Comments on: Buyer Agent Commission http://raincityguide.com/2006/09/29/buyer-agent-commission/ Seattle's Leading Resource for Real Estate Information Sun, 08 Nov 2009 01:47:42 -0800 http://wordpress.org/?v=2.8.4 hourly 1 By: Home Buyer Rebate Information http://raincityguide.com/2006/09/29/buyer-agent-commission/#comment-318292 Home Buyer Rebate Information Fri, 23 May 2008 22:11:26 +0000 http://raincityguide.com/2006/09/29/buyer-agent-commission/#comment-318292 On line 703 of the HUD-1, a buyer will find the commission paid to the buyer’s agent; this commission is generally 50% of the total commission paid by the seller. If there is no buyer’s agent, then line 702 will reflect the entire commission going to the seller’s agent [listing agent]. On line 703 of the HUD-1, a buyer will find the commission paid to the buyer’s agent; this commission is generally 50% of the total commission paid by the seller. If there is no buyer’s agent, then line 702 will reflect the entire commission going to the seller’s agent [listing agent].

]]> By: ARDELL http://raincityguide.com/2006/09/29/buyer-agent-commission/#comment-317445 ARDELL Sun, 11 May 2008 06:41:36 +0000 http://raincityguide.com/2006/09/29/buyer-agent-commission/#comment-317445 Gabriel, I did a little checking, and Austin is one of the mls's that was sued by the FTC back in 2006 for hindering limited service companies. http://realtytimes.com/rtpages/20060714_ftcbattle.htm Consequently I would expect the "procuring cause", that being the lisitng agent having shown you the property, to be a significant hindrance to your attempting to change the flow of events from this point. Seattle is one of the leading areas for progressive change. I don't believe that Austin is...but I could be wrong. Let us know how it turns out. We'd appreciate it. Gabriel,

I did a little checking, and Austin is one of the mls’s that was sued by the FTC back in 2006 for hindering limited service companies.

http://realtytimes.com/rtpages/20060714_ftcbattle.htm

Consequently I would expect the “procuring cause”, that being the lisitng agent having shown you the property, to be a significant hindrance to your attempting to change the flow of events from this point. Seattle is one of the leading areas for progressive change. I don’t believe that Austin is…but I could be wrong. Let us know how it turns out. We’d appreciate it.

]]> By: ARDELL http://raincityguide.com/2006/09/29/buyer-agent-commission/#comment-317444 ARDELL Sun, 11 May 2008 06:27:46 +0000 http://raincityguide.com/2006/09/29/buyer-agent-commission/#comment-317444 Gabriel, Texas is one of the States I am not familiar with. Generally the best way to have some say in the matter of commissions is to work that out with an agent prior to seeing the house. I would expect Texas to be one of the States where you can't be forced into Dual Agency without the written consent of both the buyer and the seller. So you should have some say in the selection of agent services. It would appear from what you have said that the listing agent is not amenable to anything short of keeping both commissions. It also sounds like you didn't just happen into the house at an Open House. when you say "given a tour by the listing agent", it sounds like you called the listing agent to see the property. So you have already set a chain of events into motion that will result in the sale, and it may be too late for an agent of your choice to step in at this point. You best bet is likely to make an offer at the price you feel is appropriate, less 3%. If there are no other buyers and a motivated agent and seller, you may be successful, with the agent and seller working through any appropriate changes in the commission to make your offer work for all parties. Gabriel,

Texas is one of the States I am not familiar with. Generally the best way to have some say in the matter of commissions is to work that out with an agent prior to seeing the house. I would expect Texas to be one of the States where you can’t be forced into Dual Agency without the written consent of both the buyer and the seller. So you should have some say in the selection of agent services.

It would appear from what you have said that the listing agent is not amenable to anything short of keeping both commissions. It also sounds like you didn’t just happen into the house at an Open House. when you say “given a tour by the listing agent”, it sounds like you called the listing agent to see the property. So you have already set a chain of events into motion that will result in the sale, and it may be too late for an agent of your choice to step in at this point.

You best bet is likely to make an offer at the price you feel is appropriate, less 3%. If there are no other buyers and a motivated agent and seller, you may be successful, with the agent and seller working through any appropriate changes in the commission to make your offer work for all parties.

