Home Selling in Menlo Park>Question Details

K C, Home Buyer in 94025

What could I expect an agent to pay for when I am selling my house and have a buyer in hand?

Asked by K C, 94025 Sun May 30, 2010

I live the Bay Area of CA. My company is transferring me out of state and the relocation pays "all reasonable and customary real estate commissions". I know someone that it interested in buying our house. If I approach an agent to handle this transaction for me -- will they be willing to pay for some items that otherwise I would pay for myself? (Given that they aren't going to have to show or market the house.). I don't have any understanding of what is allowable in these cases.l The house is in good condition -- we were right in the midst of some improvements, so it needs $2k of interior painting and some new window coverings. Is this the sort of thing the agent would pick up along with the various other costs?

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Keith Manson- Metro Milwaukee Wisconsin’s answer
I am thinking that you may want to review your relocation agreement because that may limit what you can do. Also if you have a side agreement, it may nullify benifits you recieve via your relocation package. If your buyer wants to buy it , then sell it directly to them or have them as a exception on the listing contract. There is always someone that says they want to do something, but when they are asked to perform, they don't show up.

This can get complicated because of the relo agreement so make sure you understand the deal.
Personally I would not do what your asking from a agent. I would rather you sell it to your buyer and if your buyer does not perform, list the property and try to sell it.


Keith Manson
First Weber Group
Certified Distressed Property Expert
Metro Milwaukee

http://www.milwaukeebailout.com
1 vote Thank Flag Link Sun May 30, 2010
BEST ANSWER
KC the relocation company is going to get in the pocket of the listing agent to the tune of 40-45% of the sell side commission to help pay for your relocation benefits. You have to check with your relocation coordinator if you can select your own agent or if they will send out 2 Realtors® to talk with you. The best way in my opinion, would be just as you plan, for the Realtor® to represent the buyers in this transaction also. The Realtor® can make a contribution to the buyers as long as it is disclosed to all parties . The contribution may not be able to be cash to the buyer at closing but may have to show as a closing cost credit from the buyers Realtor®
I do not discount my commissions but this seems logical enough and if the opportunity presented itself I believe it is something I would do.
Web Reference: http://www.Find1Home.com
0 votes Thank Flag Link Mon May 31, 2010
Hi KC, relo agreements are often very carefully controlled and so your answer may lie in the language of your relo arrangement. Your agent will "give back" a good % of her commission as a standard part of the relocation agreement between relo company and brokerage. Bottom line - the benefit you are getting payment of commission far exceeds any incremental expenses to ready the home for market. Talk to your relo counselor and work within the confines of your arrangement. I wouldn't risk your benefits to save a few bucks.

Good luck!
Jeanne Feenick
Unwavering Commitment to Service
Web Reference: http://www.feenick.com
1 vote Thank Flag Link Sun May 30, 2010
There a big difference between interested and is going to buy. I would negotiate that if this particular person buys the house the agent will pay for X. I certainly would not be willing to put money out on the chance that the transaction may happen. Make an arrangement with the agent, and then negotiate with the buyer that the repairs will be done during a certain point in escrow. Or the money could be put in escrow and be released after escrow closes. This may make everyone feel warm and fuzzy about the deal!

Best Regards,

Eric Soderlund
Web Reference: http://www.ESoderlund.com
1 vote Thank Flag Link Sun May 30, 2010
KC,
Everything is negotiable. Since the relo company is paying the commission you may be able to find a realtor who is willing to cover those charges as part of the costs. What you describe does not sound particularily expensive but every realtor has their own idea of what they are willing do do or not do. However, you should read the fine print in your relo package to make sure that you are allowed to pickyour own realtor, and that the realtor is allowed to include those items in his/her commission.

