I've noticed the newer REO's that are coming onto the market have higher listing prices, with higher commissions as well. Is this a new tactic by the banks to encourage Realtors to upsell even harder? I am assuming they are trying to convince the market that housing prices are going higher (but with more agent commission), and later on, will reduce commissions when potential buyers have accepted prices are going up.
I guess if they lower the price and use the standard commissions, it would hurt their bottom line in the long run. I saw 3 REO listings in a row today with 4%-5% commisions for the buyer agent rather than 2.5%-3%.
This might actually work. Many people can afford property. It's just that they choose to hold off since they are expecting lower prices.
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I've noticed the newer REO's that are coming onto the market have higher listing prices, with higher commissions as well. Is this a new tactic by the banks to encourage Realtors to upsell even harder? I am assuming they are trying to convince the market that housing prices are going higher (but with more agent commission), and later on, will reduce commissions when potential buyers have accepted prices are going up.
I guess if they lower the price and use the standard commissions, it would hurt their bottom line in the long run. I saw 3 REO listings in a row today with 4%-5% commisions for the buyer agent rather than 2.5%-3%.
This might actually work. Many people can afford property. It's just that they choose to hold off since they are expecting lower prices.
#housing