Great suggestion… that way the realtor still gets absolute maximum commission, even if the sellers prime motivation isnt money.
As an agent I could care less about the final purchase price. The certainty of the deal is far more important. Whether the sale price is $1 million or $1,050,000 is almost irrelevant given how large the real estate commissions are. I've honestly never thought about the fact one offer is x amount higher than the other one and how is relates to my commission. In the last 30 days I've had deals from $200,000 to $2,150,000. It's more of a matter of pump out as much as you can and see where the chips fall.
Secondly, I have 1000 transactions I've been involved in my 12 years in real estate, and I've honestly only seen a seller take an INFERIOR offer ONCE (sold to tenants that had been there for 7 years for 20k less than highest/best offer).
The reason I say inferior in caps is yes MANY times I've seen the seller take LESS than the highest offer, but they always took the best offer in their mind. I'll give you just one example out of many.
Seller has already bought a place a needs to sell asap. They receive an unconditional offer of $1,000,000 and a 7 business day conditional offer of $1,050,000. They take the unconditional offer because they want certainty. Listing agents calls back successful buyers’ agent and says "congrats, my sellers absolutely loved your clients' letter and even thought we had a substantially higher offer we took yours, my clients are so excited that it is going to a young family." That young family tells all their family/friends/co-workers how they got the house for less than the highest offer, but they don't know that their offer was the BEST to the sellers.
I've also worked with so so many buyers over the years to verify that money talks. I remember spring of 2017 an original owner home comes up in Broadmead. Sellers had lived there for 30 years and raised their family. My clients were a young family of four, we put in a letter and offer $980,000 unconditional with the exact dates the sellers want. Property sells to an out-of-town investor for $985,000 and is on craigslist up for rent shortly after completion. All things were equal (unconditional, dates, etc.) and when all things are equal people always go for money.
In my opinion, it kind of makes sense. The seller has to buy something on the other end and no one is giving a deal or they have kids who have been priced out of the market and need assistance, etc.
Edited by MarkoJ, 25 January 2022 - 03:15 PM.
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