It seems funny to me that during the feeding frenzy when buyers were offering more than list price for St. Paul homes, comments were made by the public that the real estate agents were motivated to increase the price because they wanted a higher commission. The reverse sentiment is not true today when agents are suggesting that sellers list their homes for less than the seller could have listed in 2000, sometimes a reduction as much as 25-30%.
Why is it that the consumer isn't aware the agent is working toward the same goal the client wants: to buy or sell a home? In the feeding frenzy years, the price increases were in smaller increments over a longer period of time. The agent's increased commission on an additional $5,000-$10,000 purchase price generally would be in the hundreds. The decrease an agent takes on commission by suggesting a 25-30% reduction in list price generally is much larger than hundreds. What the agent realizes is that the client needs to sell. If the seller doesn't sell, their goal to move is thwarted and the agent gets paid nothing!
Doesn't the fact that the agent will get less in commission lend some credence to his/her advice about a lower list price?