Home Selling in Lees Summit>Question Details

Carmen In Mo, Home Seller in Lees Summit, MO

Does FSBO grandfathered prospect generate commision for newly hired agent?

Asked by Carmen In Mo, Lees Summit, MO Tue Oct 26, 2010

I've had my home FSBO for 5 months, in the MLS through a FSBO website. Only 2 days ago I signed a contract with an agent. Now someone who saw it a while ago wants to buy (this prospect was brought by another realtor). I don't feel it is fair to pay commissions, but I did not see any clause about grandfathered prospects in the contract, and honestly I did not think of asking before signing the contract.
What is the "normal" costume in these cases? Where can I find that documented? Thanks!!

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Joleen Halloran’s answer
Carmen - There is no grandfathered clause in the Exclusive Right to Sale contract unless it was written in by your realtor at the of the signing (which I do for my clients if they have open leads from FSBO marketing).

Carmen - IF your buyer gets through the entire process for buying this house (negotiating price, signed offer/contract, inspections and re-negotiating after inspections and keeping the contract moving forward with the title work and lending companies) - your new agent will have put in alot of work to work to get a "closed" sale. You may find your realtor is willing to take a reduced fee or you could ask to cancel the exclusive and have your realtor sign a Transaction Broker Agreement instead (which means they are responsible for facilitating the transaction only but not representing to the buyer or the seller) to complete the transaction at a reduced fee. I would stay with the Exclusive with a reduced fee negotiation myself as you might find you need that representation during the negotiating that happens after inspection process

There are several options here - but having a interested buyer doesn't always mean a closed sale. There is a long way to go to get to the closing table. Use your realtors expertise to close the deal and work with him/her to come up with compensation that is fair for everyone.

Good Luck - Joleen
1 vote Thank Flag Link Tue Oct 26, 2010
Discuss the issue with your agent, more than likely a commission is in order--do keep in mind that your agent will have much work to do in order to get you to the closing table, especially if this buyer is serious, or any other buyer for that matter--therefore, don't let a commission payment stand in the way.
0 votes Thank Flag Link Tue Oct 26, 2010
More than likely you are going to pay commission unless those potential buyers were excluded from compensation. This would have been part of your listing agreement with your Real Estate Agent.
0 votes Thank Flag Link Tue Oct 26, 2010
If you signed an exclusive right to sell agreement, then you will probably have to abide by that. The agent will be representing you in the sale process and will earn their commission there.

Now if you really want to fight it -- check with an attorney. You MAY have a right of recission on the agreement you signed with the real estate agent.

Another option -- is talk with your agent -- actually, the employing broker. Tell them this was an earlier prospect and show them some proof of contact. Ask them to drop their commission in half as result. This way you can get the benefit of representation at a better price.
0 votes Thank Flag Link Tue Oct 26, 2010
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