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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?
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.
How do you know what the commission split was supposed to be, and that it changed after you signed the contract?
If you are sure, and can prove it, then you should pursue it. First step would be to go to the agent and tell them you expect the agreement to be enforced for the full amount. If it was there when you started the process, it's your money.
So ... if your Realtor got his normal 3% ($30K) commission, you would have received a 2% ($20K) closing credit and your Realtor would have received $10K. But, since the Realtors agreed to a 3.5%/2.5% split, your Realtor still gets $10K, but, you now get a $15K closing credit (?) ---
-- How do you think your Realtor really felt about getting 'leveraged' into giving-up two-thirds of his RE Commission...as a Buyer's credit? (You probably told them that you would get another Realtor to make the offer ... if they did not agree, didn't you?)
It sounds like the Realtor fulfilled his part of the bargain ... and now you are upset because 'you', not the Realtor, got caught in the middle of a 'squeeze play.' --- You don't like it much either, do you? .... even though you only lost $5K, while your Realtor still gave-up $15K.
So ... if your Realtor got his normal 3% ($30K) commission, you would have received a 2% ($20K) closing credit and your Realtor would have received $10K. But, since the Realtors agreed to a 3.5%/2.5% split, your Realtor still gets $10K, but, you now get a $15K closing credit (?) ---
-- How do you think your Realtor really felt about getting 'leveraged' into giving-up two-thirds of his RE Commission...as a Buyer's credit? (You probably told them that you would get another Realtor to make the offer ... if they did not agree, didn't you?)
It sounds like the Realtor fulfilled his part of the bargain ... and now you are upset because 'you', not the Realtor, got caught in the middle of a 'squeeze play.' --- You don't like it much either, do you?
I used another agent before. Be honest, I changed due to this benefit. Am I wrong? The result seems ...
I used another agent before. Be honest, I changed due to this benefit. Am I wrong? The result seems ...
... So, you actually beat TWO Realtors out of their commission on this sale(?) ... Not sure what your business is, but, how would you feel about doing it for 'free' or for a 'third' of your normal rate.
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