Cha-Ching. You have to like the small print....."Full Price Offer". In today's market, how many people are going to offer full price?

This is another of those misleading ads that makes people so distrust this industry. Thousands of perfect and proper transactions and they, the  public think they are being over charged by the fees being paid when they see these things. And who could blame them for that.  

It will be interesting to see how the lenders view this.  If it were I, I wouldn't make the loan.

If you are the lender's appraiser and you are doing your comps, it seems to me that an adjustment has to be made for this additional 8% expense that is not parallel to the other sales.  That makes your $400,000 totally comparable home appraise out at $368,000.  Now the lender is getting ready to be asked by the borrower to loan a good portion of that $32,000 over-appraisal.  Naw, I wouldn't do it.

And in Texas, if I interpret our laws correctly, we as agents would be obligated to advise our buying client that we would make more than twice as much money if they bought one of these homes rather than the normal ones.  If you're in Las Vegas, at the least I think most of us Realtors would agree that you are ethically obligated to divulge this to your client.  That dog will bite.

Brad--- The fine print always gets you!

William-- Great ad to catch your attention designed by the marketing department.  We'll have to see how effective it is.   I am sure there are a lot of people talking about it like us tonight.

Bill--- No question.   Most lenders are going to be very careful of this.  I think at the end of the day, the 14% on one side will never come to fruition.  Most agents are still going to negotiate sales price, while others are going to combine it with a split of closing costs, discount points, or some other incentive for the buyer.  Once again, that will face a bit of lender scrutiny.

I always find these offers interesting.  I mean, if I had a buyer for an $800,000 home looking in that area, wouldn't I show the home anyway?  In our area builders are starting to offer 3.5 and 4% commissions or plasma TV's, etc.  Anything to get the home shown.  But honestly, if I've got a buyer for your home, I'm going to show it regardless of the incentive.

...not to mention the conflict of interest this creates when it comes to upholding a fiduciary relationship with your buyer, to whom you promised the best possible price!

If I were a buyer who bought an $800k home, only to find out that the commission was over $100,000, I would FLIP.  And as a buyer's agent, I couldn't live with myself knowing that the builder could've just dropped the price to $720k and given a normal, fair commission to an agent. (the problem with that: the previous buyers would revolt when they find out their home is worth only 85-90% of what they paid for it, just like what has happened in some communities here in Florida!)