Paying 6% AND giving it away?

There is that persona that agents are like used car salesmen. Before I go further I want to say that I'm sure that there are a great deal of honest and ethical used-car salesmen but I use that industry because...well...you know exactly why. I must also state that for the most part, agents are ethical and look out for their clients, the seller. The bar is definitely being raised thanks in part to a much more savvy and demanding consumer. That said, it only takes one bad apple to spoil the bunch and oh boy are there some apples out there that are just rotten to the core. The following example is precisely why some members of the public continue to distrust our profession.

A relative told one of her neighbors about saving the high commission using Homeowners. Her neighbor though was "obligated" to list it with the Realtor that sold it to her and had now become her "friend" (how can one be obligated to pay someone excessive commission?). The property at 7738 W. Mt Vernon (MLS # 1086757) is in a very desirable area of Milwaukee and has a Fair Market Value of $154,000. It has a large yard, updated KIT w/SS appliances included, rec rm and it is in immaculate condition. One could see this property going for more than FMV closer to $160k. YET it was listed by the friend agent for $139,900 and of course sold in the first couple of days. By comparison 206 N. 79th (MLS 1088899) which is very close to the subject property sold above assessment. The seller probably left $10-15,000 on the table PLUS paid a hefty commission. This could have been deliberate (just to get the listing sold and out the door) or could be a case of ineptness. The agent she listed with does just a few deals a year.

We occasionally do get sellers who unknowingly want to underprice their property but we take the Realtor ethics at heart and refuse to participate in this. Our agents' expertise which is much higher than the average high commission agent (see About Us) prevents us from making errors such as this. I cannot fathom any of our agents underpricing any of their clients much less their "friends".