The latest topic of “discussion“ in the blogosphere is who really pays the commission? The standard answer in the real estate business has always been that the seller pays the commission. The latest discussion has focused on the fact that the buyer really pays the commission.
For example: What happens if there never is a buyer? Does the seller still have to pay a commission? Of course not. The commission is paid with the buyer’s money. Greg Swan of Bloodhound Blog points out that in every other business transaction, the buyer is king. But somehow, in the real estate business, the seller is king and the buyer is nobody (my choice of words, not his.) Greg points out that the only way to really have the seller pay his / her own commission is to unbundled the commissions from the sale. Interesting idea.
If you only read one blog post this year, read this one. Whether you disagree (you may very well do so) or agree, this discussion will broaden your horizons. At the very least it will give you an additional point of view that will make you think about what you do and why you do it. The article is entitled: Smashing the idols…. Understanding market value in full context.
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