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Redfin Real Estate Forums :
Buying Your Home :
Does a higher agent commission = faster sale?
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Does a higher agent commission = faster sale?
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Cynthia
Contributor
Posts: 15
Registered: 07-02-2007
Message 1 of 7
Viewed 4,263 times
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We received a question on our blog that might make an interesting discussion here ... or for a future real estate scientist study.
I was curious if anyone knows if there is any data regarding whether a seller offering a higher buyer’s agent commission than is typically being offered in the area by other sellers, or an agent “bonus” of some kind, results in a higher priced and/or quicker sale.
Home building companies do this all the time and it seems to work for them.
Cynthia Pang Nowak
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01-09-2008 12:43 PM
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Re: Does a higher agent commission = faster sale?
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rolamin
Contributor
Posts: 10
Registered: 05-06-2008
Message 3 of 7
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I could see it working for new housing where they deal with a commodity product at fixed prices. But selling unique properties on redfin, the challenge seems to be getting the outside agents to even be interested in working with redfin at all. Mostly just because the agents aren't sure if redfin is "for real", able to efficiently complete the deal. When I was selling with redfin I was originally going to offer 4% instead of 3%, figuring that after all it's the buyer's agent that closes the sale. But after speaking with a few agents about whether it would help, a consensus seemed to develop that offering over 3% would send a signal that there was something wrong with the property, or at the minimum would send a signal that I as seller was desperate to sell and perhaps willing to entertain lowball offers.
I wouldn't want to go lower, because that also would send a signal that I might be hard to work with.
3% worked for me.
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05-06-2008 04:21 PM
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Re: Does a higher agent commission = faster sale?
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Cynthia
Contributor
Posts: 15
Registered: 07-02-2007
Message 4 of 7
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Hi Rolamin,
I'm glad you received good advice from your Redfin team, and congrats on your sale!
Update to the original post (thanks to Rolamin for the reminder, and for further validating our findings!):
Regards,
Cynthia, Redfin
Cynthia Pang Nowak
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05-06-2008 04:45 PM
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Re: Does a higher agent commission = faster sale?
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Venturion
Super Contributor
Posts: 1282
Registered: 12-28-2007
Message 6 of 7
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Or you're not collecting or paying attention to the right stat (like final vs list as opposed to DOM). If the data supported a higher buyer's agent commission actually having some positive benefits, it would completely contradict the starting premise that the agent has the client's best interest in mind.
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09-29-2008 08:19 PM
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I was curious if anyone knows if there is any data regarding whether a seller offering a higher buyer’s agent commission than is typically being offered in the area by other sellers, or an agent “bonus” of some kind, results in a higher priced and/or quicker sale.
Home building companies do this all the time and it seems to work for them.