I put in an offer on a short sell home by going directly to the LA (listing agent). She explained to me

Asked by Homebuyer, Arizona Tue Jun 24, 2008

that
she had a few offers coming in, but would advise me on how to make sure my offer would be accepted, mostly because the other offers where coming from other agents and she would need to split the commission.
Anyhow, I was reading over the Buyer-Broker Exclusive Employment Agreement and I noticed she put an experation date 6 months away!!
Also she put down 3% compensation. Does this mean if I do not get this house, and 3 months later if I find another home I like. I would have to tell that LA that she is my realtor? I only wanted her for this house only.

Also does this mean that if I do get this house I would have to pay her 3% out of my pocket? I was under the impression the realtor made their commission off the seller not the buyer?

Help the community by answering this question:

+ web reference
Web reference:

Answers

4
Marina Kocian, , Scottsdale, AZ
Tue Jun 24, 2008
The listing agent is representing the seller and now she is representing you. Dual agency. i can't tell you abou the compensation without reading the buyer-broker agreement. However probably you should talk to her and express your concerns and if you wish to cancel she should be able to do so. I belive our Buyer-broker agreements are good as long as relations are good.
Best Wishes on your future purchase.
Web Reference:  http://ownyourhomeaz.com
0 votes
Donald Keys, Agent, Scottsdale, AZ
Tue Jun 24, 2008
Ooops you have done what a lot of homebuyers have done. Drived neighborhoods, called on a sign and started dealing with the agent that represents the SELLER. You are now invovled in one form of DUAL AGENCY. (An owner of a very popular real estate franchise describes this as being sued and hiring the attorney who is suing you to represent you in court - not a good idea!). That is why you should ALWAYS hire a BUYER BROKER who represents you EXCLUSIVELY as a buyer and NOT the seller.

When I am dealing exclusively with a buyer and using a buyer broker agreement (the form that allows the buyer to hire me). I explain that usually my fee is paid for by the seller. In a rare circumstance where my fee is not paid for by the seller then YES, you as the buyer are resonsible for "X" percentage or "Flat Fee" that I charge to professional represent and negotiate on your behalf. My buyers 100% understand this before signing. If the seller is offering "X" % and my fee is "Y"% and the difference between "X" and "Y" is 1.5% then the buyer would have to pay me the 1.5% difference. Real estate commissions are 100% negotiable that is why I am talking in general terms.

I would advise you to consult LEGAL COUNSEL for the current situation that you are in because REALTORS can not interfer with clients who have signed exclusive agreements. If you are not happy with the situation you are in, talk to your agent and their broker and see what can be done.

I hope this helps.
Web Reference:  http://www.TheKeysTeamc.om
0 votes
Danny Dimas, , Surprise, AZ
Tue Jun 24, 2008
Without seeing the buyer -broker exclusive employment agreement I could not give an exact answer.. The buyer agent is paid most of the time by the seller and not the buyer. You have an agreement with the broker not the agent (unless they are the broker) to purchase a home in the next 6 months through that brokerage. Should you purchase a home on your own or through another agent you could be responsible
for a 3% compensation to that agent.
If you do not want to be represented by that agent or broker, just ask for it to be severed or cancelled. Get it in writiing if they do cancel. Most agents will comply. If that agent does not comply, then kindly ask for the broker and ask them. Just ask...
Or you could ask for another agent in the same brokerage. Worst case is that you have another agent help you and they give the contracted agent referral fee to let you go. It should not come to that.
0 votes
Temporarily…, , Tempe, AZ
Tue Jun 24, 2008
I hope you did not already sign the agreement if you do not like the terms. You should carefully review all the terms before signing.

The specific requirements will depend on the terms in your agreement. If the agent is using the standard Arizona Association of Realtors agreement with no changes, then yes, you have committed to work with and compensate this agent for your purchase no matter which home you choose. Again .if the standard agreement, you would pay the 3% only if your agent is not paid by the seller, or make up the difference if the listing co-broke fee is less than 3%. You can negotiate any of the terms with your agent, such as the length of the agreement and only applying to a specific home.
0 votes
Search Advice
Search
Ask our community a question

Email me when…

Learn more