Your selectionpays the extra half percent or refuses the offer and tries to negotiate. Who signed the addendum you mentioned? The agent cannot include an endorsement in a contract between a buyer and a seller. It is the buyer who asks for an additional commission for the agent so that he can avoid payment. Readers` Question: A homebuyer offered us an amount that we liked. But there was an extra from the buyer`s representative for an additional half-percentage commission. We did not accept it and we countered it. However, our agent informed us that the agreement would not be reached if we did not accept the buyer`s representative`s request. Can a buying agent make an offer to a seller based on the payment of an additional commission from the seller? Montys Answer: The real estate agent must sub-list all offers from a seller. Based on the rare information, there is a good chance that the buyer will ask you to pay an additional commission and not the agent. Your broker shares the commission with the seller`s company and the allocation may not cover the amount that the buyer has agreed to pay under the agreement through the buyer agency. The dirty little secret in a buyer`s agency agreementWe assume that there is a buyer`s agency agreement. If there is no written buyer agency agreement, the broker remains a sub-agent of the seller.
Without agreement, the buyer`s agent has no rights. The main talking point for a buyer`s agency is: «The seller pays an agent fee to your buyer instead of a co-trade fee.» If the co-trade fee that the buying agent collects from the listing real estate company does not cover the buyer`s agent fee, the contract stipulates that the buyer will compensate for the deficit. Some agents are uncomfortable to explain that the clause to a potential client for fear that the prospect will go away. In general, but not always, there is enough commission to cover the agent`s buyer`s costs. What happens if the buyer finds a home that is a for-sale-by-owner (FSBO) and the seller refuses to pay? The buyer may have to pay the total amount agreed to buy this house. For more information about the buyer`s agency, visit dearmonty.com/read-contract. This view could change if new information were derided. If the four Commission officers intervene, the problem may disappear. Don`t make decisions based on these comments, but consult with your broker instead. If the agent made an addendum and the buyer did not sign it, does the buyer even know that this is what the buyer did? In my state, it may be grounds for disciplinary action against the agent and the agent`s broker. The agent`s broker is responsible for the agent`s actions. Will the house be sold tomorrow? How long is it for sale? If your home is a hot ticket, you can decide as a seller to test the buyer`s determination.
Richard Montgomery is the author of «House Money – An Insider`s Secrets to Saving ThousandsWhen You Buy or Sell a Home.» He advocates for industry reform and offers readers unbiased real estate advice. Follow him on Twitter at @dearmonty or DearMonty.com.