Freakonomics Asks: Does your real estate agent have your best interest in mind?

In this clip from Freakonomics, authors Steven Levitt and Stephen Dubner discuss how incentives influence behavior and ask the question: Does your real estate agent really have your best interest in mind? The movie hits theaters on October 1, 2010, and is currently available for rental on iTunes (http://www.itunes.com/freakonomics) or On Demand (http://www.magsneaks.com/previews.php) through most cable providers before its theatrical release.

Category:

Entertainment

Tags:

• Real Estate
• Freakonomics
• Economics
• Movie
• Entertainment

[AnnetteFunicello1]

f I got a 96% offer on my client's house, we would counter, never take it as is. The dillusion that a week will go by and a better offer will magically appear is not supported by any credible data.Finally, the seller sets the price, not the agent, and the market responds. If you don't get a full price offer, that's because you have overpriced the home. If an agent gets a full price offer, it is because they have taken their own expert advice, priced correctly and cleaned and staged the home.. .

[itsel1994]

soo whose buying a house for 300,000 anyways ?

[tedabalos5]

There’s a wonderful book that just came out that explains the entire REO Process- check it out it has over 400 pages on how to become a successful REO agent the book is called “REO BOOM” by Aram Shah And Tim Shah.

[2raspy4u]

You made a BIG mistake.  How do you know you will get a higher offer of 300,000? Saying that Realtors get more money for there houses could also be contributed to the fact that Realtors know how to Stage a home, make sure its actually clean and additional factors. Also considering the market is declining and has been since well before this video was uploaded I bet there are 100's of not 1000's of people who WISH they would have taken the Realtors advice and accepted that offer for 10k under

[kflann1]

@hfmom2229 Really? National Association of REALTORS show stats in favor of REALTORS?? Imagine that. Gimme a break.  Everyone is looking out for themselves when it comes to money. Realtors are no exception (in my experience, they are even MORE guilty of it than the average person...but that may just be in my experience). Now, there are some good points as to why they do better for a seller who isn't educated on selling a home, but an educated individual will always do better for themselves.

[Jufland]

Incentives? Does an accountant get paid when they complete a tax return? Do doctors get paid after an exam? Do authors, LIKE THESE, get paid when their book sells? Well, real estate agents get paid after a house sells. As a buyers agent I help negotiate a lower price for my client. Why? If my client saves $10K, I earn $125 less. I then have a satisfied client who returns & refers and has more margin when they sell, w/ my help. Don't be so cynical. You're not the only good person in this world.

[nestorysusamigos]

then you will have your house for another 6 months or then end up selling FSBO for 270,000

[beachesandsunshine]

Where is the guarantee that you will get a full price offer a week later? "Full price" offers are a fairly rare animal in this housing market, unless a property is seriously underpriced. That "week" may turn into months, possibly years to get the property sold and then you will have to look at carrying cost, etc. What you are suggesting is not in a seller's best interest. Many sellers are kicking themselves down the road because "the first offer is often the best". Compromise and make it work!

[Danaceb]

@Danaceb Also, BY ALL MEANS; go bankrupt as your unwanted property rots on the market for months and months.

[Danaceb]

Doesn't change the fact that all of your shitboxes are still massively overpriced any any homeseller today deserves to have their faces dragged through the mud. Using old pre bust data from a group of people who are professional shysters MEANS NOTHING.