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If the seller is set on a specific price, would you be offended as the listing agent if I came in with an offer 3% under the seller's set price and asked you to refund the seller the buyer's agency's portion because I am not submitting with an agent of my own?
You still get your 3% commission and the house sells.
If the seller is set on a specific price, would you be offended as the listing agent if I came in with an offer 3% under the seller's set price and asked you to refund the seller the buyer's agency's portion because I am not submitting with an agent of my own?
You still get your 3% commission and the house sells.
What do you think? Is it rude to suggest that?
How did you see the home?
Who is writing the offer?
How will you handle inspections?
Will the agent have to handle any of these chores for you?
I would not be offended. Lack of offense is not equivalent to agreement, however.
I wouldn't be offended as long as I don't have to do any work for your side. But I would tell my seller that such an arrangement could present a greater potential for the deal to fall apart or for a lawsuit to arise.
Are you paying cash and looking to close very quickly? If so, the seller's agent wouldn't have a lot of chasing to do for you, and that might be a decent offer.
If you are getting a loan, the seller's agent is going to have to do the work your agent would have done, in helping you get to the closing table.
I've also heard that in some states, it is illegal (unethical?) for the seller to offer a different sales price to someone specifically because they don't have an agent, because it encourages buyers to be unrepresented, which could lead to them being taken advantage of, or something like that. So that would be something to look into for your state, too.
Oh, and edited to say:
The fact that you used the words "offended" and "rude" in your post lead me to believe you are not experienced in buying/selling real estate. People who know enough to handle buying a home without an agent have mostly gotten past these emotional considerations, and treat it as a business transaction. If you still are asking if something would be offensive or rude, you probably need your own agent.
Are you paying cash and looking to close very quickly? If so, the seller's agent wouldn't have a lot of chasing to do for you, and that might be a decent offer.
If you are getting a loan, the seller's agent is going to have to do the work your agent would have done, in helping you get to the closing table.
I've also heard that in some states, it is illegal (unethical?) for the seller to offer a different sales price to someone specifically because they don't have an agent, because it encourages buyers to be unrepresented, which could lead to them being taken advantage of, or something like that. So that would be something to look into for your state, too.
Oh, and edited to say:
The fact that you used the words "offended" and "rude" in your post lead me to believe you are not experienced in buying/selling real estate. People who know enough to handle buying a home without an agent have mostly gotten past these emotional considerations, and treat it as a business transaction. If you still are asking if something would be offensive or rude, you probably need your own agent.
There are some sellers and agents who actually do put emotions into these things around here. If they overprice their listing, some of them will get into a serious huff if you ask for comparables or attempt to offer them market value.
A lot of agents around here try to double end deals, so they might be less than excited when you ask them to refund the buyer's agent portion to the seller.
It's a weird real estate climate out there. I am definitely not experienced, but I have definitely seen a plethora of different responses to market value offers.
I had a listing agent for an overpriced property agree with me that the seller wanted too much, the house was in a lousy location, had some issues that needed to be fixed, and had a slightly awkward layout. The listing agent then totally flip flopped and told me it was priced well for the area.
Is it really considered offering a different sales price? I would think it's simply calculating it all out and figuring out which offer has the best net gain for the seller. If a buyer wants to pay $320k and wants 10k of closing costs, a buyer who offers 315k and wants no closing costs is a better net gain. Yes they're different prices, but the seller can choose the lower amount if he/she wants. No one is forcing the agent to give a commission refund to the buyer; the agent has to choose to do that themselves. If the agent chooses not to, mine might certainly be the weaker offer.
If a buyer wants 3% off the price, assuming that is the buyer agent compensation offered, I have no issue with that as an agent, BUT I won't give them suggestions for inspectors, or advise them about what to ask for. I will fill out the paperwork for unagented buyers so it is done correctly, but I offer no advice. If you are not self sufficient in this regard just get a new buyer agent.
I sell my listings a couple of times a year to unrepresented buyers and they have been attorneys, mortgage brokers, or contractors. Essentially people familiar with legal documents or the real estate industry.
How would you compensate the agent for extra work?
Suppose the Seller did not agree to dual agency? How would you handle that?
I adjusted my price to where the agent can receive 3.5% instead of 3% and give 2.5% of the buyer's commission back to the seller, the seller will receive slightly more than their net desired price after realtor commissions, and my offer still looks to be at a reasonable price to me.
If the seller doesn't agree to Dual Agency, I guess it doesn't work. The seller is pretty inflexible with price and the property is still somewhat overpriced. I like it, but not enough to overpay for it. I would have no hard feelings if they said no thank you.
First of all, your question is truly a legal question, not an emotional question. Under Uniform Commercial Code (UCC), if your state recognizes UCC, you would be in violation of the law by interfering with an employment contract. Yes, there is an employment contract between the listing broker, not the agent, and the seller. That contract acknowledges certain agreements between the parties and buyers are not a party to the employment contract.
That being said, the seller simply wants a "net" amount at the closing table. You can deduct the buyer's agent amount in your offer and the seller will get the same net results. There will be no interference and no hassle.
There is an MLS agreement between the broker and other cooperating brokers to share commissions for co-operation. The MLS agreement is voluntary for each broker and contract law manages that phase of the deal. You, if you are not a member of the same MLS as the listing broker, are not intitled to a discounted commission because one was never owed to you. So you will need to make the offer at what you feel the house is worth without concern for the commissions paid to the listing broker. If the listing broker then needs to forgive a portion of their commission to make the deal work, then that is between the listing broker and the seller.
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