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We found the house, (knew exactly what we wanted and viewed directly with listing agents or at Open Houses) - he pulled all the comps etc and dealt with the paperwork.
He rebated us commission at close and we saved thousands of dollars.
You can't interfere in the agreement between the seller and their agent. They have a binding contract that stipulates how the commission is going to be handled. You are not a party to that contract and have no power to change it.
You are breaking the first rule of real estate. You are letting your emotions get the better of you. (You don't like who gets the money).
No , he is right... We have done this before...
The agent can change the commission if they are willing...
I have sold a house and had an agent reduce the commission percent when they were the sole agent in order to make a deal go through.
Everything is negotiable.
Everybody won..The sell went through, seller got same price, buyer paid less,
agent got a 3% commission because there was no buyer agent to cut the commission with .
It seems wrong for the seller agent to make more than the seller for a weeks worth of work. It seems wrong to go find an agent for myself who will make $6,000 for five hours of actual work. Shouldn't an agent who is truly looking out for the seller be happy to make less commission when there is no buyer agent to pay?
And what does it mean to let my emotions get the better of me? Just as well to say I am letting my conscience get the better of me, or that I am in danger of having sympathy for the seller. So be it. But it is dangerous to disregard emotions — they are simply the body's response to the thoughts of the mind.
A couple of issues...
First it is a separate contract between listing agent and seller for compensation. The listing agent can of course talk with the seller and they can agree to modify the agreement. It sounds like the seller asked and the agent said no. So the seller will need to pay the whole compensation as they agreed to.
Second, I think rather than trying to badger the agent into altering the contract, because they already said no, your second choice is the better choice. If you are in a state that allows rebating, then this seems like the best solution for you. There are many companies that rebate. I personally think this is the cleanest way to do it.
Third the reason agents get paid so much "for a week's work" has to do with risk and reward. Real estate fees would drop dramatically if consumers paid for service every 30 days just like other service professionals. In my area 31% of listings actually sell. So that means those 31% are helping to pay for the other 69% of folks that couldn't sell their homes. Agents spend money on those 69% and that business loss is built into every commission. Real estate is a for profit business and they do expect to make a profit.
High risk=high fees
low risk=low fees
That simple.
So if you are personally rankled by the high fees of real estate go find a real estate consultant...one that charges by the hour, flat rate, fee-for-service, and support those alternative models of business. I guarantee you that you have them in your area.
I am of the mindset that presenting your entire offer with ALL terms in writing is the only way to go when negotiating real estate. Calling and asking specific $ questions of the seller and the sellers agent rarely gets one anywhere. You mentioned the impossible matrix but if you have not presented a written offer you are basing your assumptions on something you haven't actually tried. It aint $h!t if it ain't writ.
No , he is right... We have done this before...
The agent can change the commission if they are willing...
I have sold a house and had an agent reduce the commission percent when they were the sole agent in order to make a deal go through.
Everything is negotiable.
Everybody won..The sell went through, seller got same price, buyer paid less,
agent got a 3% commission because there was no buyer agent to cut the commission with .
geoff2v is right...
An agent can agree to drop THEIR share of the commission - but you forget - the agency often gets half of whatever the agent made, so he/she can only drop their 1.5 to 3% - not the whole amount.
Am I missing something here? Did you and the seller AGREE on a selling price? or are you looking to pay less than the seller is willing to take so you are attempting to find ways to make the bottom line more palatable for the seller?
So you make the listing agent out as the bad guy. You say you found the house on your own, then how did it get listed with an agent? or do you mean you found the house as a result of the marketing done by the agent and the tools provided my the local board of Realtors?
Right now you're squabbling over the selling price, what going to happen if you find that the house needs repairs? renegotiate?
I coached the seller on trying to negotiate a lower commission with her agent since but her agent said no and that such a thing was unheard of. But I am not giving up yet and am considering various strategies:
I'm not a lawyer but be careful. The seller and his agent have a CONTRACTUAL Agreement And you could be slapped with a lawsuit for interference in a contract.
The listing broker charges their fees and the seller agreed to pay requardless where the buyer comes from. If you interfered with my business agreements I would tend to be pretty upset and would consult our attorney
Be careful, some of these brokers are pretty big boys with a lot of cash and attorneys on container
They may have rightfully been damaged by you and you get to pay them a bunch of money and a large attorney / court cost.
I'm not a lawyer but be careful. The seller and his agent have a CONTRACTUAL Agreement And you could be slapped with a lawsuit for interference in a contract.
The listing broker charges their fees and the seller agreed to pay requardless where the buyer comes from. If you interfered with my business agreements I would tend to be pretty upset and would consult our attorney
Be careful, some of these brokers are pretty big boys with a lot of cash and attorneys on container
They may have rightfully been damaged by you and you get to pay them a bunch of money and a large attorney / court cost.
I think ol' AustinWilly would have a field day with this contention.
Regardless, to attempt to reach the goal of paying the lowest net price, the OP should offer a net price that reflects the fact that the agent can help make it work.
Insulting the agent with a "Neener Neener, You Guys Suck," will probably be counterproductive.
Insulting the agent with a "Neener Neener, You Guys Suck," will probably be counterproductive.
How about "liar, liar, pants on fire"?
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