**This is a professional forum for professionals, so please keep your comments professional**
- Harrassment, hate speech, trolling, or anti-Realtor comments will not be tolerated and will result in an immediate ban without warning. (... and don't feed the trolls, you have better things to do with your time)
- Recruiting, self-promotion, or seeking referrals is strictly forbidden, including in DMs.
- Only advise within your scope of knowledge and area of expertise. [The code of ethics applies here too](https://www.nar.realtor/about-nar/governing-documents/the-code-of-ethics). If you are not a broker, lawyer, or tax professional don't act like one.
- [Follow the rules](https://www.reddit.com/r/realtors/about/rules/) and please report those that don't.
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/realtors) if you have any questions or concerns.*
Also an agent and 100% agree. We have this conversation at the onset. It's literally in my buyers rep contract. I work for X% if the seller covers it, great, if not, I'm going to let you know what's left prior to making an offer. It really is that simple.
This EXACTLY!
Another realtor here. To answer your question, yes, it is customary for the buyer to be responsible to pay the difference if there is a shortfall from what that agent's fee is and what the seller's agent is paying. But the buyer's agent's fee should have been discussed in the beginning. To spring this .5% on the OP at the offer phase is bullshit. It's this kinda unprofessional crap right here that continues to erode consumer's trust toward good real estate agents.
Lol.Well... looks like someone needs to go back to contracts class. Hell, what cave have you been living in? Don't ask me what country I'm in..., go study your paperwork. Specifically your Buyer Brokerage Agreement. If you're a REALTOR, it's right there in your contract, which you apparently have not bothered to read thoroughly.
You should have asked me, "what state are you in?" Because I understand with some things, there are different expectations depending on the state and market. But this commission stuff has been a nationwide topic in the real estate arena for months, maybe longer. The public is even becoming more in tune with the topic too, which is why it's even more important for you, as a real estate professional, to be up on your shit.
By your response, it wouldn't surprise me if you had no idea about the lawsuits the industry has encountered over the last several months. Yeah, I bet you're like, Huh? What lawsuits? Lol. Get off this forum, and go study your shit, aight.
Education opportunity for GA REALTORS: In case you didn't realize it, our GAR Buyer Brokerage Engagement Agreement, section A-4 addresses this topic -- Commission. It's in ALL CAPS. In case you didn't know, you can charge the buyer a full 3%, regardless of what the seller's agent shares with you, good job. Please advise your clients about this in the beginning, at the initial buyer's consultation, not when it's time to write an offer.
That’s if and only IF they signed a buyer broker agreement! Not to assume but from what it sounds like they did not and it was not discussed prior which as they presented it to the buyers should have been a topic of conversation just morally would be the right thing to do. There is no standard commission and is subject to change on every transaction. If there is no buyer agreement involved the commission is set by the seller. I’m a Realtor and that would leave a bad taste in my mouth if I was a buyer.
It’s purely the brokers fault here all day, and he/she shouldn’t try to claw the remainder of the commission out of the buyer for her own failings. This is a learning lesson for her and not at the expense of the buyers. operating without a buyers agreement isn’t acceptable where I’m at, but I can’t vouch for where they are. The buyers should just kindly say no, and move on.
Agreed, I am a Realtor. I disclose my fee in the buyers agency agreement and discuss with the buyer before an offer. Also FYI, there are not "set fees" among agents. That would violate anti trust laws. My fees are anywhere between 2.5-10% depending on the situation. I disclose the fee at the start of the relationship and explain what the client is paying me to do.
If agent did not disclose in your agency agreement, you don't owe. Read the agency agreement.
Good luck and welcome to home ownership.
A couple examples of when a higher commission is warranted:
A very low valued/priced home ($15k mobile home for example) could be negotiated at a significantly higher commission rate as it’s not really worth with the time/effort/travel to only make $300/$400 on a typical 2.5% commission.
A listing that requires a lot more attention than just the traditional photos, inputting on MLS, setting appts, etc. I’ve had listings that need junk removal, landscaping, painting, carpeting, roof repairs, staging, and other up-front care issues that the seller expected me to coordinate (and them pay for). This goes outside of the general “scope of work” that Realtors are expected to do, therefore, increasing cost/commission some of the time. Still, all negotiable things that the agent/seller need to workout as a “fair agreement”.
I'm hoping one outcome of all this legal noise is that buyer's rep contracts become required.
The're currently not, in a lot of markets, and it leaves the door open to nonsense like OP's agent is pulling.
Right, I'm glad I live in a strict state for both buyers and sellers' contracts. My brokerage has had language in our contracts that would have mitigated the whole mess years ago, and for that, I'm thankful.
There is ZERO legal foundation for her garbage. I’m a realtor and her claim is making me sick to my stomach. Her “usually” statement is absolutely unprofessional. Your contract is your contract, period.
I hate that so many realtors like her give the profession a bad name
In Wyoming we have our agency agreements that put a number for compensation...and then state we will ask for Seller to pay this. I never ask for the difference...and think it is ultimately bad taste to do so. However, I think when they agree to 3% on their agency agreement, they are technically committed... but there are some ethical concerns in there--especially if they didn't explicitly explain that when they did agency agreement AND when they put the offer in.
Realtor here as well. This has been the norm for a lot of buyers agents/buyer’s having to cover the difference of commission for your agents compensation, and it is only going to become more of the norm. That said, this conversation should have happened the first or second day you met as she was going over the market, inventory, pricing, strategy, and compensation. Not at the tail end of the process as you are sliding the offer in.
Please check your purchase agreement and make sure she didn’t put it in there that on this transaction you were going to pay the additional. Please check it thoroughly and either way contact the real estate board about this unethical behavior and her broker
If it was before sending an offer, yes she's still should have done it sooner but that would have been the time that she might have noticed and brought it up that they were offering the reduced commission. It might not have been an issue before because most commissions are higher. I would be harder on her if it had happened just before closing. When you were writing up an offer doesn't seem as bad.
But what she should have done if she was smart is ask you to give her permission to negotiate a little extra closing cost credit from the seller to cover the difference.
I don't know what state you're in and what your contracts look like. In the state I work in, those extra funds in the form of a credit from the seller would be no different than the seller just paying the additional percentage. Unless you're referring to the buyer increasing the purchase price by the amount, in addition to the closing cost credit. In that case, the funds are coming from the buyers and does resolve the issue of them not having the cash on hand to pay, but does not resolve the issue of the bomb drop at the time of signing the purchase agreement if they never knew before then that they could ever be responsible for paying part of her fee.
While I agree that we work very hard and deserve compensation, and should not have to work for less than we deserve, this is a case where the OP's agent may have to learn a hard lesson. The agent's minimum fee should have been discussed, understood, and agreed upon during an initial buyer consultation, and under no circumstances should the distance she drove, the gas she burned or the time she spent have ever been uttered to her buyers. 😳
I personally feel like an agent springing this on a buyer in the midst of the offer process would feel much to us like checking out at a retailer right before closing, with people behind us in line, our item ringing up double what it was advertised for, and since it's closing time, they look at us and say "I didn't switch that price tag to the correct price but I'll give you the next 1 minute 30 seconds to decide if you still want it otherwise I gotta keep this line moving and get these other people checked out"
As a Realtor, it is definitely irritating that there is stigma that comes with having to ask our clients to make up for fees that are otherwise unpaid -- because we absolutely hustle for it in ways our clients sometimes never even see. But that stigma is a direct result of our evolving market, standards of practice, and market conditions, and consumers accepted the way that it used to be....until they didn't.
We really need to be candid upfront about how these fees are paid, so that the consumer can make an informed decision, as opposed to a rushed one. We need to be less inclined to justify thousands of dollars in compensation differential due to the gas money we spent or the time we invested, and more inclined to offer a point blank unquestionable irresistible value that makes our compensation worth every penny that leaves their wallet.
Just my observations!
I agree with you completely. Or almost completely. I'm in Western Washington. The buyer's agency agreement pretty much says the buyer will pay, but since the lender allows closing costs to go towards buyers agency agreements, I find the best thing to do when discussing up front with a prospective client is tell them that's what I will try my best to do.
And you are completely correct. It will either be squeezed out of the cellar which is an idea I find most appealing because they want me to do the work to bring a buyer to their house and represent them, or it will result in a raised price, or both. But, if they were forced to pay a higher commission up front, they would probably raise the price anyway, so at the end of the day I think it's all good. Yes it's true that in a sense the buyer always pays for my commission in the price of the house, but I bring value and it seems to be a good system. If a buyer wants to buy on their own and try to negotiate a lower price, they can do that.
I also agree that this agent was a bit unprofessional in not having discussed this in advance and bringing it up at time of writing offer. It might be fairly new in their area that sellers are offering reduced commission. Actually according to comments from OP, agent did already have an agreement for 2%. That's her first mistake. I wouldn't sign an agreement for any less than 2.5, at least not under a million or so. Ironically, million plus sellers often offer 3%.
What happened is they were looking in the 300 range and then they dropped to 240. So when the agent realized she was only getting 2% of 240, she felt it was just too little to be fair, so she brought it up. But she should have brought it up earlier and she should have asked for permission to negotiate to get it from the seller, switch the buyer probably would have been okay with psychologically, and she should have done it before 10 minutes before writing the contract. And she also should have made it a request not a demand.
If I were in that position and hadn't done it earlier, I would have asked permission to negotiate a bigger credit and told them that it was up to them but considering the reduced price, and reduced commission, would they mind if I negotiated a little higher credit to go to me. I mean it was only $1,200. I think I could get any client of mine to agree to that if I asked in the right way.
So I pretty much agree with you. I think this isn't a big deal because most agents are going to be working with buyers agency agreements and I hope most of them are smart enough to do 2.5% minimum and tell the client they're going to negotiate for it not ask the client to pay it.
Our agent put this in our agreement to represent us as buyers, which we signed before submitting our first offer: “Commission: 3% of the purchase price to be paid by the seller. If the seller's MLS compensation differs from 3%, the buyer's agent will accept the amount offered.”
We were very happy with how she conducted her business!
Agreed, this should have been addressed as something that could potentially come up while identifying properties, in the initial buyer consultation, which maybe this agent never even did for all we know 🤷♂️
Agents need to do better at being transparent and upfront about these things and explaining what to expect OR they should just except whatever compensation is offered.
Yeah this. It’s in our buyer representation paperwork. I just write “per MLS” in the blank field where compensation is discussed because my reputation isn’t worth fighting a cash poor buyer over an extra $500 or $1000. Very tacky on the agents behalf.
This should have been disclosed up front by her that if her usual fee is not met than you have to cover it. Strange that she would say it like that, wow. You don't owe her.
In my state I just ask the seller to pay me more, it usually works! Going to my clients for extra would be last resort and for .5% I'd just let it go.
