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My agent seemed fine at first. This wasn't a complicated search. I basically knew what I was looking for and was fairly open on location. She seemed like a bit of an airhead, but I'm surprised she was that sloppy.
Quote:
Originally Posted by Spokaneinvestor
That is something I would make the offending agent pay or delay the close. I would not pay out of pocket.
At that point, I was mentally done and just wanted to get it over with. They pointed fingers at each other, so I don't know who did it. I didn't want to send it back to underwriting and basically start over.
Both agents missed multiple things that I had to do myself. Various reports never made it to the lender that the agents say they had forwarded. I did that on my own. My agent wasn't on time for the final walkthrough. One of the agents must have forwarded an incorrect contract to the lender with the wrong purchase price - I had to make up the difference at closing to keep the loan from having to go back to underwriting. It was a relatively small amount on a relatively small loan, but it's the lack of attention to detail that's concerning.
No one even bothered to bring the keys to closing. The lockbox is still sitting on the porch, presumably with the keys inside. Fortunately, the seller just gave me his.
The agents were completely incompetent. The incompetence wouldn't make it anywhere I've ever worked.
Was the incorrect contract fully executed? Was there an addendum that preceded it, adjusting the price and/or any add't terms? Not sure how the lender received an incorrect contract and worked off of it if both buyer and seller had signed off on something different
My agent seemed fine at first. This wasn't a complicated search. I basically knew what I was looking for and was fairly open on location. She seemed like a bit of an airhead, but I'm surprised she was that sloppy.
At that point, I was mentally done and just wanted to get it over with. They pointed fingers at each other, so I don't know who did it. I didn't want to send it back to underwriting and basically start over.
I understand wanting to be done .. sometimes there are considerations other than money. Pretty egregious error in my book. I have worked with some sloppy agents in my time but never one that didn’t know which contract and price we were working off of. I would have, at the very least, had commission calculation on the price the lender was lending against not the higher price. And I would likely have made a complaint to the powers that be in your state about the agent(s)
Was the incorrect contract fully executed? Was there an addendum that preceded it, adjusting the price and/or any add't terms? Not sure how the lender received an incorrect contract and worked off of it if both buyer and seller had signed off on something different
There was an addendum. The price change would have been the first addendum. I don't know how it didn't make it to the lender. I didn't notice the error either.
No of course the buyer won’t bring extra dollars to the closing table, especially not to close out an upside down mortgage or other liens the seller are responsible for!
Put it this way, if commissions were shown on the buyer’s side of the settlement statement, property values would automatically decrease 6% on average across all markets. The sellers wouldn’t care that their house value has decreased 6% if commissions weren’t shown on their side of the settlement statement because they would still walk away with the same amount.
So instead of a house costing a buyer 100,000, it now would cost only 94,000 but added 5,640 in commissions added to buyer’s side, which nets the seller the same either way, and actually $540 in commissions are now lost to decreased sales price, boo boo realtors. Buyer pays a surcharge on sale price or directly pays commissions, either way they pay commissions.
why would the Buyer put the seller's agent commission on their side of the ledger?
are you trying to propose that each side pay their agent, and thus the buyer pays their agent - in your example - 3%, and the price of the home is reduced by 3%?
Of course this would change underwriting lending procedures among other things if buyers had to absorb such a direct upfront cost to buy a property, a cost that isn’t even equity. But on the flip side sellers wouldn’t have to worry about such a cost when time to sell. Commissions are being paid no matter what, and no matter how it’s shown on the settlement statement. At the end of the day it’s the buyers cash that’s put into escrow where the commissions get paid from. I’m done beating the dead horse.
Now that you're a Realtor, how many homes have you closed where you believe the Seller would take 3% (or 6%) less, or the Buyer would readily have 3% more in cash to be paid at closing?
how have you found the prospect of commission-based sales with no safety net thus far this year?
why would the Buyer put the seller's agent commission on their side of the ledger?
are you trying to propose that each side pay their agent, and thus the buyer pays their agent - in your example - 3%, and the price of the home is reduced by 3%?
I’m not proposing anything, I’m simply illustrating that buyers are ultimately the ones paying the commissions either through a surcharge on the property like it is now or a lower sales price but with commissions shown on their side of the settlement statement.
you said the 6% should appear on the buyer's side.
Why would the Buyer pay the seller's agent? Or do you think buyer's should pay their buyers agent 6%, and sellers pay their agent whatever they negotiate?
you said the 6% should appear on the buyer's side.
Why would the Buyer pay the seller's agent? Or do you think buyer's should pay their buyers agent 6%, and sellers pay their agent whatever they negotiate?
Well the way is is right now, the seller pays the buyer’s commission ( at least that’s how it’s shown on the statement). For the last time my whole point isn’t to propose anything, it’s just the fact that NO MATTER HOW IT’s WORDED OR SHOWN ON THE STATEMENT, the buyer is ultimately the one paying commissions, through yes a surcharge on the property, even though the surcharge is not shown on the buyer’s side, let me repeat, even though the surcharge isn’t shown on the buyer side the buyer is still paying for it, yes paradox I know, but that’s the reality.
The surcharge (commissions) is already hidden and bundled into the seller’s sales price. Then people think because commissions are charged to the seller’s side that the seller is paying for them. No they aren’t. They just jacked up the sales price, indirectly passed on the cost to you Mr. Buyer and then took credit for paying the commissions, because that’s exactly that the seller before them did, it’s a perpetual cycle.
Last edited by JPrzybylski07; 09-17-2019 at 04:22 AM..
Well the way is is right now, the seller pays the buyer’s commission ( at least that’s how it’s shown on the statement). For the last time my whole point isn’t to propose anything, it’s just the fact that NO MATTER HOW IT’s WORDED OR SHOWN ON THE STATEMENT, the buyer is ultimately the one paying commissions, through yes a surcharge on the property, even though the surcharge is not shown on the buyer’s side, let me repeat, even though the surcharge isn’t shown on the buyer side the buyer is still paying for it, yes paradox I know, but that’s the reality.
The surcharge (commissions) is already hidden and bundled into the seller’s sales price. Then people think because commissions are charged to the seller’s side that the seller is paying for them. No they aren’t. They just jacked up the sales price, indirectly passed on the cost to you Mr. Buyer and then took credit for paying the commissions, because that’s exactly that the seller before them did, it’s a perpetual cycle.
Disagree, 100%.
Market value is market value - whether it's FSBO, a listing agreement with 2% or a listing agreement with 10%.
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