...but the buyer has an agent. Do I end up paying their agent a commission out of my proceeds?
2007-02-11 19:18:46 · 7 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
It's your house, so it's your terms. You can draw up a contract to read pretty much anything as far as what you will and will not pay for. It's all up to you. If you agree to pay for half the closing and realtor......bump the price of your home up to make up the difference before you set up a contract...........you're in control.
2007-02-11 19:27:43 · answer #1 · answered by dylancv62 3 · 0⤊ 0⤋
You did not contract to work with an agent. If the buyer want to use an agent that is his prerogative and have nothing to do with you.
You are selling your own home. You may use any contract you so desire. You may write it on anything you desire.
A contract is a meeting of the minds involved and that is written down. If it goes to court a third party will decide if the intent of the minds were of the same and can be interpreted that way. If that was not true an oral contract could not be enforced and we all know that they are enforced in our courts on a daily basis, so if you want to write your contract on you child's school notebook paper and both you and the buyer sign it that is a legal contract.
Now about this agent, make sure you tell him in not uncertain terms he is not getting a penny from you for any effort he puts toward him selling or bringing a buyer for your house. You are under no obligation to this person what so ever. How he collects his commission if he does is not your concern.
You have built up equity in your house, your job is to keep as much of that equity as you can.
Now if there is a contract offered by this agent be careful of anything you might sign that has to do with commissions, remember you are not required or obligated to this guy in any way shape or form.
Don't let this agent talk you into giving him a commission because of the things he claim he can do that you can not do. You can do the same thing without his help. Let the buyer pay him if he want to collect a commission that is who hired him.
Don't allow him to do anything on your behalf, this could be deemed as quasi hiring him, thus causing you to pay him.
You may find an escrow closing agent or a title company in your local telephone book, some states use lawyers as closing agents. Call one of them to assist you with your closing. They will tell you exactly what is required by law in your state.
They will also type up the escrow clsoing documents for you and the buyers signature.
I hope this has been of some use to you, good luck.
"FIGHT ON"
2007-02-12 05:08:02 · answer #2 · answered by Skip 6 · 0⤊ 0⤋
Yes, if you agree to it. If not the buyer probably won't want to work with you directly because of the advantages of having an agent such as negotiation and handling the closing procedures.
When you pay this commission you are really paying for the agent for YOURSELF as well.
The agent wants to close on the house just as much as you do and will help write a contract that will be in everyone's best interest and will be legally binding keeping that buyer in the deal. It not in an agents best interest to have a deal fall apart and not get paid at closing... The contracts you can purchase at walmart are a joke and do not protect you as well.
If you want to save yourself a headache then definitely work with that agent. You are already saving yourself 1/2 of the commission because they didn't list your house.
As for the percentage of the commission it depends on the value of the homes in your area. In my market the average commission is between 6-7% so a fair commission would be 3-3.5% for a buyer's agent.
While you may balk at this remember the steps up to closing are the most strenuous, the home inspection and any other contingencies can totally ruin a deal. Trying to get a closing company to work with you directly can be just as trying. An agent that works to solve both of your problems will be well worth the price.
EDIT: To the person below: Right now we are seeing a huge increase in the number of forsale by owners on the market due mostly to the ease of the internet. However the national realtor association statistics support my claims. According to realtor.com 89% of all For Sale By Owners end up with an agent after failing to sell a house on their own. There is so much that goes into a home sale behind the scenes that most people are completely unaware of. Our purpose is to eliminate and solve problems to get you to closing. Selling homes is our main objective, resolving issues and informing clients of their rights and market value is the basis of what we do.
Good luck!
2007-02-12 03:32:22 · answer #3 · answered by Tim Nolder, Professional Realtor 2 · 0⤊ 0⤋
No, you are not required to pay commission, but the buyer. However, I am not an attorney.
2007-02-12 03:25:36 · answer #4 · answered by peacemakers3000 3 · 0⤊ 0⤋
Not if you make it clear to them that you are not going to pay any commission on your proceeds.
2007-02-12 03:23:38 · answer #5 · answered by Dr Dee 7 · 1⤊ 0⤋
Yes, since the realtor already knew it was a FSBO, 1.00% of the sales price would be fair. They would also handle escrow for you
2007-02-12 03:21:36 · answer #6 · answered by Photographer 6 · 0⤊ 1⤋
Check this site out!It helped me a lot while dealing with the same issues.
http://mortgage-loan.learnmagics.com
Hope it helps you too!
2007-02-12 06:11:46 · answer #7 · answered by rol3y2104 1 · 0⤊ 0⤋