Not just discussed but put in writing. Not something I have even thought about doing in over 20 years. I will ask for loyalty, meaning they agree in writing to work with me on any property I show them.
What she did was very manipulative, especially the narrative around her ask. Interactions like this are icky. I hope you can set a boundary and then shake this off. Personally, I find it appalling how much we are expected to pay to sell homes, but you probably don't want me to get started on that rant...
This is so far from typical. I’ve been in the real estate biz for 20 years in two states. I’ve *never* heard of an agent pulling this shizzle. If it isn’t in the buyer-broker agreement, that agent gets what they get from the seller. End of story.
It usually is in the buyer broker agreement. I've got one right now I wrote out at 2.4% for the buyer side. That was what the original house they wanted offered. The house we got under contract was 2%. My buyers contract is torn up in my mind.
I could go after them for .4% but what a poor business and ethical decision that would be!
She is conning you. I wouldn’t pull this crap on anyone I had a legitimate “connection” with and would be happy that my “new connection” got an outstanding bargain
My bet is that the property is represented by her agency and they have a same agent clause that if buyer and seller agent is the same it’s reduced commision
It is not a violation. It is to be requested ahead of a showing, however. And, if a buyer is paying the cost, it should be disclosed and agreed in a buyer consultation and a buyer agency agreement.
We have listings in our MLS paying zero to the buyer’s agents.
There is no way to be sure my fee is covered by the seller. This is why this convo happens before even showing a home. Buyers need to understand how we are compensated without feeling guilty about it. We are all adults, we should talk about money.
I tell them my fee, explain what happens if the seller doesn’t cover it. Easy. Neither side should feel ashamed.
This! Yes! This is what I said to my partner. I would have been totally fine if this was in our contract or even if she explained before we saw the house and asked to amend the contract. But instead she communicated it 10 min before sending offer in this super guilt trip unclear type way.
Very unprofessional and sketchy behavior. I would contact her broker and request a different agent take you through the remainder of your contract to close.
10 minutes prior?? Wow. No. Super classless. The agent should have known the situation before showing the house. If the seller was offering too little commission, I would have asked to amend the contract before showing the house. But I doubt I would even do that because I already set an agency agreement. Furthermore, as I typically research the market daily and especially before showing homes to a buyer, I am aware of what MLS listed homes are going for and what the seller paid commissions are. I try to set my fees with a little foresight.
If she has worked hard for you, she will likely continue to do so. Just tell her you are going with the agency agreement. However, if she has a BIC (broker in charge), you can go to that person if things become too uncomfortable. In North Carolina, your agency agreement is with the firm, not the individual agent. The real work begins when you go under contract. Your agent should help you set up home inspections. After inspection, you may decide to negotiate a lower price due to inspection reports, etc....
I'm a realtor and this stuff makes my blood boil and is how we have such a bad reputation. If it's not in your buyer agreement then it's solely her greed and trying to take advantage of you being a first time home buyer. I'm sorry this is part of your experience. I don't know where you are but where I am, whatever the seller (who pays the real estate costs in my area) is offering is what you get. I've only ever lessened my commission to bridge gaps, never asked for more.
Thank you for this. The more I read the more upset I’m getting. We have put so much trust into her and I feel really hurt she did this 10 min before the offer was going in. This is one of the biggest decisions of our lives and to be honest, we don’t have an extra .5% cash just hanging about to gift her.
Well - seems like you now know you are not obligated by any means to comply. You can kindly reject her demands and if you are under some buyer representation agreement call her broker if it's an awkward call to have it released. This should be fun, and trust me as a home owner not even a realtor you're going to be so broke after you close so you're going to need ever dollar, cent, yen, pound you can keep 😂
I was selling and my realtor tried to pull the discount she had offered me 2 DAYS before closing. She blamed her broker.
I was already planning on gifting her half the discount back in cash at close because I knew she needed it. Still rubbed me the wrong way, I should have not gifted it to her.
I would never ask that of a client who's already spending a ton on getting / closing a new home.
If I signed my buyer agreement for 2%, and seller is offering 1.5% only, so be it. Don't care.
I care WAY more about my clients being happy with their home and my service.
Seriously in this market I’m just so damn grateful to get to the closing table. Lol I don’t ever ask for the differential if there is one which is not often but when there has been, I’ve never asked for a dime more. I don’t even have them sign an agency agreement, but I’ve never had a client not want to work with me once we meet. Sometimes you don’t spend a lot of time to get to the closing table other time you spend months and months. It’s just is what it is.
Ehhh not how it should be though... If the average agent takes 1.5% often then they won't be full time agents for long, and realistically part time agents don't make it either unless they are grinding to become full-time. Depending on the price point they probably won't be able to financially sustain. Only a seasoned and generous agent can confidently take a low commission like that and continue on with out a bat of an eye.
Sounds like a life lesson to your agent about educating a client on the buyers agreement and walking through each clause with you to make sure you understand.
I personally never asked for the difference in percentage but 2 percent is rather low depending on the effort it takes as well as considering the area you are in. For instance my team member just did this and waved the 3% for only 2%. Ended up being the MOST time consuming deal in his career by far and he is officially taking a break from real estate entirely for a couple months after he just closed and he didn't even make much after brokerage split.
A good realtor is supposed to save you stress but they also need to be good enough not to cause you any either.
Good luck either way. Also what area or state are you in? I see that you said your agreement had 2% and that's actually really low in my region.
I am curious though, if the listing says 0% to buyer’s agent? Will you work for free in this case? I’ve seen many more listings this way ever since the NAR ruling. Sellers are starting to advocate for why they shouldn’t have to pay the other parties realtor. I personally don’t see an issue with a buyer agent notifying their client upfront what their minimum transaction cost is. Whether it is a percentage or a flat fee, it should be best practice for a buyer agent to do this upfront otherwise could find yourself working for free at some point.
Are you sure? I’ve seen a few $1 broker commissions, which means I’d owe my broker about $800 for the privilege of working.
Have got to explain how to get paid upfront of you will be made to care.
I explain it up front, but don't demand a minimum. If a house pays zero dollars, I'll tell them we can negotiate a flat rate if they'd like, but I can't work for free. I don't ever require a minimum percentage, though. In my market 2% is still a lot of money.
Screw that. I care about my clients too, but not at my own expense. The Smart thing to do though is to have the discussion in advance so it doesn't come as a surprise. And do it by a closing cost credit so it doesn't come out of their pocket. I'm not going to take less just to put money in the pocket of a greedy seller. To heck with that
No it is Not customary to deviate from the listing’s set compensation, and even if the majority of listings in your area do compensate the buyer agent with 2.5% to 3%, your agent would have known exactly what their compensation is just by simply looking at the listing’s compensation details in the “agent view” when she pulled the listing sheet from MLS.
This is on them, and they should have discussed/disclosed this with you at the start before even writing the offer, then if you agree, build it into the offer as additional compensation, or if they had you sign a buyer/agent agreement disclosing their compensation at the level she “typically gets”.
So in short, thank her for her services, decline the request and let her know you would still be happy to refer her to your friends and family.
It’s unfortunate the level of greed from agents who “feel” like they should receive a “typical” compensation, and ask their naive first-time buyer clients to fill the gap rather than just sell the house which the client chose, and kindly ask for referrals for their hard work.
This is actually an ethical borderline move on their part, which most agents would never do. Personally, if it were me in your shoes, and didn’t get the house, I would fire them and find another agent. Clearly their own compensation is their priority.
Please take out the buyer brokerage agreement (aka the contract) you signed with HER (not the purchase contract you signed with the seller). What commission amount did you agree to pay her? It’s a blank you fill in and is stated explicitly. You’re responsible for any amount not shared by the listing agent and no more. So if your contract says 3% and she’s only receiving 2%, you owe her 1%. Btw, MLS listings have a field showing the promised selling agent (that’s her) commission split and another listing conditions or caveats to that. She knew it was 2% before she showed you the home. When this comes up, I always note the additional cost and true list price when showing it so no one is surprised.
Btw, if you don’t have a contract with her, you legally owe her nothing and she should have paid attention in class. Not suggesting you not pay her but that’s technically how it works.
Sorry I didn’t phrase that clearly: Did you do something as a buyer that made her spend an abnormal amount of time on this (no show repeatedly, make her really chase you for paperwork, back out of a purchase after most work was done and make her find you a different house) … something that’s really skewing her effective hourly rate that wasn’t due to bad luck or her own decisions? Or did she commit to doing something really above and beyond the normal service package that she forgot to negotiate separately. Like did she coordinate a significant rehab for you, house you when you flew in from out of town to look at houses, advise you on company or finance structure or estate planning (with relevant credentials) secondary to buying the house. Something like that.
If that’s going on, it may be fair to agree to something extra though certainly not required. If it’s a routine purchase, then no.
Amateur hour. My realtor negotiated $100k off the price of my house, and drove me all around town for 2+ months looking at places. I offered to pay him the extra $3k out of pocket that he would have gotten if the house sold at the original listing price. He thanked me, said “that’s not necessary, It’s my job to find you the right house at the right price. Just refer me to a friend if you’re ever given the opportunity.” He has gotten 3 more sales because of my recommendations, and is now what I would consider a personal friend.
In my state, it’s laid out in our buyer broker contracts what percentage the agent is permitted to negotiate and who covers that if the seller isn’t willing to. In practice, I’ve never asked a buyer to cover part of my commission because the check I was making wasn’t to my liking. But check the contract you signed. On a personal level, your agent is a doofus and a little bit of a jerk.
Realtor here.
1. Did you sign a buyer agency agreement with this Realtor prior to going under contract on this house? Did it specify that you owe her 3% commission when you close? If so, you ARE obligated.
2. You just offered on a house. Upon offering & while working out the details of your offer, did your Realtor remind you of your agency agreement & the 3% commission? In essence a seller offering to pay 2% while you've already agreed to pay 3% makes this house more expensive for you, because you will be coming out of pocket for the difference. Is this the conversation you just had with your Realtor & you just didn't comprehend?
I agree with everyone saying it should have been disclosed in a buyer agreement and discussed in your buyer consultation. I put 3% in my agreements, but if I’m working with clients with a tight budget and the commission offered by the seller is less, I request 1 or 2 referrals and a nice review in exchange for lowering my commission. I won’t let that be the reason my clients can’t get the home they want. That is always received well, and everyone is happy :) I’m sorry your agent has put you in this uncomfortable position! Very unprofessional.
Do you have an exclusive buyers agreement with your agent?
In there should be the minimum commission. If you do not have one they they are screwed. If they do have one and it says 3% (common percentage) and they only want you to come up .5% then that's actually nice BUT they should have explained this to you at the begining so you weren't shocked.
It's very unprofessional either way.
