Real Estate Commission – Becoming an Influence

Real EstateReal estate commission is the manner in they supply. They get a percentage of the price. Effectively, the realtor requires the vendor of a property to register to the real estate agent a portion of the property being sold. Another way of looking it is to say that the realtor, through the wording of the contract has his name added to the title deed of the property of the vendor, so the actual estate agent becomes a part-owner of their property. When the property sells, the realtor receives a payment which represents his share in the property of the vendor. Readers will be aware of the arguments in favor of property sale commissions, so that we would not discuss these here. Once the motivation takes precedence over factors my focus is on the ways that the sale process can be skewed against all parties involved.

Commission is a winner takes all, loser gets nothing situation. The pressure increases to procure a sale. Time is an issue. If a sale cannot be secured by the real estate broker in a time the seller may take the property off the market or from the agency of the real estate agent. This will lead to a loss for the realtor. Finally, the vendor becomes a barrier between his commission objective and the estate agent. To be able to obtain payment for his share of the property of the vendor, an offer to buy within the time must be received by the estate agent, but the deal must be approved by the seller. Then the actual estate agent loses if the seller decides that the offer is not acceptable. So as to win the real estate agent may choose to tip the odds and there are ways in. At the stage, is listing the actual estate agent may use means to acquire the listing contract. These include offering sales figures, and over-quoting on valuation.

During the sale process the actual estate agent may be tempted to inform things that are false to purchasers. We have seen sale contracts with clauses designed to protect realtors against the effects of statements that were false.  When a purchaser has submitted the buyer and an offer cannot be convinced to maximize the offer, the real estate broker may be tempted to pressure the seller into accepting what could be unacceptable. Observations, such as the market has softened or the market has spoken to us are used by real estate agents to convince sellers that the estate broker’s high estimation of value cannot be depended upon and that the seller should accept what the seller believes is a low deal.