Such a real estate agent

26-11-2018

Its me!

One good real estate agent.

While negotiating to buy houses and appartements i found that the seller's agent often encouraged me, to underbid.

This seemed odd : didn't the agent represent the seller's best interest? A homeowner is encouraged to trust the agent's information. So if the agent brings in a low offer and says it might just be the best the owner can expect, the homeowner tends to believe him.But the key lay in the fact that agents receive only a small share of the incremental profit when a house sells for a higher value.The agent was simply looking to make a deal, any deal. So he would push homeowners to sell too fast and too cheap. Of course not every agent....

Measuring this effect i used data from more than 50.000 home sales and compared the figures for homes owned by real estate agents with those for homes for hich they acted only as agents. 

The agents' homes stayed on the market about 15 days longer and sold for prox 5% more.

Bron : Steven D Levitt.