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Old 05-02-2018, 07:17 AM
 
Location: Georgia
4,514 posts, read 3,777,044 times
Reputation: 15511

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Quote:
Originally Posted by BoBromhal View Post
while this agent, with thes tated "I'm too good for 2%" comment, certainly sounds at fault, it would be good to know - do you know what the common buyers agent commission is in your market?
As is evidenced by this thread -- apparently whatever the buyer's agent can negotiate :-)
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Old 05-02-2018, 08:06 AM
 
Location: Columbia, SC
8,849 posts, read 17,447,111 times
Reputation: 6202
So some of you would take the lower net over principal?

Why is "countering" such a bad idea? Emotion is even ruling some of the responses on the thread and you aren't even principals to the purchase offer in question. That is why real estate agents have a job. That, and attorneys making real estate purchases so complicated.
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Old 05-02-2018, 08:39 AM
 
Location: Athol, Idaho
2,182 posts, read 1,056,749 times
Reputation: 3184
Quote:
Originally Posted by dblackga View Post
If a buyers agent has a buyers brokerage agreement with his buyer that specifies that the agent will be paid 3% for their services, then the buyer has a choice -- they can either make up the difference between what the listing agent is willing to share with the buyer's agent out of pocket, or they can tell the seller, "Hey, I want my agent to get 3%, so I am willing to pay 1% more to make that happen." The buyers agent could also agree to waive the errant 1%, figuring 2% is better than nothing.

It's considered bad form to introduce commission into a purchase and sale agreement. Technically, the commission is shared by the listing agent with the buyer's agent. What DID frost me one time was representing buyers on a house purchase, knowing that it was only 2% -- ok, no biggie, they were young first-time home buyers who were already counting pennies, I wasn't going to rock that boat -- but got the instructions to the closing attorney (the "commission agreement", here in Georgia), only to discover that the listing agent was getting 5%, but only offering 2% to the buyer, instead of the customary 50/50 split. Discovered that it was her M.O. -- she'd go in and undercut competition by offering 1% under whatever they were offering, and then turn around and stick it to the buyer agents, so it didn't cost her a cent. When I asked her about that, she smirked and said, "Sellers market, baby -- if you don't take it, someone else will."

Markets shift. Wonder what she will be saying in a buyer's market?
I think agents like this never consider that they may have to work with that other agent again or that when you do things like this it is talked about. I think screwing other agents over won't benefit you in the long run. It can affect their future clients. If I know the agent can't be trusted the deal is handled differently.
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Old 05-02-2018, 08:53 AM
 
167 posts, read 72,760 times
Reputation: 371
Quote:
Originally Posted by Brandon Hoffman View Post
So some of you would take the lower net over principal?

Why is "countering" such a bad idea? Emotion is even ruling some of the responses on the thread and you aren't even principals to the purchase offer in question. That is why real estate agents have a job. That, and attorneys making real estate purchases so complicated.
Net is the same.

Only person who benefits is the buyer’s agent, to the buyer’s detriment.
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Old 05-02-2018, 09:13 AM
 
Location: Athol, Idaho
2,182 posts, read 1,056,749 times
Reputation: 3184
Quote:
Originally Posted by Brandon Hoffman View Post
So some of you would take the lower net over principal?

Why is "countering" such a bad idea? Emotion is even ruling some of the responses on the thread and you aren't even principals to the purchase offer in question. That is why real estate agents have a job. That, and attorneys making real estate purchases so complicated.
I think what I would do depends on what is being sold. 2 percent of what? I haven't made 3 percent on everything I've sold.

Countering isn't a bad idea for the seller if they need or want this deal to work. I think it is way too easy for others to tell someone else what they should do with their money or in this case something as valuable as a house sale when they don't have to live with the consequences. The OP has been back and told everyone that telling this buyer to pound sand isn't going to happen.

I'm not really sure why there is still a discussion here. Yes it is an option to not do everything possible to find a way for this buyer to buy this house and send that buyer packing. How can anyone argue differently? If it were my house/money on the line and I was the seller I would counter and be happy as long as I got my bottom line. I see it this way. The buyer agreed in writing to make up the difference so that their agent can have 3 percent. They are OK with it and it won't cost me extra. If we are going to get all emotional why not side with the buyer that is in love with this house and has to have it? Why are we standing in the way of them buying it?
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Old 05-02-2018, 09:23 AM
 
Location: Columbia, SC
8,849 posts, read 17,447,111 times
Reputation: 6202
Quote:
Originally Posted by El Senor View Post
Net is the same.

Only person who benefits is the buyer’s agent, to the buyer’s detriment.
Why do you care if the buyer and buyer agent are fine with this and you meet your goal of selling the home? (which we now know was a year on the market already)
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Old 05-02-2018, 09:27 AM
 
16,494 posts, read 17,539,161 times
Reputation: 23566
Quote:
Originally Posted by jackmichigan View Post
That's the problem right there. (And it's not the housing part that is the problem.)
So what’s the problem? That I’m trying to get as much as I can for my property as a seller?
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Old 05-02-2018, 09:35 AM
 
5,681 posts, read 7,266,541 times
Reputation: 3188
Quote:
Originally Posted by BoBromhal View Post
my Agency agreements are typically exclusive agreements, so that's not an option.

And what you're either forgetting, ignoring, or not understanding - the compensation part of my agreement states the customary amount in my market. So, if 2% is customary, then the agreement is for 2%. And the Seller offering 2% isn't a problem.

Please don't feel that I'm some grand adversary in this. In my very first post, I told the OP it was an issue between the Buyer and their agent.

Now, if some want to blame the agent no matter whether they're the buyer or the seller, then that's introducing emotion and bias.
So, if after you explain to your buyer the situation (this seller is offering a 2% commission and you agreed to 3%), and your buyer says, “I’m sorry Bo, I really like you but I’m not willing to do that,” do you let them out of your agreement?
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Old 05-02-2018, 09:55 AM
 
Location: Cary, NC
31,614 posts, read 55,335,524 times
Reputation: 30177
Quote:
Originally Posted by Brandon Hoffman View Post
Why do you care if the buyer and buyer agent are fine with this and you meet your goal of selling the home? (which we now know was a year on the market already)

No one has a firm clue what arrangements are between buyer and agent.
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Old 05-02-2018, 10:21 AM
 
Location: Athol, Idaho
2,182 posts, read 1,056,749 times
Reputation: 3184
Quote:
Originally Posted by MikeJaquish View Post
No one has a firm clue what arrangements are between buyer and agent.
If there is no agreement can you just demand more commission like that? Why not just wait until things get rolling and then ask for 10 percent then? If you do does the buyer have to pay it?

If there is no agreement then that buyer can just tell their agent a flat no and it wouldn't be an issue. If that agent refuses to write it then they can be replaced. Especially since they have then shown the house and refused to write an offer until they know they get more commission. If there is no agreement they that buyers agent is in violation. You can't do that.
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