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1st step in fixing the mortgage mess. make buyers pay there own agents

Snor, Both Buyer and Seller in Brooklyn, NY
Written by Snor, Both Buyer and Seller in Brooklyn
September 17, 2008 10:59 PM Home Selling
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Ok, before you go rattling off how i am crazy and how this would slow the buying process down.  Lets look at what is really going on.

Sellers are pricing there homes with the 6% cusion since they are aware they have to pay it.  Therefore the property is already inflated by 6% if that were to be reduced by say 3% and have the buyer pay his agent, then he could in essence negotiate more. 

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By Tom Stevens, Mortgage Consultant,  Thu Oct 30 2008, 11:15
I don't think that's necessarily true. If one looks at homes for sale by owners you'll see the same "cushion" - the sellers keep the difference and don't pass it on to the sellers. Don't forget that there are expenses other than the agent's commission in a property sale - some states have high (see NH or FL for examples) mortgage tax stamps and many counties add their own fees. In any case, sellers having an agent or not shouldn't affect the ability to negotiate a fair price. From the lenders' perspective, it will be the appraisal that determines the market value, not the negotiated sales price.
By Charlie B Fraser,  Thu Oct 30 2008, 11:31
Why do you assume a home buyer knows what the fair market value is. Thye are not out in the market place looking at homes on a constant basis. Sellers and buyers always get an emotional attachment to the process, and a professional sales agent should not. Sellers will always think their property is worth more and buyers will always think it is worth less. A professional agent who knows the market and trends can educate both the seller and buyer and hopefully keep the emotional side of the negotiations out of the transaction, and therefore get the best price for both.

And trust me sales agents work hard for the commission, and they have a lot of expenses marketing their properties and brand image.

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