Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Cheeseball move and indicative of where the occupation is heading - now charging buyers is ludicrous... If your contract allows, cut bait and threaten to find something else. Bet they come around. If they don't, it's an almost guarantee in the time taken to work a short sale other bargains have hit the market. You'll find something.
Why do you think it is cheeseball? I have had buyers agree to pay my fee, because...gasp...they actually valued my services. I sell many For Sale By Owner homes with my buyer clients and while typically the seller agrees to pay my fee, it is not always the case. As a business owner, I need to make sure I get paid for services rendered. If people don't want to pay my fee they are welcome to find someone that wants to work for free. I like to make profit personally.
Why do you think it is cheeseball? I have had buyers agree to pay my fee, because...gasp...they actually valued my services. I sell many For Sale By Owner homes with my buyer clients and while typically the seller agrees to pay my fee, it is not always the case. As a business owner, I need to make sure I get paid for services rendered. If people don't want to pay my fee they are welcome to find someone that wants to work for free. I like to make profit personally.
Bringing it up at the late stages of the sale is my issue... I get the "know what you sign" thing, but some things should be highlighted AS you sign if you're going to be a "good" agent in my book.
The short sale is an excuse - if the client was looking at "normal" sales that didn't list 3% buyers commission on MLS, how is that different? Would they be expected to make the shortfall in that regard AFTER bidding on the house?
More power to you if you're doing great with buyer's paying you - I don't comprehend it in the least, though.
Bringing it up at the late stages of the sale is my issue... I get the "know what you sign" thing, but some things should be highlighted AS you sign if you're going to be a "good" agent in my book.
The short sale is an excuse - if the client was looking at "normal" sales that didn't list 3% buyers commission on MLS, how is that different? Would they be expected to make the shortfall in that regard AFTER bidding on the house?
More power to you if you're doing great with buyer's paying you - I don't comprehend it in the least, though.
There's always three sides to every story, YKWIM?
It sounds like it was brought up when a buyer's agreement was signed - that the buyer would make up the difference if a property was purchased that allowed for less than 3%.
And I bet it wasn't going to even be an issue until the lender changed the commission amount ... which is crappy, but completely normal as short sales go. (Hell, I bought a short sale personally, they knew I was an agent from the very beginning and they pulled my commission right before closing.)
Bringing it up at the late stages of the sale is my issue... I get the "know what you sign" thing, but some things should be highlighted AS you sign if you're going to be a "good" agent in my book.
The short sale is an excuse - if the client was looking at "normal" sales that didn't list 3% buyers commission on MLS, how is that different? Would they be expected to make the shortfall in that regard AFTER bidding on the house?
More power to you if you're doing great with buyer's paying you - I don't comprehend it in the least, though.
One of the protections in the NC Association of Realtors' Exclusive Right to Represent Buyer agreement is the establishment of an expected compensation level, with the onus on the broker to eliminate surprises to the buyer.
If the broker is going to reap a higher compensation, monetary or otherwise, than that which is outlined in the agreement, the client must be notified in a timely manner and in writing prior to writing an offer.
Conversely, if the client is going to be liable for any shortfall, the broker must notify them in a timely manner of their liability.
In a short sale, where banks will cut commission below the offered co-broke, it would be the broker's responsibility to establish going into the transaction that the commission co-broke is not guaranteed and that the buyer may have a liability.
Should the agent eat a shortfall in the agreed expected compensation because the bank skirts the law?
What if the bank refuses to pay any co-broke amount?
Should the agent work for free?
Should buyers who cannot pay an agent even consider short sales, which are full of surprises?
On down a tangent, but a relevant tangent.....
When co-brokes are eliminated and buyers pay for agency service when it is rendered, a lot of compensation murkiness will be removed from the agent-client relationship.
