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.
Please tell me you see a bit of irony in this statement. Perhaps agents should stay away from banks and short sales if they cannot accept risk.
Actually there was another huge discussion about this exact issue on another blog post. I won't make you read that one , but there are some agents that feel exactly that way, that if you aren't willing to have your commission cut, just don't show short sales.
Real estate is in huge upheaval right now and morphing constantly. Personally, I think the transparency that NC has taken on with buyer agent compensation is to be commended and I hope other states follow suit. Many real estate practices exist from when everyone represented the seller. Buyer agency is still relatively new in the world of real estate and some agents totally get it, and others are stuck in sub-agency. It's a long and complicated discussion...
I interviewed gazzillions, to no avail. Well, it comes down to the fact that most Realtors are about closing the deal and instead of working on their clients case most are spending their time trying to find their next client and so on. . .
This is a big problem. I also think it is why hiring a top producer isn't always the best choice. Brandon aside...
Personally, in my area, the medium producers (20 or so transactions a year in my area) tend to offer the most personalized service. They make enough money that they aren't struggling so they don't have to compromise their ethics.
It sounds like you did your best to do your homework on picking a service provider. 4 is plenty. At this point, then you need to advocate for yourself. My clients are crystal clear about the risks associated with foreclosures and short sales, so my clients would never be in this position. BUT your agent didn't share this with you and you are. If you agent is ethical, they will realize that the mistake was theirs and correct it. So, talk to your agent and then tell us what happened. Other than this foible, were you otherwise satisfied with your agent?
The agents on here are discussing two different threads going on within your thread. One is just the general concept of buyer paid compensations which is more of a theoretical discussion, not necessarily related to your particular situation, and then of course your situation.
The Realtor Code of Ethics prohibits agents from making negative comments about another agent, so if the REALTORS on here start trashing your agent it puts them potentially in violation of the COE and they could risk an ethics hearing. I am just a real estate agent and not a member of the NAR, hence not a REALTOR. So I am just subject to my state laws. I can say what I want about another agent, but that doesn't mean that is the professional thing to do. Don't interpret the agents lack of direct response to your question as support of your agent's behavior.
In general I was ok with the realtor. He/she always made it look like he/she was doing me a favor which I never liked but was always prompt to attend me... I find it amusing, most of the realtors I have met and heard by touring open houses, friends comments, etc all share that common trait... they are doing you favors... like if they were not paid enough.
Anyway, if the realtor had told me that the seller was only paying 2.5% commission I would have agreed to the deal anyway, people make budgets and I like to plan ahead of time... and .5% is a significant amount of money when buying a house, so it feels like a slap in the face.
It a question of being clear and not waiting until the last minute just to close for the sake of closing. I'm sure that my realtors intention was just to complete this sale and move on, as there was a possibility that if he/she told me this detail I could walk out of the deal.
...now in the final stage my realtor tells me that I have to pay a .5% commision...
I assume by "final stage" you mean after the bank accepted the short sale?
I'm curious, when did your agent find out about the reduced commission? As discussed, I think most of us commenting here agree it would be best disclosed as soon as an agent knows about it. If it was after bank acceptance with a condition that the commission be reduced, then you may have got the news when your agent did.
In general I was ok with the realtor. He/she always made it look like he/she was doing me a favor which I never liked but was always prompt to attend me... I find it amusing, most of the realtors I have met and heard by touring open houses, friends comments, etc all share that common trait... they are doing you favors... like if they were not paid enough.
One of the big problems in real estate is that they are waaaayyy to many agents. So there is this dynamic that agents really don't make a lot of money, but they charge a lot of money. There is this serious dysfunction in the way the real estate system works in this regard. So what happens is that an agent makes a lot of money on a couple of transactions, but it has to last them all year because they are way too many agents. This is a brokerage problem because some of them get paid on desk fees so the more heads the better. That doesn't solve your problem, but just want you to understand the dynamic behind why some agents may come across as they are doing you a favor. I mean if an agent is only going to make $20,000 that year and they give away $500, that is a lot of money to them. Maybe that agent did 4 transactions and made $5,000 each so to a consumer it looks like a crazy amount of money, but over the course of a year it isn't. This is a significant real estate system problem, in my opinion, and it is caused by the brokerage owners.
Quote:
Originally Posted by Lebowsky
Anyway, if the realtor had told me that the seller was only paying 2.5% commission I would have agreed to the deal anyway, people make budgets and I like to plan ahead of time... and .5% is a significant amount of money when buying a house, so it feels like a slap in the face.
Yes your agent should have respected that this is your money and you need to be able to decide how you want to spend it. In my experience most buyers will say exactly what you just said. They just don't like surprises.
Quote:
Originally Posted by Lebowsky
It a question of being clear and not waiting until the last minute just to close for the sake of closing. I'm sure that my realtors intention was just to complete this sale and move on, as there was a possibility that if he/she told me this detail I could walk out of the deal.
