My girlfriend's parents were approached to sell their home. Does the Realtor make money from them selling it?

Question

Ok so my girl owns a home that has a commercial area and her parents were approached by a Realtor to sell their home and property to the person the Realtor was representing. Does the Realtor make a commission from my girl selling the home? They did not contract the Realtor, the Realtor approached them with a potential buyer.

"If your parents did not list the home with the realtor and sign a contract with them then no the seller would not pay a commission. There is a contract with the buyers if they buy a home for sale by owner that the buyer in this circumstance pays the realtor commission."

this is what I thought as well. As long as my girls parents never sign any papers asking for representation from the Realtors the Realtor would not get commission from what they make, but the buyer will have to pay the commission. Say the property is worth 1mil and they contract the realtor. The realtor is charging 5% so the realtor would get out of the 1mil that the parents receive, $50,000. Now if the realtor is not contracted by the parents, and the home is sold for 1mil the buyer has to pay the realtor $50,000, ultimately making it $1,050,000 for the buyer. Would this be how it works?

Answer 1

The REALTOR will make an obscene amount of money that he does not deserve.

The REALTOR may say he represents your girlfriend's parents.

The REALTOR may even have a paper for your girlfriend's parents to sign that acknowledges that the REALTOR is representing their interests.

In my experience I have never met a REALTOR that truly represented anyone's interest other than his own, and I have met a very large number of REALTORS.

First: I recommend that you do not sell real estate in this market.

The real estate market is severly depressed right now. You will not get the true value of your property if you sell it now.

That REALTOR is only bringing your girlfriend's parents an offer because the REALTOR thinks that he can persuade them to sell their property for less than fair market value.

I recommend that you have your girlfriend's parents hire a competent real estate appraiser to appraiser their property if they truly want to sell it. The appraiser should be a Member of The Appraisal Institute. Merely being licensed is not good enough.

That will tell them what the true fair market value of their property is.

They should not sell their property for any amount less than the appraised value that their apprasier came up with. They should not accept an appraisal from the REALTOR's appraiser, the buyer's appraiser or the lender's appraiser.

Next: Hire a real estate attorney to represent your girlfriend's parents interest. Do not let the REALTOR represent their interest. The attorney must protect their interest against the REALTOR and his client.

If you follow my directions your girlfriends parents will at least receive a respectable price for their property if they do sell it and their interests will be protected.
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Answer 2

If your parents did not list the home with the realtor and sign a contract with them then no the seller would not pay a commission. There is a contract with the buyers if they buy a home for sale by owner that the buyer in this circumstance pays the realtor commission.

Answer 3

Many people think they can do this, and they think that being a real estate agent is easy. What they don't realize is that by not going through an agency, you have no access, nor any knowledge of, legal advice. There are a million things that could come back and haunt you. Things from title problems, to problems with release of mortgage, to property transfer taxes, property taxes, unknown liens, all the way down to disclosure statements & transfer of deed. If you go on your own, you will end up paying an attorney-a lot- to make sure you are protected and all is legal. You may have to pay a title company (as well as find a good one) and you will be 100% responsible for all advertising and the like. Interview 2 or 3 agents, ask them exactly what their agency provides, ask them the things they do to protect the seller and ask what marketing is provided. Personally, I would never buy a home from a FSBO as it usually means the house is way above market value AND I will have to shell out extra money for extra legal & closing help. But that is me.

Answer 4

The realtor makes a commission from the sale proce of the house. It's deducted (usually 5%) when the property is sold...along with taxes, fees, closing costs, etc...the the parents would get the remainder assuming they owe nothing on the property. If they DO owe...then the balance of their mortgage would also have to be paid from the money from the sale

Answer 5

Yes. The usual commission rate is 3%. If you have an agent too, that realtor usually receives 3% as well.

Answer 6

I believe that the Realtor would get his commission from the buyer. However, it has been a long time since I dabbled in real estate.

Answer 7

The realtor will still act as the seller's agent, and probably expect a comission. Usually, it's about 6% of the selling price.
They will write up a contract as a seller's agent, their expected comission should be disclosed in there.

Answer 8

Without a doubt. Most realtors are payed on a commision basis.

Answer 9

The buyer might pay all the commission. Pay attention to the agreement to make sure.

Answer 10

Well...the realtor is deffinitely going to make alot of money.........because for him to approach them, the buyer must really be interested in this paticular property.