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No one knows what went on between the buyer and buyer's agent, and a lot of people in both threads are jumping to conclusions.
Seller should concentrate on seller's business.
Yes, and as the seller, my "business" was that I had an offer from a buyer and as a stipulation of that offer, the buyer's agent would receive 6.43% commission.
I have no knowledge of the agreement between the buyer and the buyer's agent.
Yes, and as the seller, my "business" was that I had an offer from a buyer and as a stipulation of that offer, the buyer's agent would receive 6.43% commission.
I have no knowledge of the agreement between the buyer and the buyer's agent.
Was the net offer a good one? Why not just negotiate the offer and come back with a higher price if it was too low?
Yes, and as the seller, my "business" was that I had an offer from a buyer and as a stipulation of that offer, the buyer's agent would receive 6.43% commission.
I have no knowledge of the agreement between the buyer and the buyer's agent.
That is such an odd commission request. What's up with the .43% part? It doesn't matter because either the offer works for you or it doesn't. It is a closing cost just like other costs and such. What is the price point of your home?
Yes, and as the seller, my "business" was that I had an offer from a buyer and as a stipulation of that offer, the buyer's agent would receive 6.43% commission.
I have no knowledge of the agreement between the buyer and the buyer's agent.
We get hung up on details, and itemizing stuff when the bottom line is the material point.
People focus on tangents and emotional reasons all the time to arbitrarily kick deals away. I am glad you kept your eye on the ball and got your property moved.
Yes, and as the seller, my "business" was that I had an offer from a buyer and as a stipulation of that offer, the buyer's agent would receive 6.43% commission.
I have no knowledge of the agreement between the buyer and the buyer's agent.
Please tell us how much "6.43%" was ... in dollars!
It isn't a bit unusual for some brokerages to demand 10% on bombed out or low-buck properties.
Some of the "rebate" agencies even refuse to show properties if the commission isn't high enough -
"Why doesn't Redfin service listings that don't cover our partner agents' minimum commission?
Redfin's partner agents have a $2,500 minimum commission. We never want you to pay out-of-pocket costs to cover our agent's commission, so we choose not to tour or offer service on homes below the minimum. Don't worry, if you are currently working with a Redfin or Partner agent, fluctuations in minimum will not apply to you."
Considering the house wasn't appraising, the real question is, is the seller making more money by dropping to appraised value or is this deal with the 1.5% commission more.
Quote:
Originally Posted by RickTucsonHomes
Ah yes! I missed that in the original thread. A cash offer and quick close on a house with appriasal issues certainly brings some value to the transaction.
Quote:
Originally Posted by Zippyman
So we know what the commission percentage was, but we *dont* have any idea of the value of the home.
Was this a $10k home, or a $500k home?
For some properties, a 10% commission might not cover expenses.
It is a really nice, recently renovated and improved, townhouse that was 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. Two were withdrawn because we told them not to waste their money on an appraisal because of the previous low appraisals. The fifth was going to be owner financed but fell through when the buyer could not rent his house to cover his mortgage.
After the fourth failed contract, we decided to try to rent it. We had several applicants but none qualified - arrest records, evictions, bankruptcy, fraud, etc. That really discouraged us from being landlords so I told my agents to just get rid of it and we lowered the price to $42K. The next day we got a cash offer of $42k, $850 in seller paid closing costs, close in seven days, but the agent want 6.43%. That would have made the total commission 9.43%.
My agent recommended that I just accept the offer and and pay the extra commission. He indicated that $42k was the most the buyer was willing to pay so there was no need countering to compensate for the extra commission.
Although I was not desperate to sell it, at this point, I desperately wanted to sell it.
The way it was presented to me, I felt like the buyer's agent thought she had me between a rock and a hard place. I felt her demand for more commission than I had contracted with my agent was holding the offer hostage. If I did not comply with her demand, she would derail the sale in some way.
Out of frustration and a desire to just get this behind me, I told my agent that I would pay a total of 7.5% commission. I further told him that I preferred that it be split 50/50, but that it was really none of my business how they split it. He said he was happy to give the other agent 4.5%.
That is such an odd commission request. What's up with the .43% part? It doesn't matter because either the offer works for you or it doesn't. It is a closing cost just like other costs and such. What is the price point of your home?
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.
It is no different than if they offered 42K and wanted $3K in closing costs.
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