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We are putting an offer in and have no agent representation. We emailed a scanned, signed contract to the listing agent. In the email, we highlighted the offer (price, etc) and the fact that we do not have a buyers agent thus raising the potential for a 3% reduction in the sellers commission payout. We understand that the seller has already signed a listing agreement with the LA and is responsible for this, independent of whether we bring an agent to the table. However, we also recognize that that the contact between the seller and seller agent could be amended, if both parties agree, and wanted to make sure that the sellers understood this.
We requested that the listing agent forward this email to the sellers. It is our understanding that all offers must be presented to the sellers. Is this true, even if it puts the listing agent in the uncomfortable position of trying to defend his "extra" 3% commission? Could the agent "filter" the offer and not forward it to the sellers on the basis that is interferes with a contract between him and the sellers?
What incentive does the seller have for giving you the 3% savings? When commission is reduced usually both parties expect the savings to land on their side of the settlement statement. It's very likley the listing agent and seller have already discussed and agreed on commission in the event an unrepresented buyer offers.
If your offer does get accepted where is your escrow deposit going to be held? Can you back out of the contract and receive your deposit back if you don't like the inspection results? Are the time periods in your contract calendar or business days? On what day does the clock start ticking? Do you know who typically pays which closing costs in your area? Will you recognize an abnormally high settlement charge? Do you think the listing agent is going to be looking out for your best interest?
please see my post from friday - many similar issues were raised (albeit tangentially to my initial question) and some very thoughtful responses followed
The seller dictates what and how the agent communicates with the seller. The seller may be fine with just a verbal communication discussing the offer or he can attach your written offer to an email or he can take your written offer in person.
Since he does not represent you, he does not have to forward your email or any communication from you outside the offer / contract.
He has a written contract with his client which does not include you. You have no idea of the %'s or the terms of that agreement.
This issue has been beaten to death here. You should do a search for the many threads that discuss this issue.
It may be reasonable to obtain the house at a fair market value price with a 3% deduction off listed price.
It's not reasonable for you to interfere with another contract (the ling contract between the seller and the brokerage.)
The brokerage company remains 100% liable for the transaction during and after closing. Regardless of the amount of commission.
Do you think it would be reasonable to assume that there is more inherent risk to a transaction where one party does not understand the contracts and the local customs?
We are putting an offer in and have no agent representation. We emailed a scanned, signed contract to the listing agent. In the email, we highlighted the offer (price, etc) and the fact that we do not have a buyers agent thus raising the potential for a 3% reduction in the sellers commission payout. We understand that the seller has already signed a listing agreement with the LA and is responsible for this, independent of whether we bring an agent to the table. However, we also recognize that that the contact between the seller and seller agent could be amended, if both parties agree, and wanted to make sure that the sellers understood this.
We requested that the listing agent forward this email to the sellers. It is our understanding that all offers must be presented to the sellers. Is this true, even if it puts the listing agent in the uncomfortable position of trying to defend his "extra" 3% commission? Could the agent "filter" the offer and not forward it to the sellers on the basis that is interferes with a contract between him and the sellers?
I have to comment on the "extra" 3%. This assumes that the buyer's agent does nothing after the contract is signed except have a check mailed to them after the closing.
The "extra" is for the "extra" work that is typically done by the buyer's agent. If you don't have an agent, that just means that the listing agent will need to do everything the other agent would normally handle.
You're obvisously willing to negotiate the listing agent's paycheck. Do you also include a list of all the duties (and liability) you will be assuming to justify the reduction in commission?
It's in interest of seller and his agent to sell fast. If there is a reasonable offer then renegotiating commission is in their interest as well. That extra 2,3 or 4% commission is going out of their pockets regardless so if it goes to buyer's pocket instead of his agent then so be it if it makes sure a fast sell in this market. Title company, inspector, appraiser and lender do most of the significant work any ways. If seller's agent is not willing to cooperate then a real estate attorney can gladly take care of the rest for less than 500$. Only issue I see here is seller's agent's wish to swallow whole commission.
The "deal" between the seller and their agent is none of your business.
You should make an offer that you will be happy buying at. If the seller says yes, then retain a lawyer to be sure all is proper before you sign anything (need I say anything one more time) and keep it that way (using the lawyer) during the whole deal.
I hope you get what you want for the price you are willing to pay. That is what this is all about.
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