Need help with RE Buyer's Agent!!

[Razl]

As some of you may remember, I asked your advise about listing my home a couple of months back.

Here's the deal. The house sold in 3 weeks close to asking price and the buyers didn't have an agent, so my RE agent made out really well.

We also signed a buyer's agent agreement with her, thinking she'd help us find a house and there would be no cost to us since she'd share the commission with the selling agent.

Here's the problem. We found this house under construction and love it. I was able to work out a fair price with the builder but he said he wasn't going to list it with an agent, so the price is based on zero commissions.

My agent caught wind of this house and is trying to contact the builder (who won't return her call). I don't think it is fair she makes several thousand from the deal since she offered zero help and is already getting a huge chunk of money from the sale of my house. The builder said he's not paying commission, and we'd have to work something out with her directly.

Do I have any legal leverage here?

 

[kenw]

depends on what the contract with her says. These RE contracts are usually pretty lopsided.

 

[Pablo]

Seller pays commission. If the seller doesn't want to pay the swine's commission, so be it. Dump the swine.

RE agents = swine. RE agents in a pack are swine in a trough.

There is NOTHING I could not do myself locally that a rip-off swine can do for me. A RE agent is only really required when trying to sell a house long distance and even then the lazy pigs don't work worth a shat. 6% of $400,000+ for what??? To tell you about their perfect house and MB, or stories of the latest hunt trip? Screw off!!!!!!!!!!!

 

[Razl]

Yeah Pablo, this swine got almost $20k for less than 1 week's (40 hrs) work. The house sold in 3 weeks but she DID NOT work full time on it. I took it on the chin listing it with an agent, knowing my time was limited. But this buyer's agent thing wreaks

I figured if I built, she would get about 2% commission on the cost of helping me find the land. My wife and I rifled through our documents and can't find the darn contract so I think we never got it, only the selling contract.

I can't wait to see her reaction when I tell her the selling agent (builder) is offering zero commission. I'll keep you posted.

 

[Amkeer]

Its no swine! Its human being trying to make a living regardless of what you think is acceptable pay or not. You can try to sell or buy on your own no one will force you to make that decision. When you do decide to hire an agent you understand the cost of service up front. If you choose not to aggressively negotiate that is your choice. I agree some agents aren't worth a hoot, but there is alot that work hard and deserve every bit of what they get. Easy sales make up for the tough sales. No one can predict that a home will sell quick, hence a lower fee.

A buyer agent is only due a fee if she/he helps procure a sale. If that wasn't the case then you have a good reason for no fee paid. Simple. She/he should have known you would be interested in the home and contacted the builder prior to your contact and had an agreement prior to.

 

[Pablo]

Sorry Amkeer, but it's not "trying to make a living" it's more like trying to skin people who actually do have to make a living. Their industry is under pressure and they continue to try maneuvers that have nothing to do with helping the people that actually pay them.

Now I don't mean to attack the lowly agents, I really mean the jacka$$ brokers.

IF the starting commission were lower here, I would not squawk so loudly. I know you say it's negotiable, but it really isn't. I have tried. They don't negotiate in WA state. They walk first.

 

[Amkeer]

You put up a For Sale By Owner sign until you find an agent that will work for you at reasonable terms. Some are hungry some are not. You find the hungry one.

I could do anything I wanted with my commission/fee structure since I was with a 100% broker. The broker got a set desk fee regardless of whether I sold 3,000,000 or 300,000 it didn't matter. If I wanted to sell a home at 4.5% that was my choice. If I did a deal for a For Sale By Owner it would be anywhere from 1.5 to 3. Its a fee for a service. Its against the law to state that fees that a real estate broker charge are set. They are not! They are set once you agree to them.

 

[Kestas]

Allow me to rant with you guys. 6%!!!!!! For homes worth $200K-400K, that's $12K-24K!! I certainly don't see $12K worth of work from their end. All they have to do is maintain a computer database. I know how hard I work for $12K.

