Typical Conflicts of Interest in Real Estate [2019] | Hauseit®

Typical Conflicts of Interest in Real Estate [2019] | Hauseit®


Conflicts of interest do exist and real estate
agents are paid on commission, meaning their focus is on closing deals.
However, customer satisfaction is important for most serious agents because referrals
are their main source of business. Listing Agent Conflict of Interest Preference for a Direct Buyer Listing agents
prefer direct buyers because they can keep all 6% in commission without having to split
it with a buyer’s agent. Selling Faster for Less Because agents are paid on commission, they
are incentivized to sell a home faster, even if they could have gotten a slightly higher
price if they marketed it longer. Laziness After Receiving an Offer Agents might get lazy after finding an acceptable
offer. Even though offers can fall through at any time before contracts are fully executed,
a listing agent might get lazy and stop showings or actively pursuing other bidders. Focus on Easier to Sell Listings An agent might lose motivation if a listing
is too hard to sell. If the property is priced too high or otherwise lacks attractive features,
a listing agent may lose interest or focus and decide to spend more time on other opportunities. Boycotting of Discount Brokers A listing broker will likely resent a discount
broker who’s openly offering commission back to buyers. Given the option of working
with a direct buyer or a traditional broker who isn’t out to “disrupt” the industry,
why would a listing broker cooperate with a discounter? Pro Tip: Fortunately for buyers at least,
they can avoid the stigma of working with a discount broker by signing up for a Hauseit
Buyer Closing Credit. Hauseit’s partner brokers are some of the most experienced,
reputable traditional real estate brokers in NY who never openly discount their services.
As a result, you can discreetly save thousands on your purchase without risking your deal. Buyer Agent Conflict of Interest Preference for higher priced properties
Buyer agents tend to steer customers towards higher priced listings so they can make more
commission. Preference for Listings with Higher Co-Brokes Buyer agents steer their clients towards listings
that offer higher co-brokes in the MLS. Preference for Condos vs Co-ops Buyer agents steer clients towards condos
vs co-ops because they are dramatically easier to close. Co-ops take not only longer to close,
but take significantly more work due do the co-op board approval process. Preference for Easy Going Listing Agents
Buyer agents prefer to work with easy going listing agents. This makes a whole lot of
sense because a difficult counterparty can not only kill a deal, but can make it absolute
hell. Avoidance of FSBO listings
Buyers’ agents will almost universally avoid FSBO listings, which means the buyer might
miss out on suitable properties just because they are being sold by owner. Avoidance of Discount Broker Listings
Buyer’s agents may avoid sending listings by discount brokers to their clients because
there’s no need to help someone who’s out there to “disrupt” the industry, especially
when there are so many competing, traditional listings available. Pro Tip: Sellers can save money while avoiding
this dilemma by signing up for an Agent Assisted FSBO or Full Service for 1% listing through
Hauseit. All of Hauseit’s partner brokers are reputable, traditional brokerage firms
who never openly discount their services. As a result, other brokers won’t automatically
know that you’re saving money on commission! Conflict of Interest Real Estate Agent and
Mortgage Broker Conflicts of interest between real estate
agents and mortgage brokers have decreased significantly post financial crisis due to
regulations like RESPA which prohibit kickbacks for loan referrals.

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