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My wife and I were looking at a bunch of places in, well, I am not going to say where for obvious reasons, but suffice to say Northern New Jersey.
One place we saw was nice, but needed some basic work done to make it comfortable (it had enough going to make it livable, but some things really needed a good overhaul).
The price it is listed at it too high. They have gotten only one offer that was much too low and they are still on the market.
This house is one that our agent is selling.
The question is this. The agent stands to make a good penny on this building, especially since she is both the Selling and Buyers agent. Would we be able to negotiate with her to possibly take a slightly lower combined commission to make it more attractive to the seller?
I am not talking 3% instead of 5% (or 3.5% instead of 6%), but somewhere where it makes enough difference to raise an eyebrow, get the house sold, and make them more likely to accept a borderline offer.
Some agents on some listings agree up front that if they double end the deal, they will take a reduced commission. Like 3% + 3% or if an agent double ends, then 5% total, or some such. In my area, that is called a "Variable Rate Commission", and must be disclosed on the listing in MLS.
So it doesn't hurt to ask, because that may already be agreed to up front.
If it WASN'T, then the answer becomes more complicated. You aren't the one who pays the agent's commission, the seller is, and it shouldn't be part of the contract itself, because the contract is between you and the seller, the commission is between the seller and their agent.
You will get many responses on here from people who will tell you never to work with an agent in a dual agency relationship. I think "never" is a bit harsh, but it is true there are definite downsides to it...for example, a dual agent cannot help you determine a price or negotiate terms. They can only present what you tell them to do and see what the seller says, and then present what the seller says back to you. Personally, I have met a few agents capable of walking that line and doing a great job for all parties, but they are rare. No one here can tell you if your agent is that capable or not.
Finally, if the agent is working with both of you, why do you feel that they didn't earn their 3% on your side? Presumably they showed you properties (you said you looked at "a bunch" of places, so possibly they had a lot of time in this), and they will deal with your lender and inspection and appraisal and disclosures and all the necessary things to get you to closing.
Just consider this: If she helps you buy a different house she'll get the buying side commission and once her listing sells she'll get her listing commission. You're proposing she give up part of her commission to save you money (making your offer more attractive to the seller).
Actually if it's your agent, she'll make less and not more with your proposal. If you buy, she gets half commission and does 1 side of the transaction. If she sells her listing to another buyer, half and only does half the work. They total 1 full commission. If she gives you part of the commission on her own listing, she does all the work for less than a full commission. Don't know why she'd do that.
Also, as a side note, the commission agreement is actually between the seller and the listing company. Your agent may or may not have a say in what she can do with the commission. You also technically don't have the right to interfere b/n a contract that you aren't a party to, such as a ERS between a seller and a RE company.
I can understand where it is not in her interest to give up the sale, but look at it this way, two birds with one hippopotamus.....or something
The logic is something like this, she is working both ends on this. If she sells us a house, and sells THEIR house to different people, that is two sets of inspections, advice, contracts and so forth to work on.
Add to it, it is a quick sell. This was the first open house, she gets two sales in short order.
The thing is, I do believe that she is entitled to every penny. This is not a "fairness" issue at all. The only thing I am concerned about is the cost. It is close to what our limit would be for a single family home and it does need some work on top of it. The only thing we are looking for is that extra $5K in the sock drawer......
Then make your offer based on what you think is the fair value of the home including adjustment for needed repairs. Perhaps it will be in your price range without proposing a commission reduction.
Just consider this: If she helps you buy a different house she'll get the buying side commission and once her listing sells she'll get her listing commission. You're proposing she give up part of her commission to save you money (making your offer more attractive to the seller).
You say once. It really is if. So if the OP buys a house with the agent and if the listing agent sells the house successfully without too much more money, then the agent will make more money rejecting the request. The reality is those are two big ifs. He's in reality proposing that she gives up some commision in exchange for the certainty that she will get a smaller commission for each one.
The price it is listed at it too high. They have gotten only one offer that was much too low and they are still on the market.
Thanks.
Quote:
Originally Posted by Ninjahedge
The only thing I am concerned about is the cost. It is close to what our limit would be for a single family home and it does need some work on top of it. The only thing we are looking for is that extra $5K in the sock drawer......
How do you know it's too high?
Have you found something else comparable for less? If so, why not buy that other place?
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