FSBO and buyers agents commissions

jcramsey said:
Agent is now trying to convince me that the per sq ft price of the comps in my neighborhood aren't as applicable to my situation because I have to factor in that they paid 6% commission on the sale. Apparently he's being a good guy only asking for 2% :rolleyes:
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Just shut him down. He is doing his job and negotiating for his client.
I want X if not from your client from someone else. I understand you want to be paid. Take that up with your client.
 
jcramsey said:
Agent is now trying to convince me that the per sq ft price of the comps in my neighborhood aren't as applicable to my situation because I have to factor in that they paid 6% commission on the sale. Apparently he's being a good guy only asking for 2% :rolleyes:
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I'd tell him where he could stick that extra 4%...
 
jcramsey said:
Agent is now trying to convince me that the per sq ft price of the comps in my neighborhood aren't as applicable to my situation because I have to factor in that they paid 6% commission on the sale. Apparently he's being a good guy only asking for 2% :rolleyes:
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First, that's not how comps work at all. Secondly, I agree with Ron's suggestion to shut him down. There's no way I would be discussing comps with the buyer's agent. The only outcome of that conversation is that he tries to convince you that your house is overpriced. Hopefully you did some research to come up with your asking price, and he has no control whatsoever over that. Whether the comps support it or not is a conversation he should be having with his buyer, not you. The only conversation I would have with him would be when he submits a formal offer.
 
cj777 said:
First, that's not how comps work at all. Secondly, I agree with Ron's suggestion to shut him down. There's no way I would be discussing comps with the buyer's agent. The only outcome of that conversation is that he tries to convince you that your house is overpriced. Hopefully you did some research to come up with your asking price, and he has no control whatsoever over that. Whether the comps support it or not is a conversation he should be having with his buyer, not you. The only conversation I would have with him would be when he submits a formal offer.
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Took ya'lls (and my wifes) advice to tell him to take it or leave it. Its priced right where it should be.
 
Im curious of an agents POV....arent we in grey area when an agent is advising a lay person of valuation, especially if he doesnt have a notice of agency agreement signed.
If the deal gets submarined Im enough of an asshole Id call his broker and tell him his agent was acting in poor faith against your best interest without signed disclosure..
 
Ron said:
Im curious of an agents POV....arent we in grey area when an agent is advising a lay person of valuation, especially if he doesnt have a notice of agency agreement signed.
If the deal gets submarined Im enough of an asshole Id call his broker and tell him his agent was acting in poor faith against your best interest without signed disclosure..
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My first thought was he may some how try to make claim as a dual agent saying he was advising the seller on pricing, etc. and try to double up on commissions.
 
I work with and use several realtors... You've just got to understand that while they look more polished they are actually all shadier than a used car salesman. If you've got any other interest at all I would tell him you've had two other offers so you'd like his best and highest offer before the weekend.
 
Literally just logged in and was about to respond to this thread and got a text from agent that said they were good with our price. Supposed to send contract tomorrow.

Agent tried to talk us down one more time earlier today but we stuck to our guns.

Thanks for the real estate advice NC4x4. Don’t hold your breath for a commission check though :flipoff2:
 
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Ron said:
Im curious of an agents POV....arent we in grey area when an agent is advising a lay person of valuation, especially if he doesnt have a notice of agency agreement signed.
If the deal gets submarined Im enough of an asshole Id call his broker and tell him his agent was acting in poor faith against your best interest without signed disclosure..
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I'm generally not one to bad talk another agent. So, without getting into throwing stones, there have certainly been some gray areas here. Without hearing both sides, my first red flag comes from the fact that OP did not know if the agent was actually representing the buyer initially. Agency disclosure should happen at first contact...i.e. "Hi, my name is XXX and I'm representing XXX as their buyer's agent." That is a NAR (National Assoc. of Realtors) Standard of Practice that is relevant regardless of state:

-NAR Standard of Practice 16-11:
"On unlisted property, REALTORS® acting as buyer/tenant representatives or brokers shall disclose that relationship to the seller/landlord at first contact for that buyer/tenant"

Then of course, there is the implication that this particular agent is more interested in securing his pay check than his duty to his client. NAR is clear that the agent should always work in the best interest of their client, even if it is not in the agent's favor:

From NAR Fudiciary Duties:
"A duty of loyalty is one of the most fundamental fiduciary duties owed by an agent to his principal. This duty obligates a real estate broker to act at all times solely in the best interests of his principal to the exclusion of all other interests, including the broker’s own self-interest."

That basically boils down to, regardless of compensation (or lack thereof) if his client wants this house, he should help him get it. I completely get the used car salesman references, and understand that a lot of agents aren't doing this, but that is what they're supposed to be doing.
 
jcramsey said:
Literally just logged in and was about to respond to this thread and got a text from agent that said they were good with our price. Supposed to send contract tomorrow.

