One of the things that has been lost in Real Estate is that a Real Estate transaction is between two individual parties. When I started in Real Estate in the 1980s more people sold direct to a neighbor, or friend of a neighbor. Communities were smaller. You actually saw more for sale by owner signs before the changes. Now with discount brokerages most people use the Multiple Listing Services. You see more Brokerage signs from companies that charge 1%, or $500.
The problem is this attracts Real Estate agents. Most agents argue this is a good thing. The more people involved, the more buyers will look at a property, the more exposure means you will net more dollars. That is just not true.
Unfortunately lines have been drawn in the past six years that make Real Estate transactions more hostile than ever. The Real Estate commission is advertised, and discussed more than property. Who has the best Brokerage is a focus, rather than customer service. In this process buyers pay more, but they also ask for more. We play these games of who gets the most in concessions from an inspection, or financing terms.
I’d say Real Estate isn’t fun any more. Every transaction is like a battle of who can the most rebate, or concessions, or who did the most work to get the transaction together. We’re going to talk about how much sellers, or buyers are being paid to do that “leg work” which is a common catch phrase today.