How to handle Realtor - Posted by George

Posted by Kris on March 01, 2002 at 07:32:11:


I like your advise. I just started reading CREOnline News Group and have found it to be very interesting. We are in the processes of selling a home now and just yesterday I got a call from a real estate agent. I was better prepared after reading your posting. I’m suppose to meet with the potential buyer and his agent today. Thank you

How to handle Realtor - Posted by George

Posted by George on February 27, 2002 at 17:16:40:

I just finished rehabbing a house except for carpet and put a sign outside it. Last week I get a call from a potential buyer who is interested. She said that her husband would call if they are interested in seeing it. Next I get a call from an agent asking about the house. I told him the details and he said his client wants to see it when the carpet is down. I do not have this house multiple listed and I did not tell the agent I would pay him a commission. The agent is working with the original caller but I did not know that when the agent called. Next day the husband calls and says they want to see it and he tells me who his agent is. Then I realize this is the agent that called the day before. I pre-qualified the husband over the phone and he gave me permission to check his credit. He is a bona fide buyer, but I do not want to pay a commission. I asked him how long he has been working with this agent and he said they only went out to look at houses one time. I asked him if he signed any buyers agent agreement and he did. Is there any way I can sell this guy the house and not pay the commission. Suggestions? Thanks in advance

Re: How to handle Realtor - Posted by RC

Posted by RC on February 27, 2002 at 23:11:27:

I have to agree with BobH
You have several options. If you tell the buyers that you will not work with an agent you will likely lose them as they probably lack the savvy to go into the largest purchase of their lives without representation. The broker is, at this time, a Buyer’s agent - you are not responsible or obligated to pay any commission. The easiest way to make this transaction a sure deal is to offer the agent his seller’s commission - he is NOT entitled to the “listing agent” commission - therefore the maximum should be 3%. You may also want to stipulate that settlement will be at your title or attorney’s office to best protect your own interests. Good luck

Re: How to handle Realtor - Posted by Bob H

Posted by Bob H on February 27, 2002 at 19:36:44:

Under most Buyer Agency agreements, the buyer is ultimately responsible for paying the broker the agreed upon fee. As a matter of practice, on listed properties, the seller agrees to pay the buyer’s agent fee, thus the issue of the buyer’s obligation to pay the fee never becomes an issue.

In a FSBO situation, you (seller) have no obligation to pay a commission, you have every right to expect the buyer to pay his agent’s fee, or if they want it incorporated into the purchase, raise the selling price to cover the commission.

Having said that, if you are truely unwilling to pay a selling commission to the broker, expect that he will probably be less than enthusiastic about encourging the buyers to make an offer on your property.

If it were me, I would offer to pay the broker a customary co-op fee if his buyers purchase the property. Who knows when your next qualified buyer is going to show up?

Re: How to handle Realtor - Posted by Tim Fierro (Tacoma, WA)

Posted by Tim Fierro (Tacoma, WA) on February 27, 2002 at 19:16:50:

Yes, you can sell to this buyer.

Any contract between the buyer and the agent, is their concern, not yours.

Be aware though, they may want to present the offer to you on some MLS forms and have the agent present the offer. If you have your own contracts, now is the time to whip them out. Have the buyers meet you and you have your contracts filled out for them to sign.

Your forms of course make no mention of paying an agent, their forms might and you will need to cross it out. :slight_smile:

BTW, I am an agent, and I would try to get you to pay the fee or threaten to take my clients elsewhere. You should try to talk with the clients/buyers only if possible. If they say call their agent, tell them you don’t work with agents, and what time could you all get together to sign papers.

Worse case scenario; Mr. & Mrs. Buyer, I could work with your agent, but I will need to charge you a few more thousand dollars for the house so that your agent would get paid and I don’t incur more taxes for the higher fee. If that is ok with you, then we could write the price 4% higher than the price I want so that your agent and my taxes are paid. Do we have a deal?

Then give their agent 2% when he tries for more and keep 2% for your higher fees and trouble. :slight_smile: