The Absent Incentive

The Absent Incentive

It is a principle of commercial reality which is expressed as a maxim that higher turnover is always accompanied by lower prices which is exactly why people should be wary of highly “successful” agents those ones known for selling the highest number of properties. A thinking person might do well to reflect that agents in general do not have a great incentive to even attempt to optimize a result for their client for the reason that the harder the bargain they drive the higher the chance of a sale not proceeding. So the agent has a choice to perhaps press harder for a higher price which might make a difference to his vendor of say a thousand dollars and maybe a hundred or two if everything proceeds or potentially losing the deal and the agent being not hundreds worse off but perhaps many thousands in which case we understand that there really is no incentive but in fact a dis-incentive for agents to push too hard or even at all.

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