U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 06-10-2012, 02:16 PM
 
4 posts, read 5,004 times
Reputation: 10

Advertisements

Hi,

I am new to this forum, and have been searching, but cannot find the answer to my question anywhere else, and I am hoping someone here can help me.

To simplify the explanaation, I am going to give made-up names to the people involved.

Bob is selling a house. He has gone through a divorce and is just wanting it sold so he can move on. He has a mortgage for a little under $80,000.
Bob has engaged Sophie as his realtor and she has told him that since the house has been empty for a few years, he needs to go in and clean it up, and have some work done so she can sell it for it's real value in the range of $120,000. my sister-in-law (Jane) is on the same street, and has spoken to bob directly and he says that he doesn't really like the realtor and just wants to sell the house straight away, as-is and would take $80,000 for it. Jane called me when Bob was at the house and he let us look around the property and I want to buy it.

I have a couple of questions.

1) Since I have not met the realtor or made any contact with her, if I make an offer directly to Bob, would he be able to accept this offer from me and bypass the realtor completely?
2) If this is the case would this mean that the realtor would not be entitled to any commission at all?
3) If she puts a sign outside the house would this change because she could claim that I saw her advert selling the house and therefore she deserves her commission?
4) If Bob cannot bypass the realtors fees, can he at least get them reduced since he found the buyer (me) instead of her?

Thank you anybody who can help me with any of these question. I really appreciate any feedback.
Reply With Quote Quick reply to this message

 
Old 06-10-2012, 02:21 PM
 
Location: Florida -
8,238 posts, read 9,990,552 times
Reputation: 15076
The matter depends on whether or not Bob has signed a listing contract with the realtor; in which case, the matter of a commission on ANY sale during the listing period, will be spelled-out. Even if he has done so, he may be able to negotiate a reduced fee (I've done that when selling my own house, even though I had a realtor agreement). But, the notion that you will be able to completely bypass the realtor is wishful thinking.

On the other hand, is Bob willing to pay the commission out of his proceeds from the reduced price sale ... or are you willing to provide an added incentive by bumping your price up slightly (and perhaps split the commission)?
Reply With Quote Quick reply to this message
 
Old 06-10-2012, 02:31 PM
 
Location: Salem, OR
13,740 posts, read 31,556,293 times
Reputation: 12105
Quote:
Originally Posted by MrGriff View Post

1) Since I have not met the realtor or made any contact with her, if I make an offer directly to Bob, would he be able to accept this offer from me and bypass the realtor completely?
If he signed an Exclusive Right to sell listing agreement. No.

Quote:
Originally Posted by MrGriff View Post
2) If this is the case would this mean that the realtor would not be entitled to any commission at all?
This is only true if Bob signed an Exclusive Agency agreement.

Quote:
Originally Posted by MrGriff View Post
3) If she puts a sign outside the house would this change because she could claim that I saw her advert selling the house and therefore she deserves her commission?
With an Exclusive right to sell agreement, this is irrelevant.

Quote:
Originally Posted by MrGriff View Post
) If Bob cannot bypass the realtors fees, can he at least get them reduced since he found the buyer (me) instead of her?
If he signed a listing agreement he is bound to the terms of the contract. He can always ask, but the agent doesn't have an obligation to reduce the fee.
Reply With Quote Quick reply to this message
 
Old 06-10-2012, 02:46 PM
 
4 posts, read 5,004 times
Reputation: 10
Thank you both for your very swift responses, I have just moved to the USA from England so I really have no idea when it comes to buying a house here. I believe he has signed some kind of agreement with the realtor, and will try to find out whether it is an Exclusive agreement. (It probably is, I don't think he cared too much to read over anything, but just signed what he was given).
Thank you again for your responses.
One last question about the last question, if we had our own buyers realtor, am I right that she would have to split the fee 50/50? This means she would only get half the fee. Is there nothing stating that she has to take at least a slightly reduced fee if we don't have a buyers realtor?
Reply With Quote Quick reply to this message
 
