They said I have to pay 6 % now because the sale was from another real estate agency and they want a cut. They said I could have prevented this by muli- listing but I thought I was doing them a favor by only listing with them. Should I to pay the extra 2 percent or should they responsible for this. I know I can refuse to pay it, but can he cancel the deal for the whole sale or what. Is this normal for a real estate agent to try this? I don't have much experience with this. I would like an answer from an agent or anyone who would know..
2007-06-04 11:40:04 · 10 answers · asked by jumper 3 in Business & Finance ➔ Renting & Real Estate
how do I even know they are telling the truth? why am i being punished for not multi listing?
2007-06-04 12:12:52 · update #1
I am a Realtor in Florida, the listing agreement is what you need to refer to. If you signed an exclusive right to sale and they agreed to charge a 4% commision that is all that would be due. It should be clearly spelled out what they would give a buyers agent. It might be worded that they would charge a 4% commision if they brought the buyer or maybe it says they would collect 4% and give the buyers agent 2% resulting in a total of 6% being due.
Or it could be a case of the Listing agreement is 4% but the offer that came in from the buyers included an extra 2% to the agent. In that case your Agent has to present the offer and give you the option to make a decision on what to do.
Bottom line is you need to refer to your listing agreement & contact your agent for further explanation. The other thing to consider is how long your home has been on the market, have you had any other offers? It is worth the 2% to loose this deal? Is a good deal in all other aspects.. price, closing date etc..? Best of luck to you!
2007-06-04 12:09:58 · answer #1 · answered by Rosie 4 · 0⤊ 0⤋
You are not obligated to sign any other agreement that the agent bring to you.
When you signed your 4% agreement the agent thought he would sell the house him/herself and pocket the entire 4%. Now another agent has brought an offer and your agent now want to increase the commission to 6% so that both he and the other agent will get 6%.
If it was me I would tell him an agreement is an agreement. He/she should have been aware that another agent could have brought an offer.
Now this might cause you to lose an offer if there is an offer. If there is no offer you have been tricked into now paying a 6% commission instead of 4%.
Tell him to produce the offer and you will consider it. If he produce no offer fire the sucker.
This sounds sort of fishy to me I would go as far as firing this agent and getting another. This is not a normal way to conduct business.
A signed ageement is an agreement. He will have to make up the difference on someone else. You don't need an agent such as this one.
Some one said this is normal. If an agent signed an agreement for 6% and presented a buyer also, I am willing to bet that this agent will not march in and say I want to reduce our agreement by 2% since I found the buyer also, so I want you to sign a new agreement for 4%.
If this was normal this would be the case. It never happens and is nor normal.
That is why real estate agents get a bad name and are considered below that of a car salesman.
I hope this has been of some use to you, good luck.
"FIGHT ON"
2007-06-04 19:39:44 · answer #2 · answered by loanmasterone 7 · 0⤊ 0⤋
Multi listing? There should not be any clause for that.
I really only know about CA, where I invest in real estate. But, I doubt there is a state difference in this, as you are talking about contracts.
You only have to pay 4%, that was the contract you signed. They have to split that with the buyers agent. They do not get to renogatate the deal after it has begun. This splitting of the commission is standard practice, nothing unusual about it, and they can't cancel the contract for you insisting they adhere to it.
If they pressure you contact your local real estate board, they will come down on them hard. If you have trouble finding your local board just post your city/county/state here and I am sure someone will help you.
2007-06-04 20:57:08 · answer #3 · answered by Landlord 7 · 0⤊ 0⤋
No they can't demand the extra 2%. They are sleazzy realtors and just being dishonest and greedy. Stick to the 4% which will be 2 and 2. They probably advertized the listing for 2.5% and forgot it was only 2% to each side. Their problem, not yours. If they cancel the sale you will have such a huge law suit that is might be worth it. Go through with the sale and only pay out 4%.
2007-06-04 20:26:29 · answer #4 · answered by Patrick G 4 · 1⤊ 0⤋
Hi I am an agent and what you are going through is totally normal.
When you listed your house you laid out what you wanted. Legally your agent must present all offers and so the agent can ask whatever they want.
You also have the right to say no. But I know what you fear, if you say no they say "Ok, and they leave and go buy another house."
This is the classic example of the bird in hand (the buyer you have now) versus 2 in the bush (the buyer you don't have but could..maybe).
Right now properties most places in the United States are actually still going down. So if I were your agent I would say take the deal, the bird in the hand as you could be trying to sell later and not get it sold.
If however the market was different I may advise you otherwise.
It is my opinion that your agent has your best interest in mind.
2007-06-04 18:46:26 · answer #5 · answered by Workfortoday 3 · 0⤊ 2⤋
What does your contract say? Usually it specifies A) listing agent will get X percent and B) Buyers agent will get X%.
In CA right now it is listing agent gets 2.5 and buyers agent gets 2.5 . Thats average in my neck of the woods. It should be spelled out in the contract. If not, you dont have to give the buyers agent2%, only the 4% that goes to your agent that you signed for.
2007-06-04 18:45:11 · answer #6 · answered by Anonymous · 0⤊ 0⤋
three words REAL ESTATE LAWYER
going to cost less than the 2% - just start with the threat and see if they back down
also read the fine print. might say that they are going to charge you 6% unless they are the agent on both the buy and the sell. then forget the lawyer you are paying 6%
that is fairly common, to get a discount on an agent/broker double sale
2007-06-04 18:44:45 · answer #7 · answered by HD 3 · 0⤊ 0⤋
The commission breakdown should be completely explained in the Listing Contract. It should state the exact commission to be paid upon COE, if there are any additional commission structures or pay-outs and who is to receive the commission for based on the performance.
If there is nothing stating the commission is 6% if it was a coop sale then you do not owe it.
2007-06-04 18:46:34 · answer #8 · answered by Cadillac1234 2 · 1⤊ 0⤋
If you have a contract that says 4%, they would have to have you sign an ammendment changing it to 6%. Because another agency sold it, they have to split the 4%, I would contact the dept of real esate in the state you are in. Each state is different, but I wouldn't agree to an additional 2%.
2007-06-04 18:46:00 · answer #9 · answered by superloanlady 2 · 1⤊ 0⤋
If your real estate agent is a member of the Board of Realtors I would call them and ask them. The Board is there to protect the consumer as well as the agent. I don't know what state you are in but In NC we state the breakdown of who gets what from the begining. Your situation sounds shady but state laws can differ. Please call your local board of realtors and ask them, it should be listed in the phone book
2007-06-04 18:55:51 · answer #10 · answered by melissaw219 3 · 0⤊ 0⤋