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Unrepresented buyer - What happens to commission?

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aitf311

Junior Member
I listed my home in April. When I filled out the paperwork I opted for 3.5% of the sales price to go to the buyers agent and 3.0% to my selling agent.

After the house did not receive any looks I offered $1000 bonus to any buying agent that has an offer before the end of July.

I've received an offer for my house today from an unrepresented buyer. My agent has told me even though the buyer does not have an agent I will be required to pay the full 6.5% because her office will be doing all of the paperwork. When I asked about the $1000 bonus she said it was negotiable and I responded by saying 'No it is not. There is no buying agent and I will not pay the bonus to you by default.'. She accepted and dropped it.

Due to there not actually being a buyers agent, what are my options to retain the 3.5%? I fully expect to pay 0.025% - 0.05% to cover my agent having to fill out additional paperwork, but not 3.5% of my house's value! I am located in Missouri.

Thank you for any help that may come of this.
 


dmcc10880

Member
What does your actual listing agreement say? 6.5% or 3% + 3.5% specifically to the respective agents?

Where did the offer come from? Someone who just walked off the street and to your door with an offer, or were they brought to you by your agent?

What does your contract with the broker actually state?
 

aitf311

Junior Member
What does your actual listing agreement say? 6.5% or 3% + 3.5% specifically to the respective agents?
I've got my contract out:
a) SELLER agrees to pay Reece & Nichols Realtors a commission of $250.00 and 6.5% of the selling price. SELLER agrees any reduction of sales price in lieu of repairs or seller concessions will not reduce the compensation due hereunder unless agreed to in writing by BROKER. The commission is due and payable if BROKER of anyone else, including SELLER, produces or finds a purchaser ready, willing and able to purchase the Property at the price and terms offered now or at the price and terms acceptable to SELLER at a later date. SELLET authorizes the payment of the commission and other compensation to BROKER from SELLER's proceeds at closing. Any additional or other compensation and/or fees to be paid by SELLER to BROKER or lincensee will be stated on a separate addendum to this contract.
b) BROKER shall offer a commission split of 3% of listing side and 3.5% of selling side, excluding the $250.00 amount. If compensation to selling BROKER differs from what is stated in this contract for any reason that disclosure must be made in writing to SELLER by BROKER. BROKER'S offer of compensation is only applicable to brokers who are participants in Heartland Multiple Listing System, unless otherwise agreed upon in writing.

Where did the offer come from? Someone who just walked off the street and to your door with an offer, or were they brought to you by your agent?
I asked my agent the same question. I had my house listed with another agent last year. He saw the house last year and just now put in the offer. He is from another state and is moving to be on the same street as his sister..

What does your contract with the broker actually state?
Broker agreement scan: http://i.imgur.com/coSzy.jpg
 

Zigner

Senior Member, Non-Attorney
I've got my contract out:
a) SELLER agrees to pay Reece & Nichols Realtors a commission of $250.00 and 6.5% of the selling price. SELLER agrees any reduction of sales price in lieu of repairs or seller concessions will not reduce the compensation due hereunder unless agreed to in writing by BROKER.
I'm sorry, but what's the question? You agreed to pay 6.5%.
 

aitf311

Junior Member
I'm not positive I did. That's why I'm asking. The contract said 3.5 goes to the buyers side. With no buyers agent, who is the buyers side?
 

TheGeekess

Keeper of the Kraken
I've got my contract out:
a) SELLER agrees to pay Reece & Nichols Realtors a commission of $250.00 and 6.5% of the selling price. SELLER agrees any reduction of sales price in lieu of repairs or seller concessions will not reduce the compensation due hereunder unless agreed to in writing by BROKER. The commission is due and payable if BROKER of anyone else, including SELLER, produces or finds a purchaser ready, willing and able to purchase the Property at the price and terms offered now or at the price and terms acceptable to SELLER at a later date. SELLET authorizes the payment of the commission and other compensation to BROKER from SELLER's proceeds at closing. Any additional or other compensation and/or fees to be paid by SELLER to BROKER or lincensee will be stated on a separate addendum to this contract.
b) BROKER shall offer a commission split of 3% of listing side and 3.5% of selling side, excluding the $250.00 amount. If compensation to selling BROKER differs from what is stated in this contract for any reason that disclosure must be made in writing to SELLER by BROKER. BROKER'S offer of compensation is only applicable to brokers who are participants in Heartland Multiple Listing System, unless otherwise agreed upon in writing.


