Real Estate Commission Question (Atlanta: for sale, foreclosures, condo)

[NativeJr]

I have contracted with a real estate agent to sell my home in Atlanta. The contracted commission is 6% which is to be split 50/50 with a buyer's agent. A buyer's agent submitted an offer to purchase and in that offer the buyer's agent is asking for a much higher commission. It is almost like he is holding the offer hostage and asking for more money. The house is listed in both GMLS and FMLS.

Does the MLS rules allow for a buyer's agent to re-negotiate commission with an offer to purchase?

[belleislerunner]

Just raise the minimum purchase price of the house that you're willing to accept to cover the added commission if he doesn't back down. You'd be silly to accept less and pay out more.

[George Chong]

MLS and GAMLS do not have any rules regarding re-negotiating commissions.

Everything is negotiable so if you were to counter with just paying the 3% Buyer's commission, it would be in the ball park of the potential Buyer whether or not s/he would allow the offer to die because you are not willing to pay the higher commission.

[ATL Golfer]

That is ridiculous in my opinion. I would call the buyer directly and see if they are aware. Or ask the buyer's agent if their clients are aware. Chances are they will fire the agent if not. I would. They are jeopardizing my ability to secure the property.

3% is already highway robbery. At least on the list side. Buy side it is still pretty close.

We pay our agent 1.5% to list our investment properties. But we give her about 1 a month.

And by the way, I think the above people are wrong. A client wants to put in an offer, it is their duty to present it.

[10 feet tall]

Your scenario is not that uncommon. You would be shocked at what goes on behind the scenes with real estate agents. For example, imagine a scenario where two almost identical houses on a street are for sale. One sells and one never sells. Why? The one that sold offered a buyer's agent bonus (and or alternative commission) and the buyer's agent steered the buyer toward that house rather than the other one. There are all sorts of variations on this theme, many of which go on behind the scenes and/or one or both of the homeowners involved may be unaware. How do you think some agents become "the top selling agent in Atlanta" (or what have you)? Some of it is hard work and personality, but there are plenty of agents who work hard have good personalities. Some just know the tricks of the trade while others whine about playing fair.

[NativeJr]

Thanks for the quick replies.

Originally Posted by belleislerunner

Just raise the minimum purchase price of the house that you're willing to accept to cover the added commission if he doesn't back down. You'd be silly to accept less and pay out more.

This was my first reaction but my agent has advised against countering at a higher price. This is a great house in a not so great area that has been hit very hard by foreclosures. We have had a number of full price offers, but cannot get it to appraise anywhere near the price. This is an cash offer with quick close.

Originally Posted by George Chong

MLS and GAMLS do not have any rules regarding re-negotiating commissions.

I had this question because a google search turned up info saying this is prohibited by California MLS rules. Quoting from the link below: A buyer's agent. "shall not use the terms of an offer to purchase to attempt to modify the listing agent's offer of compensation stated in the MLS Rules nor make an offer contingent on the modification of compensation."

http://www.mlslistings.com/Uploads/1...Qs-May2010.pdf


My agent is recommending that I just accept it and move on. The total commission would be 9.43 % with the listing agent getting 3% and the buyer's agent 6.43%. I am considering countering by asking that the commission negotiations be removed from the offer and negotiated separately. Then offering between 6-8% if it closes in one week. And let the agents determine the split.

[10 feet tall]

Originally Posted by NativeJr

My agent is recommending that I just accept it and move on. The total commission would be 9.43 % with the listing agent getting 3% and the buyer's agent 6.43%. I am considering countering by asking that the commission negotiations be removed from the offer and negotiated separately. Then offering between 6-8% if it closes in one week. And let the agents determine the split.

Just remember they may not negotiate. You don't really know what that realtor is telling the buyer during the so-called negotiation. There may be (probably are) other roughly equivalent houses that are offering a similar buyer's agent commission and, if you refuse to play ball, the buyer's agent may "steer" the buyer to a different home (i.e. telling them you are being ornery and difficult to work with, or other things, etc). You would be surprised how much influence they can have. Also, the buyer may be in league somehow with the agent (i.e. may be a team of investors, etc) and they put the offer together in tandem with a goal.

Just something to think about.

[NativeJr]

Yes, those are things I have considered. If life were easy, it would not be so much fun...lol

This house is substantially nicer that any other house in the area, thus the six full price offers.

[JPD]

Originally Posted by 10 feet tall

Your scenario is not that uncommon. You would be shocked at what goes on behind the scenes with real estate agents. For example, imagine a scenario where two almost identical houses on a street are for sale. One sells and one never sells. Why? The one that sold offered a buyer's agent bonus (and or alternative commission) and the buyer's agent steered the buyer toward that house rather than the other one. There are all sorts of variations on this theme, many of which go on behind the scenes and/or one or both of the homeowners involved may be unaware. How do you think some agents become "the top selling agent in Atlanta" (or what have you)? Some of it is hard work and personality, but there are plenty of agents who work hard have good personalities. Some just know the tricks of the trade while others whine about playing fair.

What kind of moron would one have to be in order to be lead around by the nose by a realtor now that there's the internet? Go online, pick the houses you want to see and then TELL your agent you want to see them. If they won't take you to see the house you want to see, fire them on the spot.

[ATL Golfer]

Originally Posted by JPD

What kind of moron would one have to be in order to be lead around by the nose by a realtor now that there's the internet? Go online, pick the houses you want to see and then TELL your agent you want to see them. If they won't take you to see the house you want to see, fire them on the spot.

Some people, usually the ones with more money, don't have time for that. The want full service everything. They trust their agent.

I know of someone that sold a unit 'as-is' (condo). Older unit, had an AC condensation leak. There was a $500 bonus to buyer's agent for all-cash offer. Buyer's agent knew of the leak, but did not disclose to buyer because she didn't want to derail the closing. What people do for incentives is amazing.

My mom was an agent for 20 yrs. She'd never do some crap like that.