The majority if our posts emphasize the importance of leverage on either side of the transaction. We can ultimately agree that reduced transaction costs and commission amounts are benefits to buyers and sellers. However, what is the impact of the other party knowing that your representative is offering a discount (either a buyer’s rebate or a discounted listing commission) incentive. Will you, on the opposing end, see their offer has having more room to move?
For example, let’s say you are a seller and an offer comes in from “Rebate Realty Group” or a known discount brokerage. Knowing that the buyer will be receiving a rebate, how does that impact your view of the offer? Do you feel they have more room to come up especially since their hard money costs will be reduced?
Or say you are a buyer and find a listing by said Discount Realty Firm, will your offer amount change knowing that they will be netting more due to reduced commissions? Will you then reduce your amount accordingly?
Leverage is key in real estate and keeping aces in your pocket are always to your advantage (on both sides). Buyers and sellers can achieve their goals but negotiating when “traditional” firms the same rebate or discounted commission, thus taking advantage of the savings without sacrificing additional leverage. Everything is negotiable, the worst thing that can happen is they say no, or you receive a counter.
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