Commission question

Asked by John, 01776 Sun Dec 13, 2009

I have a buyer agent who agrees to a fixed fee of $15,000 if he helps me find a house. Now we have identified a house whose listing agent is paying a 2.5% cooperating fee to the buyer agent, which in this case amounts to approximately $20,000. Can I ask the difference ($5,000) to be applied to reducing my purchase price? What is my chance of being successful? Thanks.

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Keith Sorem’s answer
Keith Sorem, Agent, Glendale, CA
Mon Dec 14, 2009
John
The only people that should advise you should be the Realtor and/or their broker.
Also, if the agreement is in writing, a copy of the buyer/broker agreement.

My suggestion to you would be to ask this question. If you were in the Realtor's shoes, what would you think?
0 votes
John, Home Seller, 01776
Mon Dec 14, 2009
Thanks all for the answers. My buyer agent agrees only to take the $15K. He will not take the $20K cooperating fee offered by the seller agent. Can my buyer agent ask the seller agent to return the 2.5% commission, which my buyer agent is entitled to but decides not to take, back to the purchase price? I will pay the buyer agent (15K) separately. Thanks.
0 votes
Anna M Brocco, Agent, Williston Park, NY
Mon Dec 14, 2009
Your best bet is to first sit down with your agent, discuss and renegotiate--if the outcome is not satisfactory because of your existing agreement speak to the broker owner of the agency.

Anna
0 votes
Ken Lambert, , Exeter, NH
Mon Dec 14, 2009
Hello John- How is your agreement with your buyer agent worded? Did you agree to pay the $15K, regardless of if their is a cobroke who will normally split the listing commission with the buyer's broker? You need to read all that- to have a good understanding- BEFORE you sit and speak with your agent. If you need any further help, feel free to contact me. I'm not an attorney, but may be able to help somehow.
Thanks and good luck,

Ken L.
0 votes
Peter Mlaguzi, Agent, Boston, MA
Mon Dec 14, 2009
John,

How are you? The best bet is to sit down with your buyer's agent and have a discussion with him in regards to your contract, the commission offered and coordinating the reduction of a the purchase price by 5K, whether that be in price or via a refund of commissions at closing applicable towards your down payment or closing costs. But definetly have this conversation as soon as possible and address the issue. Best of luck and any other questions, please feel free.

Best regards,


Experience excellence

p.s. Of all of your family, friends, neighbors and co-workers, who do you think will be the next one to move, buying or selling?


Peter J. Mlaguzi III
http://www.PetersHomeFinder.com
peter@petershomefinder.com
C: 617-233-1476
F: 617-395-6867
0 votes
Scott A. Nel…, , 02155
Sun Dec 13, 2009
Everything in your agency agreement is negotiable, it can't hurt to ask. If you've already signed a contract you should read it through, it should address this issue. You'll never know unless you ask.

Good luck with your purchase,
Web Reference:  http://www.MedfordHouse.com
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