Can we split realtor fees if we sell our house?

Question

After trying to sell the house ourselves for 2 months, we finally engaged a realtor. We entered a standard "Exclusive Right to Sell" contract specifying we agree to pay the realtor fee "if sale or exchange of the property is made during the term of the contract." The realtor has had the property for 2 weeks and has not yet had a showing.

When trying to sell the house, we placed an ad that ran in a newspaper outside the area, listing my phone number. We had a call on that ad, showed the property ourselves and believe we have an interested buyer.

Is it fair to ask for a split of the realtor fees? Do we have a right to a split of the management fee?

Answer 1

You can ask, but I have an idea the Real Estate Company has better attorney's than you.

Answer 2

If you wanted to spit realtor fees, this agreement should have been made upfront. With a contingency like "If the seller procures a buyer independent from the realtor, no commission is due to the realtor." If you already signed the agreement without a contingency like this, then you have already agreed to pay the realtor whether or not you procured the buyer. Next time before you decide to list the property, find out what the average days on market is for a home in your price range. I suspect it may be about 90 days if priced right. You could have kept it for sale by owenr for another month and sold it without paying any commission.

There maybe one way around paying this commission. You can give the buyer an option to buy the house with a term that extends beyond the listing period. Then after the listing expires, hopefully you didn't over commit yourself too long, you can have the buyer exercise his option to buy. If you do this, you will want to get the most option consideration deposit possible. This will commit your buyer to closing with you. Understand that an option agreement is not a sales and purchase agreement, it's simple gives the buyer the right to buy and not the obligation to buy. This is why you will want to obligate the buyer by getting the largest option deposit as possible. Of course you holding on to the property for a few months will probably cost less than paying the commission. If the house is vacant or you plan to move soon, you can give this buyer occupancy and have them move into the property and agree to cover your mortgage payments until they exercise their option in the next few months. This commits your buyer to your house because they've already moved in.

Answer 3

You could ask for a split, but in an "Exclusive right to sell" listing, the listing broker is entitled to the commission regardless of who sells the property, including the owner, another broker or any other party. The listing broker need not be the procuring cause of the sale in order to qualify for the commission.

Call up the the agent and see if they are willing to split the commission. If not, you might as well have them work for if you're paying them full commission. Have them do a dual agency with the buyer. That way, you and the buyer only have to go through one person to get all the paperwork, loans, title company/escrow, etc information. Normally, I do not suggest a dual agency, but seeing how you and the buyer have already negotiated a price directly, it's ok at this point.

Good luck to you.

Answer 4

Well that is something you need to work out B 4 signing with her. In todays market most are happy to get a house if you are willing to list it at a price that will sell. The bare minimum they would list a house for is probally 3% and that's if your there very very best friend. But it may not be worth there time and advertising for that. It costs them to list you and advertise. I would definetly check around and see what other realtors would take, sometimes alot less is not best because you can pay for it in the end in paperwork. It is not unreasonable to ask her to take 5% especially if everyone else is asking more he or she will be making a profit if it sells and you probally will have to take quite a reduction on your profit-its a competitive business and everyone is hurting right now, some real estate companies are closing its so bad. Get a CMA, comparative market analysis on your neighborhood with all details of the ones they are comparing your home to. Also before you tell them what you want to ask for your home have them come and look at your house and tell you what they think they can get for it right now and go from there, good luck.

Answer 5

Fee Spliting DEPENDS on the type of Listing Agreement you signed. Here in California, there are several types... however the most extensively used one is the Exclusive Right To Sell (no fee splitting on that one, even if you find a buyer).

There are only 2 Reasons for NO SHOWINGS, NO OFFERS...

1. Lack of Exposure (if property is on the MLS, that's not your problem, because these days the MLS listings are on portals all over the internet!)

2. PRICE (your most likely culprit). In a changing market, you must take an HONEST look at what homes just like yours have gone for in the past 6 months. Instruct your agent to bring you a Comparative Market Analysis. Look at all the homes within 1 square mile of yours, and homes within 100 - 200 square feet of yours. Look at how much they actually SOLD for, according to public records. Forget about ASKING PRICES. Look at what actually SOLD & CLOSED. That will tell you how much buyers are willing to pay.

Once you have a SOLD figure, go ahead and fudge it up a bit (though, not recommended). When your house is PRICED to appear as a good value, you'll have MULTIPLE OFFERS quickly. Your agent then will have a few clients to negotiate with to get a higher price, etc.

3. An extra tip... if the COMMISSION you're paying to the broker/agent who brings a buyer is less than 3%... the marketplace of agents and brokers near you WILL NOT BRING THEIR CLIENTS TO SHOW YOUR HOME. 99% of us bring our clients to homes that fit BOTH the clients parameters, AND the agents parameters. Think about it... which job do YOU take, the one that pays MORE or the one that pays LESS? Everybody has a family to feed. Don't pretend to be "shocked". This is America - the land of Free Enterprise. You tried to go For Sale By Owner to "save the commission", right? Free Enterprise.

Answer 6

Kevc21 hit it right on the head.

If the buyer that called you wants to write an offer, he will have to do it through your Realtor.

Are you going to be purchasing another home. If you are, ask your Realtor if you buy a home using them, will they reduce their commission on the sale of your home. This way, your Realtor is really not losing. It's worth a try.

Answer 7

Legally in most states, Realtors cannot share fees with sellers. You could talk to the principle broker of your agent, but the answer is probably no. The most they could do is to reduce commission. What you should have done was to let your agent show the house instead of you showing it since you had to pay commission to the agent anyway. From this point, step back and let your agent close the deal. If there is no other brokerage firm involved, entire commission will go to your agent's firm. Talk to your agent and his/her broker (unless your agent is the principle broker) and see if they are willing to take reduced commission since they don't have to split it with another broker (of the buyer). I think they may be willing to do that for you.

Answer 8

You have to read the contract. Some contracts read that they get the commission whether you sell it, or they sell it, and others read that their commission will be lower. Two months on the market is not enough time to sell a property, much less two weeks to show a house. It seems like you're asking for too much.

Answer 9

I dont know what state your in , because different states have different laws. What I would do is ask the person buying if they could wait until your showing contract expires, then close on the house. because the realtor did not find your buyer, you should be o.k. ,but i would still consult with a real property lawer.

Answer 10

How long is the contract for?If it is 3 months then ride the contract.While the buyer gets financing sometimes it takes a while.Once your contract expires do not resign.If not those are one of the consequences people need to deal with signing a contract.So they make what $3000.00... Good Luck

Answer 11

Feel free to ask, but don't expect a positive result. Your contract stipulates that quite clearly. Your agent is still going to do quite a bit of work pulling the deal together so you should introduce the buyer to the agent who will have another agent in their office assigned to work with your buyer. He or she is going to get paid no matter what, so they might as well do something to earn it.