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Old 05-22-2012, 01:38 AM
 
Location: California
25,619 posts, read 17,159,100 times
Reputation: 18132

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Are you a first time homebuyer OP? If so, keep your realtor in the mix and let her earn her money. FINDING a house is the easy part.
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Old 05-22-2012, 01:54 AM
 
Location: Florida -
4,970 posts, read 3,566,015 times
Reputation: 5743
Quote:
Originally Posted by lamplightballet View Post
We value our agent in that we know she has made effort and done a good job of showing us ten - fifteen houses before this. This particular deal was a little off-putting for us because after we found the house ourselves, she basically told us we couldn't see it - we had to do the work to see it. At the time it felt shady or wrong to see the house behind her back so we told her about it. We had a few other houses we wanted to see too all in the same neighborhood, so we saw them all together. We didn't go trying to get her involved. She wanted it disclosed if we found anything. If what we did was the wrong thing, we didn't know.

Thanks for your input. I guess it is a question of etiquette and whether we "want" to compensate her. We can't afford to give her a lot of money out of pocket. We also aren't cut-throat people and it's very hard for us to cut her out of the deal. We don't know anyone who's experienced a similar situation and can't find info on what the best thing to do might be. We'd like everyone compensated fairly. Unfortunately we are just too green at all this to be certain what is fair.
I think the issue here is 'added value.' If your REA adds value to this transaction, then they should be compensated ... If not, then their unwillingness to even show you the house (why? ... because they understood that there would be NO commission!), then no fee is due. There is certainly no contractual obligation... and actually, they were prepared to keep you away from the very property that you believe best met your needs.

Will you need assistance from 'your' realtor to negotiate, inspect and close this property? ... If so, you should negotiate a fee to provide whatever services you will need. Otherwise, 'showing houses' is part of the job and is not done for altruistic reasons. The agent also got a first-hand look at properties that they could potentially show/sell to others.

You will do well in this type of situation to separate 'business' from 'emotion' --- Do what you feel is right and ethical, but, don't 'guilt trip' yourself into a decision that will cost you several thousand dollars just to 'tip' a friendly realtor.
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Old 05-22-2012, 10:01 AM
 
3,043 posts, read 2,192,089 times
Reputation: 1903
I want to know what other agents out their think about how this agent handled this. I don't like the way it was done. An agent should always find out what that seller is willing to do ahead of time. By showing the property and writing an offer I think that mislead the buyer into thinking that they would have representation on this house that they really now like and want to buy. Clearly this buyer went into this not understanding the situation and it is their agents fault. It is an agents job to explain things like this BEFORE THEY LOOK AT THE HOUSE!!!!! Now they have to decide to walk away from a house they really like or try to navigate their own way through the house buying process. Not fair that they only found this out at this point.
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Old 05-22-2012, 10:04 AM
Status: "It's 5 o'clock somewhere." (set 25 days ago)
 
Location: Mountain Ranch, CA The heart of Calaveras County
6,176 posts, read 11,608,986 times
Reputation: 4950
I'd offer the agent an hourly fee to get you through to closing.
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Old 05-22-2012, 11:27 AM
 
7 posts, read 5,211 times
Reputation: 13
Thank you to everyone for your responses. Just an update:
Unfortunately things have gone south in our communication with our agent. She's very angry at the suggestion that she not get her 3 percent out of our pocket and has now told us that at the very least she is entitled to 1500 dollars. She was emotional and even swore at us which struck me as extremely unprofessional, especially since she jumped to the conclusion that she would get nothing when we had every intention of AT LEAST giving her a nice monetary parting gift from our VERY tight savings. We wanted to discuss our options with her and see what she thought was fair but she is very upset with us, and her emotional & unprofessional style of dealing with this has really made me less eager to continue to use her in this transaction.

As for the house, I can't be certain that it will not under-appraise, but it's the nicest for the price of anything I've seen yet. A comparable house on the same street, same S/F (and in my opinion, less nice) has a sale pending over 10k higher. Major updates very new & includes brand new high-end appliances, another place we would save important out-of-pocket money initially. So we're comfortable with the price.