]]> By: Gabriel http://raincityguide.com/2006/09/29/buyer-agent-commission/#comment-317435 Gabriel Sat, 10 May 2008 23:51:49 +0000 http://raincityguide.com/2006/09/29/buyer-agent-commission/#comment-317435 I know y'all have been discussing this from an Agent Point of View. Do you have any guidance for me, a Buyer, (the one spending hundreds of thousands) and what options i have to negotiate with the Buyer's Agent commission on a transaction? Right now, I'm in Austin Texas. I myself found a house i would like to buy and was given a tour by the listing agent. I want to buy it, but i want the discount of not needing all of a buyer's agent services. The listing agent says the seller already agreed to the higher percentage to cover seller and buyer agents. I know y’all have been discussing this from an Agent Point of View. Do you have any guidance for me, a Buyer, (the one spending hundreds of thousands) and what options i have to negotiate with the Buyer’s Agent commission on a transaction?

Right now, I’m in Austin Texas. I myself found a house i would like to buy and was given a tour by the listing agent. I want to buy it, but i want the discount of not needing all of a buyer’s agent services. The listing agent says the seller already agreed to the higher percentage to cover seller and buyer agents.

]]> By: ARDELL http://raincityguide.com/2006/09/29/buyer-agent-commission/#comment-221755 ARDELL Wed, 05 Dec 2007 02:29:30 +0000 http://raincityguide.com/2006/09/29/buyer-agent-commission/#comment-221755 Debbie, If you have a buyer agency agreement with your buyer client for 3% and the seller is offering 5%, does the seller and his agent get to keep the 2% difference? Debbie,

If you have a buyer agency agreement with your buyer client for 3% and the seller is offering 5%, does the seller and his agent get to keep the 2% difference?

]]> By: Debbie http://raincityguide.com/2006/09/29/buyer-agent-commission/#comment-221738 Debbie Wed, 05 Dec 2007 02:00:39 +0000 http://raincityguide.com/2006/09/29/buyer-agent-commission/#comment-221738 Well that would be discussed in the agreement between the seller and the sellers agent and technically doesn't have anything to do with buyer & BA. But, I would believe that the seller would be very upset to know that they paid the entire amount when usually the sellers agent convinced the seller that their 5/6% commission isn't entirely there's when in discussion of getting the the listing agmt signed in the 1st place. The Buyer agent could include a clause/addendum in the offer that states that they refuse their offering of commission, then it would be upto the seller & listing agent to discuss the outcome of this disclosure. In my thoughts with my idea of commission, I wouldn't be working with a buyer without a buyers contract in the 1st place and if a sellers agent offers compensation why not take it. But I'm talking about saving the seller the buyer agents fee. Why do you think so many sellers are going FSBO, their tired of paying the full commission. Well that would be discussed in the agreement between the seller and the sellers agent and technically doesn’t have anything to do with buyer & BA. But, I would believe that the seller would be very upset to know that they paid the entire amount when usually the sellers agent convinced the seller that their 5/6% commission isn’t entirely there’s when in discussion of getting the the listing agmt signed in the 1st place. The Buyer agent could include a clause/addendum in the offer that states that they refuse their offering of commission, then it would be upto the seller & listing agent to discuss the outcome of this disclosure. In my thoughts with my idea of commission, I wouldn’t be working with a buyer without a buyers contract in the 1st place and if a sellers agent offers compensation why not take it. But I’m talking about saving the seller the buyer agents fee. Why do you think so many sellers are going FSBO, their tired of paying the full commission.

]]> By: ARDELL http://raincityguide.com/2006/09/29/buyer-agent-commission/#comment-221732 ARDELL Wed, 05 Dec 2007 01:46:16 +0000 http://raincityguide.com/2006/09/29/buyer-agent-commission/#comment-221732 Debbie, Where are you licensed? Is there any pressure to improve buyer representation or to include buyers in the discussion of commissions? I think the first step is to agree that the seller's agent shouldn't get to keep the buyer agent fee when the buyer has no representation. Are you ready for that step? Debbie,

Where are you licensed? Is there any pressure to improve buyer representation or to include buyers in the discussion of commissions?

I think the first step is to agree that the seller’s agent shouldn’t get to keep the buyer agent fee when the buyer has no representation. Are you ready for that step?

