Realtor tries to kill deal - Posted by Anne-ND

Posted by Anne-Nd on July 18, 2001 at 11:34:31:

Hi Tom,

Maybe I have an overdeveloped sense of fair play, but I just would prefer to honor the seller’s contract with the realtor. Why? Because the seller in this case feels cowed by her realtor, and wasn’t able to stand up to her. This is what I dislike most about realtors and hair dressers- you have to be really strong to assert your rights as a customer. I mean, the seller was AFRAID the realtor would find out she spoke to me- and the realtor is supposed to be working for her! How dumb is that? Going around the realtor could have potentially gotten the seller into trouble, which is not what I want to happen. Also, I get enough business from realtors who bring me flexible sellers that I don’t want a bad rep from them in my small city.

After responding to your earlier email I went for a bike ride and thought about this some more. What I should have done was to just rent the house from the seller for three years (it would have answered her NEED), bought an option for 3 years, and then the realtor would be out of the picture, as it’s unlikely she could find another full price buyer who’d buy with a 3 year lease on the house. In fact, I may still call the seller and propose that.

thanks for your reply.


Realtor tries to kill deal - Posted by Anne-ND

Posted by Anne-ND on July 17, 2001 at 22:01:25:

I called on an ad in the paper for a house to rent. I was looking for a place to buy so I could get a tenant out of a house that I need to sell. Something about this ad smelled more like a seller than a landlord.

Sure enough, she wanted to sell, in fact had the house listed. I described how we buy (with seller financing), and she said to come by a few nights later when her tenant was showing it to some prospective tenants.

When we got there the seller was there too- even though it was a 90 minute drive for her, she wanted to meet us. We hit it off, we liked the house, she agreed to our terms. We agreed to pay the commission at closing and take possession subject to, she would allow us to pay for her equity in three years time when we were to either refi or sell.

I went to fill out the purchase and sale agreement at the Broker’s office, and they insisted on writing it up as a CfD on their contract, I said okay, but let me also submit a purchase and sale agreement (Bronchick’s) with the subject to deal that the seller and I had verbally agreed to. She can choose the offer she likes better.

I get a call back from the Broker/Realtor demanding all kinds of things from us (supposedly from the seller), including a higher interest rate on the equity, and our personal credit reports. I said no way, and figured that was it. By the way, the higher interest rate was part of the offer I’d written up on my P & S agreement.

Today I get a call from the seller, very meek, telling me she had been instructed NOT to speak to me under any circumstances by the realtor (that’s right, realtor with a small R). The realtor had also told her outright not to even read the purchase and sale agreement I had submitted, to just insist on changes in the offer that was written up on her own contract. We again verbally agreed to some terms that would work for both of us (this time she agreed to hold the financing for 6 years rather than 3 years). She begged me NOT to inform the realtor that we had spoken, just asked me to resubmit my offer with these new terms which are more advantageous to us (because we like the longer terms), and she would sign it tomorrow. As we often try to do, we gave her her full asking price with the stipulation that we get to choose the terms.

I know the realtor was trying to protect her seller, but if the seller had not called me both of them would have lost the deal. It’s only been listed a week, and it was a full-price offer to close in a week. A confused mind says no, I guess. When the seller hung up she kept telling me how much she appreciated that I was still willing to work with her- no problem, she’s a nice person, I liked her and I really like her house and the terms we got. It just made me think about all the offers I used to put in through realtors, and the time I spent to explain Bronchicks (very simple) P & S agreement. Probably very few of them even got shown to the seller. Sad.

Just had to vent a little, usually I don’t have a problem with realtors, but this irked me.


Re: Realtor tries to kill deal - Posted by Tom – IN

Posted by Tom – IN on July 18, 2001 at 24:04:49:

I’d tell the realtor that they are free to make the offer themselves on any form THEY like, but this is MY offer on MY form.
But why did you go through the realtor anyway? If that was the seller who ran the ad, and you contacted the seller directly, then you need not go through the realtor. Just work out all the details with the seller, and then ask the seller to “rescind” the listing.

So what else is new? (nt) - Posted by WilliamGA

Posted by WilliamGA on July 17, 2001 at 22:02:57:


Re: Realtor tries to kill deal - Posted by Anne_ND

Posted by Anne_ND on July 18, 2001 at 07:12:05:

Because in my mind that’s unethical. And unwise, since one could get a bad rep for going behind a realtor’s back. If it doesn’t work where the realtor gets their share on a listed property, then it isn’t a good enough deal. I should add that we’re talking about cheap houses here ($30-60K), so the commission is not much.

Thanks for responding,


Re: Realtor tries to kill deal - Posted by eric-fl

Posted by eric-fl on July 18, 2001 at 15:32:12:

Actually, it’s not unethical, and this is coming from a Realtor. The commission agreement is between the agent and the seller, period. The seller is responsible for the commission, not you. If the seller wants to deal with you, but still pay the commission, that is ok, it’s even provided for in the listing agreement. If the seller wants to pay the Realtor a commission, even if they are not using their services, the Realtor will have no problem with that, I assure you. As long as everyone knows what everyone else is doing, and agrees on it, there should be no ethical dilemna.

Re: Realtor tries to kill deal - Posted by pam

Posted by pam on July 18, 2001 at 11:23:49:

I agree with you it is best to be safe. Maybe the lady signed a 6-month agreement. Sounds like she wasn’t assertive enough to tell the realtor that she wanted your deal. It sounds like you are a people person and established a great rapport with the seller. Good for you!

Re: Realtor tries to kill deal - Posted by Tom – IN

Posted by Tom – IN on July 18, 2001 at 11:10:59:

But it is NOT unethical. If you responded to an ad placed by the SELLER, and responded directly to the seller, then the realtor has done nothing here to earn a commission.

If, on the other hand, the realtor had placed an ad, or a sign, or whatever, and you responded to that, or showed up at an open house, then you would owe the realtor his commission.