Increasing Agent Incentives To Sell
A recent article in the Voice of San Diego points to a new trend that appears to be evolving in San Diego. The question becomes will other metro areas soon see a similiar practice.
Sellers in their zeal, or desperation, to sell their condos in a slowing market are deciding to offer higher commissions to real estate agents to push their property. These higher commissions are ranging from 7% to 8% instead of the traditional 2.5% to 3% seen in the downtown condo market.
The trend appears to be a result of a cooling downtown condo market. Three years ago, there were fewer than 100 condos for sale in downtown San Diego. Today, there are nearly 600 condos on the market.
If the buyer’s agent owes a duty to their client to represent their best interests, does this new incentive allow agents to take advantage of their position to reap the high commissions instead of best serving their clients? It’s a question that many in the industry are now asking.