A real estate business is a business that is a “bargaining chip” for politicians, but there’s a catch, one that is very real in the world of politics: when it comes to the bidding process, your agent is a political tool.
If you’re not careful, your business may end up being a political weapon, too.
And if your agent gets your bidding and you’re left out in the cold, you’re probably going to end up paying a lot more than you should.
It’s one reason the practice of political bidding is so contentious, and why the practice has been called into question.
But there’s another reason: politics can actually be a good thing.
It can bring about positive change in a business, especially when it’s done in the name of transparency.
In an effort to better understand why political bidding might be good for business, Business Insider invited political bidders to tell us their stories.
In this case, we asked some of the top real estate agents in the country to tell our own stories.
We wanted to hear from those who see politics as a valuable opportunity for business and who hope to help clients avoid political bidding.
We also wanted to know if there’s something in the industry that could be improved.
For the full interview, check out the video above.
“There are lots of ways to do business,” says Michael Scholten, who runs Scholsten, Scholter & Co. in San Francisco.
“The best way is by being honest.
And there are a lot of ways you can be dishonest, and there are many ways to be dishonest.
I think there are different ways to get what you want, and different ways you might get it, and the most important is honesty.”
So how does political bidding work?
When you bid for a home in the city of San Francisco, the broker usually pays a fee for the home.
And while the broker typically pays the buyer’s premium, he or she also pays a commission, which can add up quickly.
“So when you’re selling, you pay your broker commission,” says Scholtein.
“But it doesn’t matter what it is.
It doesn’t have to be anything you can remember.
But when you bid, you can pay it on a sliding scale.”
The buyer gets the money upfront.
He or she then receives a commission that will depend on how much you bid.
But what if the broker doesn’t know how much the buyer is bidding on?
He or her then pays a percentage of the money to a third party.
For example, if you bid $250,000 and the buyer pays $300,000, then you get $100,000 of the buyer, plus a commission of 20%.
If the buyer didn’t pay anything at all, you get nothing.
That’s because the broker has already made a profit on the transaction.
“I’ve never had a client who wanted a transaction that was $1 million, because it’s not fair for the buyer to be paying 20% of the transaction,” says Mark Pintus, who has worked for a variety of local real estate agencies.
“What you want is to get the most value out of the property, which means you have to get an estimate.
And that estimate needs to be made fairly quickly.”
The broker typically has a list of all the available bids, and each listing is reviewed for potential conflicts.
Sometimes a conflict could arise when a person or a company has a history of lobbying against a political candidate.
If the broker sees that someone is trying to buy the property for a political campaign, he can tell the buyer and the seller that the buyer might not be an official representative of the candidate.
But if the buyer doesn’t agree to that, the agent will make sure the seller is an official agent of the campaign.
That way, the buyer will have an accurate and transparent estimate.
When you’re ready to sell, the next step is to complete the appraisal.
When a home is listed, the brokers usually put a price on it and make an offer to buy.
In San Francisco alone, there are over a thousand listings for houses in the San Francisco Bay Area, and in other markets, like Los Angeles, that are listed for $1.3 million or more.
“We do a lot,” says Pint.
“And it’s really hard to get a perfect price, so we do some very sophisticated analysis to make sure we’re getting a good deal.”
After a bidding war, the seller and buyer agree on a price, and if there is a problem with the appraisal, the salesperson usually comes in to work out a settlement.
In some markets, that happens in the first two weeks of the sale.
In other markets that happen two weeks later, it’s usually the next week.
Sometimes there may be some negotiating and mediation during that time.
If there’s an issue that can’t be resolved, then the buyer has to pay the broker.
If that buyer