Hi y'all. I am buying a vacant lot that adjoins my current property. It is in between my property and my next door neighbor's property; the neighbor is moving, so I'm buying the vacant lot that is in between us that he currently owns. Neighbor and I agree on the sale and its price privately. No agent involved - YET.
Neighbor tells me the lot is listed w/ an agent. His agent has a listing, in MLS, for the house and its property. The lot is NOT listed with the house ("additional lot is available" is on MLS listing) and the lot is NOT under formal contract w/ the agent. The neighbor told me in casual conversation that the "... agent will get the 6% commission [on the lot] anyway." Stay with me ...
So, I call the Realtor I always deal with and ask him to represent me in this simple sale. He calls back and says the lot is not under contract with the neighbor's agent AND the neighbor wants me to increase the sales price of the lot by 6.5% to cover my agent's commission if I use him. HUH?
Upon questioning, neighbor said that he told his agent that she would get 6%, that the agent demanded an exclusive (which is not in a contract?), and that we have to deal with his agent only if we don't want to increase the sales price of the lot.
Neighbor said that the commission on lots around here (Winston-Salem area) is typically 10% and that his agent is giving him a good deal by charging only 6%.
QUESTIONS:
1. Is this ethical?
2. Do lots REALLY typically have a 10% Realtor commission on their listed sales?
Sorry to be so long-winded....and thanks in advance for your answers.
Tootle