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.
The only part that really irked me was the $2500 minimum commission that she wants, given the hard part- finding the client and finding the house, was all given to her.
Other than that, given what we know about the property, I can't say I wouldn't have said all the same things if I were in her position.
The only part that really irked me was the $2500 minimum commission that she wants, given the hard part- finding the client and finding the house, was all given to her.
Other than that, given what we know about the property, I can't say I wouldn't have said all the same things if I were in her position.
It's good that you understand what she is doing for you.
Regarding "finding the house is the hard part". Actually that is a misconception on the part of many people. Finding the house is a joint effort. And remember it is the agents who put the homes on the mls that propagate out to Zillow, et al. If it were not for the agents, then there would be no Zillow.
The agent had already done some research to offer you an option prior to meeting you to see the current property. Agents do a lot of work in the background that clients are never aware of unless someone tells them. And if this transaction falls through, the agent will not be paid anything until you and she find another house and have a successful close of escrow.
The hard part is negotiating the contract and seeing the contract through escrow and making sure it goes smoothly, and if problems arise, the agent takes care of them, to keep you out of legal trouble.
The agents knowledge and experience is also much of what buyers and sellers pay for, and you have already had the benefit of some of her knowledge and experience. A $2500 minimum commission is small considering the risks for the agent in any transaction.
One thing to remember is that money is an incentive for everyone, and that includes real estate agents. When someone takes a cut in pay on a regular job, their incentive to give 100% is diminished.
If someone tries to pay an agent less than they deserve, that agent will also lose incentive to give 100%. I know some will say that they still have a fiduciary duty, and that is true, however, they will still lose incentive to work harder than they would had one not attempted to cut their pay.
But based on this individual transaction, I would disagree. A 10% commission for a transaction given to an agent is very high. This is a $25,000 home we're talking about here, not $250,000. And while the agent may know contractors that specialize in mold remediation, she surely won't be in there removing drywall and patching holes after settlement.
In regards to my comment, without a client and without a property, there is no negotiation period. Thus, in my opinion, finding the client and finding the property is the difficult part of the entire transaction, which was given to the agent.
The seller isn't required to pay her anything. The house isnt listed for sale. Have you discussed how the realtor will get paid if the seller refused to pay her? Will you have to pay it?
The seller isn't required to pay her anything. The house isnt listed for sale. Have you discussed how the realtor will get paid if the seller refused to pay her? Will you have to pay it?
We not even signed a contract yet with our realtor, but she told us that the seller has agreed to pay her the fee.
But based on this individual transaction, I would disagree. A 10% commission for a transaction given to an agent is very high. This is a $25,000 home we're talking about here, not $250,000...
In my neck of the woods we mostly see 3% offered to buyers agents. 3% of 25,000 is $750. I would never work a transaction for $750 because of the time involved and the risks. That's an easy way to go broke. In order to stay in business and work the lower priced transactions, in my opinion an agent needs to have a minimum if they are going to assist buyers in that price range.
The situation is settled for the OP because the seller agreed to pay the commission.
You have a lot to learn about agents. First, you hired her to protect your interests. If you want a door mat who will "let" you buy any old house so that you can later blame everything that goes wrong with the house on that agent, there are plenty of them out there who run their business that way...go find one. They're a dime a dozen. Second, why aren't you selecting your own agent? If your banker recommended that you jump off the roof of your new house, would you do it? Per RESPA, you have the right to choose EVERYONE providing services related to your transaction...including your agent. Next, if you worked with me I would also tell you: don't call the seller or seller's agent. Not because I'm a control freak or trying to **** you off but because I CAN LOSE MY LICENSE IF YOU DO! Your $2500 transaction isn't worth not being able to feed my kids.
Buyers (and sellers for that matter) pat themselves on the back for being able to do it all on their own without an agent...then get pissed and want someone to coddle them because they really don't know how this all works. While you're visiting websites to check out houses, take a few minutes out of your busy day to dedicate the same amount of time to researching agents. NAR has tons of information available to you for FREE!
Quote:
Originally Posted by LindaMaier
Hello everyone, I need your advise again. So I got a highly recommended buyers agent from my bank (bank wanted me to have my own representative since this is my first time buying). I called her up and told her I had found a house on my own (saw an empty house, found out who owned it, asked..... and got a yes) and that my bank would like her to go and take me through the house to finalize the sale.
Here are my issues with her:
1. She called up the seller and told him the house is an "enviromental hazard" (leaky roof, wet basement)
2. She told the seller he has to pay her $2,500 - that is her "base fee", since hubby and I are not able to pay her (the house sells for 25K).
3. She finally met us at the house and handed us right away two other listings we should look at.
4. She asked us not to ask the owner any questions and not to say anything - period, nor should we call him.
5. She took us into the house on Friday (no mold whatsoever but a musty old smell from the house being totally closed up for 5 years) and told us that we shouldn't even look around, the house is worth nothing and literally asked us to leave after only 15 minutes. We weren't even allowed to look into the basement!
She told us we have no idea what we are getting into and that we should think it over and give her an answer on Monday via Telephone.
I was stunned and later I got angry. Is she trying to be an agressive person to reduce the price of the house and mussle the seller into defeat, or is she just a rude and arrogant person that likes to belittle people? She said, she has 30 years of realtor experience and attended many "Mold" Seminars. My husband and i on the other hand have combined 20 year of construction work under our belt - but she doesn't know that since my husband is disabled now. What do I make out of it? What do I do?
By the way, I haven't signed anything yet, neither sales contract nor buyer's agent contract. Can she ruin the sale with her behavior?
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.
LindaMaier adds...
