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My post was the harshest, though I stand by it. Our buyer agency requires the buyer to guarantee 3% but then I sign a "Service Guarantee" that if it's over x% I rebate the overage and if it's a listed property that the seller won't pay 3% (REO's are the only issue with listed properties". If it's a FSBO as long as they let me talk to the FSBO, and if they won't cover it, I release them from the buyer agency to pursue the FSBO. The caveat of course is I get to talk to the FSBO prior to them talking to the owner. I do this because of course the seller is going to refuse a commission if the opportunity presents itself. If buyer looks at it first w/o the agent...well the OP has demonstrated the mess that ensues.
On a side note it allows the buyer to fire me if they are dissatisfied with my service.
That's basically what I do, but I've never had to release a buyer to pursue a FSBO. Haven't closed that many FSBOs because the seller always seems to be defective or disconnected from reality in some way. Had one that wanted to use his own forms. My buyer and I said "no thanks" and we moved on. Buyer said "I'm so glad I have you".
Of all the transactions that could go wrong and bite a buyer, a FSBO is the highest risk. Hiring an attorney and foregoing an experienced Realtor increases the risk because neither the buyer or the attorney "know what they don't know", and perhaps neither does the seller.
If it's a cookie cutter deal with no problems, written on a promulgated state contract, and the inspections go well, it could go fine. But I doubt it.
Good luck to the buyer. And shame on the agent for not instilling enough trust and confidence in the buyer that the buyer wouldn't even think about proceeding without guidance.
Steve, agreed. I've never had it to be an issue. I've shown and sold FSBO's. They don't bother me. People always think agents are offended by FSBO's but I find that isn't the case at all. Heck, they are trying to save money and we can all appreciate that. I have more of a problem with stupid/dishonest/rude people, which sometimes are agents, than a FSBO in general.
My post was the harshest, though I stand by it. Our buyer agency requires the buyer to guarantee 3% but then I sign a "Service Guarantee" that if it's over x% I rebate the overage and if it's a listed property that the seller won't pay 3% (REO's are the only issue with listed properties". If it's a FSBO as long as they let me talk to the FSBO, and if they won't cover it, I release them from the buyer agency to pursue the FSBO. The caveat of course is I get to talk to the FSBO prior to them talking to the owner. I do this because of course the seller is going to refuse a commission if the opportunity presents itself. If buyer looks at it first w/o the agent...well the OP has demonstrated the mess that ensues.
On a side note it allows the buyer to fire me if they are dissatisfied with my service.
Yeah but you have a contract that spells out your compensation. The OP is saying that the buyer agency agreement doesn't do that. So I stand by my post that any agent that doesn't address FSBO compensation in a buyer agency agreement isn't a good agent.
I totally agree that if agents talk to the FSBO first then they often agree to pay compensation, but I and, I assume you too, chat with our buyers about this so they are clear on how we want to approach FSBO's. I guess I'm saying that if you are an agent, don't think through the process, and don't have an honest conversation with your buyers, then maybe you aren't that great an agent. I don't think it is fair to harsh on consumers if the agent doesn't set their expectations for how they do business.
If you get a haircut you are expected to pay after the cut. We pay our co-pays for a doctor at the time of the visit. My attorney bills me every month. Most professionals set expectations for compensation. If an agent fails to set an expectation for compensation, as a business provider, then I don't have a lot of sympathy for them when someone doesn't want to pay them.
Yeah but you have a contract that spells out your compensation. The OP is saying that the buyer agency agreement doesn't do that. So I stand by my post that any agent that doesn't address FSBO compensation in a buyer agency agreement isn't a good agent.
I totally agree that if agents talk to the FSBO first then they often agree to pay compensation, but I and, I assume you too, chat with our buyers about this so they are clear on how we want to approach FSBO's. I guess I'm saying that if you are an agent, don't think through the process, and don't have an honest conversation with your buyers, then maybe you aren't that great an agent. I don't think it is fair to harsh on consumers if the agent doesn't set their expectations for how they do business.
