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Hi. We're potential buyers and plan to submit a full-price offer via our buyer's agent on a short sale property. We understand the bank has already approved the asking price. Our only quibble - the listing broker/agent (of a limited service/entry-only brokerage) states that the buyer must pay a 5% cash fee to his company in addition to the accepted offer price. 2.5% will be used to compensate the buyer's agent.
We're not wild about giving up cash for no equity in this "cash is king" environment. Has anyone else ever seen this?
We want to submit an offer and not pay the fee. They're bound to present all offers, aren't they? Alternatively, we'd go above asking price and roll some commission into the loan, but I think because he's a flat-fee broker, he wouldn't then see a dime of it.
You have no contractual obligation to pay that fee unless you sign something agreeing to pay that fee. Purchase and sale agreements are between buyers and sellers not agents.
Just because you might predominantly do flat rates doesn't mean anything with regard to this contract. The listing contract would be for 5% instead of the flat rate. They would still get the money.
Just because you might predominantly do flat rates doesn't mean anything with regard to this contract. The listing contract would be for 5% instead of the flat rate. They would still get the money.
I have no problem with them getting the money - in fact, I'd prefer everyone be getting paid and have an incentive to make this deal move forward. It's just that the listing states buyer "must" pay fee to listing agent in addition to approved offer, and the fee has to be in cash. Doesn't even seem legal to me. Unless the agent promised the bank/seller "no commission fees if you pick me."
You can make most things legal with a contract. Our contracts state that if it isn't in the contract, then it doesn't matter. So write an addendum that states that you won't pay the fee.
If you don't have an agent or an attorney you sound like you need help navigating an offer on this property. Also, it probably violates the MLS rules for the listing agent to state that in there. I know it would violate our rules. The MLS is a co-operative which has rules. It isn't just a database.
Offer written up with said addendum - seller to pay listing agent fee and appropriate commission to buyer's agent. Now we wait...
I guess I'm wondering why the listing brokerage would do this...seems like it's shooting themselves in the proverbial foot. They have to present the offer, correct?
If it's a short sale I don't understand
1-why the listing agent isn't getting the bank to pay the fee
and
2-why the seller went with a limited service company since they aren't getting back anything regardless.
If it's a short sale I don't understand
1-why the listing agent isn't getting the bank to pay the fee
and
2-why the seller went with a limited service company since they aren't getting back anything regardless.
You and me both. But it is a short sale, and we were informed that the bank has already approved the existing asking price. The language in the listing says something along the lines of buyer to pay x% commission in addition to price.
We've drafted an offer stating that the seller is responsible for listing agent fee and buyer's agent commission. I just want to make damn sure that this offer makes it to the bank. We may call the bank directly next week to be sure. We'll also be chatting with a RE attorney sooner rather than later.
If it's listed in the local MLS, the listing broker is obligated to pay the buyers agent and should not affect the purchase price of the house. In our MLS area that is not a negotiable issue.
But in reality, everything is negotiable.
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