Posted by -Steve- on May 21, 2009 at 18:00:34:
Debbie-
I think Tye is saying really there is no standard way to do things. It is what you can negotiate.
for sale buy owner - Posted by Debbie Caldwell
Posted by Debbie Caldwell on May 19, 2009 at 16:39:00:
Our son signed with an agent 4 weeks ago. He hasn’t been able to find a house yet. We came upon a house for sale by owner. He looked at it and liked it. His realtor said he still gets a commision from it. THe realtor contacted the owners and he is asking a commision from them too. Is this normal? Also, could you give us an approximate amount for closing costs on a 185,000 dollar home?
Re: for sale buy owner - Posted by BTI
Posted by BTI on May 30, 2009 at 05:28:00:
Debbie
If your son signed a buyers broker agreement then yes under a standard agreement your son would owe the fee due under it. One purpose of this kind of agreement is to allow the agent to seek unlisted as well as listed properties for your son’s consideration.
However, attempting to list the property with the owner is a violation of his agreement with your son and his fiduciary duties owed to your son. His fee due from your son is easily covered in any offer. A call to the agent’s broker should set the agent straight, if not call the ethics committee of his association, and file a complaint with the state division of real estate licensing. Also cancel the contract based on the breach of fiduciary duties.
Only after your son has dismissed the property would it be appropriate for the agent to try and list the seller’s home due to his agency with your son.
BTI
Re: for sale buy owner - Posted by Natalie-VA
Posted by Natalie-VA on May 25, 2009 at 12:27:28:
Many times an agent will have the buyer sign an exclusive right to represent buyer. If your son signed this, it probably includes language that says he owes a commission whether she found the house or not. There’s a lot more to an agent’s job than just locating the house. Maybe you could bring her into the deal now (raise the sales price to cover the commish) and have her handle the rest of the deal for him. If the agent has spent a lot of time with your son, I would advise him to pay. It’s the right thing to do. If the agent didn’t spend a lot of time, or didn’t do a good job, I would consider fighting it. You’ll need to ask your son’s loan officer how much closing costs will be.
–Natalie
Re: for sale buy owner - Posted by Sailor
Posted by Sailor on May 20, 2009 at 20:49:28:
What does the agreement state? That’s what determines whether or not the is a commission due. Closing costs depend on a sales agreement, which should spell out who pay for what. Either party can bear all or none of the expenses, & sometimes the agent covers some expenses to get the deal closed. In my area it is customary for buyers’ agents depending on the deal. I had an agent bring me a buyer for a property that was NOT on the mkt. Buyer paid the commission, & agent paid for some minor repairs. I once had a probate situation where the agent paid a utility lien left over from a previous owner, & one time an agent quickly brought in his own plumber when a faucet blew during final walk-through.
In summary, it depends on the contracts, which often have newly negotiated points as all parties work together to get the deal done. If I ws the buyer on a 285k home, I’d like not be paying any closing costs except to the bank. If was was the seller on the same deal, the buyer would likely be covering most expenses.
I once did a deal in which the seller signed over nearly 3k in his escrow account to me as buyer. Note this would not have happened had I not asked for that money. The agent was shocked it happened, & I was delighted to go down to the mortgage holder the next day & request a refund of all the excess funds they’d been collecting. I walked out w/something like 1500k,& the agent even came over & spent a day scraping old paint off the patio cover.
The rules are what you make & get the other parties to accept–
Tye
Re: for sale buy owner - Posted by -Steve-
Posted by -Steve- on May 19, 2009 at 19:44:13:
If you found the house not the agent, then the agent is out of luck. If this is true, I would let the seller know the agent has no business with your offer for their house. Stay in-front of the realtor and you stay in control. Cancel your agreement with the realtor ASAP!