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Old 08-02-2010, 02:30 PM
 
42 posts, read 74,477 times
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Hi all,

Is the commission set in stone that you agree to when you sign a listing?

At closing if it ends up that either the buyer or seller is short some money can the Agent reduce their commission to make the deal?

My Agent is representing both sides and coming out with $10,000. Would it be unfair to have him reduce that if needed to close the deal?

I've been told it can't be done but I think someone is being greedy?

Thanks for any input!
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Old 08-02-2010, 02:37 PM
 
Location: Union County
5,702 posts, read 8,159,372 times
Reputation: 4708
Queue the agent dart throwing in 3... 2...

P.S. Dual agency is BAD - don't do it... Additionally, you should ask an agent to reduce commission BEFORE you signed a contract, not after. Lesson learned.
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Old 08-02-2010, 02:38 PM
 
Location: DFW - Coppell / Las Colinas
30,016 posts, read 34,671,455 times
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You agreed to pay your broker x% no matter who brings the buyer. If he brought the buyer and you didn't want to pay, you would encourage him to take his buyer to another home that will pay the full commission.

With that said, if they know your situation and you are in a crisis then they might adjust their charges. If you want them to adjust because you feel they are making too much then I'd personally tell you no.

You agreed by contract to sell your home and pay an agreed upon commission no matter where the buyer comes from. It's not greed, it's a business decision and you should live with your agreement.

But to some extent, if you are in a severe bind they might adjust to help you out.
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Old 08-02-2010, 02:41 PM
 
Location: Tempe, Arizona
4,511 posts, read 11,586,513 times
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The listing agreement defines what you are contractually obligated to pay. It may or may not include variable compensation if the agent represents both sides. In any case the agent with their broker's OK may decide to make a contribution to the deal to get it closed, but is not required to do so.
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Old 08-02-2010, 02:42 PM
 
Location: DFW - Coppell / Las Colinas
30,016 posts, read 34,671,455 times
Reputation: 36050
Quote:
Originally Posted by MikeyKid View Post
Queue the agent dart throwing in 3... 2...

P.S. Dual agency is BAD - don't do it... Additionally, you should ask an agent to reduce commission BEFORE you signed a contract, not after. Lesson learned.
Not sure where you've based this conclusion but Intermediary Agency done correctly is not a bad thing as long as all parties agree and understand what can be done.

If I know a buyer and seller, who better to make it all work. Do you not want me to show all my buyers your home ?
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Old 08-02-2010, 02:47 PM
 
Location: NJ
17,579 posts, read 38,419,683 times
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I think the short answer is they can do it, but have no obligation to.
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Old 08-02-2010, 02:49 PM
 
Location: DFW - Coppell / Las Colinas
30,016 posts, read 34,671,455 times
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Quote:
Originally Posted by manderly6 View Post
I think the short answer is they can do it, but have no obligation to.
The very best response to your questions.
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Old 08-02-2010, 02:52 PM
 
42 posts, read 74,477 times
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Thanks for the replies! I really do appreciate it.

Looks like with incorrect payoff info and some unexpected other things, there might be a $2,000 shortage. I was hoping the Agent would help since he's doing better than anyone in the deal! I was told that isn't done but now I know it can be done but he doesn't have to.

It's not that I don't want him to make double commission, I've just put in all I'm able to

THANKS!!!
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Old 08-02-2010, 02:53 PM
 
Location: Union County
5,702 posts, read 8,159,372 times
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Quote:
Originally Posted by Rakin View Post
Not sure where you've based this conclusion but Intermediary Agency done correctly is not a bad thing as long as all parties agree and understand what can be done.

If I know a buyer and seller, who better to make it all work. Do you not want me to show all my buyers your home ?
The way the compensation for agents is structured and my possible recourse actions in the event of an issue popping up; dual agency has absolutely zero benefit to me... There's no honest way to get the highest price for the seller and lowest price for the buyer at the same time - that's not even considering negotiations of concessions which could change the bottom line drastically.

Now if you're my listing agent and you bring me a qualified buyer offering list price, with reasonable concessions - fine... we'll talk. You may have more experience with that scenario, but you have to admit it's not commonplace. Will you be more "dedicated" or working harder to "make it all work" for both ends of the commission? Sure... Does that mean I'm getting the best deal as the seller or the buyer, though?

In the end, I think it's personal taste and situational... plus yes, it can work. But that's like saying all agents are "great". It's better to err on the side of caution IMO.
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Old 08-02-2010, 02:54 PM
 
42 posts, read 74,477 times
Reputation: 10
PS....

I should have said this from the start-this person owns his own company and isn't splitting with a Broker, he is the only one!
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