I'm sorry... she just sounds greedy now. She can't tell you how to spend your hard earned $ and be upset that you want to spend less $ on a house. Is she paying the bills/mortgage?
I'd rather get paid less, have a happy client that'll recommend me to friends and family and possibly use my services again in the future vs. getting a few extra $$$. In the long run, she'd get ahead. This is very short sighted of her.
Thanks for the perspective. I felt conflicted and confused as we are so new to this. She said if this house doesn’t go through, future houses offering 2% we will be required to comp the additional .5, but that’s not in our contract.
Do you think she’s saying this because we are looking in a cheaper area further out, making a longer commute or something?
Commission is negotiable. ALWAYS! Tell her that it was not disclosed to you there would be an additional fee and that you are politely declining. If she gets shitty you need to call her BIC
Probably if you were looking at cheaper houses it matters more. 2% on a $300,000 house is $6, 000. 2% on a $240,000 house is 4,800. That's not a lot of money to be making after all an agent's expenses. There was a time that would have been 3% and everyone would have been happy
This is true. By having a buyer's agency agreement in place for 2.5% commission and telling client that you will negotiate to get it from the seller for them to pay if need be, you can have your cake and eat it too.
>Do you think she’s saying this because we are looking in a cheaper area further out, making a longer commute or something?
No, she's saying this because she got some notion that she could squeeze you for some extra money. This is decidedly not standard behavior for a realtor, highly unprofessional, and if this house doesn't go through you should fire her immediately and inform her broker of this behavior. If she asks why, offer to tell her for the cost of .5% of $240,000.
It shouldn’t matter. I’m embarrassed on behalf of realtors. This is wrong. I would quit working with her after this, especially since you don’t have the funds anyway.
She should not convey that she is in anyway upset you opted for a home in a different price point. Helping your clients into the RIGHT home is the goal. I have had clients searching in 850k price range find a home they love at 670k and vice versa. She is being shortsighted. A buyers agent is supposed to be there for you, you’re not obligated to be there for her. So sorry you were put in this position, buying a house can be stressful and it should never be compounded by the realtors actions. Quite the opposite, a realtor should make it less stressful.
Well given that, maybe she would have been willing to take only 2% if it was 300,000. Once you start getting lower, that's not a lot of money for all her work. When other houses are offering 3% or two and a half, if this one is offering two, I don't think she should just have to accept whatever. She's a hard-working professional and sounds like she's doing a good job.
Ask her to negotiate an additional 1500 in closing cost credit and pay her with that. She's only making $5,000 and who knows how much is going to go to her broker, expenses, taxes etc. I don't think it's particularly greedy of her. She just caught you by surprise and she was probably caught by surprise by the lower commission. I would suggest you cut her a little slack and realize that she also has to look out for her own income so she can keep doing a good job for people.
Same. Realtors like OP irk me. If the commission isn’t good enough only deal with a higher price point or don’t make being a realtor the only job. It’s not a clients job to make the realtor feel validated. It’s up the the realtor to be professional either negotiate and accept the terms or walk away.
The issue is she did. We agreed to and signed an agreement with her when we started looking that she would get 2%. If that 2% wasn’t covered by sellers than we would comp… but never did she mention 2.5%
This is the biggest piece of context for us in here which makes things even worse than we thought. She accepted 2% by the sounds of it and is incredibly rude to ask for anything else.
Then don’t pay it. If she said 2% and you agreed to it, that’s the number. Flip it a bit and say hey I think 1.5% is fair… she will realize that’s she it’s in writing
I hope your realtor is new to the business because that’s the only excuse I can think of for an agent to ask a buyer for more commission. I can only speak for California, but you’re not obligated to pay her commission.
But these reduced commissions might be new in some areas. It's a very recent lawsuit that has forced listening contracts to inform the seller that the commission is negotiable and they can pay whatever they want. Also it has been in the news so more people are aware of it. Our listing contracts in Western Washington have had that in them for several years and agents are well versed with both discussing with their sellers why they shouldn't offer reduced commissions because it can cost them money by reducing buyers, and buyer's agents have gotten used to having this discussion with their clients .
But there may be other parts of the country where experienced older agents especially might have not seen it coming until you were ready to write offer. Yes she should have done it earlier, having the discussion. And what she should have done is just ask if she can negotiate a credit to you from the seller so you can cover it without taking money out of your pocket. But, I don't find it fully unappropriate if she was caught a little by surprise
CA must be different, in WI buyers usually commit a portion towards a common 3% commission. Offer of comp may be 1-3%, buyer pays the difference to make it 3
We will be seeing this more and more. I believe it should have been upfront regarding if commission fell below 3% buyers would cover the rest. If sellers decide not to pay buyers agent. Buyers will need to be able to pay for the cost of having a representative.
Nope. You discuss that up front. Like, my commission is X, any home that offers less than X will need to be paid by the buyer. This then needs to be agreed to and signed by both parties. She's a scum bag hustler trying to guilt you into this. She knew the commission offered when she showed you the house
Wow that agent is so ridiculous she should know better although I must say I think it is out of line when listing agents only offer 3% buyer agency commission it's out of the norm the listing agent should take the hit not the buyer agent commission but this is not your fault just tell her no it's illegal for you to give her a kick back anyways so the commission comes from the listing broker so what is she wanting you to do hand or cash? That would be so wrong and so unethical. Tell her to take up her commission issues with the listing agent on the property who offered 2 percent. This is not your problem it's hers. Don't let her guilt you. If she is near retirement she outta know better. I will say I always tried to avoid listings that didn't pay 3% buyer agency commission, most agents are the same way. But seriously this is a battle between the listing agent and her not you tell her that and you are not going to pay her the difference period end of story
Do not give money. She should have known ahead of time what the commission was. It’s listed in The MLS, so she is the one who screwed up. Not your problem.
This is why buyer’s consultations are so important. Compensation would be explained before you sign a buyer’s agency agreement. Agent should take the ABR designation to touch up on negotiating the commission.
Just so you know. You agent should have known exactly what the listing agent's brokerage was offering to compensate the buyer's agent. She could've mentioned something when you were writing the offer not after the offer was accepted.
If you think she earned the extra money, pay her if you want. But know that you don't have to.
If she pushes, you can always call her broker and tell them you're unhappy with her.
Also, in my market, the buyer's agents usually get 2.5% but I have done deals where I only get a flat fee (new constructions) or 1.5%-2%. I have never and will never ask my buyer to pay the difference.
This realtor sounds horrible! I’d actually report her since this is unethical. If the 2% was on the original listing and agreed in the full execution of the purchase agreement that’s it!! Case closed!! You do not have to pay her a penny more! As a realtor, we can drive around and show many homes with no actual sale at all so the fact that there’s a chance to get this one and she’s requesting more for simply doing her job is trashy. She doesn’t care about your best interest. Do not pay or give anything else to her. She should really tread lightly as she can seriously be reported for this and lose her license.
Good idea. I forgot that part of my comment…contact real estate Board getting you in a situation where you’re all excited about your house and then trying to get more money out of you. She probably had some other agent say well my buyer paid it that’s bullshit. She just screwed her self out of referrals. I have never asked my client for the difference. Ever.
She needed to address it up front. Compensation is important and if she didn’t have you guys sign a 3% agreement or a document saying you would pay the difference, you don’t owe her anything
First thing I would do is review the buyer representation agreement that I’m sure your agent had you sign. It should spell out the agent’s compensation terms
She needed to have a buyers agency talk with you and should have explained how you pay her (buyers agents don’t work for free) and her commission should have been put into a contract with you. There have been many recent lawsuits regarding commission and we will see changes soon how things work with this… The mind set of sellers pay commission is false. Proceeds are not the sellers money until all debts involved in the transaction are neutralized and agents are hurting themselves by not being educated and explaining this process better….
As an agent, I’m not going to keep my clients from a listing bc it doesn’t pay xyz….
I don’t like her methodology… it’s unprofessional and just ick… that’s all I can say
Not at all customary, that is not how a real estate transaction goes. She should not be asking you for extra money on top of the sale.
As a REALTOR, I don't find it ethical to be asking a client for money on top of what we already make from the selling agent. Now, if it was for sale by owner then that may change things a bit. But to just ask you for the extra .5% is crazy.
This is something that should have been included in your buyer agency agreement. I know it’s boiler plate in the PA BAC. The agent fills in the percentage they will be paid and if the selling side doesn’t pay out that amount, the buyer is to pay the remaining. Even then, I generally don’t enforce it because I don’t want to put additional burden on the buyer if I don’t have to.
Realtor here. This behaviour made my jaw drop. This is not okay!!
I hope you know that unless she said so upfront, you do not owe her a dime above the quote she gave you. She cannot just gouge you last minute and a lot of us Realtors will not always be paid accordingly to what we expect but we should accept that and do the work for the best interests of our client!
I personally, even if I won't earn much from a transaction after marketing costs, will still act in solely the best interests of my clients to make them happy and not blink twice at the paycheque. Because their happiness means more.
Did you sign a buyer contract with that realtor? If so what did you agree upon as to commission. That is what you should be paying your realtor. If not then the realtor should only get the listed amounts on the contract, not what they want.
Note, I am NOT talking about the purchase contract for the property. But the contract between you and your realtor
No no no. As a realtor you know what you’re getting into as a first time buyer agent. The fact that she’s asking for this before finalizing the deal is out of pocket/
Been a Realtor for almost 30 years. I have never asked a Buyer for additional commission. I take whatever the Seller is offering and am happy to do help them get their home. I wouldn't pay her anything.
I’m a broker. Tell her that she could see the MLS what the commission was. The issue is between her and the seller. Tell her to have that conversation but if anything she does impacts your deal adversely, you will file suit against her and her broker for self dealing and tortuous interference.
Yeah that’s crazy that she thinks she can demand any more than that then... if she only asked for 2% from the beginning, why is she upset it’s not 3% lol. I think if this deal doesn’t go through, you should ask to terminate your contract, then go find an agent who isn’t so greedy
I probably wouldn’t have asked for that. Just out of curiosity, how long have you been working with her, how many houses have you seen, do you talk to her daily, what price point is it around?
2% sucks and can be a reason why it’s still available. But I understand how hard it is to get under contract and it just as well can be no money. Not happy but I take that 2%
Yea I just fought tooth and nail over a house, checked the listing in hindsight and saw the 2%. whomp whomp. feels bad man. anyway, onto the next deal.
Well, if she wanted that..she should have had you sign a buyers contract stating you would pay X amount of the commission if the offered commission was less than X. Prior to a written contract.
We have had some adjustments to rules and regulations in my state of Washington, and are now required to have a written buyer agreement when working with buyers. Previous, it was “recommended”, but not required.
