A Wish Market is one where the end consumer buys directly from the producer. This is a kind of market where buyers expect to get the product at lowest price possible. This is the perfect scenario wherein the price is low. However, in reality, the wish market rarely exist for so many reasons, one being is the inability of the two ends to connect to each other because of gaps in space, time, and information. Naturally, that gap in the middle is filled in by exporters, importers, wholesalers, retailers, dealers, agents, and sub-agents. These gap-fillers compose a huge part of the whole economy and their existence is sustained by how much they get from the bottom-line market price, which is the premium or profit over and above the production price.
As a rule of thumb, buyers must always find a way to deal directly to someone closer to the source producer because it is where the price is relatively lower. But this rule does not apply to real estate, wherein the commodity in question is worth millions, wherein a 5% overprice is already thousands of thousands and even millions of pesos. When it comes to real estate, if the buyer wants to cut the chase to the lowest price possible, he has to engage the services of an Exclusive Buyer Agent (EBA).
Why is this so?
Unlike any other consumer product, Real Estate is so unique because the agent income is too huge it tempts the "greed" of everyone -- agents, sellers, and buyers. Real estate agents earns huge amount of money commission for a very little work -- and this phenomenon somewhat "annoys" most buyers and sellers. Most real estate owners who does not want an agent actually wants to get solely for himself that agent income. Most real estate buyers who does not want to engage an agent actually requests sellers for some rebate.
This greed that plays in the air is what makes it difficult for real estate sellers and buyers to establish the connection. This difficulty was long been seen and solved by the government, that is why the Code of Ethics and the Real Estate Service Act was put in place. But if you read these code of ethics and open your eyes to what is happening around, you will persistently wonder why is everyone not on board the law.
The bottomline is, in real estate, the only three that is fully capable of buying a property at the lowest price possible are (1) the banks at forclosure, (2) the real estate dealers, and (3) the Exclusive Buyer Agents (EBA).
If there is anything else important that I forgot to include in this article, please email me.
If you want to comment about this article, there is a provision for this purpose that you can find below.
Thank you so much for visiting my site. May God Bless You!
No comments:
Post a Comment