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Real Estate Agent: "Take the Money!"

The old saying goes, “A bird in the hand is worth two in the bush.” Your first inclination might be to assume that this ancient wisdom is your real estate agent”s primary motivation in suggesting you take an offer for $10,000 less to sell your house this week rather than hold out another week and receive the full asking price. Maybe your assumption is right but, then again, maybe it”s not. Freakonomics dudes Steven Levitt and Stephen Dubner address the question, “Does your real estate agent have your best interest in mind?” in this .

Here are the highlights we picked out which makes it seem like the Open Door Auctions house-selling model circumvents the issue entirely. Try us and you”ll never have to wonder whether or not your real estate agent is giving you straight up unbiased advice.

Here”s the example from the video. You have your house for sale for $300,000. A potential buyer waltzes up and offers you $290,000 to buy it right now. Do you take the offer or wait a week to see if a full price buyer materializes? After all, an offer falling only ten grand short is a pretty strong offer. Who”s to say that another week on the market won”t bring the full $300k? Obviously neither you or your agent knows the actual answer to the question. That”s what makes life so interesting, but many real estate professionals would urge you to take the immediate offer and be happy you got it.

Is that really good advice?

Turns out maybe not so much. The bottom line is your agent only pockets another $150 for working an extra week so you can get an additional $10,000 on your sale price. Is another week worth of marketing efforts, house showings, and buyer negotiations worth $150 bucks to him? Many agents would say, “Heck no!” That”s why they tell you to take the short offer and let them get on to selling another house. If you”re wondering how come they only make another $150, here”s the breakdown.

* 6% commission on the extra $10,000 is split two ways, with half going to the buyer”s agent and half going to the seller”s agent. That cuts the take down to 3%, which works out to $300.

* Half of that $300 goes back to the agent”s broker office, which cuts the extra earnings down to $150. How hard do you think the average real estate pro wants to work to put one hundred and fifty more dollars in his pocket, especially when you consider that he”s taking time away from selling other houses while he spends time futzing around with yours for an extra week or more?

This is why it should be a surprise to no house seller when your trusty real estate advises you to take the almost full price offer and be glad you got it. We”re not here saying that the guy”s a bum and should be ashamed of himself. As the video points out so aptly, the issue is a non-alignment of interest. The best real estate deals occur when everyone”s interests are aligned – buyer, seller, and agent. When interests get out of whack, it”s a free-for-all.

Which brings us to Open Door Auctions, a uniquely innovative way of buying and selling property that eliminates the maybe-he”s-with-me-and-maybe-he”s-not thoughts from creeping into your head. It”s quite easy to do away with the worry of how unbiased your real estate agent”s advice actually is when you use our service because the only person who has any input in the decision to accept or reject a bid is you. Seems to us that”s the way it should always have been but the real estate industry has allowed itself to get mired down in creepy little mind games that are simply an unnecessary aggravation for a property buyer or seller to deal with.

Of course, we fervently want you to sell your house but only if YOU decide that is the best course of action. Plus keep in mind that our entire house sales and marketing process only takes two weeks, so playing a waiting game for a better offer really isn”t part of the equation. If you want to sell your house, you can sell your house at whatever price the market dictates is fair. At the conclusion of the whirlwind fourteen day market ride, there”s a good chance you”ll have anywhere from a double handful to 30 serious offers or more to consider.

But first you should consider hard whether or not the traditional real estate industry can ever offer you truly unbiased advice about an offer to buy your house.

The Open Door Auctions Team

 

 

 

 

informative essay

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