So, I’ve been reading posts from other REALTORS, talking about how clients want more time and effort than before and want it cheaper. 

Yesterday I was pondering this, when I realized that I needed to stop and get gasoline.  In the particular area I went to, I had three options.  All three are right next to each other and each had a different price on the gasoline. Not a significant price difference, but one none-the-less.  I choose to use the gas station that was most expensive.  Why?  Because choice one never seems to have paper in the credit card receipt machine, option two cuts off the pump at $50.00 when my SUV takes considerably more to fill up.  The last option, was a well known company, with good service and an open pump, on a Friday night.

Would the fuel from any of these services have worked?  Yes.  I paid more for good service and the desired response.  I think others feel the same way.

But, does it always come down to money?  Can a Seller actually get more service for their money?  Lately I’ve seen a significant number of listings offering a commission to the buyer’s agent that is higher than what is normally offered. 

I am compelled to ask if this is working for any practitioner?  The DOM suggest that it doesn’t. How are agents convincing their clients to pay more?  The promise of a quick sale, I would imagine.  How does this translate to me?  It appears that some sellers are willing to pay more for the promise of better service, if they define good service as a quicker sale. 

I suppose my argument is the fact that I can’t make my clients buy a home simple because I am getting paid more.  In a buyer’s market, it seems that price is a more defining qualifier than what the buyer’s agent is getting paid. So, why not just reducing the asking price?

Remember my example of the gasoline?  I went to the gas station with the best service, because of the service and not because I appreciate paying more. 

The Code of Ethics obligates REALTORS to put their clients interest first.  A buyer’s agent cannot encourage or pressure a buyer to see a property to the exclusion of others because they are getting paid more. 

This is yet one more reason why I lean toward the thought of letting parties pay for their own representation.  Jim Duncan in Charlottesville has a series of great posts about this very thing:  http://tinyurl.com/2fsmfh

All in all, we need to fine a balance of price versus the level of service provided by agents.  I don’t think that agents have a bad reputation because they receive bad service.  I think that consumers expect more for the amount of money that they perceive we actually get.  At some future post we’ll talk about how money most REALTORS really make…