Home Buying in Antioch>Question Details

Metool, Real Estate Pro in San Francisco, CA

Can I change buyer agent or agency?

Asked by Metool, San Francisco, CA Fri Jan 2, 2009

Hello! long story as short as I can. I have a mortgage brokers friend I used early this summer to get pre approved for a loan he got me my buying agent throughout the summer I sasked him for some numbers from him never got them Only that he would get me a great deal. I have spent the last six months doing lots of searching for the house I want while my agent did almost nothing never I found house on and had him put my bid in it saw accepted. The seller will be paying the buying agent a 4% commission that is nice I have no problem with that but when I finally got the numbers from my friend they were very high 7,000
in closing costs or 12% of the purchase price. I had to emergency shop for a new loan.
found one with a bank with an APR 1% lower and only 1800 in closing costs. now after a week of my agent knowing that I was going with a different loan he said there will be an admin fee charged by the real estate agency he works for on top of the 4%. is this legal?

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Answers

8
walk away dude, you owe the buyers agent nothing
0 votes Thank Flag Link Fri Apr 3, 2009
If I was in your agent's shoes, I would expect to lose you as a client. Sorry to hear that there are agents out there that neglect their clients like this. At least you are taking the positive side and learning from the experience. Let me know if I can help. read my profile to see if you think we could work together.

TA
0 votes Thank Flag Link Fri Jan 2, 2009
Hello!

Thank you for all the answers. I have never signed an agreement with the buyer agent and was never told of these fee's until today 15 days from closing thought the 4% commission would cover everything on that side.
He never found one house I was interested in and when I told him my price range when we first started he was way out in left field. I found all the houses and looked at them and planned a showing before I would call him.
From my loan broker to my agent I knew more about buying a house and I have never than they did.
0 votes Thank Flag Link Fri Jan 2, 2009
What does your buyer rep agreement state? Sorry you have had some problems . In the executed contract between you and your realtor should state ? % for their commissions. However seller pays for your realtors earnings will it make any difference if they receive 4% .

SUGGESTION: Speak with their broker at times that assists.
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Fri Jan 2, 2009
Metool,
More and more brokerages are charging administrative fees to their buyers. However, this should not be coming as a surprise to you at the last minute--it should have been discussed and written into the Buyer Agency contract that you signed with the agent. Oftentimes, the administrative fee can be waived by the agent (or with the broker's approval). If you did not agree to this fee in writing (and even if you did), I would ask to have this fee waived. You have nothing to lose in asking.
0 votes Thank Flag Link Fri Jan 2, 2009
Sorry for the second answer here, but if it hasn't been accepted, you can always withdraw your offer and start over with another agent, unless (as I said in the first answer) you have a separate contract (separate from the purchase agreement offer you make) with the buyer's agent.
0 votes Thank Flag Link Fri Jan 2, 2009
Did you sign a buyer broker agreement with this agent? If you did not sign an agreement with your buyer's agent to pay any additional fees, as far as I know , you would not owe anything additional. When your agent wrote the contract, part of that is an agreement to accept the compensation as offered in the MLS. If they wanted additional fees from you, they would've had a buyer broker type or other agreement with you. Admin fees are not necessarily uncommon, but it would've /should've been discussed and agreed to up front.

If your agent is with a brokerage as you indicate, you can always call and talk to their broker /office manager as it doesn't ring "fair" to me to try to charge you additional fees now unless you did sign a contract to do so.

I'm glad you found a new loan, it sounds horrible what your "friend" tried to do. In fact, that may be a whole other story here...

Good luck to you.
Web Reference: http://www.diablovalley.net
0 votes Thank Flag Link Fri Jan 2, 2009
What's legal is what's in a written contract between you and your agent, in this case presumably the standard Residential Purchase Agreement. That agreement sets compensation for both agents - typically whatever is listed in the MLS. . I'm sure no lawyer, but I'd have a hard time telling my client to pay something more unless there was a separate agreement. Is it possible your agent was receiving some form of compensation from the mortgage broker (which is not legal)?
0 votes Thank Flag Link Fri Jan 2, 2009
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