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Would anyone be able to tell me what the standard commission rate is in the Houston area for a home where there is a both a buyer and seller's agent? What about if the buyer does not have an agent and there is only the seller's agent? (The homes I am looking at are $1MM+)
I'm originally from Illinois and know that over there often times the seller's agent will do dual agency and drop their commission by 2% if there is no buyer's agent. I'm not finding that to be the case in Houston and am curious what the process is.
Maybe you're asking about what the local custom is. If you find out- from someone who is local- there is no guarantee that it will apply in your particular case.
If you are asking what the contract between the seller and realtor says- then ask the realtor- who of course will refuse to say.
Understood. I'm just trying to get a general sense for what is customary in Houston, TX. I had a pretty good idea in Chicago as I sold my home there and had interviewed 5+ sellers agents.
If you're looking to buy in Houston, then the commission is really not going to be something known to you. That's totally between the listing agent & seller. No one will tell you.
If you're somehow hoping that a reduced seller commission might impact any offer you make, then you might be over thinking. Make your best offer based upon closed comparable sales and negotiate from there.
If you're looking to sell, then all things are negotiable. Discuss with your agent.
There is the contract between the seller and their agent. You are not a party to that contract, and thus any attempt you make to change it would be considered attempted interference with a contract.
Then there is the contract between you and the seller. That contract should be based on an offer you make that is based on what you consider the value of the house to be (remembering, of course, that Texas is a nondisclosure state and thus you will not have access to the actual sold prices on most houses - don't feel bad, even the tax man doesn't have that information, we do respect privacy down here!). It shouldn't be based on the contract between the seller and listing agent.
Lowball the tar out of it and hope the seller's agent will roll over and throw in some or all of the buyer's agent's side to make it work. You're hoping she, the seller's agent, will work with you. Asking her up front for the buyer's agent's pay starts the deal out negatively. A resourceful or hungry agent will put two and two together and make it work if possible. It's up to her after all.
Who was it who said the public values our services, is willing to pay for them and our business model is unassailable? It's not the same Realtor-adverse poster with multiple logins making all these threads. Call me crazy, but I sense that the majority of the house buying public hates seeing Realtors get a fat check out the deal, at least in most cases.
There is the contract between the seller and their agent. You are not a party to that contract, and thus any attempt you make to change it would be considered attempted interference with a contract.
This may not be correct. The listing contract is between the seller and the agent for THE LISTING SIDE. It includes built-in compensation for a buyers agent side. If there is no buyer agent involved then the listing agent is breaching their fiduciary duty to the seller if someone comes in and wants to buy it and use that portion of the commission as a negotiating tool and they don't reduce the fee - since that fee was sold to the seller as being for the buyers agent.
This may not be correct. The listing contract is between the seller and the agent for THE LISTING SIDE. It includes built-in compensation for a buyers agent side. If there is no buyer agent involved then the listing agent is breaching their fiduciary duty to the seller if someone comes in and wants to buy it and use that portion of the commission as a negotiating tool and they don't reduce the fee - since that fee was sold to the seller as being for the buyers agent.
Long discussion on Trulia about this.
Does the typical Texas listing agreement indicate this? Or, is it just internet attitude?
It most certainly is not true of the NCAR listing agreement that the total commission is indicated to be reduced when no buyer's agent, seller's sub-agent client, or unrepresented buyer purchases.
There is no reference to any buyers' agency agreement and no reference to a reduced fee in our listing agreement.
I did a legal analysis on this quite some time ago...I posted some of it on City Data, but the bottom line is that it is not tortious interference with contract to ask the listing agent to modify the contract, or even to ask the listing agent to share or reduce their commission for you....The listing agent is free to decline to do so...It *could* (though I still doubt the case would be successful) be tortious interference if you asked the seller directly....
Otherwise I do agree the only way to get a house here is to offer what it is worth...In Houston, our market is red hot...you will get nowhere asking the agents to share their commission with you b/c they do not have to...there are 5 or 6 buyers in hand for every listing that is even remotely livable right now.
The only way to land a house in Houston right now is to offer more than the next person. None of the other stuff matters. Represented, unrepresented, represented by Remax, or by Warren Buffett himself...Money and lack of contingencies is the only thing that matters.
Quote:
Originally Posted by TexasHorseLady
There is the contract between the seller and their agent. You are not a party to that contract, and thus any attempt you make to change it would be considered attempted interference with a contract.
Then there is the contract between you and the seller. That contract should be based on an offer you make that is based on what you consider the value of the house to be (remembering, of course, that Texas is a nondisclosure state and thus you will not have access to the actual sold prices on most houses - don't feel bad, even the tax man doesn't have that information, we do respect privacy down here!). It shouldn't be based on the contract between the seller and listing agent.
The typical listing contract has a place to fill it in the percent if desired...you do not have to fill it in. There is an agreed commission, and an agreed commission if the buyer is unrepresented...most contracts I have seen recently the sellers are writing 4% or 4.5% if unrepresented.
Some of the brokers, I will call them the snobby brokers (because they are snobs), in the very upscale areas will not allow their agents to complete a sale to an un-represented buyer...I assume this in their particular listing contract, but I am just guessing b/c I have not seen it.
Texas does not have a "Standard" listing agreement though.
Our MLS will tell you exactly what the split is when you view a house through the agent portal, so agents are not guessing.
Quote:
Originally Posted by MikeJaquish
Does the typical Texas listing agreement indicate this? Or, is it just internet attitude?
It most certainly is not true of the NCAR listing agreement that the total commission is indicated to be reduced when no buyer's agent, seller's sub-agent, or unrepresented buyer purchases.
There is no reference to any buyers' agency agreement and no reference to a reduced fee in our listing agreement.
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