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Well, that's another story then. You definitely want someone who will represent you well -- after all, that's what the agent is getting paid for. See what your contract says about "firing" your agent if he's not providing you with the level of service you've employed him to provide.
You definitely have a right to expect excellent service and representation! (Just a word to others who may be reading this thread--always interview a potential agent thoroughly, asking some tough questions so that you're getting somebody you feel comfortable with and who will do a good job for you.)
Of course, the contract intends to spell out every possible situation. It says if the buyer directly buys a house from an FSBO seller, the buyer may have to pay the full amount of the compensation to the buyers agent. However, since the commission will be based on MLS specified %, if the house is not be be listed, there will be no specific commission %. Then it will come down to my discussion with my agent how much he should get paid. The key point here is that the commission is not a flat % of the purchase price. It's solely dependent on the MLS figure. Any differen idea?
Interesting! I can see why it is confusing since it sounds like the specifics of the contract were oddly vauge. Our contract was very specific in that it stated the buyers agent would get a commission of 2.4% of sale price for a reasle and 2.5% of sale price of new construction. It made it very clear that if this commission was not offered by the seller then we the buyer would be responsible to pay this commission. Our agents commission was not dependent on the MLS figure at all. Sorry, I am all out of ideas. I wonder why your agent would have such a vauge contract.
People should get a lot of help from a Buyers Agent throughout every phase of the process.
But please understand that FINDING the house is only one part of the process. It's the part which may be most apparent to the buyer and the seller, but it's just one piece of the puzzle. Buyer's agents also prepere a CMA to assist the seller in writing an offer, ask appropriate questions of the seller, request documents from the seller which the buyer and seller may not know exist, communicate with lenders, Realtors, title companies, attorney's offices, property inspectors, lead abatement contractors and tradespeople, and negotiate at the buyer's direction (with the benefit of vast and hard won experience) and spend hours on the phone for weeks at a time. Buyer's agents have dozens of duties throughout a transaction, only a few of which involve identifying the property.
You've got an agent who gives poor or otherwise unsatisfactory service?
And you're still willing to give him a comission on a deal with which he had no inolvement whatsoever?
For what professional service then do you seek to compensate this agent?
For being a nice guy and driving you around to homes you selected from the internet, on homes which you were unable to strike a deal on despite your best efforts and less than good service on your behalf by the agent?
On those homes you selected, am I correct in understanding that this agent did nothing to find out more details about the properties than you had obtained off the internet? And you don't trust his CMA's? on what basis? And gave you bad advice re the marketplace for a particular house you were interested in?
Why are you doing business with this person? Fire him and get a real agent with qualifications, ability, and motivation to provide valuable services for their fee.
Interesting! I can see why it is confusing since it sounds like the specifics of the contract were oddly vauge. Our contract was very specific in that it stated the buyers agent would get a commission of 2.4% of sale price for a reasle and 2.5% of sale price of new construction. It made it very clear that if this commission was not offered by the seller then we the buyer would be responsible to pay this commission. Our agents commission was not dependent on the MLS figure at all. Sorry, I am all out of ideas. I wonder why your agent would have such a vauge contract.
It's a standard contract of the realty company. The realtor just filled in "Per MLS" before "% of the purchase price". There is no indication of resale or new construction. Perhaps that company thinks evey property for sale should be listed on MLS, even for FSBO. But this case might be an exception.
This is straight from the Exclusive Right to Represent Buyer document in North Carolina:
b) Except as otherwise provided below, Agent shall seek compensation from a cooperating listing firm (through the listing firm's offer of compensation in MLS or otherwise) or from the seller if there is no listing firm, and Buyer agrees that Agent shall be entitled to receive same in consideration for Agent's services hereunder. If Buyer purchases property where no compensation is offered by either the listing firm or the seller, then Buyer agrees to pay Agent a fee of __________________________________________________ ______________
(insert dollar amount, percentage of purchase price, or other method of determining Agent's compensation for each type of property the Buyer may purchase). If the compensation offered by the listing firm or seller is less than the compensation inserted above, Buyer agrees to pay Agent the difference. If additional compensation and/or a selling incentive (bonus, trip, money, etc.) is offered through the MLS or otherwise, Buyer will permit the Agent to receive it in addition to the compensation set forth above.
You've got an agent who gives poor or otherwise unsatisfactory service?
