Re: Other thoughts and YOUR input on a technique requested? - Posted by MilNC
Posted by MilNC on March 14, 2000 at 17:28:12:
Now I’M confused!
My understanding is as follows:
“Buyer’s broker” means that the buyer pays a commission to the broker/agent of his choice, and this establishes a fiduciary relationship of that agent to the buyer.
What used to be referred to as the “buyer’s agent”,
referred to an agent selected by the buyer to look for houses, who would receive a split of the listing agent’s commission which was established in the listing agreement to be paid to the listing agent by the seller, and which therefore had established a fiduciary relationship of the
listing agent to the seller. Since the buyer’s agent
shared in the commission paid to the listing agent
by the seller, then he was working for, being paid by the seller, and shared in the same fiduciary relationship.
Are the investors advertising that they will pay a “bonus” “On top of” What? their “normal commission”…paid by whom? By the seller? then that is a conflict of interest.
By the buyer? then I would think that it would
be just a higher amount than the regular buyer’s
payment of commission to the agent working for them, the buyer’s broker, a higher percentage. That’s probably what you meant,
it was just unclear at first glance.
Sounds good though. I like it. Do you think this might
cure some of those issues that have come up with realtors asking upfront commission money or for funds to be escrowed before an
offer is made? (which was answered, I think by JPiper,
as a breach of escrow balancing rules).
I like this idea anyway, because the buyer’s broker
agreement is a contract, and does give an incentive.
It doesn’t tie up the buyer’s cash,but guarantees
(I think) the agent’s getting paid if deal closes.
OR, is it just better to have a flat fee bonus, so that the
buyer’s broker has no incentive to want a higher
sales price? Hmmm --that sounds better.
I think one would have to know their state’s law on
Very interesting. I hope you’ll re-post if this ages
off the board-it has been really busy the past few