I made a deal to sell my house with a guy for a certain price. A price assuming a 6% discount, because I thought the sale would be without the hindrance of realtors.
This guy "just wanted to run it by a realtor" to make sure he was getting a fair deal, and now the realtor wants to tack on a BS commission.
I said FINE, tack it on to the price, and now we have a stalemate.
I refuse to let a "commission" eat into my profits.
What do you do?
2007-06-02 12:41:39 · 8 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
I told that dork, i was giving him a price break because we were doing at ourselves, but he insisted in getting a realtor involved anyway....
2007-06-02 12:54:10 · update #1
My crib is way cheaper, and way nicer than my neighbors. I have had two people show interest before even listing it on the mls.
its going on the mls on monday
2007-06-02 12:55:40 · update #2
Your Buyer is a "dork"! If you had agreed to work with the Buyer's Agent, then , yes, you would have to agree to the commission. However, that's usually 2.5% to 3% in most regions of the country. They are entitled to about half the 5% to 6% commission that they normally would get if the house was listed. That's because it has to be shared between the listing agent and broker and the buyer's agent and broker. Many FSBO Sellers do agree to work with a Buyer's agents at times (for 2.5% to 3% ). However, this guy came to you initially without an agent and agreed to buy without an agent's "help". That agent did not bring him to your house!Actually neither one of you are obligated to that agent as long as you didn't sign anything. If your Buyer didn't sign an agreement with the agent to retain their help then he is not obligated to pay . Again as long as the Buyer did not sign an agreement with the agent neither of you are liable. It sounds like that agent did no work and wants a full commission to boot!
Yes, in our dealings with agents, unfortunately,many of them are very unscrupulous and will do anything to get their commission even lie!! ( There are VERY FEW GOOD ONE"S & the Bad One's give them a bad Rep.)
Check this out with your lawyers to get documented confirmation.
Check out this link for some info on the Buyer's Agent Agreement Contracts--
http://homebuying.about.com/cs/dealingagents/a/buyers_agent.htm
Good luck!
2007-06-02 13:51:01 · answer #1 · answered by ursaitaliano70 7 · 0⤊ 0⤋
Before you blast the entire profession, a buyer's agent doesn't charge the BUYER anything for representation. Realtors offer other realtors a cooperating commission for bringing a buyer to a house they're selling. The seller pays the entire commission for both realtors, not the buyer.
It sounds like your buyer was working with an agent and then found your house, which was for sale by owner. He knows his agent won't get paid a dime if he buys your house without an agent. So he asked if you'd be willing to pay his agent's fee. You are under no obligation to pay it, of course. OR you could pay him/her a small commission to do all the paperwork for you both, make sure you have all the necessary disclosures and legal documents, etc. OR the buyer can decide to pay his own agent since you told him from the beginning that you were not using an agent and wouldn't be paying any commissions. Tacking it onto the sales price and then crediting it back to the agent is perfectly logical.
If the buyer really wants his agent to represent him, then the buyer should pay the fee if you are totally unwilling to. However, you risk losing the buyer altogether if you say no.
It's your decision of course, but I'd recommend paying the agent something, maybe 2% or so, and letting him/her do all the paperwork. That way you still get your house sold, you don't pay a 6% commission, and someone else takes care of the legalities for you both.
Best of luck!
2007-06-02 15:05:43 · answer #2 · answered by operababe_61 3 · 0⤊ 2⤋
Don't jump on the entire profession because your buyer is negotiating. The Realtor and buyer should already have a contract specifically stating how he is to be paid., and it is completely fine for the buyer to pay the Realtor himself or add his commission on top. I would also suggest the buyer hit him with a flat fee since he is just doing some simple paperwork after you two already had things set. I am handling a similar transaction right now for a fee that is half my normal buyers agent fee and I'm glad to be involved. I didn't show the property or spend undue time that would justify a higher commission. Stay your ground.
2007-06-02 13:23:19 · answer #3 · answered by The Real Estate Guy 1 · 1⤊ 0⤋
Depends on what your market is like, among other things. Of course, you do not have to pay the commission, but it looks like you will lose that buyer if you don't. You are prepared to pay it in a few days, but you might be able to negotiate a better price. Or you might not. Are you going to be paying a 6% commission next week? If you don't list, you are probably only paying a 3% commission.
2007-06-02 14:25:33 · answer #4 · answered by mefrancis 2 · 0⤊ 1⤋
Dont pay a penny you dont have too. It was the buyer that you gave the discount too... Its a buyers agent, the buyer has to pay him/her unless you agree to do it.
To make it simple its not your problem. If the buyer decided to go out and get advice its on them not you. You dont have to pay a penny. I agree with you, raise the sales price 3% if that is what they are paying the agent. But it shouldnt hit your bottom line.
To make it easy you say for example I put my house up for100,000 I gave you 6% discount. So you get it for 94,000. Im walking away at closing with 94,000 if you need to raise that amount on your mortgage loan to pay a third party, thats fine, but it doesnt change my 94,000.
2007-06-02 12:56:36 · answer #5 · answered by financing_loans 6 · 0⤊ 0⤋
If the deal was for you to pay him and he went out on his own for an opinion, he should pay. You don't have a deal in writing that you gave him the Okay to run it by a realtor, right?
I'd say get rid of him and go "For Sale By Owner".
2007-06-02 12:45:37 · answer #6 · answered by Himiko 4 · 0⤊ 0⤋
A buyer's agent would not be working for you. If you are selling "For Sale By Owner", you'll have attorney fees of your own.
Contact a real estate attorney before proceeding. The buyer is responsible for paying the agent...
2007-06-02 12:47:41 · answer #7 · answered by Anonymous · 0⤊ 0⤋
you are not obligated to pay the realtor so DONT! This person helping you needs to fork over the cash..
2007-06-02 12:52:47 · answer #8 · answered by Pure Genius 3 · 0⤊ 0⤋