If you get a haircut you are expected to pay after the cut. We pay our co-pays for a doctor at the time of the visit. My attorney bills me every month. Most professionals set expectations for compensation. If an agent fails to set an expectation for compensation, as a business provider, then I don't have a lot of sympathy for them when someone doesn't want to pay them.
We haven't heard from the agent, so it's not fair to assume that the contract didn't cover this issue or that the agent didn't explain it in the buyer interview, if the OP was willing have one. My REALTOR Board's forms "Exclusive Buyer Representation Agreement" and my own company's forms (NRT Company owned) "Exclusive Right to Represent the Buyer" address this very clearly. However most consumers don't remember (and don't read) anything when they want to see houses. There are hundreds of questions on these boards asking for advice where the answer is almost always, "read the document that you committed to."
Yeah but you have a contract that spells out your compensation. The OP is saying that the buyer agency agreement doesn't do that. So I stand by my post that any agent that doesn't address FSBO compensation in a buyer agency agreement isn't a good agent.
I totally agree that if agents talk to the FSBO first then they often agree to pay compensation, but I and, I assume you too, chat with our buyers about this so they are clear on how we want to approach FSBO's. I guess I'm saying that if you are an agent, don't think through the process, and don't have an honest conversation with your buyers, then maybe you aren't that great an agent. I don't think it is fair to harsh on consumers if the agent doesn't set their expectations for how they do business.
If you get a haircut you are expected to pay after the cut. We pay our co-pays for a doctor at the time of the visit. My attorney bills me every month. Most professionals set expectations for compensation. If an agent fails to set an expectation for compensation, as a business provider, then I don't have a lot of sympathy for them when someone doesn't want to pay them.
I don't think the OP clarified her agency contract at all.
She only mentioned that the attorney told her she owed nothing. That also is an opinion.
I would be curious to see exclusive agency agreement language that doesn't address representation and payment when no buyer agency commission is offered.
And I would wonder if that would be on a standard form or a proprietary firm form.
There is no commission. NO COMMISSION. Not my fault. All I was trying to accomplish with this post was to get an idea of how I should compensate the guy when I don't actually owe him anything LEGALLY.
Quote:
Originally Posted by WhoFanMe
We haven't heard from the agent, so it's not fair to assume that the contract didn't cover this issue or that the agent didn't explain it in the buyer interview, if the OP was willing have one. My REALTOR Board's forms "Exclusive Buyer Representation Agreement" and my own company's forms (NRT Company owned) "Exclusive Right to Represent the Buyer" address this very clearly. However most consumers don't remember (and don't read) anything when they want to see houses. There are hundreds of questions on these boards asking for advice where the answer is almost always, "read the document that you committed to."
I am making the assumption that the attorney can read and interpret the document.
Quote:
Originally Posted by MikeJaquish
I don't think the OP clarified her agency contract at all.
She only mentioned that the attorney told her she owed nothing. That also is an opinion.
I would be curious to see exclusive agency agreement language that doesn't address representation and payment when no buyer agency commission is offered.
And I would wonder if that would be on a standard form or a proprietary firm form.
I am assuming that the attorney read the contract and advised her properly when he said that she legally owed the buyer agent nothing. That is what I asked first if it was an Exclusive Right to buy type of contract.
I highly doubt it is a standard form as those are heavily tilted towards real estate agents and would be ERB just like the listing contracts are. I am assuming it is some type of firm form.
I am making the assumption that the attorney can read and interpret the document.
I am assuming that the attorney read the contract and advised her properly when he said that she legally owed the buyer agent nothing. That is what I asked first if it was an Exclusive Right to buy type of contract.
I highly doubt it is a standard form as those are heavily tilted towards real estate agents and would be ERB just like the listing contracts are. I am assuming it is some type of firm form.
Sorry, I'm from Missouri on this one. There are too many things we don't know as the OP has only told her side of the story and my crap detector is on high.
You are skeptical of consumers. I'm skeptical of agents. I think our biases are apparent in the thread.
Agreed, actually I'm skeptical of both!
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