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The listing agreement I signed and agreed to was a commission of 6%.
The MLS report shows com/Buyer agent: 2.5% Trans Brk: 2.5%
Why?? Is the broker trying to have an advantage by discouraging other agencies because of a lower commission?
The listing agreement I signed and agreed to was a commission of 6%.
The MLS report shows com/Buyer agent: 2.5% Trans Brk: 2.5%
Why?? Is the broker trying to have an advantage by discouraging other agencies because of a lower commission?
This doesn't make sense. If it's your listing, what does your listing agreement state that it will pay for a cooperating agent? The amount in your listing agreement should be the amount put in the MLS. How are you not in control of this if it's your listing?
The listing agreement I signed and agreed to was a commission of 6%.
The MLS report shows com/Buyer agent: 2.5% Trans Brk: 2.5%
Why?? Is the broker trying to have an advantage by discouraging other agencies because of a lower commission?
They could be paying themselves 3.5% or it could be a mistake. Ask the agent.
The other possibility is that the listing agreement only calls for a 5% commission instead of a 6% commission, with half to go to the selling agent -- the listing agent may have negotiated a lower commission than is typical for some reason (handling the buying and the selling for the same client, etc.) If there was a mistake entering it into the system (i.e., an assistant or office worker didn't catch that it was 2.5 instead of the usual 3.0), then they may have simply tried to correct it.
Everything will be much simpler if you have a copy of the MLS listing before it was changed.
What does the commission agreement say? In our state, we have a separate commission agreement that details commission splits, who's paying for what, etc.
Well, that's the kind of correction that is made BEFORE an offer comes in, not after. Around here, if a listing agent negotiates a lower commission, then the co-op agent is still offered the full amount (i.e., if the typical commission is 6% and the listing agent negotiated 5%, the listing agent would keep 2% and still offer 3% to a co-op.) And that's because no agent wants to put their listing at a disadvantage -- there are some selling agents out there that will find a reason not the show a 2.5% listing if there are plenty of other 3% listings lying around. Or else they will negotiate a higher commission at the time of contract.
If it was a mistake, then the listing agent should have called the selling agent and explained the problem, preferably with a copy of the listing agreement showing the correct percentages, etc. If it's an agent I've worked with and trust, I'd probably let them get away with it. But Barney Fife from Mayberry Realty who has sold 3 houses in the last two years who suddenly decided that the commission should be 2.5%? No way.
Get a copy of the listing history from the MLS before you call the agent. And if your state allows it, record the conversation. You might need it later.
The listing agreement I signed and agreed to was a commission of 6%.
The MLS report shows com/Buyer agent: 2.5% Trans Brk: 2.5%
Why?? Is the broker trying to have an advantage by discouraging other agencies because of a lower commission?
Sounds to me like it's either a typo (that's the pleasant, charitable version) or your agent is trying to pocket the extra 1% (the nasty, suspicious version.)
Ask them point-blank: "Hey, I signed a commission agreement for 6%. Why does the MLS listing only show 5%?" In Georgia, the listing agreement clearly states the percentage, plus what percentage is going to be shared with co-op brokers.
Selling agents don't typically have access to the listing agreement, because it often contains information on scheduled price adjustments, the expiration date, etc. So selling agents can only go by what's on the MLS.
Sounds to me like it's either a typo (that's the pleasant, charitable version) or your agent is trying to pocket the extra 1% (the nasty, suspicious version.)
Ask them point-blank: "Hey, I signed a commission agreement for 6%. Why does the MLS listing only show 5%?" In Georgia, the listing agreement clearly states the percentage, plus what percentage is going to be shared with co-op brokers.
Selling agents don't typically have access to the listing agreement, because it often contains information on scheduled price adjustments, the expiration date, etc. So selling agents can only go by what's on the MLS.
I closed one last week that paid me, the buyer's agent, 2.5%. Imagine my surprise to see the listing agent's 3.5% share on the settlement statement. Entirely legal if the seller knew (I have my doubts - elderly seller) but scummy anyway especially for this particular transaction.
I think golfinfla is a Seller, and has agreed to pay his listing agent 6%. In the given MLS, the LA is offering 2.5% to buyers agents and 2.5% to transaction brokers (similar to subagents of the seller).
When the home sells, the LA will earn 3.5%, the other broker will earn 2.5%. There's no "stealing" 1%.
Not all MLS's have a "50/50 split" as either the standard, or subscriber agreement.
I closed one last week that paid me, the buyer's agent, 2.5%. Imagine my surprise to see the listing agent's 3.5% share on the settlement statement. Entirely legal if the seller knew (I have my doubts - elderly seller) but scummy anyway especially for this particular transaction.
How were you able to see this if you have the buyer? With the new Closing Disclosures, you can only see the closing of the side you represent. You should not be seeing anything on the other side...
How were you able to see this if you have the buyer? With the new Closing Disclosures, you can only see the closing of the side you represent. You should not be seeing anything on the other side...
I still get a signed settlement statement showing both sides after closing. Was a cash deal.
Many of our closing attorneys had baked into their engagement letters that the agents could see disclosures.
The drooling idiots at CFPB decided last week that Buyers' agents are allowed to see Sellers' CD.
Obviously, when I am serving in a fiduciary role, that means that my buyers get to see.
Last edited by MikeJaquish; 08-02-2016 at 05:18 AM..
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