Old 06-10-2012, 02:48 PM
 
Location: Columbia, SC
8,844 posts, read 17,440,566 times
Reputation: 6194
What those guys said. Why would be Bob choose to work with someone he doesn't like? Also, do you wonder why Bob would rather make no money selling as is to you as opposed to making repairs/cleaning to get $40,000 more? That sounds a little suspicious to Realtor Brandon.
Reply With Quote Quick reply to this message
 
Old 06-10-2012, 02:51 PM
 
Location: Salem, OR
13,740 posts, read 31,556,293 times
Reputation: 12105
Quote:
Originally Posted by MrGriff View Post
One last question about the last question, if we had our own buyers realtor, am I right that she would have to split the fee 50/50? This means she would only get half the fee. Is there nothing stating that she has to take at least a slightly reduced fee if we don't have a buyers realtor?
She doesn't have to split it 50/50. She splits it based on what she offers on the MLS. Her contract may have a clause agreeing to a reduced fee if the buyer's don't have an agent, but most don't.
Reply With Quote Quick reply to this message
 
Old 06-10-2012, 02:52 PM
 
Location: Salem, OR
13,740 posts, read 31,556,293 times
Reputation: 12105
Quote:
Originally Posted by Brandon Hoffman View Post
What those guys said. Why would be Bob choose to work with someone he doesn't like? Also, do you wonder why Bob would rather make no money selling as is to you as opposed to making repairs/cleaning to get $40,000 more? That sounds a little suspicious to Realtor Brandon.
Divorces take a heavy toll. Some people would rather lose the money in order to not have to put forth more energy into something.
Reply With Quote Quick reply to this message
 
Old 06-10-2012, 02:54 PM
 
Location: Illinois
718 posts, read 1,749,765 times
Reputation: 970
I agree with Brandon. If you can just "clean up" a place and attempt to make $40k more and are unwilling to do it, perhaps there is a property problem that Bob does not wish to disclose. You know the adage, about walking like a duck.......most people would do as suggested in an attempt to gain $10-20k.....but $40k....unless there is more to the story than we have heard or the realtor is a bonafide airhead.
Reply With Quote Quick reply to this message
 
Old 06-10-2012, 02:54 PM
 
4 posts, read 5,004 times
Reputation: 10
I understand your point brandon. I simplified the situation saying he went throuhg a divorce, he split up with his wife, she bought another house, now he is back together with her, but they both prefer the other house and he just wants to get rid of this one. He's not in a situation where he really needs the money, but he wants it sold so they can just get on with their life. he knows he could spend a few months cleaning it up (its in a bit of a state, needs a fair bit of work done) and get more money, but he hasn't the time, and would rather just sell it as-is and move on.

With the realtor, this comes back to the same thing, he just wants it sold quick, so he picked the first realtor he found and just asked them to sell it for him, expecting them to help him sell it quick, but the realtor is trying to get him to do work on it so it sells for more so she gets a higher commission. if it sells for 120 instead of 80, this makes a fair bit of difference to her commission, even if it takes 6 months and a lot of extra work and money on Bobs part.
Reply With Quote Quick reply to this message
 
Old 06-10-2012, 03:04 PM
 
Location: NJ
17,579 posts, read 38,288,152 times
Reputation: 16098
Quote:
Originally Posted by MrGriff View Post

With the realtor, this comes back to the same thing, he just wants it sold quick, so he picked the first realtor he found and just asked them to sell it for him, expecting them to help him sell it quick, but the realtor is trying to get him to do work on it so it sells for more so she gets a higher commission. if it sells for 120 instead of 80, this makes a fair bit of difference to her commission, even if it takes 6 months and a lot of extra work and money on Bobs part.
That is a somewhat one sided view of things. The seller will benefit much more than the agent for a higher price. Assuming the agent is getting 3%, 40K more on the selling price is only netting an additional $1,200 while the seller is going to be making probably 35K+ depending on how much it takes to clean up the place.

I would think if an agent was only looking out for themselves they would push for a quick sale and get their money and run.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2018, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top