Agent tried to talk us down one more time earlier today but we stuck to our guns.

Thanks for the real estate advice NC4x4. Don’t hold your breath for a commission check though :flipoff2:
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Glad to hear that worked out well for you, and that you didn't give in to him trying to beat you down on the price. Feel free to message me if you want unbiased advice as you go through the process
 
cj777 said:
Glad to hear that worked out well for you, and that you didn't give in to him trying to beat you down on the price. Feel free to message me if you want unbiased advice as you go through the process
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I appreciate that! If I run into any more issues I will be sure to!
 
cj777 said:
I'm generally not one to bad talk another agent. So, without getting into throwing stones, there have certainly been some gray areas here. Without hearing both sides, my first red flag comes from the fact that OP did not know if the agent was actually representing the buyer initially. Agency disclosure should happen at first contact...i.e. "Hi, my name is XXX and I'm representing XXX as their buyer's agent." That is a NAR (National Assoc. of Realtors) Standard of Practice that is relevant regardless of state:

-NAR Standard of Practice 16-11:
"On unlisted property, REALTORS® acting as buyer/tenant representatives or brokers shall disclose that relationship to the seller/landlord at first contact for that buyer/tenant"

Then of course, there is the implication that this particular agent is more interested in securing his pay check than his duty to his client. NAR is clear that the agent should always work in the best interest of their client, even if it is not in the agent's favor:

From NAR Fudiciary Duties:
"A duty of loyalty is one of the most fundamental fiduciary duties owed by an agent to his principal. This duty obligates a real estate broker to act at all times solely in the best interests of his principal to the exclusion of all other interests, including the broker’s own self-interest."

That basically boils down to, regardless of compensation (or lack thereof) if his client wants this house, he should help him get it. I completely get the used car salesman references, and understand that a lot of agents aren't doing this, but that is what they're supposed to be doing.
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if he doesn’t get paid, the does he really have any obligation to his client?
 
cj777 said:
I'm generally not one to bad talk another agent. So, without getting into throwing stones, there have certainly been some gray areas here. Without hearing both sides, my first red flag comes from the fact that OP did not know if the agent was actually representing the buyer initially. Agency disclosure should happen at first contact...i.e. "Hi, my name is XXX and I'm representing XXX as their buyer's agent." That is a NAR (National Assoc. of Realtors) Standard of Practice that is relevant regardless of state:

-NAR Standard of Practice 16-11:
"On unlisted property, REALTORS® acting as buyer/tenant representatives or brokers shall disclose that relationship to the seller/landlord at first contact for that buyer/tenant"

Then of course, there is the implication that this particular agent is more interested in securing his pay check than his duty to his client. NAR is clear that the agent should always work in the best interest of their client, even if it is not in the agent's favor:

From NAR Fudiciary Duties:
"A duty of loyalty is one of the most fundamental fiduciary duties owed by an agent to his principal. This duty obligates a real estate broker to act at all times solely in the best interests of his principal to the exclusion of all other interests, including the broker’s own self-interest."

That basically boils down to, regardless of compensation (or lack thereof) if his client wants this house, he should help him get it. I completely get the used car salesman references, and understand that a lot of agents aren't doing this, but that is what they're supposed to be doing.
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Yea...there wasn’t any direct indication (at least to me) that he was under contract as his agent. I knew he was an agent that was also his friend and he asked if I was willing to work with an agent, but not a clear disclosure. Of course I may just be a little slower than most.

That is pretty enlightening regarding the agents duty to his buyer. I ended up giving him a small percentage as the price we ended at allowed for me to do so and still end up where I wanted to be.
 
rockcity said:
if he doesn’t get paid, the does he really have any obligation to his client?
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According to the NAR he does? :D My wife has similar fiduciary duties in her job for her clients as well regardless of whether they pay her or not.

I get it though. I wouldn’t want to work for free either.
 
rockcity said:
so now he’s a dual agent since you are paying him.
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Absolutely not. A dual agent would be (at least theoretically) looking out for the best interest of both buyer and seller and representing both. In this case, he is solely working in the interest of the buyer, in spite of the seller being the one that actually pays him. That's an important distinction for OP.
 
rockcity said:
so now he’s a dual agent since you are paying him.
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Nah, my best interests have never been his concern. Him getting paid was more of a concession I was willing to give to the buyer. Would’ve been the same if I lowered the price by whatever his commission was and let the buyer pay him instead.
 
awheelterd said:
Pushover...
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I'll admit I'm a peacemaker and hate confrontation. I think my wife was ready to give them double middle fingers and one of these
shawn michaels dx GIF by WWE
right out the gate. We balance each other out pretty good :laughing:
 
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