Home Buying in Groton>Question Details

jeanyes30, Home Buyer in Groton, CT

Is it normal for a realtor to ask the buyer for more money on a foreclosure.?

Asked by jeanyes30, Groton, CT Wed Jan 2, 2013

I am buying a foreclosure for 65,000, My realtor is getting 2.5% she wants me to give her more money toward her fee. I have sign nothing saying I would. I am just wondering if this is common for lower priced homes. Do realtors come right out and ask for more or is 2.5% enough.

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In most cases, the seller offers a commission to the listing brokerage, and the listing broker offers a portion to a buyer's broker (in this case 2.5%). The buyer's representation agreement you signed would have to stipulate what commissions are due, and if what the seller offers is not at or above that level, if you are responsible for the balance. If your representation agreement doesn't stipulate the commissions due from you, you are not obligated. Also, don't forget that commissions are only paid to the brokerage the agent works for, who then pays their agent a portion. Sellers of lower priced homes may indeed pay a higher percentage, but again, the amount and who pays the buyer's agent must be pre-defined as stated above. Good luck in your new home!
0 votes Thank Flag Link Sun Jan 13, 2013
As every deal is a bit different, there are often different amounts of work involved depending on the type of deal. Commisions are generally split up 4 ways. The selling side does offer a commision which is generally split between the selling agent as well as the agents broker. The split starts at 50/50 for new agents and goes higher in favor of the agent the higher amount of yearly sales that are made. The buyers agent is paid from this same commision which they turn around and split with their broker as well. In this example if the commision split is even the total commision to be split in 4 is 3250 giving 1625 for the listing agent and the same for the selling agent. This commision is then split up apropriatly to the agents and thier brokers. If they are at a 50percent split this leaves them with a 812.5 payday. Out of which they must pay for their costs of running their business(license advertising gas phone etc.) On a typical deal you do have several months worth of work into the deal and therefore there are times where a lower end deal an agent may have alot of work into it yet not recieve a big paycheck especially when considering hours that a deal may take. As has been answered previously a buyer representation form is necesarry in order for the agent to work on your behalf as well as negotiate with you one must be signed legally in order for them to work with you. This should outline their responsibilities as well as your throughout the process as well as how the agent is paid. This is all negotiable of course! All the best in your negotiations and deals!
0 votes Thank Flag Link Mon Jan 7, 2013
The commission should have been discussed when you signed your buyer rep agreement with your Realtor. In CT, a Realtor can ask for a percentage of the sale or a flat fee from their buyer client. Most Realtors do not charge a fee because they will be paid by the seller. If you have already signed your agreement and do not wish to change it, you are not obligated to pay them anything. Good luck with your new home.
0 votes Thank Flag Link Sun Jan 6, 2013
Jeanyes,
Commission discussions need to happen before an offer is made. It's not unusual for a buyer's agent to request a specific amount on a transaction and request the buyer to make up any difference between what the seller offer and the agreement. In your case though, asking after the fact is a poor way of handling things. How you proceed is up to you, but if you didn't sign a buyer's agency agreement in advance, I can't imagine that you are obligated to pay anything.
If you want further clarification on what may be happening, ask to speak to the agent's managing broker.
0 votes Thank Flag Link Wed Jan 2, 2013
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