilizing. That model is likely to change as there is going to be a dramatic switch to “core golf” says architect Mike Young. No longer are golf courses going to be built as an amenity to a residential area.
It’s interesting to see the shift in ideals for this little niche of real estate. The fallout from the housing collapse extends far into the market—and now it looks like were going to feel it in our leisure time.
