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 07-25-2012, 11:34 AM
 
265 posts, read 340,050 times
Reputation: 184

Advertisements

Before I became aware of this City-Data Real Estate Forum, I posted the following question in the Atlanta forum:

"I have contracted with a real estate agent to sell my home in Atlanta. The contracted commission is 6% which is to be split 50/50 with a buyer's agent. A buyer's agent submitted an offer to purchase and in that offer the buyer's agent is asking for a much higher commission. It is almost like he is holding the offer hostage and asking for more money. The house is listed in both GMLS and FMLS.

Does the MLS rules allow for a buyer's agent to re-negotiate commission with an offer to purchase?"

Real Estate Commission Question

I got some very interesting responses. The house has now closed, but I just wanted to pose the question in this forum to see if I could get some more informative responses. I am trying to determine if I need to follow up on this in any way or just let it go.
Reply With Quote Quick reply to this message

 
Old 07-25-2012, 03:13 PM
 
Location: Salem, OR
13,740 posts, read 31,550,338 times
Reputation: 12105
The buyer agent is allowed to set their rate. The MLS rules are just a means for sharing compensations. So the buyer agent likely has a buyer agency agreement with their client for a set rate. They have deemed the MLS offering not acceptable so their buyer is on the hook to pay more. The buyer requests that you pay that additional fee as part of their offer. The real estate commission is a closing cost just like lender origination fees and such.
Reply With Quote Quick reply to this message
 
Old 07-25-2012, 03:53 PM
 
1,784 posts, read 2,876,737 times
Reputation: 1242
Wow, I have always thought 3% was a lot, but this guy wants more than 3%? .......
Reply With Quote Quick reply to this message
 
Old 07-25-2012, 04:04 PM
 
Location: Oro Valley AZ.
1,024 posts, read 2,243,788 times
Reputation: 1179
So the buyers agent ended up with 1.5% more than quoted in the MLS? Instead of getting focussed on it being extra commission, you need to just look at it as part of the offer and bottom line net dollars that you receive. It's really just something else to negotiate, it's all just dollars and cents. From your standpoint paying the extra 1.5% commission is basically the same as receiving an offer for 1.5% less without any commission change. Or if they had asked for 1.5% closing cost, it's all money/cost of sale. Counteroffer should have be structured so that the net is acceptable to you, dont' get hung up on the minutia. Out of curisoity, what price of home are we talking about?

MLS Rules vary by state and association. So only someone in your area can say if it's allowed in your state.

Last edited by RickTucsonHomes; 07-25-2012 at 04:29 PM..
Reply With Quote Quick reply to this message
 
Old 07-25-2012, 04:08 PM
 
Location: Salem, OR
13,740 posts, read 31,550,338 times
Reputation: 12105
Quote:
Originally Posted by RickTucsonHomes View Post
So the buyers agent ended up with 1.5% more than quoted in the MLS? Instead of getting focussed on it being extra commission, you need to just look at it as part of the offer and bottom line net dollars that you receive. It's really just something else to negotiate, it's all just dollars and cents. From your standpoint paying the extra 1.5% commission is basically the same as receiving an offer for 1.5% less without any commission change. Or if they had asked for 1.5% closing cost, it's all money/cost of sale. Counteroffer should have be structured so that the net is acceptable to you, dont' get hung up on the minutia. Out of curisoity, what price of home are we talking about?

MLS Rules vary by state and association. So only someone in your area can say if it's allowed in your state.

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.
Reply With Quote Quick reply to this message
 
Old 07-25-2012, 05:01 PM
 
Location: Oro Valley AZ.
1,024 posts, read 2,243,788 times
Reputation: 1179
Quote:
Originally Posted by Silverfall View Post
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.
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.
Reply With Quote Quick reply to this message
 
Old 07-25-2012, 05:19 PM
 
Location: Phoenix AZ
5,920 posts, read 10,437,079 times
Reputation: 9226
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.
Reply With Quote Quick reply to this message
 
Old 07-25-2012, 05:25 PM
 
Location: NJ
17,579 posts, read 38,288,152 times
Reputation: 16098
The buyer's agent wasn't asking for anything. The buyer was. It is the buyer's contract and offer, not the agent.
Reply With Quote Quick reply to this message
 
Old 07-25-2012, 07:00 PM
 
Location: Austin
7,077 posts, read 16,885,085 times
Reputation: 9484
If the agent is a REALTOR®, the code of ethics does not allow an agent to hinder a sale between buyer and seller because of commission.

Beyond that, your MLS is a contract between agents, and the buyer's agent cannot negotiate that when submitting an offer. They can only negotiate that prior to submitting an offer.

Beyond that, the agent shouldn't have put the amount as added commission, he should have put it as buyer's closing costs and the buyer paying his extra commission.
Reply With Quote Quick reply to this message
 
Old 07-25-2012, 08:13 PM
 
Location: Cary, NC
31,592 posts, read 55,295,005 times
Reputation: 30150
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.
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
Similar Threads
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