Real estate agents are basically... friendlier used car dealers. They take something someone else built and middle man it under the guise of providing a service.
The simple truth is if it wasn't so overly complicated (laws, regulations, lawyers, insurance companies, towns, inspectors, red tape, blue tape, yellow tape, green tape, procedures, instructions, 400 forms, mortgage rates, etc, etc) to sell or buy a home, the average person would never sell a home through a realtor. All the realtors would be doing what they should be doing... greeting you at Walmart or being a stay at home mom (no offense to the Walmart greeters or the the stay at home moms is intended here).
Let's crunch some numbers... let's say you have entered an agreement to pay this agent 5%.
You want to sell for $449,000. So 5% of $449,000 is $22,450. The selling agent splits that with the buyers agent, then the agents have to split it again with their offices. So the agent walks away with $5612.50 minus some out of pocket expenses.
But in order to sell your home at $449,000 this agent is going to have to actually work! They actually might have to spend money out of their pocket! The house may be listed longer, until you find the right buyer! There may be more than one open house! The agent may have to advertise the house! God forbid this agent is going to have to do leg work, buy donuts for open houses and try real, real hard!
The agent convinces you to list for $389,000. So 5% of $389,000 is $19,450. After everything is split up the agent walks away with $4862.50. A grand difference of $750.00 from Act 1. However, this time they did very little work, no open houses, no advertising and no donuts. They listed it on MLS sat back and waited for your under priced house to sell in 4 weeks.
That is the main reason why the agent wants to list it a lower price. They take a small hit $750.00 do less work and get their money faster. If the agent couldn't sell the house for what you agreed to, then that agent never should have signed the contract in the first place. This agent bait and switched you... tell them you're out of the contract today or you're filing a complaint against them, giving them a poor review on all the real estate websites and bashing them on Yelp. Get the contract voided in writing... because should you sell down the line within the old contracts time frame, this agent (used car dealer) will try and collect on their "share" of the commissions.
Larry, I have not seen any FSBO sellers who want to keep it a secret that their home is for sale. Help us all understand what you are thinking, won't you? Sometimes we think we have seen everything in real estate, but things still happen that surprise us. Carl... more