Shouldn't this be illegal? It's at least immoral. But then again, realtors are the cesspool of humanity...
The congressional hearings will address this one... like paying Henry Blodgett to pump pets.com
Desperate home builder ups commission to 7%
New home builder Beazer Homes is offering a 7% commission to agents that can convice a buyer to purchase one of their pricey, unsold Virginia homes.
The ad was in Saturday's Washington Post (page F-16). The 7% is not split between two agents. No, the entire 7% goes to the buyer's agent.
This is more than double the standard 3% commission on new homes. This is the latest red flag showing the increasing desperation by home builders who are anxious to sell their stock of unsold homes before prices deteriorate further. It seems to me that the benefit of a price reduction (that extra 4%) should go to the buyer of the home rather than to their agent.
But instead of passing the savings on the buyer, Beazer has decided to double to ransom for agents who manage to lure in a buyer.
February 27, 2006
Posted by blogger at 2/27/2006