We are considering an attempted counter of 154k with a 1 percent agent fee, and may try to do that next, but we are still torn about whether the agent's fee being a part of our negotiation would just slow down/strain our transaction with the seller, coupled with the fact that we are currently pretty unhappy with our agent.
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Old 05-22-2012, 11:31 AM
 
Location: Up above the world so high!
45,121 posts, read 57,026,781 times
Reputation: 38349
Quote:
Originally Posted by lamplightballet View Post
Thank you to everyone for your responses. Just an update:
Unfortunately things have gone south in our communication with our agent. She's very angry at the suggestion that she not get her 3 percent out of our pocket and has now told us that at the very least she is entitled to 1500 dollars. She was emotional and even swore at us which struck me as extremely unprofessional, especially since she jumped to the conclusion that she would get nothing when we had every intention of AT LEAST giving her a nice monetary parting gift from our VERY tight savings. We wanted to discuss our options with her and see what she thought was fair but she is very upset with us, and her emotional & unprofessional style of dealing with this has really made me less eager to continue to use her in this transaction.

As for the house, I can't be certain that it will not under-appraise, but it's the nicest for the price of anything I've seen yet. A comparable house on the same street, same S/F (and in my opinion, less nice) has a sale pending over 10k higher. Major updates very new & includes brand new high-end appliances, another place we would save important out-of-pocket money initially. So we're comfortable with the price.

We are considering an attempted counter of 154k with a 1 percent agent fee, and may try to do that next, but we are still torn about whether the agent's fee being a part of our negotiation would just slow down/strain our transaction with the seller, coupled with the fact that we are currently pretty unhappy with our agent.
Try to put yourself in her shoes.

She invested her time and money in you FOR MONTHS and now she is not going to be paid for any of that.

Betting if this happened to you, you'd be a little "emotional" too

But go ahead and keep on justifying why you don't have to pay her if it helps you to sleep at night.

Just remember, what goes around, comes around.

And karma can be a real bit*h.
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Old 05-22-2012, 11:40 AM
 
7 posts, read 5,211 times
Reputation: 13
We never told her she wasn't going to be paid for "any of that". Yes we've used her over a period of months but have only gone out with her three times at around an hour each time.
I think your reply is silly and emotional instead of realistic. If my waiter swears at me, I'm not going to tip him/her. Do I truly and honestly think her work this far is worth 1500 dollars? Nope. Would I have been a lot more open to paying her anyway if she'd approached it calmly and professionally and nicely? Yep!
Also I haven't for certain decided not to pay her anything. We may go after the house and try to get her a commission. We may pass on the house and just get a different realtor.
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Old 05-22-2012, 11:42 AM
 
Location: Providence, RI
4,040 posts, read 5,453,237 times
Reputation: 2962
quote: "We are considering an attempted counter of 154k with a 1 percent agent fee, and may try to do that next, but we are still torn about whether the agent's fee being a part of our negotiation would just slow down/strain our transaction with the seller, coupled with the fact that we are currently pretty unhappy with our agent."

Forget the agent. Swearing at you just lost her all credibility and your consideration. Offer what you want to pay for the house and negotiate directly with the owners. All you need is a real estate attorney to do the paperwork including offer forms, inspections, etc.
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Old 05-22-2012, 12:25 PM
 
Location: Washington DC
487 posts, read 730,167 times
Reputation: 492
Quote:
Originally Posted by Silverfall View Post
I negotiate FSBO's often and I call and chat about compensation before a showing that way there aren't any surprises. If you don't have a buyer agency agreement, then it is up to you and your moral center about what to do from there. You need to decide if your agent has brought any value to you or not. The fact that you are talking about how you found this on your own, etc tells me that you don't really value your agent.

So I guess the question is are you willing to pay $156,000 for the house?
I'm curious how you came to this conclusion?
Are you implying that if you value your Agent you must walk around all day with blinders on and never ever notice a FSBO home?
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Old 05-22-2012, 12:37 PM
 
5,321 posts, read 5,590,522 times
Reputation: 5394
Your agent swore at you and got emotional? Not good! Wonder if they do this during intense negotiations with buyers/sellers/other agents. She should have brought up how she can step in and assist in negotiations, explain how she would assist with inspection negotations and other things and then bring up a price point for her services.

She attempted to steer you away from the FSBO to start with by saying it wasn't in her database. Of course it wasn't in her database if her database is MLS listings. She knows that many FSBOs are not in MLS and this is because they are not outright offerring to pay the agent's commision. She should have explained this to you at that time..and should have explained her charges to you if the seller did not want to pay her. Instead, she pretended that the FSBO didn't really exist and allowed you to fend for herself.

IMO, she was more worried about herself and her commission over helping the client and then explaining the commission structure and how FSBOs work to the client. Sounds like you were willing to pay her out of pocket and would have. But she chose a different route...and got unprofessional and immature.

This is not someone that you want representing you, IMO.
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