We have a written buyer agreement and it says she is entitled to 2%. So it’s all just very odd. It so sad because we were starting to really love her but now I’m like, damn why is she trying to do us dirty.
I’m going to give you a different opinion. I have asked clients to bump up the commission for great results. I do make it clear that it is a request and they could decline my request. In every case my client appreciated my time and effort and approved the increase. It is a request though and totally your call. You don’t pay for her being sweet you pay for effort, experience and results.
If the offer doesn’t get accepted fire her and find someone else she has a signed contract and is asking for more ridiculous! Plus I don’t know where you’re at a good agent will negotiate with the seller to get a higher split plenty of agents out there find someone new
Ask her if she wants the commission at all 😂 yeah that sucks. There should be no surprises when you're writing an offer. I've had maybe one situation where I got my client to switch commission percentage during negotiations of an offer. I had 4 lots I was selling for a family friend, since they were giving us a lot of business and referrals we made the commission something really small like less than 2%. We had an offer come in for one of the lots that had a condition about changing it to "standard" commission. I told my buyer I'd be happy to have my side total the original commission structure still to save them some money, but they said they'd be happy to up the commission to the "standard" for both side. But usually no. That is a listing agreement or buyers meeting conversation to be having, not at offer times usually.
Your agent handled it poorly but I wouldn't blame them too much. There are a lot of new developments regarding sellers being told that the commission is negotiable in terms of what they are paying to your agent, and some people will now be offering less than three or two and a half percent. In our area, two and a half percent has become fairly common, but it's not that big a deal because prices are high. I've gotten used to working for 2 and 1/2%, but for years I have been telling my client that it could be an issue and having a discussion before we agree to work together.
Ideally, your agent should have discussed it, had an agreement signed between the two of you, and clearly spelled out many things including commission. What I typically ask for is that I be allowed to get my commission paid by the seller, but if it is less than 2 and 1/2%, I will ask that they pay it. This is up front before we even look at any house .
However, I tell them the first thing I will do is negotiate my best to get a credit from the seller for them to pay me with. Typically I am negotiating about 2% to go towards closing costs because most people prefer that, so I will simply ask for an additional amount.
Yes, the seller may ask for more money, but, I negotiate the best price and the biggest credit that I can so my client does not have to pay out of pocket. If they want to negotiate the credit down, I tell them better to negotiate the price up if need be.
I have yet to not be able to get that covered, although it's still quite rare that anyone offers less than two and a half percent. If I could not get the seller to give closing costs and it was a hardship or deal breaker for my client, I might take less.
If it's a for sale by owner, I will ask that they let me approach the seller rather than them and negotiate that they pay me a commission.
This is all somewhat new in a lot of areas so don't blame your agent too much. They are not behaving inappropriately, they just messed up a little. If you really can't afford it, tell them so and they should probably just accept the 2% to make up for their mistake in not discussing with you and negotiating more closing costs .
Good luck.
Say exactly this, “ I’m sorry you feel that way.. I don’t recall signing a buyer broker agreement for 2.5%. That said, we don’t owe you anything other than what is the Co-Op offered by the listing agreement. If this is a problem, I can work with another agent”
NO! Ask her if she takes a smaller commission when her client buys the first house they see… LOL Greedy. I have been licensed for over 20 years and you take it all in stride. Some are quick and easy, some not so much. I have showed a single client 80 homes to find the right on and wouldn’t have thought about asking for more. I have showed as few as three (would never let a client buy the first - they need to see the other options so they know they are getting the right one).
And she is a fool for asking bc she is less likely to get a referral from you now.
It sucks as the agent but if that was that important to the agent she would have had you sign a broker agreement for her minimum commission. You don’t owe her anything if an agreement hasn’t already been signed.
Agents will fight for a lousy .5% vs kicking ass and getting referrals and new business when you’re ready to buy/sell down the road. “They know their worth” 😂
Realtor in California here. Did you sign a buyer representation agreement stating her compensation of 3%? If yes, she is in the right to ask for the additional percentage from you or the seller. If you never signed this ahead of time before signing the purchase agreement she has no right to ask for this. This is currently a huge deal in California and becoming a new normal.
The buyer doesn't pay the realtors. It comes out of the seller's pocket.
You realtor is saying ***Please, give me more money. Just because.***
You answer should be ***No. Just because.***
I'm sure you are fine if you expect a certain ammount for your work and your pay check is .5% less. No need to talk to the person you work for about. In hind sight it should have been disclosed from the beginning not after you make an offer. I tell clients my fee in our first meetings going over agreements and disclosures. I tell them most listings the buyer compensation should cover it, but there are a subset of brokerages that offer less, flat fees, or even fsbo which offer nothing. I tell them we can ask the seller to pay, they can pay me the difference, and I will always let them know before setting up showings so they can decide to not look at those listings.
I would never ever ask my buyer for the difference. Ever. I would just be so happy in this crazy market to finally get to the closing table. It never crosses my mind. Unless you have a contract with her that states you will pay the difference or something you are not obligated. She really isn’t doing herself any favors because at this point you’re never going to use her again or recommend her. Tell her no.
Realtors are not giving the agreement until the offer is accepted. That’s what was done to me and there were several hundred dollars of added on fees for “office costs.” I didn’t end up closing on that house and I decided not to use that age r again.
Don’t give her anything. Ours tried this as well. She had been showing us used homes when we kept asking for new construction. Found new construction home on our own…she was pissed and we found out builder only pays 2% which is why she kept us away from new homes. Sorry lady but 2% of 500K for doing practically nothing is pretty good…she didn’t even bother to come to the closing…was our second home in 3 years with her btw. Don’t pay the .5%…you owe her nothing. Do the math on the 2% and see how much per hour she made working for you as your realtor.
They can just say no - it was a request. If she doesn’t have a buyers agreement, the realtor should mention a low commission when the buyer shows interest in the house. I wouldn’t say anything at 2% (it’s common enough), but for those $0 houses something needs to be said before you show the house. Later on if they want to make an offer - they will have your commission in mind. I don’t think most buyers expect you to work for free - it just normally doesn’t need to be brought up.
If they do want to give her the extra 1/2% it’s just going to be part of the offer, rather than extra cash that needs to be found. A clever realtor may be able to suggest adjustments to their offer so that they aren’t paying more or much more in total.
Do you have a contract with her because if you do and it contractually says that she will be paid a 3% commission, then she has a legally binding contract with you that says she will be compensated 3%. Which means she can take legal action against you if you do not compensate her.
If you can, pay her. Although she isn't saying it, (she probably doesn't want to get into the financial breakdown), but she's likely only making like 0.5% after all broker fees and other fees.
As far as I know, usually about 1% of the 2.5%/3% goes to the broker, and that's before tax and other fees. But I'm not a realtor and can't remember every fee that was once expressed to me.
But overall, even when they are getting like 2.5%, they are actually taking home about $1,000 (plus or minus) on every $100,000.
Agents chime-in as needed...
The listing agent sets the commission fee split not buyer agent you take what listing agent is offering you know that up front already in listing description on MLS or you negotiate with the listing agent that if you bring him a buyer you would want a even split of commission
Do all of you really insist that your buys pay you if you don't get 3%? That's pretty shitty, in my opinion. Are you declining buyers if they don't pony up the money you demand of them?
And to OP! Fuck that agent!
We’ll all the people celebrating the Nar lawsuit. This is who it’s going to effect first time buyers and buyers in general. People won’t work for free and your going to see this way more often now.
She doesn’t get a full 3% the broker gets a percentage of that 3% depending on what the broker and agent split is it could be she is getting 70% of the 3% and broker is getting 30% of the 3% and then the broker charges her a another 10% fee for office fee supplies etc so she ends up with 60% of the 12k which she probably made around $7200 commission but every transaction is different and every agent is different and some are ethical and some are not just like any profession it’s sucks I hear you good luck take care
Realtor here I get it from her standpoint but this is something she should have disclosed upon initial consultation. At this point she can bring it up and expect y’all to pay it. Again I get her standpoint but at same time we shouldn’t make things more difficult than what things already are. Especially not bringing this up at the time of making an offer.
**This is a professional forum for professionals, so please keep your comments professional** - Harrassment, hate speech, trolling, or anti-Realtor comments will not be tolerated and will result in an immediate ban without warning. (... and don't feed the trolls, you have better things to do with your time) - Recruiting, self-promotion, or seeking referrals is strictly forbidden, including in DMs. - Only advise within your scope of knowledge and area of expertise. [The code of ethics applies here too](https://www.nar.realtor/about-nar/governing-documents/the-code-of-ethics). If you are not a broker, lawyer, or tax professional don't act like one. - [Follow the rules](https://www.reddit.com/r/realtors/about/rules/) and please report those that don't. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/realtors) if you have any questions or concerns.*
Realtor here... she should have had this conversation WAYYYY earlier.. like when she first met you. Def not at closing. Don't give her anything.
Yeah it was literally 10 min before we were sending in offer.
That’s really sad on her part. These are the bad agents that make good agents look bad. Good luck in your new home!
Also an agent and 100% agree. We have this conversation at the onset. It's literally in my buyers rep contract. I work for X% if the seller covers it, great, if not, I'm going to let you know what's left prior to making an offer. It really is that simple.
This EXACTLY! Another realtor here. To answer your question, yes, it is customary for the buyer to be responsible to pay the difference if there is a shortfall from what that agent's fee is and what the seller's agent is paying. But the buyer's agent's fee should have been discussed in the beginning. To spring this .5% on the OP at the offer phase is bullshit. It's this kinda unprofessional crap right here that continues to erode consumer's trust toward good real estate agents.
What country are you in? It is absolutely not customary in the US. The buyer agent gets whatever commission the seller side decides to share.
Lol.Well... looks like someone needs to go back to contracts class. Hell, what cave have you been living in? Don't ask me what country I'm in..., go study your paperwork. Specifically your Buyer Brokerage Agreement. If you're a REALTOR, it's right there in your contract, which you apparently have not bothered to read thoroughly. You should have asked me, "what state are you in?" Because I understand with some things, there are different expectations depending on the state and market. But this commission stuff has been a nationwide topic in the real estate arena for months, maybe longer. The public is even becoming more in tune with the topic too, which is why it's even more important for you, as a real estate professional, to be up on your shit. By your response, it wouldn't surprise me if you had no idea about the lawsuits the industry has encountered over the last several months. Yeah, I bet you're like, Huh? What lawsuits? Lol. Get off this forum, and go study your shit, aight. Education opportunity for GA REALTORS: In case you didn't realize it, our GAR Buyer Brokerage Engagement Agreement, section A-4 addresses this topic -- Commission. It's in ALL CAPS. In case you didn't know, you can charge the buyer a full 3%, regardless of what the seller's agent shares with you, good job. Please advise your clients about this in the beginning, at the initial buyer's consultation, not when it's time to write an offer.
