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.
Nocontengencies writes that all real estate commissions are negotiable, and that's right. Up until a listing contract is signed and agreed to by the seller and the listing brokerage.
Enkiktd - what would happen if the listing agreement says 4% commission total? Why don't you just ask the listing broker to write up your offer, without the gift of his commission.
Personally, after 300+ days on the market. I would not expect to get paid, ever. So, please understand I would resent you for asking to take a hit on my commission, unless you asked the title company, the lender, the inspector and the appraiser for a hit too.
What is in a listing agreement can be changed if all parties agree. In the situation the OP describes I would gladly change mine from 6 to 4%.
You weren't expecting to get paid, because it doesn't look like the house will sell, yet you wouldn't want to try to work out something with this buyer that fell out of the sky and you don't have to help him do any searching? You likely deserve every bit of 6% of nothing for not considering your seller at all.
She doesn't have a broker above her, she runs her own office.
She is going to write up the offer. She just says what she gets paid is between her and the seller and I can just offer what seems reasonable to me, so that's the way we're going.
I think that is fine and a good way to handle it. But if she's smart she'll give her seller a break I think.
I have to assume (please correct me if anyone thinks differently) that most buyers are going to be doing internet searches and pretty much seeing the vast majority of available houses for sale.
How exactly would the conversation go between the buyer that points out a house to their agent and the agent not wanting to show it due to the amount of commission?
I can only guess. I like our system in NC, where I can feel good about showing anything regardless of offered co-broke.
Transparency is good.
We have great disclosure rules here, wherein the Buyers Agent must disclose compensation expected in the Buyers Agency Agreement, and when showing homes, must disclose up front any compensation shortfall due to an offered cobroke commission that is lower than that expected compensation which may make the Buyer responsible for the difference.
In case of a shortfall, the Buyer gets to choose whether to see the home, knowing they may be on the hook and that the shortfall should be considered in formulating an offer.
(Additionally, when showing property the BA must disclose any additional compensation or other inducement offered to the BA.)
LOL- in this market- you would be "compensating" him/her for all of that extra "work" by rewarding them with a qualified buyer and the resultant 3% cut of the seller's hard earned money....
Make the offer OP. A little reading up on what you need to do should be all you'll need to ensure that you are handling things on your end, not to mention the fact that the seller's agent, along with the closing company, has a legal responsibility to see that no loose ends are left dangling before the closing. Most of the legality issues fall on the seller anyway. Your responsibilities lie more with ensuring that you get a home inspection- for your own sake- and with having your financial ducks in a row (which your lender will ensure that you do.)
Also- you would be wise to get your own inspector anyway, as one suggested by any realtor undoubtedly has a relationship with said realtor and is therefore not as inclined to work in YOUR best interest (ie: work as diligently to find ALL areas of concern.) And if there are any issues with the inspection- even if you had a realtor they would merely put what you want done in writing and submit it to the seller's agent anyway, and then they HAVE to present it to the seller and get it taken care of from there. They don't charge a buyer's agent for this "extra work" either, so why would they charge you?
Mind you- of course realtors will balk (loudly) at what I am saying--- but ask for a detailed description of what all this extra "work" would be that they wouldn't be doing anyway if there was a buyer's agent. Then use your own judgment as to how much "ALL" of that extra work is worth over and above the thousands and thousands of dollars they will already be making off the sale of someone else's investment...
Thanks for all your informative posts which bring balance to this discussion.
I particularly agree with you regarding making tens of thousands on a single sale as ridiculous. Buyer and seller beware and always pay a real estate lawyer to check your docs as it is so much cheaper than paying a commission. The threats of paying a commission to avoid legal issues simply isn't true when you use a lawyer up front.
I totally agree with using an independant appraiser and inspector so no one has any financial interest in the deal which results in unbias data.
A search of Active, Contingent, Pending, and Closed listings on Triangle MLS offering a 2.4% co-broke commission shows a total of 208111 listings.
7096 of those are Active and Contingent.
We get a few homes sold here, from time to time.
They do get sold, but it is only logical that 3% is going to look much better than 2.4%. If I'm working for the seller I think it does a disservice to them to offer less than 3.
What is in a listing agreement can be changed if all parties agree. In the situation the OP describes I would gladly change mine from 6 to 4%.
You weren't expecting to get paid, because it doesn't look like the house will sell, yet you wouldn't want to try to work out something with this buyer that fell out of the sky and you don't have to help him do any searching? You likely deserve every bit of 6% of nothing for not considering your seller at all.
In this case another brokerage is owed the coop fee. I did not see anywhere that the OP has sought a release from the brokerage.
I still have all the work and all the liability and I would loose the coop fee in arbitration.
Thanks for asking, but I am not interested in working for less.
They do get sold, but it is only logical that 3% is going to look much better than 2.4%. If I'm working for the seller I think it does a disservice to them to offer less than 3.
I have to assume (please correct me if anyone thinks differently) that most buyers are going to be doing internet searches and pretty much seeing the vast majority of available houses for sale.
How exactly would the conversation go between the buyer that points out a house to their agent and the agent not wanting to show it due to the amount of commission?
This is one of the areas where the disreputable realtors that I mentioned come into play... They can come up with all sorts of ways and reasons to NOT show the listing or to dissuade the interest- period, which is unethical. Realtors can steer the clients to or away from any property or deal they choose as they have the benefit of shrouding their client and the other party in "mystery" and secrecy with regard to who they are and any details. I say these things not only from my own experiences, but my sister was a realtor many years ago until she got out of it because she simply could NOT abide the dishonest and underhanded nature of the realtors in the industry. Oh, the stories she told... If the industry is truly all about integrity and "full disclosure"- why not put all of the parties concerned in a room together to hash out the details of a sale face to face in a straight-forward, above board manner?
Mind you- I am not talking about ALL realtors--- just way too many of them, sadly.
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.
