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Non-Price Competition is an economic term explaining the advantage created when two identical products are differentiated by a free benefit. Win the listing, win that new client with Non Price Competition.
This question rarely comes up in a buyer’s market, but the answer is universal, “when you are writing an offer”. There is an economic principle we call, “Non-Price Competition”. The commissions might be the same, but you make the best presentation.
The National Association of Realtors just settled Sitzer Burnett paying over one billion dollars in 4 equal annual installments. The settlement was for the allegations of price fixing cause by the Seller paying a fee that by tradition of 70 years was split with the buying side. The law suit said the buyer must have a say in the fees paid. The result was an agreement to disclose fees up front and not advertise the commission arrangement in the MLS. .We thought that suit bubbled through society of the past 20 years and surfaced with Sitzer. We thought that brought an end to such suits
David v Hanna is the mirror image of the same lawsuit. Davis sues the buyer representative saying the buyer representative conspired with the seller to accept payment forced on David by the arrangement between the seller and listing agent.
Conclusion: be careful, disclose fees, keep communications open, document fees in writing as soon as they are (1) and (2) communicated. Confirm they have been communicated. Then document the satisfaction with your services at closing.
The other day I was finished shopping at my local home depot, went to my car in the parking lot, backed up and quickly learned the car opposite me was backing up as well. My SUV locked bumpers with him Dodge Ram pick up. We both reacted quick enough and it turned out to be a touch but no damage. We shook hands and drove off. I later thought I just missed kissing $1,000 good bye. It was that close. Everyday, with every transaction, you often do not know how close you may come to a malpractice, misrepresentation or fraud claim. Even if you are innocent the heartbreak of the monetary cost will pale in comparison to defending your reputation and perhaps your license.
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