Sellers mistakenly believe that they should price their house higher knowing that they can come down in price if it doesn't sell. Buyers shop around before buying and recognize value in a specific price range because of comparison shopping. Homes that wind up on the market a long time typically sell below market value. Commission A quick word about commissions. Commissions are negotiable.
Many people wrongly assume the whole commission goes to one person.
Referral fees and franchise fees many times are a factor also. When a home is listed, the commission is split between the listing office and the buyers agent's office. When agents show properties to potential buyers, one thing they generally look at is how much commission is being offered. This scenario reduces costs to you along with good marketing incentives for other agents. MLS fees, insurance and membership dues can run thousands of dollars a year for each agent.