Marcy Moyer
DRE 01191194
Web Reference: http://www.marcymoyer.com
1 vote Thank Flag Link Sun May 30, 2010
Old question, new answer!
I do a lot of relo deals. The relo companies pay full freight on commission in my market, because the relo company gets a big referral fee out of the listing side. What you were referring to was an exclusion to the listing agreement to keep one specific named buyer from the listing contract. So if that buyer had a signed contract in the first 2-4 weeks, the listing office gets nothing. Relo Co doesn't want agents new to handling the paperwork and managing the files. Talk to your relo coordinator.
0 votes Thank Flag Link Sun Mar 31, 2013
I'd thought I'd follow up. Mr. Soderlund commented "There a big difference between interested and is going to buy." Absolutely right. We learned the hard way. Despite the fact that they are (supposedly) very nice people, the buyers dragged out the process for as long as possible, giving every indication that they were going to buy the house. Ultimately, when we gave them a deadline, they said no at the eleventh hour, citing some reason that they obviously knew from day one. (The real reason was cold feet, as they were first-time home buyers.) So we had to take it to market anyway and lost valuable time. Lessons: 1)Give people in this situation a short timeline to decide. 2)Start preparing the home for sale anyway. 3)Regardless how nice somebody is, remember it's a business transaction.

Anyway, we did get it to market and it sold quickly. Perhaps we got as much as we would have received in the early summer -- we'll never know. Ultimately it's our fault for being naive.
0 votes Thank Flag Link Sat Jul 24, 2010
Dear K.C.

Many times the relocation company has their own real estate agents so it is important to find out just what your relocation contract provides for the sale of your home. Also with a new buyer on hand, many want to select their own colors and decor after they move in, if in fact you have the buyer, then the buyer can purchase the property as is unless there is no paint on the walls and would be good to engage the buyer by letting them select the colors after a purchase contract has been accepted, escrow opened, and all contingencies removed. When hiring a seasoned agent, like myself, or many of the other agents that have responded to this questions, all of these little concerns will be put to rest. Commissions are negotiable and sometimes agent will participate in the preparedness of a new listing. Does not seem necessary in that you have the buyer. Good Luck to you in the sale of your home.

Respectfully,

Denise A Laugesen
#! Producing Agent
Cashin Company
Direct Line: 650-403-6225
Cell: 650-465-5742
Email: deniselaugesen@comcast.net
Web: http://www.deniselaugesenteam.com
DRE: 01011089
0 votes Thank Flag Link Tue Jun 1, 2010
KC,

I agree with Marcy, everything is negotiable with the agent. The biggest part of the seller's cost in selling a property are the commissions to be paid for both listing and selling agent but since the relocation company is paying for commission then you get big savings in selling your property.

With the amount of improvements that you have mention, it looks to me that this very immaterial. Everything is negotiable most especially with this market with so many competitions. I will advise you to interview some agents and see where you can save and most especially who can offer you the greatest saving.

You should also check with the relocation company if you can choose your Realtor and how much commission will the relo company willing to pay. Because more or less you an tell if the commission is good enough that Realtor can and will be more than willing contribute on the improvement of your house in order to sell asap.

If you need more information or have any questions, please call and i hope i can be of any help.



Cristina Weglinski
Realty World Avant Properties
cell: 415-987-3784
cristyweg@comcast.net
0 votes Thank Flag Link Sun May 30, 2010
KC:

In most cases, the answer is no. Agents will not pay "out of pocket" for the charges associated with selling or buying a home, which, in many cases, can be considerable.

However, I'm happy to say that our company has just the solution you're looking for--we call it the "Quiet Transaction"--meaning that a buyer and seller have found one another without marketing the home.

If you have a home to sell, and have a buyer, then we will coordinate all of the work for the seller for a low commission of one percent of the sales price of the home or $6000, whichever is higher. This covers the seller, and if the buyer would agree to be represented by another agent in our company, then the total transaction charge for the representation of the seller and the buyer is 2 percent (1 percent for the agent representing the seller and 1 percent for the agent representing the buyer). While we will not pay for any costs associated with selling the home (such as title fees, escrow charges, notary, transfer taxes, etc), the SAVINGS in commissions (which range from 3-4 percent or $21,000 to $28,000 for a home worth $700,000) will more than cover any out-of-pocket costs you may incur in selling your home.

Let me know if you are interested or need more information.

Sincerely,
Grace Morioka, SRES
Area Pro Realty
Tel (408) 426-1616
0 votes Thank Flag Link Sun May 30, 2010
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