]]> By: Debbie Cence http://raincityguide.com/2006/09/29/buyer-agent-commission/#comment-221722 Debbie Cence Wed, 05 Dec 2007 01:16:51 +0000 http://raincityguide.com/2006/09/29/buyer-agent-commission/#comment-221722 Wow, did I just stumble upon my question on the future of realestate. I've been an agent for 20 years, and feel that it's about time that the truth of commission distribution change. NAR has done wonders to put out the word about representation and who's working for who? The next big step to be solved - is if we are defining relationships clearly to all parties, why isn't it time that buyers pay for their services and sellers pay for theirs. I believe marketing agents should only charge the seller a listing fee and if a buyer comes in with a buyers agent, the buyer agent should have a buyer contract to protect their interest with their client. In the agmts there are spots to put their buyer agent fees to protect their commission. if the buyer doesn't want to pay upfront, why can't their closing cost of their agent fees be listed in the offer to purchase with cash back to the buyer and treated like buyer closing costs, or included on the HUD as buyer closing costs like the mortgage companies do (they collect for title fees, payoff fees, credit report fees, etc from outside vendors.) what's the difference if they collect buyer agent fees? The HUD comments above are interesting and would lovee to hear more. The other question I have is that if you can list 0% commission to a buyers agent in MLS? You might say what agent would show my home if I offer them 0, but in turn if you are working as a true buyers agent, it's your obligation to show them all property available (including FSBO's if agreed to in your contract), regardless of your financial incentives. I'll bet that true buyer agents will have contracts with ther clients and act as true buyer agents vs just checking off on the agency disclosure that you are just acting as a buyers agent. i believe it would make everyone do their jobs a little better. Looking forward to hearing your take on what I believe is the future trend of Realestate. Wow, did I just stumble upon my question on the future of realestate. I’ve been an agent for 20 years, and feel that it’s about time that the truth of commission distribution change. NAR has done wonders to put out the word about representation and who’s working for who? The next big step to be solved – is if we are defining relationships clearly to all parties, why isn’t it time that buyers pay for their services and sellers pay for theirs. I believe marketing agents should only charge the seller a listing fee and if a buyer comes in with a buyers agent, the buyer agent should have a buyer contract to protect their interest with their client. In the agmts there are spots to put their buyer agent fees to protect their commission. if the buyer doesn’t want to pay upfront, why can’t their closing cost of their agent fees be listed in the offer to purchase with cash back to the buyer and treated like buyer closing costs, or included on the HUD as buyer closing costs like the mortgage companies do (they collect for title fees, payoff fees, credit report fees, etc from outside vendors.) what’s the difference if they collect buyer agent fees? The HUD comments above are interesting and would lovee to hear more. The other question I have is that if you can list 0% commission to a buyers agent in MLS? You might say what agent would show my home if I offer them 0, but in turn if you are working as a true buyers agent, it’s your obligation to show them all property available (including FSBO’s if agreed to in your contract), regardless of your financial incentives. I’ll bet that true buyer agents will have contracts with ther clients and act as true buyer agents vs just checking off on the agency disclosure that you are just acting as a buyers agent. i believe it would make everyone do their jobs a little better. Looking forward to hearing your take on what I believe is the future trend of Realestate.

]]> By: ARDELL http://raincityguide.com/2006/09/29/buyer-agent-commission/#comment-221272 ARDELL Tue, 04 Dec 2007 03:58:20 +0000 http://raincityguide.com/2006/09/29/buyer-agent-commission/#comment-221272 Neil, I'm just saying you might not be ready to fight the battles of buyers having more of a say in commission issues. I'm not the least bit offended, but don't ask us not to confuse you on this issue. Many have to be confused before the issue is resolved. When you start to see the unfairness of this statement "All concerned parties negotiate their cut with the seller or his agent" and why the buyer's agent shouldn't be negotiating their "cut" with the seller, stop on back. Neil,

I’m just saying you might not be ready to fight the battles of buyers having more of a say in commission issues. I’m not the least bit offended, but don’t ask us not to confuse you on this issue.

Many have to be confused before the issue is resolved.

When you start to see the unfairness of this statement “All concerned parties negotiate their cut with the seller or his agent” and why the buyer’s agent shouldn’t be negotiating their “cut” with the seller, stop on back.

]]> By: Neil http://raincityguide.com/2006/09/29/buyer-agent-commission/#comment-221266 Neil Tue, 04 Dec 2007 03:36:10 +0000 http://raincityguide.com/2006/09/29/buyer-agent-commission/#comment-221266 Hello Ardell, I guess you covered the entire East Coast. No, I am not from Boston. And no, I had no intentions of stepping on toes. I have always been told, you learn from anywhere you can. You can't set boundaries or limitations. I came half the globe around (well amost exactly), so whats a few thousands of miles. Anyway, I will take your advice, and keep out of your business. Sorry, if you felt offended. That wasn't my intention. Neil Hello Ardell,
I guess you covered the entire East Coast. No, I am not from Boston.
And no, I had no intentions of stepping on toes. I have always been told, you learn from anywhere you can. You can’t set boundaries or limitations. I came half the globe around (well amost exactly), so whats a few thousands of miles.

Anyway, I will take your advice, and keep out of your business. Sorry, if you felt offended. That wasn’t my intention.

Neil

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