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Before I became aware of this City-Data Real Estate Forum, I posted the following question in the Atlanta forum:
"I have contracted with a real estate agent to sell my home in Atlanta. The contracted commission is 6% which is to be split 50/50 with a buyer's agent. A buyer's agent submitted an offer to purchase and in that offer the buyer's agent is asking for a much higher commission. It is almost like he is holding the offer hostage and asking for more money. The house is listed in both GMLS and FMLS.
Does the MLS rules allow for a buyer's agent to re-negotiate commission with an offer to purchase?"
I got some very interesting responses. The house has now closed, but I just wanted to pose the question in this forum to see if I could get some more informative responses. I am trying to determine if I need to follow up on this in any way or just let it go.
The buyer agent is allowed to set their rate. The MLS rules are just a means for sharing compensations. So the buyer agent likely has a buyer agency agreement with their client for a set rate. They have deemed the MLS offering not acceptable so their buyer is on the hook to pay more. The buyer requests that you pay that additional fee as part of their offer. The real estate commission is a closing cost just like lender origination fees and such.
So the buyers agent ended up with 1.5% more than quoted in the MLS? Instead of getting focussed on it being extra commission, you need to just look at it as part of the offer and bottom line net dollars that you receive. It's really just something else to negotiate, it's all just dollars and cents. From your standpoint paying the extra 1.5% commission is basically the same as receiving an offer for 1.5% less without any commission change. Or if they had asked for 1.5% closing cost, it's all money/cost of sale. Counteroffer should have be structured so that the net is acceptable to you, dont' get hung up on the minutia. Out of curisoity, what price of home are we talking about?
MLS Rules vary by state and association. So only someone in your area can say if it's allowed in your state.
Last edited by RickTucsonHomes; 07-25-2012 at 04:29 PM..
So the buyers agent ended up with 1.5% more than quoted in the MLS? Instead of getting focussed on it being extra commission, you need to just look at it as part of the offer and bottom line net dollars that you receive. It's really just something else to negotiate, it's all just dollars and cents. From your standpoint paying the extra 1.5% commission is basically the same as receiving an offer for 1.5% less without any commission change. Or if they had asked for 1.5% closing cost, it's all money/cost of sale. Counteroffer should have be structured so that the net is acceptable to you, dont' get hung up on the minutia. Out of curisoity, what price of home are we talking about?
MLS Rules vary by state and association. So only someone in your area can say if it's allowed in your state.
Considering the house wasn't appraising, the real question is, is the seller making more money by dropping to appraised value or is this deal with the 1.5% commission more.
Considering the house wasn't appraising, the real question is, is the seller making more money by dropping to appraised value or is this deal with the 1.5% commission more.
Ah yes! I missed that in the original thread. A cash offer and quick close on a house with appriasal issues certainly brings some value to the transaction.
If the agent is a REALTOR®, the code of ethics does not allow an agent to hinder a sale between buyer and seller because of commission.
Beyond that, your MLS is a contract between agents, and the buyer's agent cannot negotiate that when submitting an offer. They can only negotiate that prior to submitting an offer.
Beyond that, the agent shouldn't have put the amount as added commission, he should have put it as buyer's closing costs and the buyer paying his extra commission.
No one knows what went on between the buyer and buyer's agent, and a lot of people in both threads are jumping to conclusions.
Seller should concentrate on seller's business.
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