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5FT8 Real Es…, Real Estate Pro in Massachusetts

Does my agent get paid if in the listing it says "commission not paid on sellers concessions"?

Asked by 5FT8 Real Estate, Massachusetts Thu Oct 9, 2008

We have put an offer in on a short sale and I have a feeling my agent will not get paid for bringing us to the seller. We have no contract with our agent, but he did do all the work on this and put the offer in. Will he not get paid? I just noticed this line on the listing sheet.

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9
Scott Godzyk’s answer
Elvis as always as said it well. In deed the commission is based on the sales price less any money given back to you as closing costs or for repairs equals gross sales price minus consessions equals net sales price which your agent will get paid the posted commisison percentage listed in MLs. You really should have the broker representiung you as a buyer broker though, it doesnt cost you anything more and you get someone working for you. When making an offer on a short sale, you shold ask how far along they are in the short sale process and have they been approved, short sales can take 3-6 months. sometimes bank owned is better than trying and waiting on a short sale. If you are looking for anymore investment properties here in NH i have quite a few bank owned singles, condos and multi familiy listings
Web Reference: http://www.ScottSellsNH.com
1 vote Thank Flag Link Thu Oct 9, 2008
BEST ANSWER
Not paying commission on the portion of the sales prices considered "Seller's Concessions" is common for not only bank-owned properties but also conventional real estate sales. (Elvis explained the concept clearly, below).

If you are concerned that your agent will not get paid for services rendered, he or she should (would) make you aware of lack of compensation on a property offered for sale and, prior to viewing and making an offer, would explain their policy for dealing with such a situation.

More likely than not, you would be responsible for compensation and your offer would reflecting that additional cost incured by you, the BUYER.
0 votes Thank Flag Link Sat Nov 22, 2008
Yes, 1st time investor, they do get paid.

All it means is: if the purchase price is $300,000, and you get the seller to give you a concession of $25,000, that the Realtor will only receive commission on $275,000.

Very simple, and clear. I'm sure your agent understood it.
2 votes Thank Flag Link Thu Oct 9, 2008
Alan May, Real Estate Pro in 60201
MVP'08
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First, you are to be commended for being concerned for your agent. That's a refreshing post to read. However, a property cannot be listed in the New Hampshire MLS without compensation to the Buyer's Agent.

It's also our office policy that the commission is not paid on Seller Concessions. Many of the 1st time buyer programs that are available (FHA, etc) allows for a certain percentage of Seller-paid contributions (to be applied toward down payment, closing costs, prepaids, points, etc) 3% of purchase price seems to be the most commonly asked for contribution. Since the Seller doesn't actually net the sale price (minus concession) it's only right and correct that they not have to pay commission on that amount.

I just want to point out one thing (a technicality, but still you should be aware). If you don't have a contract, you don't have an agent working for you. Your agent may be working as a non-agent (without a contract) but legally, without a buyer agency agreement in place (which would also spell out all the terms of the agreement, including compensation, you do NOT have an agent. Look carefully at all of the paperwork that you may or may not have signed. Agency law is unfortunately not understood by the majority of buyers (and sellers to a lesser degree) and some agents as well.

I wish you all the best with the short sale. They require the patience of a saint (just waiting for a response can be a long wait) but you may be able to get a very good deal on a suitable property. Good luck :)
1 vote Thank Flag Link Thu Oct 9, 2008
Sellers concession are in addition to the agreed upon Selling price so a deal of $300,000 with a 6% Sellers Concession of $18,000 would mean that he will get paid bases on his commission structure on the $300,000. Allan
0 votes Thank Flag Link Sun Apr 27, 2014
YES they should, the short answer is say the sales price was $110,000 with 10,000 to closing costs. They get paid on the $100,000 not the 10k for closing costs. Is very nice of you to think of your agent, most would not
0 votes Thank Flag Link Sat Apr 5, 2014
He will get paid for he was the procuring cause. However, he will not be paid on any confession which could be money back towards closing or the difference in the price reduction if you offered lower than asking price, but he will be paid on the final number after any concessions are made.
0 votes Thank Flag Link Sat Apr 5, 2014
Your agent will get paid in full on the sale of your purchase. The sellers concessions example closing cost money for the buyer neither agent will be paid a commission on that part.
0 votes Thank Flag Link Wed Apr 6, 2011
Seller concessions are any monies given to the buyer, toward closing costs or pre-paid items. For example say you were to offer $100,000 but wanted the seller to pay $3,000 in closing costs, the seller may only want to pay the agents commission on $97,000 because they are not actually getting $100,000 for the property.

As far as your agents commission, if the property was found through the multiple listing service then they were probably offering compensation. If it wasn't then your agent probably submitted a request for compensation to the seller, then he would make sure to get paid. Hope this helps
0 votes Thank Flag Link Thu Oct 9, 2008
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