The use of co-broke to bury the buyer's agent fee in the price and the cost in the loan stems from the days when there were no buyer's agents. That time is behind us. It may well be time to catch up and have buyers cut a check to their agent, just as they do to other service vendors, i.e., home inspectors, termite companies, septic and well inspectors, etc.
Last edited by MikeJaquish; 08-18-2010 at 08:35 PM..
...The short sale is an excuse - if the client was looking at "normal" sales that didn't list 3% buyers commission on MLS, how is that different? Would they be expected to make the shortfall in that regard AFTER bidding on the house?...
At least in your example it is clear up front what the final commission will be, and yes, should be communicated to the buyer before making an offer if it is less than the agreed fee. As noted, in a short sale the commission may change at the last moment months after the offer was accepted by the seller.
For what it's worth, in our MLS, the listing broker is responsible for whatever commission is stated in the MLS regardless if the bank tries to reduce the amount. They will have to make up the difference out of their part of the commission. Instead of the typical co-broke, listing agents now put in the smaller fee that they expect the bank to pay. Again, if the fee starts out lower than what the buyer agreed to, the buyer should be notified (or whenever the agent is aware of the lower amount).
I imagine I would be pretty upset if I was the buyer. My inclination would be to say no and make the agent push it. See how much it was really worth it to them.
I imagine I would be pretty upset if I was the buyer. My inclination would be to say no and make the agent push it. See how much it was really worth it to them.
I imagine you would have read and understood what you signed though. You seem pretty diligent to me.
The document is simple and I DO understand the 3% fee... I have not denied at any point
1. Yes I signed and I expected the agent to take 3%
2. Yes I expected the 3% to come from the seller because thats the common practice (according to the realtor) and because the realtor said it would
Now I think the facts are simple, and if you don't consider this to be at some level... a lie (point number 2) and you feel its the correct way of acting I would simply say that you are also an unethical person. It would have been very simple to tell me before doing all the paperwork that the situation could be presented.
Why would the realtor choose to keep this information from me? It was obviously important. Realtors know is important otherwise they wouldn't make the point that usually the seller pays the commission.
I understand the final purpose of a realtor is to make money, but when you hire somebody with expertise in the field you expect him/her to help you, in this case I feel I was misled. I don't feel I got anything out of this business relationship and so I will try to avoid realtors in the future.
The fact that I have to go and check every single detail of the transaction and see where can the realtor screw me over etc etc makes the point of hiring a realtor useless... if you have to learn the trade then whats the purpose of hiring this "expert"
Ask your lender if you can roll that into your mortgage, or ask the Realtor if you can get a 1/2% seller concession....there are many ways to accomplish this - none of them include terminating your agreement with your brokerage over a small amount of money. They did their job.
The document is simple and I DO understand the 3% fee... I have not denied at any point
1. Yes I signed and I expected the agent to take 3%
2. Yes I expected the 3% to come from the seller because thats the common practice (according to the realtor) and because the realtor said it would
Now I think the facts are simple, and if you don't consider this to be at some level... a lie (point number 2) and you feel its the correct way of acting I would simply say that you are also an unethical person. It would have been very simple to tell me before doing all the paperwork that the situation could be presented.
Why would the realtor choose to keep this information from me? It was obviously important. Realtors know is important otherwise they wouldn't make the point that usually the seller pays the commission.
I understand the final purpose of a realtor is to make money, but when you hire somebody with expertise in the field you expect him/her to help you, in this case I feel I was misled. I don't feel I got anything out of this business relationship and so I will try to avoid realtors in the future.
The fact that I have to go and check every single detail of the transaction and see where can the realtor screw me over etc etc makes the point of hiring a realtor useless... if you have to learn the trade then whats the purpose of hiring this "expert"
REps and kudos to you Lebowsky . . .there are more goofballs in the real estate field than not, hence, makes the good ones look really bad, because we (novices) can't tell them apart, sorta like the needle in the haystack thingy or hitting the lotto when and if you find a competent/good one, lol
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