Two of my former girlfriends are PhD graduates - one in veterinary medicine, the other in chemistry. Both are now realtors.

Save your money and forget about sending your kids to college, just tell them to go into realty.

 

[Pablo]

I really think folks need to rebel.

If pressed do as Amkeer says and really negotiate or best just sell your home 100% by yourself.

Start speaking up. Write letters. Start a business. Picket.

$24,000+ to sell a house in 2 days, never respond to calls after the deal, no follow through.....terrible service is terrible service in any industry. It does not mean I have to go back to do the same process over and over again. Break the cycle.

 

[Pablo]

There are some MLS lawsuits as we speak!

 

[Amkeer]

10% of the agents do 80% of the business. Typical broker-agent relationship is 50-50 split. So if an agent sells a 200,000 dollar home at 3% that works out to 6 grand. Now divide that number by 2. Thats a big whoppin 3000 grand big deal!!!! Now take out costs associated with the transaction. BIG DEAL! The agent that works the deal nets maybe 2200. Not hardly a windfall in my book!

Typically the deals are co-brokered so any figures you see are divided up 4 ways.

If you like the idea of no job security. Working sometimes days and months without pay then get into RE. Oh and lets not forget the 50-60 workweeks and no days off. Wouldn't want to forget about the buyer that threatens to sue you since you sold a home with a leaky roof.

 

[Larry the Cable Guy]

I agree Amkeer.

 

[Crack_Tan]

Look...you have two options:

1) Sell the house yourself.

2) Go with a broker/agent.

I don't see what all the complaining is about. You know if you go with a seller's agent/broker you are going to pay 4-6% in commission. In reality, what you are paying for is the MLS listing, pre-qualification on the buyer, and closing paperwork (and that's pretty much it).

If you live in a hot real estate market and you are not in a rush to sell your house, simply go FSBO. Generally, you can contract with a real estate lawyer to do the paperwork for under $1,500. With FSBO you will not get an MLS listing, but in hot markets it only takes a few hundred dollars of advertising and signs to generate interest...especially if you have neighbors in the vicinity who are listing with a broker/agent. Driveby's generally generate the most interest in your home...so let the suckers down the street pay the agent commission and take advantage of buyer's traffic!

Note: There are more and more "discount agents" popping up of late; I'm not sure this is a good route to go. Companies like "www.sell4less.com" offer flat-fee seller services ($3,000), but YOU WILL NOT GET LISTED ON THE MLS! Thus, $3k sounds like a lot of money for just doing closing paperwork, an inspection & flimsy signage.

 

[keith]

Consider this. Houses have probably risen in value by 100% over the last 10 years, while inflation has increased cost of living by what, 40%? Realtors living off a fixed % of the home price are doing rather well - but - more people see this and get into the business so each realtor sells fewer homes.

Fundamentally, a large part of the realtor business is no longer needed. I can house shop from the internet by looking at MLS and FSBO listings, arrange with the owner for a convenient showing, and make an offer. Get an inspection, call my lawyer and close the deal. Who doesn't like to save 6%?

 

[Pablo]

quote:

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pre-qualification on the buyer, and closing paperwork (and that's pretty much it).

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With all due respect, the 6% RE commission in WA state does NOT cover these things.

I agree there are more discounters, some do include MLS listing. (How much does the MLS charge?)

 

[Crack_Tan]

I can't believe that a 6% commission does not include going to closing (paperwork). That's crazy (not to mention, another reason to go the FSBO route). Maybe a hot market like Seattle/Tacoma is dictating leverage for seller's agents, but I can't see that in Spokane, the Tri-Cities, Yakima, etc.

As for "prequalification," don't read too much into that: It generally means your agent does a credit check with the buyer (or buyers agent) and makes a call to their lender to see if they are serious. Fifteen-minutes of "work," tops.

As for the MLS, all it is is a marketing tactic that real estate agents/offices have a monopoly over. I'm surprised that we don't hear about lawsuits involving colusion with regards to the MLS.