Property Grunt

Friday, June 23, 2006

Mo Money, Mo Money, Mo Money: Seller jacks up the commission

I received this link from the Sellsius crew. What is really special about this particular ad is that the seller is offering a 10% commission which means that if it is a cobroke it means 5% a piece for each party.

RDB analysis is this a way for the seller to set themselves apart from the pack and motivate buyer brokers to bring their buyers to this listing. Could this work? Possibly, it will definitely get the attention of brokers. However some buyers maybe a little miffed that the reason they were shown this property was because of the large commission their broker can cash in on.

Also buyers might get a little cute and put in lower offer arguing that the reason why the price is so high is that the commission is built in the asking price so why should they pay such a high price when the seller should just lower the price by reducing the commission?

I am curious to see if this works.