Possibly, but unless you ask you won't really know.
From everything I've pieced together from your experience I think ...
1. You agreed in your initial buyer agreement that the agent would be compensated 3% of the final sales price. And in the event of a seller not offering a 3% co-broke, you, the buyer, would make up the difference.
2. You purchased a short sale which may have initially offered a co-broke of 3%. If anyplace, here's where your agent made an error ... if your hermaphrodite agent has a 3% agreement with you, their buyer, he/she should've given you the heads up that short sales are wiley beasts and commission is subject to change.
3. Everything is hunky dory until the investor throws a wrench into the deal and balks at 3% and reduces the co-broke to 2.5%. Agent is taken by surprise as well.
4. Now, you've signed the original buyer's agreement and now are required to make up the difference.
Is that about right?
Truthfully, it sounds that you're not upset at having to paying the 1/2% commission, but by the fact that you are knocked off balance this late in the game. Correct?
Funny, I have a client that I've helped buy a Relocation property. We are buying it at about $75k below what the seller paid a few years back and I honestly believe due to my skills and expertise we're getting it at least $40k below what another less experienced agent could have gotten.
My guy appreciates what I've done but there are times a client forgets about the fantastic deal they're getting and wants to nitpick over a small amount regarding commissions, repairs, etc.
BTW, I don't cut commissions but if the client was sincere I would accept the 2.5% offered and move on. I'd remind them that what I really want from them is referrals of all their friends & family.
I see... thanks for your answers... it still sounds like a rip-off to me, not telling the actual amount you have to pay until there is no way of going back seems like a business malpractice to me. I cannot think of any other service in which this situation can happen.
I guess I can learn from this is to avoid using realtors next time...
So which is it OP?
The Realtor doesn't deserve to be paid even though they provided the services I contracted them to do.
or
Because I didn't read my Agency contract I shouldn't have to pay my Realtor and he/she should just cut their commission. Life isn't fair.
One of the big problems in real estate is that they are waaaayyy to many agents. So there is this dynamic that agents really don't make a lot of money, but they charge a lot of money. There is this serious dysfunction in the way the real estate system works in this regard. So what happens is that an agent makes a lot of money on a couple of transactions, but it has to last them all year because they are way too many agents. This is a brokerage problem because some of them get paid on desk fees so the more heads the better. That doesn't solve your problem, but just want you to understand the dynamic behind why some agents may come across as they are doing you a favor. I mean if an agent is only going to make $20,000 that year and they give away $500, that is a lot of money to them. Maybe that agent did 4 transactions and made $5,000 each so to a consumer it looks like a crazy amount of money, but over the course of a year it isn't. This is a significant real estate system problem, in my opinion, and it is caused by the brokerage owners.
Yes your agent should have respected that this is your money and you need to be able to decide how you want to spend it. In my experience most buyers will say exactly what you just said. They just don't like surprises.
Possibly, but unless you ask you won't really know.
I see the problem with how much money realtors make, I can understand that the yearly "salary" might not be what most people think, but I'm not the employer. I'm just hiring a service. If you break it down to the hours spend in my case to the money I have to pay is not a little amount. I'm not responsible for the amount of deals the realtor might or might no have... If the realtor recieved at the end less money, well then it is an ill concieved system, in which everybody seems to lose expect the brokers (who do nothing?)...
Anyway, the point of how much realtors make is beyond the point of my problem.
Chuckity... exactly I can pay the .5% I don't like to know I have to put out of pocket extra cash at this point. I can do it, and if I was told earlier I would not care a bit right now. I truly feel the agent kept the information from me.
I see the problem with how much money Realtors make, I can understand that the yearly "salary" might not be what most people think, but I'm not the employer. I'm just hiring a service. If you break it down to the hours spend in my case to the money I have to pay is not a little amount. I'm not responsible for the amount of deals the Realtor might or might no have... If the Realtor received at the end less money, well then it is an ill conceived system, in which everybody seems to lose expect the brokers (who do nothing?)..
You're the Dude, you should understand Brokers do a whole lot more behind the scene and your statements show how much you misunderstand what you're buying. These offices, computers, large overhead and most importantly the huge risk don't come cheap and everyone pays their share of overhead.
If anything the amount of risk agents and their brokers assume makes their pricing reasonable. What you don't see is the amount of hours and expense required to get the company and agent to where they have the expertise to handle your short sale.
All these things that are not your concern.... they affect you in all your purchases whether it's from Dell Computer or Subway sandwich. All clients / customers are paying your share of overhead, training & expected profit.
Now buy a rug that will tie your new home together and keep an eye out for those rug Pi****
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.
, but there are some agents that feel exactly that way, that if you aren't willing to have your commission cut, just don't show short sales. 
. Well, it comes down to the fact that most Realtors are about closing the deal and instead of working on their clients case most are spending their time trying to find their next client and so on. . .
