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What is my commission responsibility under the following scenario:
I have a contracted buyer's agent, but I find a FSBO on my own and negotiate a sale without the help of the agent. Let's say the FSBO does not want to deal with real estate agents or pay any commission to them. I recognize the actual contract will dictate, but how is this typically handled in a buyer's agent contract?
What is my commission responsibility under the following scenario:
I have a contracted buyer's agent, but I find a FSBO on my own and negotiate a sale without the help of the agent. Let's say the FSBO does not want to deal with real estate agents or pay any commission to them. I recognize the actual contract will dictate, but how is this typically handled in a buyer's agent contract?
You will need to check the language of your contract, but at least everyone I’ve signed indicates that in that type of situation you would be responsible for paying your agent their commission.
The the buyer agency and also with you buyer agent. The best thing to do is not go behind your agents back. If you find one and resolve it with the buyer agent you'll have your answer.
You will need to check the language of your contract, but at least everyone I’ve signed indicates that in that type of situation you would be responsible for paying your agent their commission.
What is my commission responsibility under the following scenario:
I have a contracted buyer's agent, but I find a FSBO on my own and negotiate a sale without the help of the agent. Let's say the FSBO does not want to deal with real estate agents or pay any commission to them. I recognize the actual contract will dictate, but how is this typically handled in a buyer's agent contract?
Then you already know the answer. Either you get the agent to release you from the contract, pay whatever is required from the contract, or work out a compromise. Don't sign a contract that binds you to such a situation.
The the buyer agency and also with you buyer agent. The best thing to do is not go behind your agents back. If you find one and resolve it with the buyer agent you'll have your answer.
Resolve it with the agent as many of them will find a way to make you pay. It is in their nature. They feel they own you once you sign with them.
If you cannot resolve it, I can give you the number of "A Guy" in NYC. He will resolve it in your favor.........LOL
Resolve it with the agent as many of them will find a way to make you pay. It is in their nature. They feel they own you once you sign with them.
If you cannot resolve it, I can give you the number of "A Guy" in NYC. He will resolve it in your favor.........LOL
Perhaps a more accurate statement is once the agent makes a commitment and starts investing their time and knowledge to help a client, the agent simply expects a commitment back from the buyer to honor any contractrual obligations? Hence, don't try to go behind the agents back. Many "tough guy" FSBO's will tell a buyer they won't pay a commission but once an offer is on the table change their tune anyway.
Perhaps a more accurate statement is once the agent makes a commitment and starts investing their time and knowledge to help a client, the agent simply expects a commitment back from the buyer to honor any contractrual obligations? Hence, don't try to go behind the agents back. Many "tough guy" FSBO's will tell a buyer they won't pay a commission but once an offer is on the table change their tune anyway.
I've done a number of FSBOs over the years and clearly stated in the listing that we would not pay commissions. We never have, and the one time a buyer (with an agent) tried to strong-arm us, we told them to eat it or walk.
They ate it.
I would assume this would be likely in the present market, too. You want it bad enough and already have a contract with an agent? Not my problem.
I've done a number of FSBOs over the years and clearly stated in the listing that we would not pay commissions. We never have, and the one time a buyer (with an agent) tried to strong-arm us, we told them to eat it or walk.
They ate it.
I would assume this would be likely in the present market, too. You want it bad enough and already have a contract with an agent? Not my problem.
RM
If you went to contract at $500,000, and your buyer said, "Hey, can we increase it to $510,000 so I can finance 80% of the commission I am paying to my agent, if I guarantee to pay the 510 price regardless of appraisal opinion?" would you play along with that?
If you went to contract at $500,000, and your buyer said, "Hey, can we increase it to $510,000 so I can finance 80% of the commission I am paying to my agent, if I guarantee to pay the 510 price regardless of appraisal opinion?" would you play along with that?
Mike, our mantra is, "Everything is negotiable." You want to fluff the price to cover your costs? Be our guest if you can make it work.
RM
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