And you're still willing to give him a comission on a deal with which he had no inolvement whatsoever?
For what professional service then do you seek to compensate this agent?
For being a nice guy and driving you around to homes you selected from the internet, on homes which you were unable to strike a deal on despite your best efforts and less than good service on your behalf by the agent?
On those homes you selected, am I correct in understanding that this agent did nothing to find out more details about the properties than you had obtained off the internet? And you don't trust his CMA's? on what basis? And gave you bad advice re the marketplace for a particular house you were interested in?
Why are you doing business with this person? Fire him and get a real agent with qualifications, ability, and motivation to provide valuable services for their fee.
He did find some sales history for some houses. And he has done a few CMA's.
I don't trust his CMA's because the comparables he used (I don't feel they are really comparable) and the overly simplistic way he calculated the suggested offer ranges.
A contract is a contract. I cannot fire him without his obvious mistake or violation of the contract. I can only do things without violating my obligations under this contract. That's why I started this thread.
This is straight from the Exclusive Right to Represent Buyer document in North Carolina:
b) Except as otherwise provided below, Agent shall seek compensation from a cooperating listing firm (through the listing firm's offer of compensation in MLS or otherwise) or from the seller if there is no listing firm, and Buyer agrees that Agent shall be entitled to receive same in consideration for Agent's services hereunder. If Buyer purchases property where no compensation is offered by either the listing firm or the seller, then Buyer agrees to pay Agent a fee of __________________________________________________ ______________
(insert dollar amount, percentage of purchase price, or other method of determining Agent's compensation for each type of property the Buyer may purchase). If the compensation offered by the listing firm or seller is less than the compensation inserted above, Buyer agrees to pay Agent the difference. If additional compensation and/or a selling incentive (bonus, trip, money, etc.) is offered through the MLS or otherwise, Buyer will permit the Agent to receive it in addition to the compensation set forth above.
I guess it works a little differently in Minnesota. The contract template is designed to calculate commissions based the higher value of ___ % of the purchase price and $___. My agent just happened to fill in "Per MLS" and "0" in those two blanks, respectively.
I guess it works a little differently in Minnesota. The contract template is designed to calculate commissions based the higher value of ___ % of the purchase price and $___. My agent just happened to fill in "Per MLS" and "0" in those two blanks, respectively.
I think you are still hooked. There is nothing here that requires the MLS listing to be active. He was supposed to fill in a number and filled in a reference to a number. I think that arbitration or a court will likely agree that it is still a good number even if the MLS listing had expired.
This is one of those "the intent was clear" things. Courts tend to go with what was intended.
Now if it was a FSBO with no MLS listing ever? I still suspect he would nail you. Probably for the minimum that could reasonably be found on a similar MLS listing.
He did find some sales history for some houses. And he has done a few CMA's.
I don't trust his CMA's because the comparables he used (I don't feel they are really comparable) and the overly simplistic way he calculated the suggested offer ranges.
A contract is a contract. I cannot fire him without his obvious mistake or violation of the contract. I can only do things without violating my obligations under this contract. That's why I started this thread.
I sympathize with your delimma. I'm probably going to catch a lot of flak for saying this, but I personally think the Buyer's Broker Agreements favor the agent much more than the buyer -- too much. The ones in our state spell out exactly what the Buyer must do and how much the agent is to be compensated. However, the agreements fail to spell out exactly what the agent is to do to represent the buyer, except that the agent is being hired to find a property that meets the Buyer's criteria.
As some of the earlier threads have mentioned, finding the right property is only the start of what a good agent should be doing for you. Unfortunately, that's not spelled out in the typical Buyer's Broker Agreement. Nor does it spell out legitimate reasons that a buyer would be able to cancel a Buyer's Broker Agreement. That leaves the Buyer feeling like they're stuck with an agent that's not really working for them.
That's why it's so important to try to gauge how good the agent is going to be before you sign on the dotted line. I know, easier said than done. Also, there's no need to sign a Buyer's Broker Agreement for a ridiculously long period of time. Keep the term as short as possible. That way if you're not impressed with the agent you've chosen, you can move on in a few weeks.
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Sorry for your situation
Also, there's no need to sign a Buyer's Broker Agreement for a ridiculously long period of time. Keep the term as short as possible. That way if you're not impressed with the agent you've chosen, you can move on in a few weeks.