I asked my agent the same question. I had my house listed with another agent last year. He saw the house last year and just now put in the offer. He is from another state and is moving to be on the same street as his sister..


Broker agreement scan: http://i.imgur.com/coSzy.jpg
I'm not positive I did. That's why I'm asking. The contract said 3.5 goes to the buyers side. With no buyers agent, who is the buyers side?
You did. Right in the bolded section. :cool:
 

Zigner

Senior Member, Non-Attorney
I'm not positive I did. That's why I'm asking. The contract said 3.5 goes to the buyers side. With no buyers agent, who is the buyers side?
No, it does NOT say that:

b) BROKER shall offer a commission split of 3% of listing side and 3.5% of selling side,

What is SAYS is that you (seller) pay 6.5% to the broker. Then it goes on to say that the broker will offer 3.5% to the other agent. In any case, you are on the hook to your broker for the 6.5%
 

aitf311

Junior Member
Do I have any recourse for the 3.5% being 'unclaimed'? I'm sure you legal veterans hear this all the time, but giving the full 6.5% for their 3.0% of work isn't right!

Are there any options other than selling with 6.5% or simply letting the contract expire next month and moving onto another agent and buyer?
 

TheGeekess

Keeper of the Kraken
Do I have any recourse for the 3.5% being 'unclaimed'? I'm sure you legal veterans hear this all the time, but giving the full 6.5% for their 3.0% of work isn't right!

Are there any options other than selling with 6.5% or simply letting the contract expire next month and moving onto another agent and buyer?
Dude, you signed a contract that you will pay the broker 6.5%. It's up to the broker to pay the buyer's agent (if one existed). That's not your problem.

And you play games, the rest of the RE brokers in the community will charge you more than that. :cool:
 

dmcc10880

Member
Thanks for answering my questions.

Sorry to tell you what you likely do not want to hear, but you're on the hook to your broker for the 6.5%.

Can you negotiate it down? Possibly.

Can you reject the offer? Definitely.

There's your leverage. How badly do you want to sell the house versus how badly your broker wants the full commission or say 4.5 or 5%?

If the offer was a full price offer, you're SOL, but you may have some wiggle room with the broker if the offer was less than the asking price. You can always negotiate.
 

aitf311

Junior Member
I'm definitely not wanting to play any games. I sold my last house without a selling agent, but the buyer was brought to me buy an agent. I paid 2.5% and thought nothing of it because it was the right thing to do.

I'm in the reverse situation right now where there is no buyers agent, so I figured I'd pay the 3%. I see now that's not what the contract said, even though when I signed the papers I thought the 3.5% for the buyers side was only for the buyers agent.

I just want to know if there is any alternative to paying someone for work that's not done.

Edit: thank you all for your answers. dmcc10880, thank you for giving me hope.
 

dmcc10880

Member
I'm definitely not wanting to play any games. I sold my last house without a selling agent, but the buyer was brought to me buy an agent. I paid 2.5% and thought nothing of it because it was the right thing to do.

I'm in the reverse situation right now where there is no buyers agent, so I figured I'd pay the 3%. I see now that's not what the contract said, even though when I signed the papers I thought the 3.5% for the buyers side was only for the buyers agent.

I just want to know if there is any alternative to paying someone for work that's not done.

Edit: thank you all for your answers. dmcc10880, thank you for giving me hope.
I don't know how much hope I've given. The contract is pretty straight forward in that you would pay your broker 6.5% + $250. 6% is pretty normal, 6.5% is quite high and the $250 is unusual as well.

As I stated above, you can try to negotiate and it's a matter of how badly you want to sell your house and how badly the realtor wants to collect a commission.

Good luck in your transaction.
 

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