Home Buying in 03032>Question Details

Lookingforad…, Home Buyer in 03032

We are in an exclusive buyer agency agreement with our buyer agent. We are now interested in buying a home private sale. Would our buyer agent have?

Asked by Lookingforadvice, 03032 Mon Apr 19, 2010

to earn commission on this if we want to handle the purchase on our own? Our agreement states "buyer agrees to pay firm a fee for professional services in the amount of "MLS fee" % of the purchase price"? What does this mean?

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As Kent points out below, you really need to talk to your agent and, perhaps an attorney. However you should think of this in ethical terms as well as legal ones. If your agent has been working hard for you and you just happened to stumble across a "for sale by owner" property, then you really ought to make sure the agent gets fair compensation. Additionally, it usually is best to have an agent working with you to close a deal. Too many deals put together without expert advice fall apart or even end up in court.

Ron Rovtar
1 vote Thank Flag Link Mon Apr 19, 2010
Lets see, you hired an agent to assist you in the purchase of a home. I think you found a home you want to purchase...so yes, the agreement is binding.

It would be my recommendation to use a realtor, even with ..perhaps ESPECIALLy with a FSBO. Your realtor is not just a tour guide, but trained and experienced in the executiion of legal and binding contracts. As Your realtor, he/she will be looking out for YOUR best interests, security, and avoid any of the pitfalls of fraud, negligence, that DO occur. and run a comparitive analysis for you, work thru the inspection negotiations and more. let alone the handling of earnest money, escrow, lending, etc.

Now then, secondarily this agent can write the offer, with the commission to be paid BY THE SELLER!!, if the seller gets the idea you will not proceed without representation, paid by the seller,...they often will pay for an agent to represent you and assist in getting the sale closed properly.

Many many fsbo sellers offer agent compensation. I certainly do not recommend doing it without one.
0 votes Thank Flag Link Mon Apr 26, 2010
If you signed an exclusive buyer agent, under the contract you would be responsible for paying a commission to the buyer broker if you purchased a home as outkined in your contract. There are some howevers though. If the agent filled out the form incorrectly and did not type in a percentage where they should have and wrote in mls, the technicality is a fsbo isnt listed in mls so there is no fee listed so they get nothing. however it may not be that simple if they attach your new house or sue you for the fee. Simply reviewing your contract with an attorney, asking for a release from it or talking with your agent and utilizing their service in a fsbo is never so imoportant as teh seller may or may not know the letter of the law and the cost for being decived or lead astray is worth a negiotiated lesser fee for someone to assist you with your purchase.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Tue Apr 20, 2010
What it means, we can't address. We do exclusive agreements because we believe that our education alone is worth the fee - the ability for you, having toured houses under our tutelage, can now make the determination on the value of a particular property almost on your own. Which you, clearly, have fledged the nest.

The question is, do you feel your agent provided value during the period of time you worked with them?
0 votes Thank Flag Link Mon Apr 19, 2010
Looking, I think you really need to discuss this with your agent, as it isn't clear (at least to me) if you are exempt, or not, from paying a commission if buying a fsbo.

Your agreement references an "MLS fee %"..........but that doesn't address whether a fee is due if you buy a fsbo, when no MLS fee is involved. Is there more to the agreement that you didn't share, that clarifies your current position?
0 votes Thank Flag Link Mon Apr 19, 2010
Looking for advice,
Typically the exclusive buyer agency agreement has a fee in it usually 3% of the sales price "purchase price". Is that not in there? They just wrote in MLS fee? This is kind of a sticky area because you are contracted to work with that agent only and buy from them. The seller of the private sale can pay the fee of 3% or they can try to negotiate it to a different fee, if that is the case then you need to get in writing from the agent you have contracted with that they accept that and nothing further. You really need to consult with your Realtor or a competent attorney, there are many questions that could be asked here.
What is the term of the agreement there must be a start and end date and even more...my best advise is talk to your agent and see if they can work something out with the owner of the private sale, or consult with an attorney about the contract between you and the agent.
Best of luck and best regards
0 votes Thank Flag Link Mon Apr 19, 2010
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