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The question I have for those who feel like the added 1% was too much in this instance based on the amount of work done is how far are you willing to take things? While I'll be the first to argue against the commission percentages for real estate in this country, bottom line is that, as is the case with most jobs, there will be some instances where one has to work hard for one's money and cases where one has things relatively easy. But the "easy" times doesn't mean that one shouldn't get paid out as agreed. I don't think that my buyer's agent did very much work for me (I looked at less than a handful of homes and put in an offer within a week of starting viewing back in summer of 2019, which was much quicker than the agent was used to), but I wouldn't dare think that I'd be entitled to pay a lower commission because of that.
Did you ask the listing broker to name their "buyer in the wings" or to stipulate that Open House walk-ins and buyers not actively scouted by the broker would not count with regards to the full 1% fee? That's a rhetorical question, as it's clear you did not.
Several people have suggested that you saved money or that it was fair for the broker, and maybe it was if your condo was in a lower price range and if you are happy with the sales price of your condo, that your listing agent got you the very highest price possible. 1% of $300,000 (arbitrary example) is just $3,000.
Around here the houses are selling for around 1.7 million, though. 1% of that is a whopping $17,000, which is far too much to pay one's listing agent for the amount of work necessary to complete a dual agency sale with an Open House walk-in.
Thanks for the reply! Of course I didn't, but this is something to add to the next RE listing agreement. I was pretty certain that the Dual Agency contract would never come into play -- and expected to pay a 2% fee if any open-house walk-in ended up buying the condo. Heck, the listing agent told me as much, but try proving it today. Silly me -- live and learn. After all, we sold our last house decades ago . . . .
Status:
"I didn't do it, nobody saw me"
(set 5 days ago)
Location: Ocala, FL
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Quote:
Originally Posted by Avondale15
and expected to pay a 2% fee if any open-house walk-in ended up buying the condo.
Unless that was previously spelled out and agreed upon in the listing agreement, it wouldn't happen that way. I am not saying it couldn't have occurred that way if previously negotiated, only that if it wasn't part of the original agreement, you can't expect it after the fact.
Chalk it up to a hard learning experience at this point.
Thanks for the reply! Of course I didn't, but this is something to add to the next RE listing agreement. I was pretty certain that the Dual Agency contract would never come into play -- and expected to pay a 2% fee if any open-house walk-in ended up buying the condo. Heck, the listing agent told me as much, but try proving it today. Silly me -- live and learn. After all, we sold our last house decades ago . . . .
Still confused why you’re upset about saving 1% vs what you expected to pay, but you do you I guess
Avondale15 - tell the broker you used you are going to file a complaint with the real estate commission. If they don't make things right in your eyes - file the complaint. You obviously had a different understanding of what the terms would be. This will help everyone in the long run because things need to be clearer for consumers.
Avondale15 - tell the broker you used you are going to file a complaint with the real estate commission. If they don't make things right in your eyes - file the complaint. You obviously had a different understanding of what the terms would be. This will help everyone in the long run because things need to be clearer for consumers.
Thanks! The point of starting this thread was to see what experienced RE practitioners thought about this incident.
BTW, I had searched the web on the possible pitfalls in the listing agreements prior to signing the two of them. Saw all sorts of information but not a hint of this walk-in issue.
Thanks! The point of starting this thread was to see what experienced RE practitioners thought about this incident.
BTW, I had searched the web on the possible pitfalls in the listing agreements prior to signing the two of them. Saw all sorts of information but not a hint of this walk-in issue.
I'd venture to say that most real estate listing agreements state a set percentage, with a portion of that being allotted for a Buyer's agent. If the contract is as you stated, I think they would be wise to amend it to make it more clear.
Avondale15 - tell the broker you used you are going to file a complaint with the real estate commission. If they don't make things right in your eyes - file the complaint. You obviously had a different understanding of what the terms would be. This will help everyone in the long run because things need to be clearer for consumers.
Avondale15 - tell the broker you used you are going to file a complaint with the real estate commission. If they don't make things right in your eyes - file the complaint. You obviously had a different understanding of what the terms would be. This will help everyone in the long run because things need to be clearer for consumers.
Part of the signed listing agreement says that you are only relying on what is written in the agreement.
Avondale15 - tell the broker you used you are going to file a complaint with the real estate commission. If they don't make things right in your eyes - file the complaint. You obviously had a different understanding of what the terms would be. This will help everyone in the long run because things need to be clearer for consumers.
Seems like it was crystal clear in writing but OP wants a better deal because they assumed the agent's original interested buyer was the only one the 1% applied to. I have never see a listing agreement with a stipulation that an open house buyer would be handled by the listing agent for free. That's a really unfair expectation especially when the entire reason for the open house was to hopefully sell the house and save OP 1% in the process.
None of this makes sense. How long had the listing agent known that buyer "in the wings"? Would OP be miffed that she had to pay 1% for that one too if she found out listing agent had met them the day before at another open house?
Quote:
Originally Posted by Avondale15
We sold our condo with the help of a RE broker. We signed two contracts with the broker: an Exclusive Right to Sell with Consent to Designated Agency (2% commission to listing broker, 2% to buyer’s agent) and the same with Consent to Dual Agency (2% commission to listing broker, 1% to buyer’s agent). The reason for using a dual agency one was because supposedly the listing broker had a buyer in the wings.
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