Real Estate Commission on lot (private sale, not builder) (Winston-Salem: sales, house)

[tootle]

Hi y'all. I am buying a vacant lot that adjoins my current property. It is in between my property and my next door neighbor's property; the neighbor is moving, so I'm buying the vacant lot that is in between us that he currently owns. Neighbor and I agree on the sale and its price privately. No agent involved - YET.

Neighbor tells me the lot is listed w/ an agent. His agent has a listing, in MLS, for the house and its property. The lot is NOT listed with the house ("additional lot is available" is on MLS listing) and the lot is NOT under formal contract w/ the agent. The neighbor told me in casual conversation that the "... agent will get the 6% commission [on the lot] anyway." Stay with me ...

So, I call the Realtor I always deal with and ask him to represent me in this simple sale. He calls back and says the lot is not under contract with the neighbor's agent AND the neighbor wants me to increase the sales price of the lot by 6.5% to cover my agent's commission if I use him. HUH?

Upon questioning, neighbor said that he told his agent that she would get 6%, that the agent demanded an exclusive (which is not in a contract?), and that we have to deal with his agent only if we don't want to increase the sales price of the lot.

Neighbor said that the commission on lots around here (Winston-Salem area) is typically 10% and that his agent is giving him a good deal by charging only 6%.

QUESTIONS:
1. Is this ethical?
2. Do lots REALLY typically have a 10% Realtor commission on their listed sales?

Sorry to be so long-winded....and thanks in advance for your answers.
Tootle

[JJingle]

Everything is negotiable, including real estate commission.

Hopefully someone that is up to date on current RE ethics and law will chime in...

Good luck!

[zthatzmanz28]

I would skip the deal and let your neighbor keep their property.

Not sure if they can demand an "exclusive"...commision is the same no matter how many agents are involved.

Sound like his agent just wants to double dip the sale as sales and as your "buyer" agent...

If you really want the land, USE your own agent to keep everything above board.

[MikeJaquish]

1. Not particularly unethical. The neighbor has few ethical requirements to follow. IF the agent claimed that the neighbor had contracted with him/her to sell, that may be questionable.

2. Building lots often command a higher commission. That helps compensate the agents for a low sale price and low commission. 10% is not uncommon on raw land which can entail a lot of leg work for not much payoff.
But no rate is set in stone.