Re: Why are our closing costs so high?
08-08-2012 08:07 AM
I do not know enough about home buying, but how do you know there are multiple offers?
How is anyone for sure that there is not some sort of sick conspiracy between the two agents? I've lied to many of customer to increase my commission pay-out, and that was for funny-money. When you start talking about $200k - that's a lot of commission to be gained.
From an agent's point of view: they wouldn't be in the business very long if they pulled that cr*p on another agent. The agent community is pretty small and we know how other agents work if they have been in the business any length of time. There is nothing in it for the agent to say there is multiple offers when there aren't multiple offers. Only one deal at a time can close on a given property. When there are multiple offers (which is typical in the prices under $200k in my area) there is a "highest and best" required by X date and time that's posted. Don't get me wrong, there is a certain amount of "poker face" involved in negotiations, but the agent that states there are multiple offers will lose his business if there aren't really multiple offers - that is a huge price to pay.
As to the commission, it is no where near as large as you think. It is split up a bunch of different ways and if the property is an REO property, the listing agent has a reduced fee anyway (highly reduced).