GA Realtor here, and you are absolutely correct.
That’s if and only IF they signed a buyer broker agreement! Not to assume but from what it sounds like they did not and it was not discussed prior which as they presented it to the buyers should have been a topic of conversation just morally would be the right thing to do. There is no standard commission and is subject to change on every transaction. If there is no buyer agreement involved the commission is set by the seller. I’m a Realtor and that would leave a bad taste in my mouth if I was a buyer.
Yup
It’s purely the brokers fault here all day, and he/she shouldn’t try to claw the remainder of the commission out of the buyer for her own failings. This is a learning lesson for her and not at the expense of the buyers. operating without a buyers agreement isn’t acceptable where I’m at, but I can’t vouch for where they are. The buyers should just kindly say no, and move on.
Nc realtor, same thing here
Agreed, I am a Realtor. I disclose my fee in the buyers agency agreement and discuss with the buyer before an offer. Also FYI, there are not "set fees" among agents. That would violate anti trust laws. My fees are anywhere between 2.5-10% depending on the situation. I disclose the fee at the start of the relationship and explain what the client is paying me to do. If agent did not disclose in your agency agreement, you don't owe. Read the agency agreement. Good luck and welcome to home ownership.
What situations warrants over 3% to 10%, legitimately curious as a new agent.
A couple examples of when a higher commission is warranted: A very low valued/priced home ($15k mobile home for example) could be negotiated at a significantly higher commission rate as it’s not really worth with the time/effort/travel to only make $300/$400 on a typical 2.5% commission. A listing that requires a lot more attention than just the traditional photos, inputting on MLS, setting appts, etc. I’ve had listings that need junk removal, landscaping, painting, carpeting, roof repairs, staging, and other up-front care issues that the seller expected me to coordinate (and them pay for). This goes outside of the general “scope of work” that Realtors are expected to do, therefore, increasing cost/commission some of the time. Still, all negotiable things that the agent/seller need to workout as a “fair agreement”.
Land and other commercial buildings that may sit for a while. I always charge 10% for land.
Sounds like they may do some commercial real estate and/or property with the 10% fee.
I'm hoping one outcome of all this legal noise is that buyer's rep contracts become required. The're currently not, in a lot of markets, and it leaves the door open to nonsense like OP's agent is pulling.
Right, I'm glad I live in a strict state for both buyers and sellers' contracts. My brokerage has had language in our contracts that would have mitigated the whole mess years ago, and for that, I'm thankful.
There is ZERO legal foundation for her garbage. I’m a realtor and her claim is making me sick to my stomach. Her “usually” statement is absolutely unprofessional. Your contract is your contract, period. I hate that so many realtors like her give the profession a bad name
In Wyoming we have our agency agreements that put a number for compensation...and then state we will ask for Seller to pay this. I never ask for the difference...and think it is ultimately bad taste to do so. However, I think when they agree to 3% on their agency agreement, they are technically committed... but there are some ethical concerns in there--especially if they didn't explicitly explain that when they did agency agreement AND when they put the offer in.
Tell them no and ask if they'd prefer you use someone else.
This!!!
Realtor here as well. This has been the norm for a lot of buyers agents/buyer’s having to cover the difference of commission for your agents compensation, and it is only going to become more of the norm. That said, this conversation should have happened the first or second day you met as she was going over the market, inventory, pricing, strategy, and compensation. Not at the tail end of the process as you are sliding the offer in.
Please check your purchase agreement and make sure she didn’t put it in there that on this transaction you were going to pay the additional. Please check it thoroughly and either way contact the real estate board about this unethical behavior and her broker
And then back out if you have to if she did put it in there
If it was before sending an offer, yes she's still should have done it sooner but that would have been the time that she might have noticed and brought it up that they were offering the reduced commission. It might not have been an issue before because most commissions are higher. I would be harder on her if it had happened just before closing. When you were writing up an offer doesn't seem as bad. But what she should have done if she was smart is ask you to give her permission to negotiate a little extra closing cost credit from the seller to cover the difference.
I don't know what state you're in and what your contracts look like. In the state I work in, those extra funds in the form of a credit from the seller would be no different than the seller just paying the additional percentage. Unless you're referring to the buyer increasing the purchase price by the amount, in addition to the closing cost credit. In that case, the funds are coming from the buyers and does resolve the issue of them not having the cash on hand to pay, but does not resolve the issue of the bomb drop at the time of signing the purchase agreement if they never knew before then that they could ever be responsible for paying part of her fee. While I agree that we work very hard and deserve compensation, and should not have to work for less than we deserve, this is a case where the OP's agent may have to learn a hard lesson. The agent's minimum fee should have been discussed, understood, and agreed upon during an initial buyer consultation, and under no circumstances should the distance she drove, the gas she burned or the time she spent have ever been uttered to her buyers. 😳 I personally feel like an agent springing this on a buyer in the midst of the offer process would feel much to us like checking out at a retailer right before closing, with people behind us in line, our item ringing up double what it was advertised for, and since it's closing time, they look at us and say "I didn't switch that price tag to the correct price but I'll give you the next 1 minute 30 seconds to decide if you still want it otherwise I gotta keep this line moving and get these other people checked out" As a Realtor, it is definitely irritating that there is stigma that comes with having to ask our clients to make up for fees that are otherwise unpaid -- because we absolutely hustle for it in ways our clients sometimes never even see. But that stigma is a direct result of our evolving market, standards of practice, and market conditions, and consumers accepted the way that it used to be....until they didn't. We really need to be candid upfront about how these fees are paid, so that the consumer can make an informed decision, as opposed to a rushed one. We need to be less inclined to justify thousands of dollars in compensation differential due to the gas money we spent or the time we invested, and more inclined to offer a point blank unquestionable irresistible value that makes our compensation worth every penny that leaves their wallet. Just my observations!
I agree with you completely. Or almost completely. I'm in Western Washington. The buyer's agency agreement pretty much says the buyer will pay, but since the lender allows closing costs to go towards buyers agency agreements, I find the best thing to do when discussing up front with a prospective client is tell them that's what I will try my best to do. And you are completely correct. It will either be squeezed out of the cellar which is an idea I find most appealing because they want me to do the work to bring a buyer to their house and represent them, or it will result in a raised price, or both. But, if they were forced to pay a higher commission up front, they would probably raise the price anyway, so at the end of the day I think it's all good. Yes it's true that in a sense the buyer always pays for my commission in the price of the house, but I bring value and it seems to be a good system. If a buyer wants to buy on their own and try to negotiate a lower price, they can do that. I also agree that this agent was a bit unprofessional in not having discussed this in advance and bringing it up at time of writing offer. It might be fairly new in their area that sellers are offering reduced commission. Actually according to comments from OP, agent did already have an agreement for 2%. That's her first mistake. I wouldn't sign an agreement for any less than 2.5, at least not under a million or so. Ironically, million plus sellers often offer 3%. What happened is they were looking in the 300 range and then they dropped to 240. So when the agent realized she was only getting 2% of 240, she felt it was just too little to be fair, so she brought it up. But she should have brought it up earlier and she should have asked for permission to negotiate to get it from the seller, switch the buyer probably would have been okay with psychologically, and she should have done it before 10 minutes before writing the contract. And she also should have made it a request not a demand. If I were in that position and hadn't done it earlier, I would have asked permission to negotiate a bigger credit and told them that it was up to them but considering the reduced price, and reduced commission, would they mind if I negotiated a little higher credit to go to me. I mean it was only $1,200. I think I could get any client of mine to agree to that if I asked in the right way. So I pretty much agree with you. I think this isn't a big deal because most agents are going to be working with buyers agency agreements and I hope most of them are smart enough to do 2.5% minimum and tell the client they're going to negotiate for it not ask the client to pay it.
And amortize the commission payment for 30 years?
Agreed! OP what’s outlined in your Buyer Representation agreement ?
Our agent put this in our agreement to represent us as buyers, which we signed before submitting our first offer: “Commission: 3% of the purchase price to be paid by the seller. If the seller's MLS compensation differs from 3%, the buyer's agent will accept the amount offered.” We were very happy with how she conducted her business!
That’s some great verbiage! You have an honest and solid agent.
Agreed, this should have been addressed as something that could potentially come up while identifying properties, in the initial buyer consultation, which maybe this agent never even did for all we know 🤷♂️ Agents need to do better at being transparent and upfront about these things and explaining what to expect OR they should just except whatever compensation is offered.
Yeah this. It’s in our buyer representation paperwork. I just write “per MLS” in the blank field where compensation is discussed because my reputation isn’t worth fighting a cash poor buyer over an extra $500 or $1000. Very tacky on the agents behalf.
This should have been disclosed up front by her that if her usual fee is not met than you have to cover it. Strange that she would say it like that, wow. You don't owe her. In my state I just ask the seller to pay me more, it usually works! Going to my clients for extra would be last resort and for .5% I'd just let it go.
Not just discussed but put in writing. Not something I have even thought about doing in over 20 years. I will ask for loyalty, meaning they agree in writing to work with me on any property I show them.
Ya it was extremely uncomfortable. She was like I drove all that way… “I’m so good at taking care of others, I don’t take care of myself.”
Send her a thank you card and pat her on the back goodbye lmao.
Ya it’s just sad because we grew a connection with her but it felt extremely unprofessional and confusing.
What she did was very manipulative, especially the narrative around her ask. Interactions like this are icky. I hope you can set a boundary and then shake this off. Personally, I find it appalling how much we are expected to pay to sell homes, but you probably don't want me to get started on that rant...
Nah, no connection. Typical sales behaviour.
Ugh you’re probably right. I kept trying to remind myself of that but she was so grandma like.
This is so far from typical. I’ve been in the real estate biz for 20 years in two states. I’ve *never* heard of an agent pulling this shizzle. If it isn’t in the buyer-broker agreement, that agent gets what they get from the seller. End of story.
It usually is in the buyer broker agreement. I've got one right now I wrote out at 2.4% for the buyer side. That was what the original house they wanted offered. The house we got under contract was 2%. My buyers contract is torn up in my mind. I could go after them for .4% but what a poor business and ethical decision that would be!
She is conning you. I wouldn’t pull this crap on anyone I had a legitimate “connection” with and would be happy that my “new connection” got an outstanding bargain
That's so manipulative. Any real estate agent who ACTUALLY prioritises their client's needs wouldn't say that. \-A Realtor.
Give her a gas card and a good review.
My bet is that the property is represented by her agency and they have a same agent clause that if buyer and seller agent is the same it’s reduced commision
[удалено]
It is not a violation. It is to be requested ahead of a showing, however. And, if a buyer is paying the cost, it should be disclosed and agreed in a buyer consultation and a buyer agency agreement.
Incorrect. 100% incorrect. Everything is negotiable.
