Buyer's Agent Commission for a House Not Listed (closing, sellers, standard)
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Just an update: My realtor said for a non-MLS house, he needs to negotiate with the seller for the commission. Then there are lots of room for commission negotiation. It can be anywhere below 3%.
I am working with an agent to buy a house. The contract says the agent commission will be ??% (based on the MLS listing) of the purchase price. I've just come across on my own a house whose listing expired two months ago. The owner is considering the possibility of selling his house without a realtor. If I buy the house directly from the buyer without it being listed again, how should my agent be compensated? If this house is not to be relisted, there will be no buyer's agent commission % per MLS. The agent has not done much for me anyway. I've found all houses online I want to see by myself. He just made appointments to visit them and drove me around.
He "just" made appointments to visit and drove you around??? Do you think he does this for fun? Realtors pay a lot of money to belong to the mls and to use the suprakey that gets you into the house. Plus the gas in his car and his time. Don't you think he deserves a commission? Most Realtors are happy to help their clients purchase a FSBO. They negotiate the commission with the seller, so it's still free to you. Then you get help with negotiating the price, repairs, closing, etc.
I believe if you found the house on your own and called yourself and went to see the house without the realtor and it is for sale by owner NO COMISSION is required. However if he helped you with any of this he should get compensated for his work. His gas, his time, his money. They get paid for working with you. They are not volunteering there services. Check the list.
Found house
Made Apt.
Went to appt.
Negotiated price
Contract
He "just" made appointments to visit and drove you around??? Do you think he does this for fun? Realtors pay a lot of money to belong to the mls and to use the suprakey that gets you into the house. Plus the gas in his car and his time. Don't you think he deserves a commission? Most Realtors are happy to help their clients purchase a FSBO. They negotiate the commission with the seller, so it's still free to you. Then you get help with negotiating the price, repairs, closing, etc.
I cannot tell how you got the impression that I do not want my agent to get paid. I believe anyone deserves a compensation for what he actually delivers. It's a matter of how much in this particular case. Don't tell me his gas and time plus "negotiations" (if he can really do it well) are worth 2.7% when house prices are inflated. That's why many realtors offer commission concessions to their clients.
Yes, the commission will be negotiated between the seller and my agent. Yeah, it's free to me!!?? Then you think the seller will pay the commission from his own pockets.
I hope the moderator will merge this thread with the duplicate one. I think some posters are a little confused. MovingtoEden sees the value in using a GOOD buyer's agent--but isn't getting the service anticipated. (Please see the duplicate thread for the "rest of the story")
Yeah I am with Gretchen. Buyer Broker Agreements are good for agents but not good for buyers.
I was particularly struck by the provision in one shown as an example that said the Buyers Agents could collect any side deals offered in the MLS or otherwise. Does the Buyer know his agent may be picking up 10% on the side for steering him to the right development?
It does not occur to anyone that perhaps a developer willing to pay a 10% commission might be willing to provide an offsetting benefit to the buyer?
Sometimes we are as bad as the public thinks we are...and we do it right out in the open.
Yeah I am with Gretchen. Buyer Broker Agreements are good for agents but not good for buyers.
Just a clarification, I don't think Buyer Broker Agreements are necessarily bad for the Buyer, they're just bad for the Buyer if they're stuck with a bad agent.
If the Buyer has chosen a proficient, helpful, professional agent, then the BBA is a good thing, guaranteeing the Buyer complete representation. Unfortunately, some less-than-competent agents have used the BBA as a tool to keep clients that would normally walk away.
I would love to see better written BBA's that spell out exactly what services the agent is required to do on behalf of his client, and then have a provision for the Buyer to cancel the BBA if the agent isn't performing per the contract. The good agents have nothing to fear - these are the services they customarily provide anyway. But it might prevent a "lazy" agent from giving the rest of us a black eye.
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Attention Moderator
Part Deux
