Looking for real estate advice

jasmom
Tue, 06 Jan 2009 14:20:38 +0000

I vaguely recall (I think from the book Freakonomics) that the houses of realtors are kept on the market for longer than the houses of the people they represent. The concluding assumption is that it’s in the realtor’s best interest to sell quickly, even at a lower price, because the commission is only reduced by a portion of the difference between the original price and the reduced price. The owner is likely to have more investment in holding out for a better price. (Apologies to anyone in the business, especially if I’ve misremembered the example).