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It was a dollar amount ($2700) that I converted to a percentage.
I explain the rest in post right before this.
My biggest concern was that this was more than twice as much as my agent who had been working on this for nearly a year would get off this sale. Although, he has made two other much bigger commissions off me in the same time period.
While we are not talking about much money, it still effects my bottom line and I don't like losing even one dollar. In my mind, I was already losing big time on this house. My goal ended up being just to get rid of it.
Considering all you said about it:
located in a neighborhood that is deteriorating and absolutely decimated by foreclosures. I owned it free and clear. At its highest, just before the housing bust, it was valued at $140K. It was priced right at $63K. We had five, full-price contracts. Two fell apart because of low appraisal $33K and $31K.
You had a dying dog on your hands. Lucky you did not have to pay somone to take it off your hands.
located in a neighborhood that is deteriorating and absolutely decimated by foreclosures. I owned it free and clear. At its highest, just before the housing bust, it was valued at $140K. It was priced right at $63K. We had five, full-price contracts. Two fell apart because of low appraisal $33K and $31K.
You had a dying dog on your hands. Lucky you did not have to pay somone to take it off your hands.
Be happy you are out from under.
I totally agree and am very happy it's gone. It was my deceased mother's house. In a different part of the city, it would have been a $300K townhouse.
That still does not excuse the unethical money grab by this agent. I felt like she took advantage of the situation. She kicked the dog while it was down.
I totally agree and am very happy it's gone. It was my deceased mother's house. In a different part of the city, it would have been a $300K townhouse.
That still does not excuse the unethical money grab by this agent. I felt like she took advantage of the situation. She kicked the dog while it was down.
No the agent has a business to run. I am guessing that she needed $2700 to cover expenses. Many companies have desk fees, transaction fees, etc. It is very possible that at the $1200 you were offering she would have been in the negative, meaning she would have had to pay her brokerage money to sell that house. So you own a parents home free and clear in a decimated neighborhood, and the agent is likely trying to cover business expenses. Whom is kicking whom? The offer was still well over appraised value.
Your listing agent made a choice to list a $63,000 home for 6%. He/she made a business decision. The other agent made theirs. They both worked essentially pro bono for you on it because those dollars won't cover business expenses and time.
I take back my previous statement - I'm used to 6% seeming very steep in my market where many homes are in the 400,000-800,000 range (in fact, it's very strange that a realtor gets twice as much money just because one house is worth twice that of another... but that's another thread). Anyway, getting 3% (or 1.5% after broker split) on a $63K house is indeed hardly worth the realtor's time.
That still does not excuse the unethical money grab by this agent. I felt like she took advantage of the situation. She kicked the dog while it was down.
I don't see anything unethical about it. If that same money would have been deducted from the offer and therefore going in to the hands of the buyer would you say the same thing? Would that have been a money grab and "kicking the dog"?
No the agent has a business to run. I am guessing that she needed $2700 to cover expenses. Many companies have desk fees, transaction fees, etc. It is very possible that at the $1200 you were offering she would have been in the negative, meaning she would have had to pay her brokerage money to sell that house. So you own a parents home free and clear in a decimated neighborhood, and the agent is likely trying to cover business expenses. Whom is kicking whom? The offer was still well over appraised value.
What in the world does the buyer's agent's fees and customs in his own office have to do with the sale of this property? The main action going on is the sale of the home, i.e. a buyer selecting this particular home to buy. No one cares what an agent wishes to make and should be secondary at best but not at all in the thought process of the buyer UNLESS they agreed to pay their "representation" out of their own pocket for whatever they want to agree to. They can agree to give each other hot oil massages as condition of finding a home AFTER closing if they want to but their separate agreement should in no way be put BEFORE the purchase itself.
Sounds like the agent should find a brokerage that doesn't have junk fees like a breathing fee for having air available for their clients or a listening fee for when a client explains to an agent what they're looking for in a home. My guess is all or most have these junk fees as a profit stream disguised as a cost of doing business. The buyer's agent possibly having to pay their brokerage for a buyer selecting a home that fits their needs has nothing to do with the seller. Some of these real estate players want to lump yet even more fees to already ridiculous closing costs. If the agents had to pay the closing costs for each transaction, I bet there wouldn't be any or very minimal at all.
Lastly, what a seller owes or not on their home has nothing to do with what the selling price or what someone else thinks he should accept.
If that same money would have been deducted from the offer and therefore going in to the hands of the buyer would you say the same thing?
No, I would have considered that normal practice and I would have had the opportunity to counter the offer. As it was, the buyer offer was fair and I wanted to accept it. I did not want to accept his agent's terms. I had already negotiated a standard 6% commission with my agent. I did not expect to have to counter offer the buyer's agent.
What in the world does the buyer's agent's fees and customs in his own office have to do with the sale of this property?
THe OP felt the agent asking for more money was kicking him when he was down and a money grab. I was merely sharing the business side to the OP on why this probably wasn't a money grab. Covering business expenses isn't a money grab, IMO.
Quote:
Originally Posted by sldream
The main action going on is the sale of the home, i.e. a buyer selecting this particular home to buy. No one cares what an agent wishes to make and should be secondary at best but not at all in the thought process of the buyer UNLESS they agreed to pay their "representation" out of their own pocket for whatever they want to agree to. They can agree to give each other hot oil massages as condition of finding a home AFTER closing if they want to but their separate agreement should in no way be put BEFORE the purchase itself.
The transaction wasn't held hostage. The buyer, since they signed the contract, knew about the increased commission. Clearly they were okay since it was in their offer. The seller could have said no. They had a choice. Real estate commissions are a closing cost and the buyer asked the seller to pay their increased portion. The seller can say no, just like they can say no to other closing costs like loan origination fees and such. There is another thread on CD where the buyer and seller are truly being held hostage over commission. This scenario isn't it.
Quote:
Originally Posted by sldream
like the agent should find a brokerage that doesn't have junk fees like a breathing fee for having air available for their clients or a listening fee for when a client explains to an agent what they're looking for in a home. My guess is all or most have these junk fees as a profit stream disguised as a cost of doing business. The buyer's agent possibly having to pay their brokerage for a buyer selecting a home that fits their needs has nothing to do with the seller. Some of these real estate players want to lump yet even more fees to already ridiculous closing costs. If the agents had to pay the closing costs for each transaction, I bet there wouldn't be any or very minimal at all.
This makes no sense. Agents have no control over lender costs. Why would an agent pay the closing costs for a buyer? It is their loan.
I have no idea which brokerage or what is going on with the agent. I was just throwing out another idea about why the the agent might have asked their client, the buyer, for more money on a home with such a low price.
Quote:
Originally Posted by sldream
, what a seller owes or not on their home has nothing to do with what the selling price or what someone else thinks he should accept.
I agree that what they owe has nothing to do with selling price, but he had 6 full price offers, none of which could finance. He has a cash offer well above appraised value that would net him more than the house is legally worth. The only deal is he has to pay 1.5 extra in closing costs than he planned. My reference to the fact that he owns it outright has to do with the fact that it isn't like this house is a short sale or foreclosure. He can't sell it on a loan, and he can't rent it out due to bad tenants. So he has a nice house in a crappy neighborhood that is worth $33,000. He get's an offer for $9,000 more than the house is worth with the only issue being that he has to spend an extra $630. Really? With so many people in short sales and foreclosures, it seems like a gift to me.
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