Sometimes offering the buyer the buyer agent fee, when the buyer wants no agent, is what is best for the seller for sure…and giving the buyer what they want at the same time.

“…there is an immediate concern if I write up the offer, unless I have my seller’s permission, that I get into a potentially liable position to the buyer unless certain forms are signed showing my agency position.”

Not sure why you would need your seller’s permission nor why you or your seller ever NOT want you to write up a deal for an unrepresented buyer? It is no more complicated than making sure they have been provided the Agency Pamphlet and making disclosure of your representation (only the seller…no dual agency) in the PSA. By doing so, you have no agency obligations to the buyer including no duty of confidentiality or loyalty. From your seller’s perspective, there is no other agent involved which puts your seller in a better position than when the buyer is represented.

Russ

You are referring to your post on my post? Which post of yours are you referring to? This is getting be a board game LOL

Bottom line is ONLY discussing commissions with SELLERS is an idea whose time is OVER. Buyers deserve the same consideration of the discussion regarding commission. This is a paradigm shift that I SUPPORT and there we will agree to disagree.

You don’t have to explain the real estate industry to me…I’ve been there done that on both Coasts for 16 years going on 17 years in five states. Times are a changing and that is old news to be tossed out in favor of a better way.

You do not have to agree with that. But please stop trying to educate me on the workings of the real estate industry. I believe buyers get “short shrift” in the ongoing model…and I believe it is time to change that. You believe otherwise if you like. Let’s just agree to disagree about the buyer’s rights and say so.

It IS there business…in my opinion.

Plus, unless I had my seller’s permission first I wouldn’t write up the offer for a buyer because I don’t do dual agency, although I provide buyer’s agency and seller’s side agency. And, there is an immediate concern if I write up the offer, unless I have my seller’s permission, that I get into a potentially liable position to the buyer unless certain forms are signed showing my agency position – in this scenario we’re discussing it is the seller’s side. I’ve had this happen in actual practice and I have very serious conversations with my seller’s about the pros and cons. We often times offer the names of other agents for referral of the buyer or we’ll have them sign waivers showing that they are choosing to be unrepresented but that doesn’t always translate into a price reduction.

I also discuss in listing appointments what will happen if a buyer comes unrepresented and what my seller’s options are in those cases. All of it is discussed up front to best extent possible although every once in a while we find new scenarios to add to the discussion.

I have never told a seller that MY charge includes the buyer agent fee. I have always explained what the buyer agent fee is and isn’t.

We discuss how that offering may affect their showing activity. We discuss what the seller wants to offer a buyer’s agent, based on other homes sold and homes that didn’t sell and what those homes offered factoring in days on market.

Once we together determine the Buyer Agent offering, we discuss my fee…separately. Then we discuss what we will do if the buyer comes direct and is not represented.

I do not TELL the seller what my fee is including the Buyer Agent’s fee. The seller and I discuss the Buyer Agent Fee first and then we move from there.

Question Jonathan. You say you tell them the Buyer Agent will get 3%. When do you tell them what happens to that fee if there is no buyer’s agent? When does that discussion take place and what do you tell them?

Is that how your conversation goes on a listing presentation? Mine is more along the lines of … this is what the market says your house is worth, plain and simple. This is the amount I charge in commission. 3% of that will go the buyers’ agent.

There’s never a discussion of “your house is worth this, but we need to make the price this to cover commissions and make sure if you there isn’t a second agent that you fork over extra money to the buyer, in effect saying your house is worth less, because we want to be fair to the widdle buyer.”

If I have the listing, my fiduciary duty is the seller. It’s a remarkably simple concept.