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We are currently working with a buyer's agent and have signed a 6 month contract. We have found a house we are making an offer on, however, the realtor told us after we looked at the house that he will only get paid 2.12% commission. In our contract, he stated that he works for 3% and we must pay the difference if the seller does not pay his commission 100%. After we spoke with him about this issue he told us that he will not force us to pay the 3%. He will take the 2.12% from the sellers. Because we signed a contract, do we legally have to pay him 3%?
We are currently working with a buyer's agent and have signed a 6 month contract. We have found a house we are making an offer on, however, the realtor told us after we looked at the house that he will only get paid 2.12% commission. In our contract, he stated that he works for 3% and we must pay the difference if the seller does not pay his commission 100%. After we spoke with him about this issue he told us that he will not force us to pay the 3%. He will take the 2.12% from the sellers. Because we signed a contract, do we legally have to pay him 3%?
Get it in writing that he would accept the 2.12% as total fees for his services on the house you are putting an offer on and that no additional monies would be owed by you. Do that before you put an offer .
Tell him to either withdraw the offer, or give you and ammended buyers agreement with the percentage changed from 3%. You can withdraw an offer any time, based on what I was told.
We are currently working with a buyer's agent and have signed a 6 month contract. We have found a house we are making an offer on, however, the realtor told us after we looked at the house that he will only get paid 2.12% commission. In our contract, he stated that he works for 3% and we must pay the difference if the seller does not pay his commission 100%. After we spoke with him about this issue he told us that he will not force us to pay the 3%. He will take the 2.12% from the sellers. Because we signed a contract, do we legally have to pay him 3%?
Your agent sounds like a nice guy! Since he told you that he'll happily accept the 2.12% (odd number), have him mark through the 3% that was on your contract and write in the 2.12%, initial it and be happy!
We are currently working with a buyer's agent and have signed a 6 month contract. We have found a house we are making an offer on, however, the realtor told us after we looked at the house that he will only get paid 2.12% commission. In our contract, he stated that he works for 3% and we must pay the difference if the seller does not pay his commission 100%. After we spoke with him about this issue he told us that he will not force us to pay the 3%. He will take the 2.12% from the sellers. Because we signed a contract, do we legally have to pay him 3%?
Why will your realtor only get 2.12%? And how much will the seller's realtor get? Are both realtors at the same office? If so does this affect the commission split? And when you made the offer were you aware your realtor would only get 2.12%... also was your realtor aware of it when you made your offer? These are all questions I would ask my realtor .... maybe you already have.
This seems like something your realtor should have informed you about before you made the offer so you could take into account that extra .88%.
Also, explain the situation to your closing attorney. Find out from him/her if you need signed paper work to back up the fact that your realtor is accepting 2.12% instead of 3%. Your closing attorney works for YOU not your realtor.
Taking a slight deviation from the original question, is there any negative impact on selling a house if you are given a lower commission option by the listing agent? I've got two agents wanting to list my house... one is going to charge us 5% and the other 4% (they know us and are making a special deal). So the buyer broker would get 2.5% or 2% depending on which we go with. This is for a >$500K house, so its still a lot of money. Will the difference between these two cause me to potentially have buyer brokers not showing our house over some other one? The inventory here is VERY low and both agents said we'd not have any competition since nothing else is on the market in the area and price range. Thoughts?
No matter what "deal" you work out with your Realtor, I'd suggest when its time to put into MLS the percentage thats going to the selling agent, he not put in less than what is average. So...if the average is 2.4%, and he lists your house for 4%, he is the one taking the lower amount, not the selling agent.
Good questions! The realtor knew at the time that he showed us the house that he would be getting 2.12% from the sellers. He did not tell us this information until we were about to make an offer. Technically, if he was not willing to accept 2.12%, he should have asked another realtor in his agency who would accept the 2.12% commission to show us the house. Since he showed us the house, our contract states that if we purchase a house that he shows us within 90 days that the commission will be given to him. With that said, he showed us the house and then waited until we fell in love with it to let us know about the commission. He already asked the sellers agent for the .88% difference and they will not give it to him. If we choose not to give him the 3%, are we legally bound to do so?
I don't understand your question. What would be the point of a contract if you aren't legally bound by it?
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Why will your realtor only get 2.12%? And how much will the seller's realtor get? Are both realtors at the same office? If so does this affect the commission split? And when you made the offer were you aware your realtor would only get 2.12%... also was your realtor aware of it when you made your offer? These are all questions I would ask my realtor .... maybe you already have.
