From an article in the Nashville City Paper by Richard Lawson on the glut of homes on the real estate market, and speaking of a builder who works on both custom and spec homes:
Still, he won’t drop the price to encourage a sale, saying it’s better for property values in the neighborhoods where he builds. Instead, he has been offering buyers’ agents more commission or other concessions if they bring a full-price offer.
My gripe with old media: great tactic by the builder, now what about the consumer?
My gripe with real estate agents: Jarvis over at BuzzMachine has written a couple of times of “freeconomics” and the new business model of the Web. Having just worked with a real estate agent to buy a home (a professional and hard working one at that) I still have to say that the ability to peruse a plethora of market-specific data on Zillow in the comfort of my home made me immeasurably more comfortable with the purchase.
Their ability to force a consumer to bring a full-price offer rests with the fact that they hold more information than the buyer, an advantage Zillow obliterates.