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Probably the vast majority of agents. Pay for an average agent is not a big multiple of $10K.
Quote:
Originally Posted by manderly6
And I would assume the vast amount would not. Of course we could ask them.
I think of the two of you Manderly is on the correct track. Only the most desperate of agents would give away 2/3's of a comission no matter what the price point of the house is. Makes you wonder how competent this agent is if he was so desperate just to make a buck. I wouldn't have hired them. There are agents out there that rebate commission but to give the vast majority back to the buyer . . .
I think of the two of you Manderly is on the correct track. Only the most desperate of agents would give away 2/3's of a commission no matter what the price point of the house is. Makes you wonder how competent this agent is if he was so desperate just to make a buck. I wouldn't have hired them. There are agents out there that rebate commission but to give the vast majority back to the buyer . . .
I didn't see it as giving away 2/3 of a paycheck. That $30,000 paycheck never existed for the agent until the OP approached him to write up the offer. Didn't have to do anything except write an offer and collect $10K, not a bad day's pay for the "average" agent. I just checked the sales production of the 1695 agents in my association. 840 of them have yet to close a sale in 2013. Call me crazy but I'm guessing if the OP contacted those agents and offered them $10,000 for writing an offer on a property he had already selected that a good portion of them would gladly agree. Hunger breeds desperation.
Of course, none of us high roller agents on City Data would stoop to pick up ten grand off the sidewalk but I specifically said "average" agent.
I didn't see it as giving away 2/3 of a paycheck. That $30,000 paycheck never existed for the agent until the OP approached him to write up the offer. Didn't have to do anything except write an offer and collect $10K, not a bad day's pay for the "average" agent. I just checked the sales production of the 1695 agents in my association. 840 of them have yet to close a sale in 2013. Call me crazy but I'm guessing if the OP contacted those agents and offered them $10,000 for writing an offer on a property he had already selected that a good portion of them would gladly agree. Hunger breeds desperation.
Of course, none of us high roller agents on City Data would stoop to pick up ten grand off the sidewalk but I specifically said "average" agent.
You really don't have one clue what's involved in closing a deal on a house, do you? If you did, you wouldn't say that. The hardest part of the work STARTS when the house is found and the offer is written.
Quote:
Originally Posted by manderly6
The deal the OP negotiated was fulfilled by the agent. Why complain about it?
Exactly. IF the co-pay was changed after the contract was written, that's very poor behavior and should be reported to the appropriate authority, starting with the managing broker (and there's absolutely no reason for the buyer's agent to have done that, since they're getting their 1% regardless and all it would accomplish would be to alienate a buyer who might have been a future seller or buyer and any referrals they might have made - and in the million dollar range, that's quite a few commission dollars, one would have to be crazy to do that). So that would mean that the listing broker would have had to be the one to change the co-pay at that point, which is another bag of worms. Plus, there would have to be TWO agents colluding on changing the co-pay at that point (it's been done before, by agreement between the brokers in order to make a deal happen, but it's not something one side or the other can do unilaterally).
All of which makes me wonder what the rest of the story is, if we heard more than one side of it. It just doesn't make sense as stated. I have no problem believing there might be a crooked agent out there, but this isn't making logical sense.
I just read this entire thread and I'm heartened by the comments of Bill Keegan and of those who supported his position. Ethical behavior needs to be paramount.
As to the OP, his main problem is that he agreed to 1.5% credit (as opposed to 2%) by signing the closing statements. This needs to serve as a reminder to all: don't sign something if you don't fully understand it! This goes for real estate contracts, closing statements, etc.
It is far more difficult to remedy a wrong than it is to prevent it. If a real estate agent can't properly explain something--and they can never give legal advice to clients--it should be recommended and even essential to get legal advice from a qualified real estate attorney.
Unfortunately, sometimes when people try most to save money, it ends up costing them more in the long run. If someone can afford to purchase a million dollar house, they should not skimp on paying for an appropriate level of due diligence.
You really don't have one clue what's involved in closing a deal on a house, do you? If you did, you wouldn't say that. The hardest part of the work STARTS when the house is found and the offer is written.
The offer to escrow phase may be "the hardest part", but I suspect that most agents would jump at the opportunity to skip the home showing phase. Time is money.
Lets do the math on the agents take (hours spent from offer to closing):
10hrs = $1000/hr
20 hrs (highly unlikely) = $500/hr
40 hrs (extremely unlikely) = $250/hr
Sounds like a sound business decision to me...
Quote:
Originally Posted by manderly6
The deal the OP negotiated was fulfilled by the agent. Why complain about it?
I dont think the OP is complaining. OP just wants clarification on the legality of changing the commission after the contract has been signed. Agents may be able to change the commission structure, but once there is a “rebate” to the buyer on the table, changing the commission structure has more far reaching consequences (the buyer).
Instead of chastising the OP for negotiating the commission, the agents on this forum should focus on addressing the OPs question.
I recently purchased $1m house. Before purchase, My realtor agent and I have a written agreement that agent will take 1% commission only, and rest money for closing credit. The house has initial 3% seller agent and 3% buyer agent commission distribution, however, after contract rectification and home inspection, somehow the seller and buyer agents got agreement (I don't know), the commission changed into 3.5% seller agent, 2.5% buyer agent. Until settlement, I noticed this kind of change. It means I directly lost 0.5% closing credit. It that normal? Am I cheated by realtor agents? Anything I can do?
Thanks for your suggestions.
Did you present this "written agreement" with the contract? Did you receive an estimated closing costs document prior to closing? If not, why didn't you ask for one?
One more question - did you figure up what your credit would be prior to closing, and was that amount credited to you? If so, what do you care what the agents involved earned?
The OP said they were cheated. If that isn't complaining I don't know what is.
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