OT: Another Real Estate Question

[2LeftCleats]

I'm tasked with selling my Mom's house. I've signed an agreement with a broker, who's entitled to full commission if it sells during the length of the contract and for 6 mos. after. There's also a commission sharing arrangement if another broker brings in the purchaser. After signing the contract, I became aware of someone who may be interested. If this person buys the house, though I'm not a broker, am I entitled to split the commission (in essence reduce the commission to half)? Is this something that would be fair to negotiate or does that cross a legal line?

Thanks.

[Spdntrxi]

I would talk with broker .. Maybe he will reduce his cut. The fact that you are not a broker might have some bearing. Depends on real estate law


Sent from my iPhone using Tapatalk

[cp43]

Originally Posted by Spdntrxi

I would talk with broker .. Maybe he will reduce his cut. The fact that you are not a broker might have some bearing. Depends on real estate law


Sent from my iPhone using Tapatalk

This is what I'd do.

Worst case, you sell the house, and pay the commission you were expecting.

Best case, you sell the house, and pay a little less commission.

[Nooch]

Depends on precisely what kind of agreement is.

If you signed an Exclusive Right-to-Sell listing agreement, the broker gets their cut, as they're the only ones who may sell the property.

If you signed an Exclusive Agency Listing, then you cannot list the house with any other brokers, but you could sell it yourself and won't be obligated to pay the listing broker.

The sharing agreement is just common in that the agent/broker will split the commission if another broker representing the buyer brings the buyer client to the listing broker.

(This varies from state to state, but is pretty standard)

[cnighbor1]

Just tell broker you have a buyer but mention no names. Than just ask what is commission if I find a buyer She will be very happy to have it sold with little effort on her part

[yngpunk]

Originally Posted by 2LeftCleats

I'm tasked with selling my Mom's house. I've signed an agreement with a broker, who's entitled to full commission if it sells during the length of the contract and for 6 mos. after. There's also a commission sharing arrangement if another broker brings in the purchaser. After signing the contract, I became aware of someone who may be interested. If this person buys the house, though I'm not a broker, am I entitled to split the commission (in essence reduce the commission to half)? Is this something that would be fair to negotiate or does that cross a legal line?

Thanks.

I would be surprised if you were permitted to split the commission if you're not a licensed real estate broker. However, you may be able to negotiate with your listing agent that if you find your own buyer, then you can only pay half of the negotiated commission. Since the contract is already signed, you're bound by the terms of the contract, but may be worthwhile to discuss with the listing broker.

[robin3mj]

This is why it's helpful to negotiate a lower commission if the buyer ends up not being represented by an agent.

For example- the broker charges you 6% in a situation where both buyer and seller use an agent, and they split it, 3% each. However, in the event the buyer is unrepresented, the broker can drop their commission to 4%, and you the seller can drop your price a couple points, and you both come out ahead.

[bking]

you can't split the commission. you can negotiate to lower theirs if they're willing.

[2LeftCleats]

Thanks for the replies. Pretty much what I figured. I'll see how things go and if the potential buyer turns out to be a fast and easy sell, I'll discuss with the realtor. But so far he's been extremely helpful and has gone a couple of steps above and beyond.

Several years ago, during a yard sale in preparation to sell a house and before we had a realtor, someone approached us about buying it. I was willing to sell at a reduced price in anticipation of a quick sale. I suggested the other party get an attorney to deal with the nuts and bolts, but instead she enlisted a realtor who immediately wanted half a full commission just for stumbling into a sale. I offered something smaller and the realtor walked, taking client with her. Took forever to sell the house.

[hellvetica]

You need a license to collect a commission. So no, you don't get an extra pay day.

[Ken Robb]

I was a broker for 36 years. If a client came to me with a situation like this and I had a 6% commission agreement I would handle both sides for 4% because I wouldn't have all my normal advertising/marketing expenses but I would have to do most of the work on the buyer's side even though I might not actually be his agent too. (dual agency).

OTOH if I knew the buyer had been exposed to the property by an agent and was just trying to do an end run I might stick with my written listing contract. I always wanted to have my good clients think I treated them right and did a good job representing them. OTOH when I knew a client was trying to cheat on our agreement I wouldn't be inclined to play along.

[jlwdm]

Originally Posted by hellvetica

You need a license to collect a commission. So no, you don't get an extra pay day.

But you may get the commission reduced.

Jeff