Home Buying in Prospect>Question Details

Buyer2009, Home Buyer in Prospect, CT

Dual agents commision give back to seller or buyers

Asked by Buyer2009, Prospect, CT Thu Oct 1, 2009

Is there a law or code of ethics says that Selling agent dealing with a buyer with no agent split the buyers commission or give back part of the 5-6% of commission back to the seller to reduce the price of home so the Buyer can meet his offered price? Can some sellers agent refuse to do this or is this acceptable part of negotiation tactics to get a better price, especially if the buyer found the house on her own or walked into a open house and possibly decided to make an offer but the selling agent balked at giving back part or all of the commission that the buyers agent would have gotten.

Please advice if I’m on the wrong track for asking this or am I dealing with either A) a miss-communicated seller-agent/buyer, B) Selling agent is greedy or C) Buyers is asking unrealistic give back from sellers agent to sellers by asking them to reduce price of house by 1.5-2.5% of from the total commission of 5.5-6% the dual agent would have been getting form the sale.

Thanks,

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9
Buyer 2009
A good agent, particularly for a buyer, can save you a lot of time, worry, and headaches.
The problem is because you never see these things, you just move along in the selling process, it may just LOOK like the agent is just "doing their job".

A good agent is worth every penny. Just find the right one for you.
0 votes Thank Flag Link Mon Oct 5, 2009
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
Contact
Buyer2009

If you think the house you are looking at to buy is "jacked up" in price, then you need to find yourself a great buyers agent who will explain to you in detail how the price was reached, if it is a sensible price or is in fact overpriced. There are lots of variables involved in pricing a house and a good agent will be able to head you in the right direction regarding offers and provide you with the necessary documentation to support the offer. Why not interview several agents, find out what the company policies are and what they will do to make sure you are completely satisfied with your transaction.

An agent who you sign with is working on your behalf only will work to get you the best house for the best possible price, invest some time talking to agents to find one you like - you don't need to sign your life away and a month contract is usually acceptable to start with to see if you and the agent get along.

Good luck and if you need help please call
0 votes Thank Flag Link Mon Oct 5, 2009
Thank you all for your inputs/opinions on this subject. With the information that was gathered here and from other blog, I gained new knowledge and perspective and at the same time confirmed what I thought to be on the Dual agent roles and how the commissions work. On one blog, agent said she would give back up-to 2% back to the sellers if they became a dual agent, but also confirmed that it is rare that this happens since the rarity of dual agent is not that something happens on a regular basis.

Times are tough enough, and me asking for give back makes it even sillier/ careless than it looks. I don't think I would ever want to become a Real Estate Agent. But at the same time, I know many of them would not want to go through what we have been with some of the agents.

In the end, no matter how you cut and slice it, it’s the buyer whose paying the commission from the jacked up price that agent has to convince both the seller and buyer to part with the house/money. It’s a very delicate situation that requires lots of tap-dancing until you no longer want to dance or look for new dancing partner. Its hard to convince someone to walk away from house(s) someone bought at the peak of the bubble, and twice as hard to convince the buyer that the house is really worth that much money when everything around you says otherwise.

I again thank you all with your erudition in this area. Ultimately, we will buy that dream house, whenever that may be.
0 votes Thank Flag Link Mon Oct 5, 2009
Most people who have jobs get paid every week. We put everything on the line for 2 to 3 months with no pay check. We also pay our own dues, taxes, social security and advertising for these properties. I myself work too hard to get these properties to closing. If you are a dual agent that is just more work to do. We meet with the apprasiers, inspectors & when there are issuses due to inspections we are renegotiating the problems and the price. Give up part of my commision, I do not think so!!!
0 votes Thank Flag Link Sat Oct 3, 2009
Once a seller enters an agreement with the agent to market their home they have a legal signed document stating that a fee of 5-6% (or whatever was agreed upon) will be paid upon a successful transaction. The agent is under no obligation to give back anything to anyone if they happen to be the only agent involved in the transaction. If you don't have an agent or your agent is also the selling agent then you can ask to have a designated agent work on your behalf - this would be done through your agents broker.

2-3% of the house sale price is usually not a great deal of money unless of course you are working a deal in the high end market. Remember, depending on what company the agent works for a percentage of that commission (usually starts at around 50%) goes to the brokerage firm, the tax man takes his %, so by the time the agent gets the fee for their services, it is not what you see on paper. Also depending on company policy an agent may not, even if they wanted to, be able to take a reduction in commission.

If you need any further help then please feel free to contact me.
0 votes Thank Flag Link Fri Oct 2, 2009
I am not aware how agents work in your area but in Tennessee, there are no dual agents. You represent the Seller or the Buyer. If commission is 6%....... it is 3% to the listing agent and 3% to the buyers agent. I am sure..... you were entitle to an agent representing 'your' interests but you chose not to.?

We can as a listing agent drop to facilitator meaning we represent neither party. In my 11 years in R.E. I have never done facilitating because you represent no one and can get into trouble with a slip of a word. If you are in an area where dual agency is legal and a normal practice, then so be it. There are no rebates to the seller, buyer etc. You had a choice to have your own representation and hopefully was explained....
0 votes Thank Flag Link Thu Oct 1, 2009
Hi Buyer
The agent (seller's agent) is under no obligation to give back any part of the commission to the seller, or as a credit to the buyer. If this agent is acting as a dual agent (representing both the buyer and seller) he or she is doing 2 jobs at once......and one could argue that he or she is earning that full commission by hadnling both sides of the transaction.

Buyers should not expect a "special deal" when the listing (seller's) agent sells the house
.
The seller agreed to pay a commission when the home was first listed....the commission is to be paid when a buyer is generated. Whether an open house, an internet lead or a buyer's agent brought in the buyer, the full commission is earned and payable at closing.

If the agent, of their own free will, decides to reduce their commission, that is their choice to do so. They should not be expected to do that. Of course, you may ask, but do not be insulted if the agent says no.....for all the reasons I gave above. it is a personal decision an agent can make.

I will be honest to say that I, personally, would never give back half of the commission (if that's what you are looking for) in that situation.

Good luck,. and I hope you find the house of your dreams!
Debbie Rose
Prudential NJ Properties
0 votes Thank Flag Link Thu Oct 1, 2009
There is no law stating that commissions are to be rebated back to the seller in the event of the buyer not having an agent.

Typically, the listing brokerage would keep the commission split for the cooperating broker when there is none, and normally then split that with the listing agent, if they so desire. The commission negotiated between the seller and the brokerage is not negotiable by the buyer, as the buyer is not the one paying the commission - the seller is, from the proceeds of the sale of their home.

The best way, of course, to avoid the entire matter altogether is to sign buyer-brokerage with an agent, so that your best interests as a buyer are being represented at the negotiating table.

Feel free to e-mail me william@williamsplaces.com or call me at my office for more information.
0 votes Thank Flag Link Thu Oct 1, 2009
You can always ask and agent to give up part of a commission to put a deal together but, an agent is not required to give back any part of a commission when they are receiving both sides of the transaction.

The agent has already negotiated a commission with the seller. It's up to the agent if they want to give back part of the commission to put the deal together.
0 votes Thank Flag Link Thu Oct 1, 2009
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