Quote:
Originally Posted by MikeJaquish
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The very first post about it was
on a different forum here and included a bonusesForHomeQuality term. That term confused everybody, even when I said it could be set to 3% to minPrice, and one agent objected that it was too subjective. So I just converted it into minPrice.
Quote:
Originally Posted by MikeJaquish
I see nothing in your scheme that compells any added integrity from either party. No tangible improvement whatsoever.
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Similarly, I see no reason why 3% * salesPrice adds anything at all compared to flat rate. It strikes me as far worse. The classic scheme actually puts "you in the position of unilaterally determining the agent compensation, provides you with an incentive to pay [less] for a home, and determines how much the commission money subsidizes your purchase. All you have to do is buy at the [bottom] of your range or [below], and pocket the difference your scheme nets you by not compensating according to [the flat rate]."
The thing is, why on earth would a buyer choose to spend tens or hundreds of thousands of dollars more on a house just for the sole purpose of reducing their agent's commission by a few hundred? Paranoid-much?