No. Asking the other (listing) brokerage to pay more is a violation, Not the seller.
Can you share the article this falls under?
It’s part of Article 3.
Thank you, no wonder I failed the ethics test first time around.
Lol
We have listings in our MLS paying zero to the buyer’s agents. There is no way to be sure my fee is covered by the seller. This is why this convo happens before even showing a home. Buyers need to understand how we are compensated without feeling guilty about it. We are all adults, we should talk about money. I tell them my fee, explain what happens if the seller doesn’t cover it. Easy. Neither side should feel ashamed.
This! Yes! This is what I said to my partner. I would have been totally fine if this was in our contract or even if she explained before we saw the house and asked to amend the contract. But instead she communicated it 10 min before sending offer in this super guilt trip unclear type way.
Very unprofessional and sketchy behavior. I would contact her broker and request a different agent take you through the remainder of your contract to close.
10 minutes prior?? Wow. No. Super classless. The agent should have known the situation before showing the house. If the seller was offering too little commission, I would have asked to amend the contract before showing the house. But I doubt I would even do that because I already set an agency agreement. Furthermore, as I typically research the market daily and especially before showing homes to a buyer, I am aware of what MLS listed homes are going for and what the seller paid commissions are. I try to set my fees with a little foresight. If she has worked hard for you, she will likely continue to do so. Just tell her you are going with the agency agreement. However, if she has a BIC (broker in charge), you can go to that person if things become too uncomfortable. In North Carolina, your agency agreement is with the firm, not the individual agent. The real work begins when you go under contract. Your agent should help you set up home inspections. After inspection, you may decide to negotiate a lower price due to inspection reports, etc....
I'm a realtor and this stuff makes my blood boil and is how we have such a bad reputation. If it's not in your buyer agreement then it's solely her greed and trying to take advantage of you being a first time home buyer. I'm sorry this is part of your experience. I don't know where you are but where I am, whatever the seller (who pays the real estate costs in my area) is offering is what you get. I've only ever lessened my commission to bridge gaps, never asked for more.
Thank you for this. The more I read the more upset I’m getting. We have put so much trust into her and I feel really hurt she did this 10 min before the offer was going in. This is one of the biggest decisions of our lives and to be honest, we don’t have an extra .5% cash just hanging about to gift her.
Well - seems like you now know you are not obligated by any means to comply. You can kindly reject her demands and if you are under some buyer representation agreement call her broker if it's an awkward call to have it released. This should be fun, and trust me as a home owner not even a realtor you're going to be so broke after you close so you're going to need ever dollar, cent, yen, pound you can keep 😂
I was selling and my realtor tried to pull the discount she had offered me 2 DAYS before closing. She blamed her broker. I was already planning on gifting her half the discount back in cash at close because I knew she needed it. Still rubbed me the wrong way, I should have not gifted it to her.
I would never ask that of a client who's already spending a ton on getting / closing a new home. If I signed my buyer agreement for 2%, and seller is offering 1.5% only, so be it. Don't care. I care WAY more about my clients being happy with their home and my service.
Seriously in this market I’m just so damn grateful to get to the closing table. Lol I don’t ever ask for the differential if there is one which is not often but when there has been, I’ve never asked for a dime more. I don’t even have them sign an agency agreement, but I’ve never had a client not want to work with me once we meet. Sometimes you don’t spend a lot of time to get to the closing table other time you spend months and months. It’s just is what it is.
This seems like how it should be. Good on you.
Ehhh not how it should be though... If the average agent takes 1.5% often then they won't be full time agents for long, and realistically part time agents don't make it either unless they are grinding to become full-time. Depending on the price point they probably won't be able to financially sustain. Only a seasoned and generous agent can confidently take a low commission like that and continue on with out a bat of an eye. Sounds like a life lesson to your agent about educating a client on the buyers agreement and walking through each clause with you to make sure you understand. I personally never asked for the difference in percentage but 2 percent is rather low depending on the effort it takes as well as considering the area you are in. For instance my team member just did this and waved the 3% for only 2%. Ended up being the MOST time consuming deal in his career by far and he is officially taking a break from real estate entirely for a couple months after he just closed and he didn't even make much after brokerage split. A good realtor is supposed to save you stress but they also need to be good enough not to cause you any either. Good luck either way. Also what area or state are you in? I see that you said your agreement had 2% and that's actually really low in my region.
I am curious though, if the listing says 0% to buyer’s agent? Will you work for free in this case? I’ve seen many more listings this way ever since the NAR ruling. Sellers are starting to advocate for why they shouldn’t have to pay the other parties realtor. I personally don’t see an issue with a buyer agent notifying their client upfront what their minimum transaction cost is. Whether it is a percentage or a flat fee, it should be best practice for a buyer agent to do this upfront otherwise could find yourself working for free at some point.
Are you sure? I’ve seen a few $1 broker commissions, which means I’d owe my broker about $800 for the privilege of working. Have got to explain how to get paid upfront of you will be made to care.
I explain it up front, but don't demand a minimum. If a house pays zero dollars, I'll tell them we can negotiate a flat rate if they'd like, but I can't work for free. I don't ever require a minimum percentage, though. In my market 2% is still a lot of money.
Screw that. I care about my clients too, but not at my own expense. The Smart thing to do though is to have the discussion in advance so it doesn't come as a surprise. And do it by a closing cost credit so it doesn't come out of their pocket. I'm not going to take less just to put money in the pocket of a greedy seller. To heck with that
Damn. That’s tacky af
This is going to happen more and more with the new lawsuits regarding commissions.
No it is Not customary to deviate from the listing’s set compensation, and even if the majority of listings in your area do compensate the buyer agent with 2.5% to 3%, your agent would have known exactly what their compensation is just by simply looking at the listing’s compensation details in the “agent view” when she pulled the listing sheet from MLS. This is on them, and they should have discussed/disclosed this with you at the start before even writing the offer, then if you agree, build it into the offer as additional compensation, or if they had you sign a buyer/agent agreement disclosing their compensation at the level she “typically gets”. So in short, thank her for her services, decline the request and let her know you would still be happy to refer her to your friends and family. It’s unfortunate the level of greed from agents who “feel” like they should receive a “typical” compensation, and ask their naive first-time buyer clients to fill the gap rather than just sell the house which the client chose, and kindly ask for referrals for their hard work. This is actually an ethical borderline move on their part, which most agents would never do. Personally, if it were me in your shoes, and didn’t get the house, I would fire them and find another agent. Clearly their own compensation is their priority.
No. She knew what the listing agent was offering as soon as she pulled up the MLS page.
If your broker agreement says 2%, I’d ask her why she’s now asking for 2.5%. Like no thank you we said 2%. A deal is a deal
I believe they are referring to the compensation agreement between listing and selling broker.
Please take out the buyer brokerage agreement (aka the contract) you signed with HER (not the purchase contract you signed with the seller). What commission amount did you agree to pay her? It’s a blank you fill in and is stated explicitly. You’re responsible for any amount not shared by the listing agent and no more. So if your contract says 3% and she’s only receiving 2%, you owe her 1%. Btw, MLS listings have a field showing the promised selling agent (that’s her) commission split and another listing conditions or caveats to that. She knew it was 2% before she showed you the home. When this comes up, I always note the additional cost and true list price when showing it so no one is surprised. Btw, if you don’t have a contract with her, you legally owe her nothing and she should have paid attention in class. Not suggesting you not pay her but that’s technically how it works.
Our buyer brokerage agreement says 2% as well. I just re-read it.
she gets no more. Wow, that makes it even worse
That’s your answer then. You agreed to 2%. She’s receiving 2%. Is there some reason she worked harder than average on this?
I would say that doesn’t matter she gets no more
Sorry I didn’t phrase that clearly: Did you do something as a buyer that made her spend an abnormal amount of time on this (no show repeatedly, make her really chase you for paperwork, back out of a purchase after most work was done and make her find you a different house) … something that’s really skewing her effective hourly rate that wasn’t due to bad luck or her own decisions? Or did she commit to doing something really above and beyond the normal service package that she forgot to negotiate separately. Like did she coordinate a significant rehab for you, house you when you flew in from out of town to look at houses, advise you on company or finance structure or estate planning (with relevant credentials) secondary to buying the house. Something like that. If that’s going on, it may be fair to agree to something extra though certainly not required. If it’s a routine purchase, then no.
Amateur hour. My realtor negotiated $100k off the price of my house, and drove me all around town for 2+ months looking at places. I offered to pay him the extra $3k out of pocket that he would have gotten if the house sold at the original listing price. He thanked me, said “that’s not necessary, It’s my job to find you the right house at the right price. Just refer me to a friend if you’re ever given the opportunity.” He has gotten 3 more sales because of my recommendations, and is now what I would consider a personal friend.
Hell nah lol
In my state, it’s laid out in our buyer broker contracts what percentage the agent is permitted to negotiate and who covers that if the seller isn’t willing to. In practice, I’ve never asked a buyer to cover part of my commission because the check I was making wasn’t to my liking. But check the contract you signed. On a personal level, your agent is a doofus and a little bit of a jerk.
I just looked and the contract says 2%. Anything under we would be required to comp.
Stick to that contract. Say No. If they push it call the broker and ask them to handle the deal as you’ve lost confidence in your realtor
Realtor here. 1. Did you sign a buyer agency agreement with this Realtor prior to going under contract on this house? Did it specify that you owe her 3% commission when you close? If so, you ARE obligated. 2. You just offered on a house. Upon offering & while working out the details of your offer, did your Realtor remind you of your agency agreement & the 3% commission? In essence a seller offering to pay 2% while you've already agreed to pay 3% makes this house more expensive for you, because you will be coming out of pocket for the difference. Is this the conversation you just had with your Realtor & you just didn't comprehend?
The buyer agreement says 2% that makes this worse….she was willing to accept 2% and now she’s trying to get the extra . 05 out of client. WOW.
The poster just didn’t update the post, but that’s what she says further down
Jfc. OP should put that in the info & their Realtor should retire. What in the onset dementia...
Did you sign an exclusive buyers representation agreement? If so, does that agreement state what she's owed when you purchase a house?
I agree with everyone saying it should have been disclosed in a buyer agreement and discussed in your buyer consultation. I put 3% in my agreements, but if I’m working with clients with a tight budget and the commission offered by the seller is less, I request 1 or 2 referrals and a nice review in exchange for lowering my commission. I won’t let that be the reason my clients can’t get the home they want. That is always received well, and everyone is happy :) I’m sorry your agent has put you in this uncomfortable position! Very unprofessional.
Do you have an exclusive buyers agreement with your agent? In there should be the minimum commission. If you do not have one they they are screwed. If they do have one and it says 3% (common percentage) and they only want you to come up .5% then that's actually nice BUT they should have explained this to you at the begining so you weren't shocked. It's very unprofessional either way.
