What should a Broker Do For You???

We all are aware that the number of sales in the 2006 real estate market is off approximately 40% from the year 2005.

I have overheard several people advising others to “use this or that broker…he/she can get top dollar for your property, even in this market.”

I receive daily emails offering 4 to 8% commissions to the selling agent.

In combination, these items really bother me:

The broker doesn’t create the selling price of your property. The market does that, and the broker has nothing to do with what the current market price will be. The broker’s job is to advise the owner of the property as to the best strategy and what options are available to generate a sale in current market conditions.

Remember that “value” is what a willing buyer and a willing seller agree upon. It isn’t possible for a broker (legally, at least) to convince a potential buyer to pay more for a property than what current market conditions reflect.

The broker should honestly and to the best of his/her ability give the seller/buyer the straight story as to what can be expected. In a declining market it’s difficult to be the “bearer of bad tidings” to a seller, but in the long term that is the best service the broker can provide, as it enables seller and broker, working together, to plan the most effective strategy to sell the property in the least amount of time.
It really bothers me to think a broker would advise a seller to offer a larger commission in order to sell their property, or steer a potential buyer to a property only because the commission is larger. I would much rather see that incentive go to the potential buyer in the form of a lower price or other inducement.