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Old 07-02-2014, 11:18 AM
 
65 posts, read 73,243 times
Reputation: 22

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OK so I just wanted to make sure I am not signing anything unusual.Is it standard contract or not?

It is a KW realtor. and I get to know her when I inquire about a listing at trulia and she responded for that listing which we are not sure is the right house for us but area wise we loved it . She told me she can represent me with other listings and will be very happy to work with. I am new to houston so we decided to just go with her.
I selected her as a realtor and they have sent me a broker agreement. Thats states for 3% commission from seller but in case if seller doesn't pay than I have to pay.(What if seller agrees to give 2.5% only then I will be paying 0.5%)?

If I breech the agreement I will have to pay the amount payable to realtor.
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Old 07-02-2014, 12:15 PM
 
1,013 posts, read 1,829,185 times
Reputation: 856
There are a few realtors on this site that can give better input than me, but you should not pay any fees to the realtors at all. That all goes to the seller.

I believe you can break the broker agreement as well if you aren't happy with the service. You just have to sign some paperwork,
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Old 07-02-2014, 12:23 PM
 
174 posts, read 340,335 times
Reputation: 120
Quote:
Originally Posted by Mr. Krinkle View Post
There are a few realtors on this site that can give better input than me, but you should not pay any fees to the realtors at all. That all goes to the seller.

I believe you can break the broker agreement as well if you aren't happy with the service. You just have to sign some paperwork,
I agree, all the commission is paid by the Seller. Buyer is not responsible for any commission. You can ask your realtor for clarification and make sure you and him are on the same page. I think the agreement is a standard document to protect your realtor to get the commission for the house he shown you. I think it is fairly common practice.
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Old 07-02-2014, 01:41 PM
 
126 posts, read 184,198 times
Reputation: 61
I just signed something similiar. I discussed this topic with my realtor. She basically told me that if the seller is only willing to pay 2.5% she would structure our offer to make up for the difference somehow. I think this is a very standard practice and that form is a standard form. Go for it!
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Old 07-02-2014, 01:49 PM
 
Location: Rural Central Texas
3,606 posts, read 9,264,749 times
Reputation: 5448
This may well be something that is becoming more common, but I would not do it. The multiple listing service mandates a common commission to the selling broker, so unless you are being shown listings like FSBO or non-MLS broker listings there will not be a situation where the agent gets less than the standard 3%. I think that it is your choice if you want to make an offer on a non-MLS property and include a stipulation for a 3% commission to your selling broker, or the agent can negotiate a separate listing agreement with the listing broker or owner for a specific commission on their own.

If you feel the agent is more concerned with their own interests than yours, I would look for another agent. You are giving them the opportunity to satisfy your needs and the needs of the seller. Their commission should be a secondary concern and handled as an administrative task, not as part of your transaction.

If you hire an agent as YOUR representative, you need to pay 100% of their commission and prohibit them from accepting a fee from the listing agent. This makes them legally your agent and not the sellers. If they accept a commssion from the listing agent or seller, they are legally representing them instead of you.
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Old 07-02-2014, 01:56 PM
 
1,759 posts, read 2,440,145 times
Reputation: 3541
The seller gets to set the commission. The sellers agent gets to decide what the split is, if any. The MLS allows the selling agent to set any co-broker commission they want.

For instance...a $1,000,000 house will typically have a 5-6% commission - 3% sellers agent, 3% buyers agent stated on the MLS. However if the listing agent thinks he can sell it at 2.5% Buyers agent 3.5% him...he can set the MLS split at 2.5%...In that scenario and if the OP signs this agreement, then the buyers will be responsible for .5% of $1,000,000 or $5000.

The sellers agent sets the split b/c technically the contract with the seller is ONLY between the seller and his agent. The buyers commission, is between the sellers agent, and the buyers agent.

Hope that makes sense.

TO THE OP - I would not sign that. I would state you get the offered co-brokerage commission period, unless it is a FSBO, in which case I will pay $xxxx dollars period.

Then I would avoid FSBO unless its my dream home, b/c I would not want to bring the agents cash to closing. You can not finance your agents fee separately from the home.


Quote:
Originally Posted by johnrex62 View Post
This may well be something that is becoming more common, but I would not do it. The multiple listing service mandates a common commission to the selling broker, so unless you are being shown listings like FSBO or non-MLS broker listings there will not be a situation where the agent gets less than the standard 3%. I think that it is your choice if you want to make an offer on a non-MLS property and include a stipulation for a 3% commission to your selling broker, or the agent can negotiate a separate listing agreement with the listing broker or owner for a specific commission on their own.

If you feel the agent is more concerned with their own interests than yours, I would look for another agent. You are giving them the opportunity to satisfy your needs and the needs of the seller. Their commission should be a secondary concern and handled as an administrative task, not as part of your transaction.

If you hire an agent as YOUR representative, you need to pay 100% of their commission and prohibit them from accepting a fee from the listing agent. This makes them legally your agent and not the sellers. If they accept a commssion from the listing agent or seller, they are legally representing them instead of you.
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Old 07-02-2014, 03:15 PM
 
111 posts, read 182,577 times
Reputation: 80
We used a KW agent when we moved to Houston last summer. He did not make us sign a contract.

When we sold our house in Dallas we did sign a contract with KW. That was specifically only for the sale of our home since they were listing it.
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