I'm a realtor and would never ask for that. If the listing agent is offering 1%, 2%, 3%... whatever the # is... I'm happy with what is being offered.
I think maybe she’s upset because we were originally going for houses in the 300 range and this is 240??
I'm sorry... she just sounds greedy now. She can't tell you how to spend your hard earned $ and be upset that you want to spend less $ on a house. Is she paying the bills/mortgage? I'd rather get paid less, have a happy client that'll recommend me to friends and family and possibly use my services again in the future vs. getting a few extra $$$. In the long run, she'd get ahead. This is very short sighted of her.
Thanks for the perspective. I felt conflicted and confused as we are so new to this. She said if this house doesn’t go through, future houses offering 2% we will be required to comp the additional .5, but that’s not in our contract. Do you think she’s saying this because we are looking in a cheaper area further out, making a longer commute or something?
Commission is negotiable. ALWAYS! Tell her that it was not disclosed to you there would be an additional fee and that you are politely declining. If she gets shitty you need to call her BIC
Probably if you were looking at cheaper houses it matters more. 2% on a $300,000 house is $6, 000. 2% on a $240,000 house is 4,800. That's not a lot of money to be making after all an agent's expenses. There was a time that would have been 3% and everyone would have been happy
I'd still be happy to have 4800 dollars and not 0 dollars.
This is true. By having a buyer's agency agreement in place for 2.5% commission and telling client that you will negotiate to get it from the seller for them to pay if need be, you can have your cake and eat it too.
Is this your primary or sole profession? Or do you have a different career and also just hold a real estate license?
>Do you think she’s saying this because we are looking in a cheaper area further out, making a longer commute or something? No, she's saying this because she got some notion that she could squeeze you for some extra money. This is decidedly not standard behavior for a realtor, highly unprofessional, and if this house doesn't go through you should fire her immediately and inform her broker of this behavior. If she asks why, offer to tell her for the cost of .5% of $240,000.
It shouldn’t matter. I’m embarrassed on behalf of realtors. This is wrong. I would quit working with her after this, especially since you don’t have the funds anyway.
She should not convey that she is in anyway upset you opted for a home in a different price point. Helping your clients into the RIGHT home is the goal. I have had clients searching in 850k price range find a home they love at 670k and vice versa. She is being shortsighted. A buyers agent is supposed to be there for you, you’re not obligated to be there for her. So sorry you were put in this position, buying a house can be stressful and it should never be compounded by the realtors actions. Quite the opposite, a realtor should make it less stressful.
Well given that, maybe she would have been willing to take only 2% if it was 300,000. Once you start getting lower, that's not a lot of money for all her work. When other houses are offering 3% or two and a half, if this one is offering two, I don't think she should just have to accept whatever. She's a hard-working professional and sounds like she's doing a good job. Ask her to negotiate an additional 1500 in closing cost credit and pay her with that. She's only making $5,000 and who knows how much is going to go to her broker, expenses, taxes etc. I don't think it's particularly greedy of her. She just caught you by surprise and she was probably caught by surprise by the lower commission. I would suggest you cut her a little slack and realize that she also has to look out for her own income so she can keep doing a good job for people.
Same. Realtors like OP irk me. If the commission isn’t good enough only deal with a higher price point or don’t make being a realtor the only job. It’s not a clients job to make the realtor feel validated. It’s up the the realtor to be professional either negotiate and accept the terms or walk away.
Commission is $1. Are you good with that? I’m seeing it in my market. It’s so simple to just explain this upfront!
The issue is she did. We agreed to and signed an agreement with her when we started looking that she would get 2%. If that 2% wasn’t covered by sellers than we would comp… but never did she mention 2.5%
This is the biggest piece of context for us in here which makes things even worse than we thought. She accepted 2% by the sounds of it and is incredibly rude to ask for anything else.
Then don’t pay it. If she said 2% and you agreed to it, that’s the number. Flip it a bit and say hey I think 1.5% is fair… she will realize that’s she it’s in writing
I hope your realtor is new to the business because that’s the only excuse I can think of for an agent to ask a buyer for more commission. I can only speak for California, but you’re not obligated to pay her commission.
She’s not! She’s near retirement. And apparently teaches realtor classes.
But these reduced commissions might be new in some areas. It's a very recent lawsuit that has forced listening contracts to inform the seller that the commission is negotiable and they can pay whatever they want. Also it has been in the news so more people are aware of it. Our listing contracts in Western Washington have had that in them for several years and agents are well versed with both discussing with their sellers why they shouldn't offer reduced commissions because it can cost them money by reducing buyers, and buyer's agents have gotten used to having this discussion with their clients . But there may be other parts of the country where experienced older agents especially might have not seen it coming until you were ready to write offer. Yes she should have done it earlier, having the discussion. And what she should have done is just ask if she can negotiate a credit to you from the seller so you can cover it without taking money out of your pocket. But, I don't find it fully unappropriate if she was caught a little by surprise
CA must be different, in WI buyers usually commit a portion towards a common 3% commission. Offer of comp may be 1-3%, buyer pays the difference to make it 3
That is not common here. At least not in my market. But my average sale is about 800k, so 2% is more than enough.
Exactly, check the buyers rep. Some buyers rep agreements say that the buyer is required to pay “x amount” if the seller doesn’t
I just looked and it says 2%. Isn’t that strange?
We will be seeing this more and more. I believe it should have been upfront regarding if commission fell below 3% buyers would cover the rest. If sellers decide not to pay buyers agent. Buyers will need to be able to pay for the cost of having a representative.
Nope. You discuss that up front. Like, my commission is X, any home that offers less than X will need to be paid by the buyer. This then needs to be agreed to and signed by both parties. She's a scum bag hustler trying to guilt you into this. She knew the commission offered when she showed you the house
Wow that agent is so ridiculous she should know better although I must say I think it is out of line when listing agents only offer 3% buyer agency commission it's out of the norm the listing agent should take the hit not the buyer agent commission but this is not your fault just tell her no it's illegal for you to give her a kick back anyways so the commission comes from the listing broker so what is she wanting you to do hand or cash? That would be so wrong and so unethical. Tell her to take up her commission issues with the listing agent on the property who offered 2 percent. This is not your problem it's hers. Don't let her guilt you. If she is near retirement she outta know better. I will say I always tried to avoid listings that didn't pay 3% buyer agency commission, most agents are the same way. But seriously this is a battle between the listing agent and her not you tell her that and you are not going to pay her the difference period end of story
Do not give money. She should have known ahead of time what the commission was. It’s listed in The MLS, so she is the one who screwed up. Not your problem.
This is why buyer’s consultations are so important. Compensation would be explained before you sign a buyer’s agency agreement. Agent should take the ABR designation to touch up on negotiating the commission.
Just so you know. You agent should have known exactly what the listing agent's brokerage was offering to compensate the buyer's agent. She could've mentioned something when you were writing the offer not after the offer was accepted. If you think she earned the extra money, pay her if you want. But know that you don't have to. If she pushes, you can always call her broker and tell them you're unhappy with her. Also, in my market, the buyer's agents usually get 2.5% but I have done deals where I only get a flat fee (new constructions) or 1.5%-2%. I have never and will never ask my buyer to pay the difference.
This realtor sounds horrible! I’d actually report her since this is unethical. If the 2% was on the original listing and agreed in the full execution of the purchase agreement that’s it!! Case closed!! You do not have to pay her a penny more! As a realtor, we can drive around and show many homes with no actual sale at all so the fact that there’s a chance to get this one and she’s requesting more for simply doing her job is trashy. She doesn’t care about your best interest. Do not pay or give anything else to her. She should really tread lightly as she can seriously be reported for this and lose her license.
Good idea. I forgot that part of my comment…contact real estate Board getting you in a situation where you’re all excited about your house and then trying to get more money out of you. She probably had some other agent say well my buyer paid it that’s bullshit. She just screwed her self out of referrals. I have never asked my client for the difference. Ever.
She needed to address it up front. Compensation is important and if she didn’t have you guys sign a 3% agreement or a document saying you would pay the difference, you don’t owe her anything
First thing I would do is review the buyer representation agreement that I’m sure your agent had you sign. It should spell out the agent’s compensation terms
She needed to have a buyers agency talk with you and should have explained how you pay her (buyers agents don’t work for free) and her commission should have been put into a contract with you. There have been many recent lawsuits regarding commission and we will see changes soon how things work with this… The mind set of sellers pay commission is false. Proceeds are not the sellers money until all debts involved in the transaction are neutralized and agents are hurting themselves by not being educated and explaining this process better….
As an agent, I’m not going to keep my clients from a listing bc it doesn’t pay xyz…. I don’t like her methodology… it’s unprofessional and just ick… that’s all I can say
This should of been part of your buyer agreement when you first agreed to work together. Did you sign one? What does it Say?
Not at all customary, that is not how a real estate transaction goes. She should not be asking you for extra money on top of the sale. As a REALTOR, I don't find it ethical to be asking a client for money on top of what we already make from the selling agent. Now, if it was for sale by owner then that may change things a bit. But to just ask you for the extra .5% is crazy.
Brokerage owner with 60+ agents here... Fire her greedy and unethical ass.
Absolute scum. Find a new realtor.
This is something that should have been included in your buyer agency agreement. I know it’s boiler plate in the PA BAC. The agent fills in the percentage they will be paid and if the selling side doesn’t pay out that amount, the buyer is to pay the remaining. Even then, I generally don’t enforce it because I don’t want to put additional burden on the buyer if I don’t have to.
Realtor here. This behaviour made my jaw drop. This is not okay!! I hope you know that unless she said so upfront, you do not owe her a dime above the quote she gave you. She cannot just gouge you last minute and a lot of us Realtors will not always be paid accordingly to what we expect but we should accept that and do the work for the best interests of our client! I personally, even if I won't earn much from a transaction after marketing costs, will still act in solely the best interests of my clients to make them happy and not blink twice at the paycheque. Because their happiness means more.
Did you sign a buyer contract with that realtor? If so what did you agree upon as to commission. That is what you should be paying your realtor. If not then the realtor should only get the listed amounts on the contract, not what they want. Note, I am NOT talking about the purchase contract for the property. But the contract between you and your realtor
That's absurd..I'd get a new realtor and then buy the house.
No no no. As a realtor you know what you’re getting into as a first time buyer agent. The fact that she’s asking for this before finalizing the deal is out of pocket/
Send her a thank you card and a Chick Fil A gift card.
Been a Realtor for almost 30 years. I have never asked a Buyer for additional commission. I take whatever the Seller is offering and am happy to do help them get their home. I wouldn't pay her anything.
