Real Estate Commission Georgia (Atlanta: for sale by owner, foreclosure, broker)

[2nsian]

Guys, I have hired an agent to help me buy my 1st home in Atlanta. We came across a HUD property that I'd like to place a bid on. Historically, the HUD homes are subject to a huge demand and a lot of overbids. I cannot overbid on HUD properties. I asked the agent to tell me what his commission will be so I can pay it out of pocket along with closing costs in order to place a competitive bid. The agent replied that he does not disclose commissions with a buyer. Is that a Georgia code of ethics. Why wouldn't a real estate agent disclose his commission to the buyer?

[George Chong]

Typically the Buyer's Agent is paid by the Seller.

If you have hired the Agent as your Buyer's Agent by signing a contract for representation, did the Agent specify what the commission would be if you purchase a for sale by owner and the Seller will not pay real estate commissions? (See page 2 of the Exclusive Buyer's Brokerage Agreement entitled "Situations Where Buyer Agrees to Pay Commission") This can be a flat rate or a percentage.

Typically Buyer's Agents are paid a percentage of the sales price.

[2nsian]

Originally Posted by George Chong

Typically the Buyer's Agent is paid by the Seller.

If you have hired the Agent as your Buyer's Agent by signing a contract for representation, did the Agent specify what the commission would be if you purchase a for sale by owner and the Seller will not pay real estate commissions? (See page 2 of the Exclusive Buyer's Brokerage Agreement entitled "Situations Where Buyer Agrees to Pay Commission") This can be a flat rate or a percentage.

Typically Buyer's Agents are paid a percentage of the sales price.

Thanks for the prompt reply George, On page two the only checked field is :Other as displayed on MLS or agreed to by seller. I understand that typically the seller pays for the commission. In a bank foreclosure, as I told him. I will not concern myself with the percentage of his commission. But when it comes to HUD homes and since I'm constrained by DP assistance guidelines. I cannot overbid, which makes his asking commission as a HUD seller crucial to whether I get the property or not since, as you may know, HUD calculates the commission as part of the offer and deduct it from the offer price and then evaluate whether the net amount is the high enough to accept the offer.

Again, I appreciate your assistance on this. Is the real estate agent bound not to disclose his commission.

[southgeorgia]

Originally Posted by 2nsian

Why wouldn't a real estate agent disclose his commission to the buyer?

because he doesn't have to . . .


and most people think what little commission there is to be made on houses is too much anyway.

he's probably dealt with it before and doesn't care to have his paycheck negotiated.

[George Chong]

Originally Posted by southgeorgia

because he doesn't have to . . .


and most people think what little commission there is to be made on houses is too much anyway.

he's probably dealt with it before and doesn't care to have his paycheck negotiated.

I think southgeorgia might be on to something. I don't know why he wouldn't disclose his commission since the Agent already noted that it is the amount listed in MLS or agreed by the Seller.

[2nsian]

Originally Posted by George Chong

I think southgeorgia might be on to something. I don't know why he wouldn't disclose his commission since the Agent already noted that it is the amount listed in MLS or agreed by the Seller.

Thank you for your feedback George, I contacted his broker this morning. A few hours later he emailed me back with a "commission disclosure". I asked for a termination of the contract. I got a confirmation back. I hired another agent. We checked the HUD property. We agreed on a net amount and we'll be placing the bid tomorrow. Why couldn't be all so simple. Thanks again George for your replies.