My realtor is making a bonus of 2000 for us offering full asking price! In order to close fixes had to be made of 1000!

Asked by M Jo Jo, 62221 Sun Mar 27, 2011

The sellers countered that the fixes come out of the bonus! When we received the offer we said great as long as it gets fixed to close! Our realtor said we did not accept! Is this proper procedure or is this our decision?

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6
James Gordon…, Agent, Hamilton, OH
Mon Mar 28, 2011
The offer of compensation for a sale on the Broker to Broker exchange (MLS) is unconditional. The listing broker should be reported for allowing the compensation to be changed after negotiations started.
1 vote
John Walin, Agent, Libertyville, IL
Mon Mar 28, 2011
The agent bonus is not your money to help put the deal together. That $2,000 is split with the brokerage and not all going to the agent. If the bonus was advertised in the co-op field in the agent full description, it is cheesy for the seller to change the terms of agent compensation based upon your offer. The listing agent should not have allowed it in the first place. This is no different than the seller modifying the co-op to 2% from advertised 2.5% in the MLS. $1,000 worth of repairs sounds like laundry list ofsmall home inspection items.
1 vote
Michael Cline, , Chicago, IL
Sun Mar 27, 2011
M Jo Jo,

If you really want the house, and your realtor doesn't want to lower his/her commission, then another option is to ask your lender to do an escrow holdback. The small dollar amount for repairs will be held in an escrow account at closing, and will be paid out after the repairs are completed. This is a nice (and simple) alternative to a construction loan or a 203k loan.

Good luck,
Mike.
mcline@waterstonemortgage.com
0 votes
Bill Eckler, Agent, Venice, FL
Sun Mar 27, 2011
M,

All negotiation should be in writing and agreed to with signatures. Should this not be the case, it may be time to have a conversation with the agent's broker, making him/her aware of these events.

A "frank" conversation with the agent prior to contacting the broker would be recommended.

Best regards,

Bill
0 votes
April Crowder, Agent, Charlotte, NC
Sun Mar 27, 2011
Your agent should be willing to let repairs come out of the bonus. It is the agent's decision but he or she is not working in your best interest if they refuse to do this. Tell your agent you will terminate your buyer agreement if he or she refuses and then see what happens! Good luck with your home purchase.
0 votes
Joan Braunsc…, , Morris County, NJ
Sun Mar 27, 2011
M Jo Jo, please talk to your agent's broker. Obviously all is not as it should be with your agent.
0 votes
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