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I am in the middle of negotiations with a NVa real estate broker. As the seller our agent/broker listed in the MLS as 2% commission to the buyer. The buying agent/broker is now trying to negotiate (or demand) 4% from me, the seller. First of all we have a contract with our selling agent on how much we will pay for commission. Why is this even part of our negotiation? The buying agent is "threatening" to "sell his client another property!" Isn't there some sort of code of ethics against bullying? Is this ethical? Who do we complain to? What is our recourse? Do the buyers and sellers have to be held hostage to this type of tactic?
Agree with the others, your agent should be helping you with this. I would think trying to negotiate this with you would break some kind of rules as the agreement is between you and your agent.
At the end of the day I would just say no thankyou and move on.
ALWAYS focus on the Net proceeds to Seller when negotiating.
ALWAYS.
If Seller can increase the cobroke, and include it in the price to cover it, so that the Net Proceeds are still acceptable, it deflates the issue.
Getting to "Yes" is the goal, with "Yes" having to work for both Seller and Buyer.
Just curious. Are you paying your listing agent a full broker fee of 6% or only 4%? Around here, typically it's 3% to the buyer's agent. But even if I'm helping a friend or negotiated something different to offer a lower listing fee, I still offer 3% to the buyer's agent and keep the lower amount to myself.
Bottom line. The buyer's agent obviously has a very interested client for your property and wants to make his standard fee, or just higher than what the listing agent is offering. It's against his fiduciary duty and code of ethics to steer his client away from your home because of this. Make sure they know that.
If the buyer's agent contacted the listing agent prior to writing any offer, they can talk about the offered commission. If the buyer's agent already submitted an offer, they cannot use the commissions as any type of negotiating anything. It's against the Code of Ethics, but that is only if the buyer's agent is a "Realtor" and not just a licensed agent.
Bottomline is if the agent is a Realtor, she cannot put herself above her client's needs and if the house is right for them, she cannot hinder the sale. That's also in the COE.
If the coop is lower than the agreed upon fee with the buyer, my agency agreement gives me direction to ask for the balance owed by the buyer in the purchase contract.
If the seller does not wish to sign the purchase contract, they may reject or counter the offer with the terms they would agree with.
There is nothing unethical about asking for what you want.
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