Home Buying in 92545>Question Details

glsh, Home Buyer in Santa Ana, CA

What should I do?????

Asked by glsh, Santa Ana, CA Fri Dec 7, 2012

I bought a home that was LISTED for 425000( i offered 428000) agents were to split 5% equally. per the mls. There were needed repairs about 1200....I thought it peculiar the seller only wanted to pay 850 of it since I had offered 3000 more than asking price, but didnt worry about it, until after closing I noticed my agent was paid 3%(12840) and the selling agent 2.5%(10700). That is 2140 more to my agent add that to 850 is 2990 only 10$ less than the 3000 that I offered over the asking price. I asked why he paid my agent more? He told me from day one my agent started begging for more since I offered more than the asking price.so the seller didnt like those tactics and said he would sell for the original asking price to avoid the money hungry agent, he said she wouldnt agree.I was never informed of any of this and actually could have saved 3000 because he would have dropped the price.I asked him why he agreed .5% more and told me it was his 1st time selling and might lose the deal. ???

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Mack McCoy’s answer
We're not going to adjudicate this here. The brokerage fee is a separate issue - really, it is.

If you think you were materially harmed in the transaction, then you need to refer to your contract as to the appropriate method of addressing that.

All the best,
1 vote Thank Flag Link Sat Dec 8, 2012
I certainly disagree with Ron Thomas. We Realtors complain that the public holds us in low regard and your agent’s actions are not helpful for us.

It seems to me that your agent was more interest in his/her welfare than yours. You paid more than the asking price. Since agents get paid on a percentage of the sale price, your agent should have been very satisfied. Did you pay more at the urging of your agent…who then used that premium as an excuse to demand a larger commission? In any event, I found it very unusual that your agent made such a request and that the request was granted by the listing agent.

Why would the seller agree to pay $2,140 more commission instead of doing the full requested repairs? If the commission came from the seller’s agent’s share, why did not the agent offer to credit you for the repair shortage instead of paying your agent a premium? Why did your agent not pay the difference for the premium that he/she extracted from the seller?

I would take up the matter with the agent’s broker. What is the broker going to suggest to smooth this matter over before you tell all of your friends (and as many potential future clients of that brokerage as possible) about your agent’s greedy and unsavory actions?

If your agent is a Realtor, your agent may be guilty of a violation of the Realtor code of ethics for not putting your interests ahead of his/her own.
1 vote Thank Flag Link Fri Dec 7, 2012
It isn't uncommon to pay more than list price in this market. If you needed a loan on the property you probably had an appraisal to let both you as the buyer and the lender know what the property was worth. On the other hand the amount of commission paid to the listing and selling agent\, as well as how it is divided does not have anything to do with the buyer. That is something that is negotiated between the seller/listing agent and then listing agent/selling agent. Commission does not need to be disclosed to buyers, since the seller is the one who pays the commission.
0 votes Thank Flag Link Tue Dec 11, 2012
Who pays more than asking price! I mean really. You can only blame yourself. If the place needed repair then that's the sellers responsibility regardless of the excuses or losing the home to another idiot. lol. There are many homes to get a good deal on.
0 votes Thank Flag Link Tue Dec 11, 2012
According to stats about 1/3 of the houses in my area are selling for more than asking prices..My home had 4 offers within 7 days and with no open house yet. My issue is the seller was requesting to drop the price 3000 dollars and I was never informed...Because it was her leverage to increase her commission....I am not complaining of anything eles. Also your misinformed on whos responsible for repairs. Maybe in some government program like a va loan or fha, but mine was a standard sell. Anyone can sell their home as is and offer no repairs at all if they want to. Your confused as to my issue maybe you should re-read it LOL
Flag Tue Dec 11, 2012
You became privy to some information that you would not normally have.

Your sole interest should be, and should have been, BUYING the house.
You chose to pay $428, irrespective of any advice you received; you made that decision.

Your sole concern should still be the house.
There is a very old addage that in order for there to be a good sale; the Seller would have been willing to sell for less, and the Buyer would have been willing to pay more.

After the sale is consumated, you shouldn't dwell on what you COULD have paid; that is really sour grapes.
And how much the Realtors made is really "nun-your".
0 votes Thank Flag Link Fri Dec 7, 2012
REALLY its none of my business that the seller offered to sell the house for 3000 dollars less and I wasnt informed??? I thought my agent is supposed to have MY best interest in mind at all times?? I have no problem with the price I paid but something sounds amiss....
Flag Fri Dec 7, 2012
I would have to agree with Jory. The commission should have been negotiated prior to the presentation of the contract. Other than this, I could not comment further because I am not in a position to judge other realtor's behavior or the manner they conduct their business.

Nonetheless, congratulations on your purchase. Hopefully, you are happy with it.

0 votes Thank Flag Link Fri Dec 7, 2012
Wow! This isn't the first time Ive heard of this type of conduct. Its not uncommon for a selling agent to request a commission higher than what is offered in the MLS, however, it should have been negotiated prior to acceptance...in other words, the listing agent should have stood firm along with his seller at the 2.5% commission per MLS.
This of course has nothing to do with the fact your offered was accepted and no unusual or additional funds were required. Please keep in mind, sellers are under no obligation to make repairs and are usually advised to negotiate the request for repair anyways.

Congratulations on your purchase, it could have been worse.

Jory Blake
Web Reference: http://www.JORYBLAKE.com
0 votes Thank Flag Link Fri Dec 7, 2012
The one thing everyone keeps missing the seller offered the house to the buyer for $3000.00 less!!!! This information was not conveyed to the buyer. This is not only wrong but I believe illegal! Both buyer and seller have a right to know what the costs are and commission is a cost and is in play until the final contract is signed. Commissions are regularly cut to make a deal work. Remember this seller did want on his or her own to reduce the price.
Flag Thu Oct 3, 2013
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