A realtor tells a homebuyer there's a competing bid but won't say who made it or how much. The realtor earns commission based on the final price, creating an incentive to push the buyer higher. The conversation exposes how information asymmetry and conflicting interests can work against buyers.
Hey, so I think I want to buy a house from that guy over there. Oh, great. I can help you do that. I'm a realtor. Oh, cool. What is it that you do? I contact the seller's realtor. And then? They contact the seller. And then? The seller tells the realtor what they want to do. And then? I tell you. Oh, yeah. I could probably just go do that. Technically, but you wouldn't have the power to negotiate. What negotiating are you doing? Because I literally give you a number and then that's all I can spend. Maybe I can get you something thrown in for free. Oh, that's exciting. Let's do that. Well, not in this case, but Technically. Oh yeah, okay. Well, I think I'll just talk to the seller. Whoa, whoa, whoa! No, no, no. You need a realtor. Like, legally? No, but I have an expertise. Oh, okay. What do you advise? Well, um, I think you should go buy a house from that guy. Cool, thanks. I will. Wait, wait, wait, wait. There's another bid. What? Yup, there's another bid. You have to come up higher. How do you know that? Uh, realtors talk to other realtors. But this hasn't been on the market for a month with nothing, and then all of a sudden there's a bid right when I want to bid? That's a great point. That's real estate for you. It's— the market is, you know, and, and it's— you're gonna have to bid higher. But I already told you how much money I can spend. Yeah, well, then the other bidder is gonna get it. Who is the other bidder? I can't say. What did they bid? I can't say. Are they even a real person? I can't say. Okay, what if they bid lower? Then I would just be bidding higher for no reason. Okay. Counterargument: it'd be safer if you bid more. Can I ask you a question? Shoot! How do you get paid? On commission. For the price of the house? Mm-hmm. So if I bid more, you get more? Correlation, not causation.
How Vincent made $76,000 in profit with High Ticket Land Flipping while working a 9-5
