VENDOR ADVOCATE

However, it gets worse still. The high profile Vendor Advocate businesses will convince you that you should offer the real estate agent a lower base commission but also add a 10%, 20% or even 30% bonus over the valuation - under the guise of making the agent work harder to get you a better price and by doing so, the agent gets a piece of that bonus. So now the home seller is convinced that they should set a 20% bonus over $700,000. Typically, this house sells in the mid to high $700,000 mark (e.g. $780,000) and the commission payable is $780,000 x 1.8% = $14,400 plus a bonus of $16,000 ($780,000 - $700,000 =$80,000 x 20%). So typically, not only is the commission not discounted, it ends up being more than double the base commission - in this typical example approximately, the commission ends up being 3.9%. So again we ask the question - are these high profile Vendor Advocate businesses really looking after the vendors' best interest, or their own hip pockets? What did they do to get..

Also known as: Vendor Advocates