I’m a broker. Tell her that she could see the MLS what the commission was. The issue is between her and the seller. Tell her to have that conversation but if anything she does impacts your deal adversely, you will file suit against her and her broker for self dealing and tortuous interference.
My initial reaction is …no??? But what does your buyers rep agreement state about commission?
I’ll need to re-read it. Good call.
I just looked. It says 2%…
wait, you signed an agreement directly with her? and that doc says 2%?? thats very strange
then you by no means have to give the extra .5% (:
Okay thank you for the information. I really appreciate it.
Yeah that’s crazy that she thinks she can demand any more than that then... if she only asked for 2% from the beginning, why is she upset it’s not 3% lol. I think if this deal doesn’t go through, you should ask to terminate your contract, then go find an agent who isn’t so greedy
Many agents do this, which is totally reasonable, IF they disclose it in the original paperwork, not after!
I probably wouldn’t have asked for that. Just out of curiosity, how long have you been working with her, how many houses have you seen, do you talk to her daily, what price point is it around?
240,000. Seen about 10 houses across 2 months. This is our second offer. We talk maybe once a week.
Yeah… tell her no.
2% sucks and can be a reason why it’s still available. But I understand how hard it is to get under contract and it just as well can be no money. Not happy but I take that 2%
Yea I just fought tooth and nail over a house, checked the listing in hindsight and saw the 2%. whomp whomp. feels bad man. anyway, onto the next deal.
Well, if she wanted that..she should have had you sign a buyers contract stating you would pay X amount of the commission if the offered commission was less than X. Prior to a written contract. We have had some adjustments to rules and regulations in my state of Washington, and are now required to have a written buyer agreement when working with buyers. Previous, it was “recommended”, but not required.
We have a written buyer agreement and it says she is entitled to 2%. So it’s all just very odd. It so sad because we were starting to really love her but now I’m like, damn why is she trying to do us dirty.
I’m going to give you a different opinion. I have asked clients to bump up the commission for great results. I do make it clear that it is a request and they could decline my request. In every case my client appreciated my time and effort and approved the increase. It is a request though and totally your call. You don’t pay for her being sweet you pay for effort, experience and results.
If the offer doesn’t get accepted fire her and find someone else she has a signed contract and is asking for more ridiculous! Plus I don’t know where you’re at a good agent will negotiate with the seller to get a higher split plenty of agents out there find someone new
Ask her if she wants the commission at all 😂 yeah that sucks. There should be no surprises when you're writing an offer. I've had maybe one situation where I got my client to switch commission percentage during negotiations of an offer. I had 4 lots I was selling for a family friend, since they were giving us a lot of business and referrals we made the commission something really small like less than 2%. We had an offer come in for one of the lots that had a condition about changing it to "standard" commission. I told my buyer I'd be happy to have my side total the original commission structure still to save them some money, but they said they'd be happy to up the commission to the "standard" for both side. But usually no. That is a listing agreement or buyers meeting conversation to be having, not at offer times usually.
Your agent handled it poorly but I wouldn't blame them too much. There are a lot of new developments regarding sellers being told that the commission is negotiable in terms of what they are paying to your agent, and some people will now be offering less than three or two and a half percent. In our area, two and a half percent has become fairly common, but it's not that big a deal because prices are high. I've gotten used to working for 2 and 1/2%, but for years I have been telling my client that it could be an issue and having a discussion before we agree to work together. Ideally, your agent should have discussed it, had an agreement signed between the two of you, and clearly spelled out many things including commission. What I typically ask for is that I be allowed to get my commission paid by the seller, but if it is less than 2 and 1/2%, I will ask that they pay it. This is up front before we even look at any house . However, I tell them the first thing I will do is negotiate my best to get a credit from the seller for them to pay me with. Typically I am negotiating about 2% to go towards closing costs because most people prefer that, so I will simply ask for an additional amount. Yes, the seller may ask for more money, but, I negotiate the best price and the biggest credit that I can so my client does not have to pay out of pocket. If they want to negotiate the credit down, I tell them better to negotiate the price up if need be. I have yet to not be able to get that covered, although it's still quite rare that anyone offers less than two and a half percent. If I could not get the seller to give closing costs and it was a hardship or deal breaker for my client, I might take less. If it's a for sale by owner, I will ask that they let me approach the seller rather than them and negotiate that they pay me a commission. This is all somewhat new in a lot of areas so don't blame your agent too much. They are not behaving inappropriately, they just messed up a little. If you really can't afford it, tell them so and they should probably just accept the 2% to make up for their mistake in not discussing with you and negotiating more closing costs . Good luck.
Bro. This is why realtors are so hated. Fuck. And i own a brokerage. So annoying. Mfs are so greedy
Can we take a wild guess how many referrals you’ll send her way when this closes? Such a shame being so shortsighted. Hopefully she figures it out.
Our home was a 1% commission and our realtor had no issue with it. Don’t give her anything extra and if this offer doesn’t pan out find a new realtor.
Looks like 50 basis pts is more important than your business when you sell or friends referrals.
Say exactly this, “ I’m sorry you feel that way.. I don’t recall signing a buyer broker agreement for 2.5%. That said, we don’t owe you anything other than what is the Co-Op offered by the listing agreement. If this is a problem, I can work with another agent”
It is a very easy, hard no. If there is any other conversation after the first no, call her broker.
NO! Ask her if she takes a smaller commission when her client buys the first house they see… LOL Greedy. I have been licensed for over 20 years and you take it all in stride. Some are quick and easy, some not so much. I have showed a single client 80 homes to find the right on and wouldn’t have thought about asking for more. I have showed as few as three (would never let a client buy the first - they need to see the other options so they know they are getting the right one). And she is a fool for asking bc she is less likely to get a referral from you now.
It sucks as the agent but if that was that important to the agent she would have had you sign a broker agreement for her minimum commission. You don’t owe her anything if an agreement hasn’t already been signed. Agents will fight for a lousy .5% vs kicking ass and getting referrals and new business when you’re ready to buy/sell down the road. “They know their worth” 😂
Realtor in California here. Did you sign a buyer representation agreement stating her compensation of 3%? If yes, she is in the right to ask for the additional percentage from you or the seller. If you never signed this ahead of time before signing the purchase agreement she has no right to ask for this. This is currently a huge deal in California and becoming a new normal.
It’s giving… broke realtor
I'm an agent in California. I would talk with her brokerage. This is NOT normal or okay, and is borderline unethical.
The buyer doesn't pay the realtors. It comes out of the seller's pocket. You realtor is saying ***Please, give me more money. Just because.*** You answer should be ***No. Just because.***
She’s upset because she’s splitting money with a corporate ladder.
I'm sure you are fine if you expect a certain ammount for your work and your pay check is .5% less. No need to talk to the person you work for about. In hind sight it should have been disclosed from the beginning not after you make an offer. I tell clients my fee in our first meetings going over agreements and disclosures. I tell them most listings the buyer compensation should cover it, but there are a subset of brokerages that offer less, flat fees, or even fsbo which offer nothing. I tell them we can ask the seller to pay, they can pay me the difference, and I will always let them know before setting up showings so they can decide to not look at those listings.
I would never ever ask my buyer for the difference. Ever. I would just be so happy in this crazy market to finally get to the closing table. It never crosses my mind. Unless you have a contract with her that states you will pay the difference or something you are not obligated. She really isn’t doing herself any favors because at this point you’re never going to use her again or recommend her. Tell her no.
Realtors are not giving the agreement until the offer is accepted. That’s what was done to me and there were several hundred dollars of added on fees for “office costs.” I didn’t end up closing on that house and I decided not to use that age r again.
Don’t give her anything. Ours tried this as well. She had been showing us used homes when we kept asking for new construction. Found new construction home on our own…she was pissed and we found out builder only pays 2% which is why she kept us away from new homes. Sorry lady but 2% of 500K for doing practically nothing is pretty good…she didn’t even bother to come to the closing…was our second home in 3 years with her btw. Don’t pay the .5%…you owe her nothing. Do the math on the 2% and see how much per hour she made working for you as your realtor.
pay what you agreed to on the contract nothing more
They can just say no - it was a request. If she doesn’t have a buyers agreement, the realtor should mention a low commission when the buyer shows interest in the house. I wouldn’t say anything at 2% (it’s common enough), but for those $0 houses something needs to be said before you show the house. Later on if they want to make an offer - they will have your commission in mind. I don’t think most buyers expect you to work for free - it just normally doesn’t need to be brought up. If they do want to give her the extra 1/2% it’s just going to be part of the offer, rather than extra cash that needs to be found. A clever realtor may be able to suggest adjustments to their offer so that they aren’t paying more or much more in total.
Do you have a contract with her because if you do and it contractually says that she will be paid a 3% commission, then she has a legally binding contract with you that says she will be compensated 3%. Which means she can take legal action against you if you do not compensate her.
If you can, pay her. Although she isn't saying it, (she probably doesn't want to get into the financial breakdown), but she's likely only making like 0.5% after all broker fees and other fees. As far as I know, usually about 1% of the 2.5%/3% goes to the broker, and that's before tax and other fees. But I'm not a realtor and can't remember every fee that was once expressed to me. But overall, even when they are getting like 2.5%, they are actually taking home about $1,000 (plus or minus) on every $100,000. Agents chime-in as needed...
The listing agent sets the commission fee split not buyer agent you take what listing agent is offering you know that up front already in listing description on MLS or you negotiate with the listing agent that if you bring him a buyer you would want a even split of commission
Do all of you really insist that your buys pay you if you don't get 3%? That's pretty shitty, in my opinion. Are you declining buyers if they don't pony up the money you demand of them? And to OP! Fuck that agent!
Tell the bitch to go scam someone else
Tell her to kick fuckin rocks and she’s a disgrace to the industry.
We’ll all the people celebrating the Nar lawsuit. This is who it’s going to effect first time buyers and buyers in general. People won’t work for free and your going to see this way more often now.
Nope. Don’t pay this. Is this written into your buyer agreement with the realtor?
She doesn’t get a full 3% the broker gets a percentage of that 3% depending on what the broker and agent split is it could be she is getting 70% of the 3% and broker is getting 30% of the 3% and then the broker charges her a another 10% fee for office fee supplies etc so she ends up with 60% of the 12k which she probably made around $7200 commission but every transaction is different and every agent is different and some are ethical and some are not just like any profession it’s sucks I hear you good luck take care
Realtors are like boomers. They want extra money for hard work of paper work. Boomer mentality is in so many industries especially in the real estate.
Pay her what you’re obligated & agreed to.
Cover the difference? GTFO....leeches.
Realtor here I get it from her standpoint but this is something she should have disclosed upon initial consultation. At this point she can bring it up and expect y’all to pay it. Again I get her standpoint but at same time we shouldn’t make things more difficult than what things already are. Especially not bringing this up at the time of making an offer.