A real estate agent gave me a mls listing that was by owner. Do I have to pay my real estate agent?
September 242009
My real estate agent gave me a mls listing. She did not go with me to see this house or even contact the owner. I luv the house and Im thinking of buying it. The guy selling the house said, forget about the realestate agent and I could get the house reduced by the amount it would cost to pay my agent. My agent has shown me about 10 different house and has been looking for house that meet my criteria. So I feel guilty if I do this. BUt then again its alot of money i could save. Could the agent go after me or the owner in a lawsuit.
Typically, the seller pays commissions & not the buyer, unless you are in some sort of Buyer Brokerage Agreement where you agreed to pay an agent. If this home is listed in the MLS, why is it allowed to be a FSBO? An "exclusion" may render certain known parties to be able to purchase this home from the seller without the seller paying a commission to the listing office.
Unless you are a seasoned home buyer & have been through this process many, many times, I’d highly advise you take the assistance of a licensed professional.
It is true you may save some by buying the house at a lower price, but you also will have no representation or assistance in the process. To whom will you make out your earnest money check? The seller? What if he cashes it & spends it & you have no means of him refunding it to you should you decide the house is in too bad of condition after it is inspected because there is a bunch of dry rot in the foundation beams?
What if he decides a week later that someone else is willing to offer more than you did & he now tells you he is voiding your contract? Do you know your legal rights? Chances are if he’s willing to cut agent’s out of it today, he’d cut you out as well, if the right motivation came his way.
Who will handle your escrow? Order inspections and in what order do you have them done? Appraisal first or home inspection?
What if your structural inspection yields problems with the house, but you find yourself frustrated in getting the seller to agree to make any repairs or corrections?
What if moving day comes & you open the door to your new home, only to find the seller has removed all the lighting & plumbing fixtures? Or the seller never made any of the repairs he agreed to? Left the house with a bunch of garbage inside?
There are many horror stories. Also as many good, but it’s a risk going through this process on your own without representation from a professional.
September 24th, 2009 at 7:37 pm
Don’t get tempted by what the owner is promising u.
They don’t always get what they are asking for.
Those who do by owner sale, are pretty smart people in terms of buying and selling and bargains….you have to be careful what you are getting into.
You don’t have the expertise and experience to protect yourself in case it gets complicated or if the house happen to have problems.
Chances are that you might not know who and how to make your deposit payable to: that’s the start….
References :
September 24th, 2009 at 7:48 pm
What state are you in? In NJ if the listing is on the MLS, the property is NOT for sale by owner. Is the owner thinking of dropping his agent? (Big problems for him if he has a signed listing with an agent…he would be responsible for commissions owed on a contract during the listing period if he signed a listing agreement giving the agent exclusive right to sell) Be careful of sellers trying to "wheel and deal". Did you sign a buyer’s agreement with your agent? Have they checked in with you since you saw the property? Whenever I bring a client to see a property that is a For Sale By Owner, I have them sign an exclusive buyers agreement for that showing at least. You are right to feel guilty after your agent has put in the work to find you houses and take you to look at them (you get paid for work you do, right?). All in all, it depends on the laws in your state. The agent(s) could try to sue for commissions, if the amount of the commission is worth it. Best to ask your attorney.
References :
September 24th, 2009 at 8:10 pm
I’ve been looking at questions and answering questions in here for awhile. I wish I could pull up a list of "I went FSBO and its going wrong" type questions from buyers and sellers. Have your agent represent you and make this a smoother transaction.
References :
Oregon Realtor
September 24th, 2009 at 8:40 pm
Typically, the seller pays commissions & not the buyer, unless you are in some sort of Buyer Brokerage Agreement where you agreed to pay an agent. If this home is listed in the MLS, why is it allowed to be a FSBO? An "exclusion" may render certain known parties to be able to purchase this home from the seller without the seller paying a commission to the listing office.
Unless you are a seasoned home buyer & have been through this process many, many times, I’d highly advise you take the assistance of a licensed professional.
It is true you may save some by buying the house at a lower price, but you also will have no representation or assistance in the process. To whom will you make out your earnest money check? The seller? What if he cashes it & spends it & you have no means of him refunding it to you should you decide the house is in too bad of condition after it is inspected because there is a bunch of dry rot in the foundation beams?
What if he decides a week later that someone else is willing to offer more than you did & he now tells you he is voiding your contract? Do you know your legal rights? Chances are if he’s willing to cut agent’s out of it today, he’d cut you out as well, if the right motivation came his way.
Who will handle your escrow? Order inspections and in what order do you have them done? Appraisal first or home inspection?
What if your structural inspection yields problems with the house, but you find yourself frustrated in getting the seller to agree to make any repairs or corrections?
What if moving day comes & you open the door to your new home, only to find the seller has removed all the lighting & plumbing fixtures? Or the seller never made any of the repairs he agreed to? Left the house with a bunch of garbage inside?
There are many horror stories. Also as many good, but it’s a risk going through this process on your own without representation from a professional.
References :
22 Years Experience in Real Estate ~ Associate Broker since 1991
September 24th, 2009 at 8:57 pm
if you have signed a contract with the agent then for sure yes, and if you have not then you still should because that person has been working for you looking for the perfect home for you. If you do things on your own, you will have no security that things are being done right and with the agent you have their support so it is worth the money you will pay believe me.
References :
california real estate agent.
September 24th, 2009 at 9:29 pm
The seller usually pays the commission. Half of the commission usually goes to the selling broker and half to the broker representing the buyer. If the seller is not bound by an existing listing agreement, why don’t you ask if he would be willing to pay half of a commission which would go 100% to your broker who would represent both of you and help with the paperwork, etc. The two of you could spilt the other half.
References :
I am a California real estate broker
September 24th, 2009 at 9:42 pm
I have a question. What do you do for a living? Please do a lot of work for me, but the hitch will be, when it comes time for me to pay for your work, I have received it for free from someone else. You’re O.K. with that aren’t you? Unless your agent has been a total twit (even if they have) – you should make sure your professionals are paid for their work.
So, let me answer the question. The buyer has placed the house in the MLS and may have agreed to pay an agent’s fee. You are not responsible for paying the agent, but I would check your state’s statutes to see if the owner may be violating real estate regulations opening up your purchase to a suite from the realtor – at worst voiding the sale, at best delaying the sale.
A couple of ideas here:
Your realtor did not have to market this home, so the cost they have in it is the time they spent with you showing you homes. Ask them if they would take less of the stated commission – to save the sale. (most likely the seller is offering 3-5%)
If you are a viable buyer – you are a sought after commodity in this market. The seller has told you he is flexable, and would sell it to you for less if you don’t go through the realtor. I say make a lower offer (one lower than the discount of the commission) and see if they take it. Key to negotiation here – you already know he is motivated. Unless you live in the few hot markets out there – this is still a buyer’s market- you have the upper hand.
Third – is a combination of the above suggestions – negotiate the reduced commission and get the price down (you should do this anyway). I think you will see that you end up about the same price your being told you will be discounted.
References :
I am a real estate investor who buys and sells several homes a year.
ThePadBuyer.com