Monday Morning Realtors....Grrrrrr - Posted by Joe

Re: Not so fast… - Posted by stan

Posted by stan on September 17, 2004 at 08:15:15:

No, it was the general bashing of real estate agents. I tend to agree with him that there are a lot more real estate agents fail than succeed. But would you like to know something else: percentage wise (and probably number wise as well) there are a lot more (much, much more) real estate investors fail than real estate agents fail. Now if he wanted to take the time to say that such and such real estate agent sucked or had no idea of what he was doing that is a wholly different scenario. But to come right out and say that all agents as a whole are crooks, well, that is a little overboard if you ask me.

Re: This might be illegal - Posted by ken in sc

Posted by ken in sc on September 16, 2004 at 07:48:46:

Never heard of that, must not be the case here in SC. I certainly know that it goes on.

Of course, the seller can always say “You are welcome to show it but the buyer has to pay your commission”. In a hot market, this may very well happen. I have seen that as well. And if the seller says that, the Realtor may then ask to put the price higher and have the seller pay a commission so that the buyer can get a higher loan amount. This way it would be the agents idea. They certainly ask to have the price raised and the seller pay some of the buyers closing costs all the time.

My point is not to run these people off with things like “No agents” in the ad, or by being mean on the phone. Good agents can be your friend and bring you prospects. It is all about you as the seller getting what you want cash at closing.

Ken

Re: Not so fast… - Posted by E.Eka

Posted by E.Eka on September 17, 2004 at 12:44:08:

I see your point.

Re: This might be illegal - Posted by Mike ( xcop)

Posted by Mike ( xcop) on September 16, 2004 at 10:52:10:

Ken, I have brokered over 2000 sale transactions in the past 15 years and I can honestly say that many agents do try to “INCLUDE” the commission as part of the sale price. But a property will appraise for whatever it will appraise for regardless of whether you include the commission or the seller pays the commission out of the proceed. You can switch the appraiser or loan company but who’s really paying for it?

Many agents now are moving towards having buyers pay for their own agent. When commissions aer included with the sale price a lot of funny things can go on.

Re: This might be illegal - Posted by Bob K

Posted by gforcecable.com"]Bob K on September 16, 2004 at 08:29:34:

Actaully Ken in SC, this is the case - per an agent here a few days ago, net listings are not allowed in SC…

-Bob K

Fascinating - Posted by ken in sc

Posted by ken in sc on September 16, 2004 at 08:58:10:

This is why I love these on-line boards. You can learn so much.

What I have described has gone on here for as long as I have been investing. I have done this back and forth with several of the “big name” agents here in town, so I never thought for a minute that it would be illegal. Thanks for the insight and I will check into this.

Ken

Re: Fascinating - Posted by Bob K

Posted by gforcecable.com"]Bob K on September 16, 2004 at 09:39:04:

Of course, just because they are not allowed, does not mean agents do not do it anyway… I had an agent propose it to me last year “If I bring you a buyer, will you let me mark it up to cover my commission.” Sure, as long as I get $X I told him… (he never did bring me anyone) SO, when I propose this to another agent friend a few days ago, he informs me he can’t because Net Listings are not allowed in SC…

Bob K

Yeah, but what is a net listing? - Posted by Rick

Posted by Rick on September 16, 2004 at 11:23:41:

I think you or your friend might be confusing what exactly is a net listing.

Let me see if I can clarify this. “If I bring you a buyer, will you let me mark it up to cover my commission.” Sure, as long as I get $X I told him… Nothing wrong so far because you haven’t Listed anything with him. There is no reason why he couldn’t write the contract with his commission stated on it and offer a price so that you get $X and he gets his commission. Maybe he didn’t know, or maybe he didn’t really have a buyer.

A Net Listing is when the Broker and the Seller enter into a listing agreement with an agreed upon Net Proceeds that the seller will recieve and the Broker get to keep anything over and above that. In other words I, Mr Broker, tell you Mr Seller I’ll get you $100,000 in your pocket for this house if you’ll sign right here and if I happen to sell it for $250,000 then you get your $100,000 as promised and I keep $150,000. I am sure you can see the potential for abuse and that’s why it’s illegal.

But Joe Public can accomplish the same thing by writing a straight option to purchase at $X… and turn around and sell for $Y…

Re: Yeah, but what is a net listing? - Posted by Bob K

Posted by gforcecable.com"]Bob K on September 16, 2004 at 13:41:16:

Rick-

I know what a net listing is… in fact you quoted my description of it from my post… and then repeat the situation in your subsequent paragraph.

That is exactly the situation the agent was proposing… me getting $X, and whatever over and above that he gets a contract for is his. And, it would be a listing, because in order for him to do it, he would have to go through his broker, get a “one day” or “explicit” listing - whatever they call it. He would take the contract he brings to the table, and does one of these “one day” listings through his broker, immediately PENDS it, and continue escrow as normal.

Short of it, an agent that goes around his broker to do this type of thing would not be around long… so it actually does have to be a listing, and when they do the $X + $whatever =$price, is where the Net Listing comes about, and I confirmed with a broker while making my above posts, it is illegal in SC…