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.
Hi, I had an offer accepted and I am signing escrow next week. I got the escrow statement summary and had 0.5% incremental commission for my broker (buyer). He explained that the listings on this property pays only 2.5%, and that he usually gets 3.5%, that the statement should actually have 1% additional instead of 0.5%.
This agent is highly regarded with 30 years experience in the market. He has been very helpful as we have been looking at properties for months. He has actually recommended me making a lower offer on this property than I was planning to, saving me $25k.
So he told me I don't have to pay additional commission, it could be 0%, 0.5% or 1%, but that he would normally get 3.5%. We don't have an agreement on minimum commission and I never thought I would have to pay it. It just hurts me that he is telling me this a couple days before I close escrow.
Your agent is shady. 3.5% my as*! Most agents are very happy with 3% and 2.5% is common. Absolutely do not encourage this prick by paying him extra. Tell him if he wants more commission, he should talk to the seller's broker. I suspect he already tried to squeeze the listing broker, failed, and then decided to squeeze you.
What is he going to do? Jeopardize the deal, losing his commission in the process, just because he couldn't get that little extra? Hell no. You don't owe this guy a dime. The fact that he help you buy a house is his job (and he's already getting paid handsomely for it). Absolutely do not use him again or refer him to your friend. This guy is bad news.
Your agent is shady. 3.5% my as*! Most agents are very happy with 3% and 2.5% is common. Absolutely do not encourage this prick by paying him extra. Tell him if he wants more commission, he should talk to the seller's broker. I suspect he already tried to squeeze the listing broker, failed, and then decided to squeeze you.
What is he going to do? Jeopardize the deal, losing his commission in the process, just because he couldn't get that little extra? Hell no. You don't owe this guy a dime. The fact that he help you buy a house is his job (and he's already getting paid handsomely for it). Absolutely do not use him again or refer him to your friend. This guy is bad news.
Agree with this guy. Don't get squeezed for more money, you're paying enough.
How much more money are we talking? And are you prepared to walk away not only from the deal but from the broker? After he's saved you 25K...
You've looked for months... are you prepared to look for months more?
It's my understanding that the total commission is usually 6% and this property is offering 5%. He doesn't get the whole 2.5 -- the commission is split 4 ways. The commission is split four ways between the listing agent and his company and the selling agent and his company.
AND he told you you don't have to pay it. It really depends on the amount you're paying out -- if it's a few hundred bucks I might pay it. If it's thousands.... I might walk away.
This conversation should have happened in the beginning when the buyer agency document was provided. If he normally makes 3.5% commission and the sale of this house only nets him 2.5% he should have been very clear and upfront that you (the buyer) will be paying the difference.
He may be a great agent and completely helpful, and he can charge what he feels he is worth but he should have asked this to be agreed upon from the beginning. Not a week before settlement. He should have known when he showed you the property what the commission is or if the short sale negotiator dropped the agreed upon commission (it does happen), it is not your problem if you did not sign something regarding this possibility.
Call your escrow attorney or escrow company and have them remove the additional commission to your agent, then sign it right there and then without sending it back to the agent to be reviewed. The agent can't kill the deal on the house b/c he is not getting what he wants.
This guy sounds greedy - lots of them out there. His job was to get you the best possible deal. If he did a good job and got the price lowered $25,000 outstanding and he did a good job and he is being paid fairly for it! If you want to be extra nice give him a $100 gift card to a nice restaurant - but definitely not another 0.5% of the freaking house. Its absurd! '
Hi, I had an offer accepted and I am signing escrow next week. I got the escrow statement summary and had 0.5% incremental commission for my broker (buyer). He explained that the listings on this property pays only 2.5%, and that he usually gets 3.5%, that the statement should actually have 1% additional instead of 0.5%.
This agent is highly regarded with 30 years experience in the market. He has been very helpful as we have been looking at properties for months. He has actually recommended me making a lower offer on this property than I was planning to, saving me $25k.
So he told me I don't have to pay additional commission, it could be 0%, 0.5% or 1%, but that he would normally get 3.5%. We don't have an agreement on minimum commission and I never thought I would have to pay it. It just hurts me that he is telling me this a couple days before I close escrow.
Not sure what to do. Appreciate advice.
Thanks
There should have been some document of his fee, and it should have been discussed with you before you signed your offer documents. What does that document say?
Your agent is shady. 3.5% my as*! Most agents are very happy with 3% and 2.5% is common. Absolutely do not encourage this prick by paying him extra. Tell him if he wants more commission, he should talk to the seller's broker. I suspect he already tried to squeeze the listing broker, failed, and then decided to squeeze you.
What is he going to do? Jeopardize the deal, losing his commission in the process, just because he couldn't get that little extra? Hell no. You don't owe this guy a dime. The fact that he help you buy a house is his job (and he's already getting paid handsomely for it). Absolutely do not use him again or refer him to your friend. This guy is bad news.
This is a dramatic over reaction to a situation the details of which you don't know. It matters not what most agents are happy with, or who you suspect he may have tried to squeeze. What matters is the documents signed by the buyer and agent, and the conversation they had before those documents were signed.
Call your escrow attorney or escrow company and have them remove the additional commission to your agent, then sign it right there and then without sending it back to the agent to be reviewed. The agent can't kill the deal on the house b/c he is not getting what he wants.
This guy sounds greedy - lots of them out there. His job was to get you the best possible deal. If he did a good job and got the price lowered $25,000 outstanding and he did a good job and he is being paid fairly for it! If you want to be extra nice give him a $100 gift card to a nice restaurant - but definitely not another 0.5% of the freaking house. Its absurd! '
And the buyer cannot unilaterally change the compensation agreement. If he signed a document agreeing to a certain fee, then he needs to abide by that agreement. None of us know what was agreed to or signed.
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.
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.
