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The Cost Of The Unconsummated Purchase

 

How many other professions require tons of expertise, knowledge, work, time and aggravation that often results in zero compensation? Hmmmmm. One comes to mind: real estate buyer representation.

 

The current fallacy/fantasy/myth being broadcast globally right now is that real estate agents earn way too much, far too easily. I have yet to hear one pundit, writer - or lawyer - mention the numerous occasions real estate agents will work for weeks, months or even years with a buyer that ultimately decides not to buy without any compensation of any kind: no billion-dollar commission, no hourly fees, no over-time, no health insurance, no paid vacation time, no paid sick leave, no paid maternity leave, no reimbursement for expenses or travel, nothing. Zippo. Zero. Some call working for free Pro Bono work, or "volunteering'?

Yes, for all those quick-and-easy, huge buyer side commissions earned are dozens of situations where a tremendous amount of time and work resulted in no purchase.....and zero compensation. Insurance rates factor in losses. Retail prices factor in losses. So too do real estate commissions. Shocking!

 

Maybe during the appeals process, the NAR can locate an attorney - and jury - who evaluate the cost to agents for NOT transacting? Unless of course they believe human beings are not entitled to be paid for the work they do......like the workers for the UAW, Movie Industry and legal world perhaps? Maybe we can simply copy the playbook of the lawyers who care so deeply about the cost to consumers of real estate brokerage by initiating a new form of compensation that mirrors theirs?  No pay if the deal does not close, but 25-35% of the value of the deal if it does, just like lawyers of a class action suit are paid ONLY if and when you close?

 

Because we are such a kind, caring group of professionals and actually DO care about our clients, I hereby volunteer to reduce my buyer agent fee to 15%. Then again, all commissions are negotiated as we all know, even though the lawyers representing the NAR appear to have been incapable of messaging this simple truth. Maybe the 50-80% of the 2, 2,5 or 3% commission that buyer's agents earn right now - ONLY when and if a sale closes - is a pretty decent deal for all? 

 



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