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Hoping for some input on a situation that I have encountered, here goes...We are in the market to purchase a home (have been for the last year and a half) been working with a realtor, but have been unable to put a sale through (4 offers, but for one reason or another they have not materialized) When coming to renew the contract we told our agent we would agree to the extension except in a FSBO in which the seller would not pay a fee (as we financially could not swing that, she agreed to step back in that situation) This unfortunately was a verbal agreement.
Well we have been growing tired of the process and thought we might like to rent for the next yr or two and started to look at rentals, in doing so we fell into a home in which the seller asked if we would like to buy the home, but...you guessed it, he would not pay the buyers fee.
The house is in the area we very much like and the home would definately meet our families needs, but is at the top of our budget, after much negotiation.
This is not an uncommon occurance. Many ways to approach it depending on your relationship with your agent.
If he is a nice guy, very experienced and you want him involved you can pay him to help you or ask the seller to pay 3% towards your closing costs which will cover his commssion. (Don't call it his fees in the contract)
If you don't want him involved either notify him by phone or email what you are doing and then move on. He did not show or find you the house so there should be no procuring cause.
Whatever you do you should get someone experienced to help unless you are a very seasoned home buyer. If he is good, Paying him might be money well spent.
...When coming to renew the contract we told our agent we would agree to the extension except in a FSBO in which the seller would not pay a fee (as we financially could not swing that, she agreed to step back in that situation) This unfortunately was a verbal agreement....
Did your agent say she would not honor this agreement? Do you have reason to believe she won't?
Thank you both for your insight, the 3% at closing sounds like an interesting idea. My agent is a "friend or should I say aquaintance" of my family. She/He is a decent agent, but since the relationship started we (my husband and I have done all the leg work in finding a home) and called her in to basically open the lock box. She/He never told us whether or not the property in her opinion was priced right (we always had to dig it out of her, it was as she wanted to keep the market in an upward motion) She has been helpful in writing the offer...that's about it. We were hoping to go solo after our 7 mth contract expired, but on our last meeting with her she ambushed us with renewing the contract. My husband and I are both non-confrontational and felt akward (which she capitalized on) and we signed it...both regreting it once we left. When I got home, I called her and expressed my frustration with the way she got us to continue the contract, and that is when she agreed to "verbally" step back if we found a FSBO.
I do feel as though she has put in hours with us and I would not want her not to benefit from her time spent, I just do not feel comfortable paying a 2.5% fee when we did all the leg work and negotiation.
If you want out of the buyers contract send her an email and remind her about the verbal FSBO out. I would not let her know I found one yet and when she replies back that Yes she will honor that verbal commitment then you have it in writing.
Once you have it in writing then you can in good mind cut your deal with the FSBO if that is what you'd like to do.
Have you though about offering her a flat fee to handle just the paperwork or money for limited services ?
Yes, my husband and I were up all night trying to figure out how to approach it. She is and agent working for a global agency, so I am assuming she would have to go through them?
Although she is a "family friend" and I say that lightly, as we never socialize, it is still that akwardness, but I will say she is all business when it comes to the house hunting, always pointing out the sellers rights.
You might just ask her, she may not want to do it. I would only do it for a very close friend or family due to the liability, but she might.
There are several on here that I believe do limited services, maybe they can tell you what they charge. Decide 1st what you want,. Do you want just the paperwork or advice on inspections and her to walk you through the process all the way to closing ?
Don't buy very limited services and expect her to do the full service job. Most of the time the buyers agent has to hold the hand of the FSBO seller also to make the deal work.
Twice the work at very little pay. There can be misunderstandings on representation so make sure everything is understood in writing up front.
One of the biggest problems I see with a FSBO is they almost always overprice their homes.
If it comes down to business vs. friendship, you better plan on making one new friend if you find a house. A 'verbal agreement' doesn't mean anything. Your agent has every right to seek compensation if you exclude her from the FSBO purchase.
You made the choice to sign the contract, she didn't twist your arm. You and your wife sound like you were too timid to speak up about your concerns and now you're having 2nd thoughts? This is exactly why you need a realtor to hold your hand through a home purchase. Without a realtor, you'll either never get to the closing...or get reamed by the seller.
Oh, I would not call us "friends" but do understand what you are saying.
I disagree with your take on my husband and me, we are very forthcoming, but as we found (some) agents are relentless. We actually were putting an offer in and as we were signing the offer, she rips out the "new contract" completely taking us by surprise and stated "oh, and initial our extension" Obviously she didn't feel the contract would materialize?
You are right we should have said no and reviewed it, but because she was a "friend" we didn't want to hurt her feelings, which we know was stupid, but we are a empathetic couple.
The thing that I hate about the whole real estate process is when realtors try to befriend you just to get your business, very fake and annoying!
Last edited by 3muskateers; 11-30-2009 at 10:07 AM..
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