Real Estate Professionals Please - Hypothetical Situation"?

Question

I'm selling my home as a FSBO. A prospective buyer calls to make an appointment to see the house. The buyer states that she is also a broker, and although she is looking to buy the house for herself, her company requires her to charge the 3% buyers commission.

Is this a common practice? Is this legal? Is this ethical? Is she trying to essentially get a 3% discount on the purchase?

Answer 1

You are being given a bunch of misinformation. The reason behind this is a matter of philosophy and a bunch of people who gets their licenses just to save a commission and then muddle up the water for everyone.

Professional and ethical companies tell their agents that if they believe in the viability of the industry, you work through the system. You don't list your own property as FSBO and you do not buy FSBO. It would be hypocritical for an agent to tell the customer to use the service of a Realtor and then put up a FSBO sign. If the agents do not follow that rule, they don't work there. This has nothing to do with money.

Having said that, most real state companies, rebate all the commissions to the agents if they are purchasing the property as their own home. If this agent is serious about purchasing your home, work with that person. Simply look at your net amount of the sale. If it is acceptable to you, take the deal. If not counter the offer. She is obligated to inform you she is a licensed Realtor and most state laws make it legal for the seller or buyer rebate commissions to the agents at closing.

Answer 2

With a home listed on the MLS, as a Realtor we do get paid a commission for selling a home to ourselves. The seller has already made an offer to pay the 3% no matter who the buyer is. And it may be very true that her company requires that if that company writes the offer, that they must take a 3% commission. However, you are not required to pay anything you have not offered. As a FSBO you are not required to cooperate with Realtors. If you are offering to cooperate, it does not matter if she is buying for herself or not. If you are not offering a commission to a buyer's agent, then feel free to hold to your decision. If her company INSISTS she be paid the 3% commission, then she needs to quit looking at FSBO properties.

Regards,

Steve

Answer 3

If she is looking for herself there is no reason she should be charging any kind of commission. Tell her no you will not be paying it, however if she wants to buy the house and pay the commision to her company herself she is more than welcome to. Be very careful, once she gets her foot in the door she may "decide" she doesn't want the property, but has the perfect person in mind, and then she will charge a commission. I don't think it's ethical and not sure about legal (unless she can talk you into it) Good Luck

Answer 4

In most states, a Realtor/broker has to inform the seller that he/she is a licensed Realtor/broker even if he/she looking to purchase a home for themselves.

You're a FSBO. Unless you have an agreement with the broker's firm to list your property, there is no commission to be earned.

Answer 5

I've heard of Realtors using this as a ploy to get their foot in the door. Ask to see her qualifying letter first. That puts her on notice, that she better not have lied about being a prospect for your house. It is common practice, it is legal, well ethical if she told you the truth, and no I wouldn't say she is trying to get a discount, mostly like she is going to try to convince you to list the house with her.

Answer 6

Perhaps if they have entered into a buyer broker agreement and they turned her onto your property. Otherwise that does sound sort of fishy. Ask them how they came about finding your property. As always everything is negotiable, find out if they may be willing to pay the commission. If you have any other questions, please feel free to contact me at:
[e-mail]
Licensed Florida Real Estate Agent

Answer 7

If she is buying it for herself, it is not legal nor ethical. She is trying to get a commission on the purchase of her own home and the answer you should give is "NO". If you have not taken on any contracts to sell through 3rd party nor should you allow them to push you into it. Good Luck

Answer 8

It's total BS. As a licensed person, she needs to disclose this fact when dealing with any property transaction. However, there is no such thing as giving her commission. If she is a Realtor, I would report her to the local National Association of Realtor's office.

Tell her to go pound sand and leave you alone.

Regards

Answer 9

She is a shady unethical broker like most real estate agents. She is lying to you to either get you to list your house with her or get a concession to get money out of the purchase, getting a lower price for the property. If she is purchasing the property for herself it has nothing to do with her company. Call her back and tell her you are going to report her to the State real estate board for unethical practices.

Answer 10

Re-fi's are tremendously hard now. The liquidity disaster is inflicting documentation and paperwork delays. That being suggested, 2 months is a protracted time to attend. inquiries to ask; has the appraisal been finished, if so-seem at it and spot in case you have the mandatory fairness to re-fi. Are you dealing with a broking service or a financial employer? Smaller banks are many times extra effective waiting to have money obtainable. How plenty fairness do you have on your place-if it truly is decrease than 20% you need to have a complicated time, and the indoors maximum loan officer is paying for the indoors maximum loan. you ought to additionally ask if the activity value has been locked in, there is many times a timeframe earlier it expires.