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Saw this at a realtor site. My thoughts. Yes an agreement is an agreement but what if this lead to the buyer not to qualify? A lot of something is better than nothing:
Long. But worthwhile:
Well, I just seen how the new commission structure is going to harm Buyers.
We had a $550,000 listing in the MLS and a buyers agent brought a buyer, the agent was unhappy with the split we were offering. Keep in mind that the split was half of the listing commission. The listing agent was making no more money than the buying agent. However, the buying agent had exclusive buyers agent agreement that entitled them to just a little bit more commission(.5%)This offer had about four counter offers and each time the agent asked for the additional commission and the seller said no. All other terms of the contract had been agreed to except for this additional commission meanwhile, another agent come in and wrote a similar price offer without asking for the extra commission. The seller agreed to accept that offer.
So this exclusive buyers agency agreement cost the buyer their home and I bet they really didn’t care whether their agent made this additional amount of money. They just wanted the house. as a broker owner I cringed to think of the liability this agent just put her brokerage into with the buyer losing the house over this small amount of commission that they wanted.
To expand on the above ;
The buyer lost the house because the buyers agent wanted an additional 2750 in commission. The buyers agent was told on three separate counters no. At the end of the day, the buyers agent ended up with a no sale so holding out for an additional 2750 cost the agent the sale and 13750 in commission. I see a lot of comments where they say well I’m worth this or I’m worth that at the end of the day. If you do not get it a closed deal with that buyer you make zero. we all know how hard it is to find homes for buyers in this current market. Their contract might run up with this buyer and they will go elsewhere since they’ve lost a house that they bid full price on and lost due to commission.
Also, the seller did not give the buyer the chance to remove this from their last counter offer as they received another offer without that request, so they just accepted the other offer. Maybe if we were in a buyers market these buyers could be requesting all this commission restructured in the contract but in a sellers market it is going to be very difficult.
This is a fake narrative. The sellers may have had other reasons to say no to this buyer, like putting a willing and well qualified buyer under contract.
The "structure" did not hurt the buyer at all.
Your post seems to indicate that $2750 was the final hurdle.
Yes, the settlement is intended and expected to hurt buyers, but the unwillingness of the buyer to pay the $2750 out of pocket to their agent appears to be the sticking point that cost the buyer the house, if that was the last impediment to contract.
The "structure" did not hurt the buyer at all.
Your post seems to indicate that $2750 was the final hurdle.
Yes, the settlement is intended and expected to hurt buyers, but the unwillingness of the buyer to pay the $2750 out of pocket to their agent appears to be the sticking point that cost the buyer the house, if that was the last impediment to contract.
Quote:
Originally Posted by 2bindenver
This is a fake narrative. The sellers may have had other reasons to say no to this buyer, like putting a willing and well qualified buyer under contract.
The post was from a sellers agent. Those were the details provided. Unclear if the buyer was driving it or was even aware. Curious about that.
I’m not sure if the buyer agent was acting in the best interest of the buyer 13k is better than zero. Yes you “deserved” or were entitled to 2750 more but sometimes you gotta close the deal and move on. However I’m not a realtor. The buyer agent was going to be paid the same as listing agent
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Location: Ocala, FL
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The only time I ever encountered a situation like described here, I had a difficult customer who insisted on discounting the commission by .5%. I represented the seller. I could have argued with my seller about the signed contract but my broker and I felt it wasn't worth being difficult.
To close the deal, the other agent agreed to split the difference and we were able to get the transaction finished to the seller's satisfaction. I didn't like to take a cut in commission, but sometimes you have to do what you have to do and just grin and bear it.
The post was from a sellers agent. Those were the details provided. Unclear if the buyer was driving it or was even aware. Curious about that.
I’m not sure if the buyer agent was acting in the best interest of the buyer 13k is better than zero. Yes you “deserved” or were entitled to 2750 more but sometimes you gotta close the deal and move on. However I’m not a realtor. The buyer agent was going to be paid the same as listing agent
1. We don't know how many houses the agent showed the buyer, how many offers the agent wrote, how many late weekend nights the agent put in, etc, etc.
2. If the listing agent balked and blew the deal over $2750, how does that make them any better than the perception that the buyer's agent blew the deal?
Was the listing agent working in the sellers' best interests?
3. Equal pay for the two agents is totally irrelevant. It means nothing in the greater scheme of things, other than perhaps 2 agents' egos getting in the way.
1. We don't know how many houses the agent showed the buyer, how many offers the agent wrote, how many late weekend nights the agent put in, etc, etc.
2. If the listing agent balked and blew the deal over $2750, how does that make them any better than the perception that the buyer's agent blew the deal?
Was the listing agent working in the sellers' best interests?
3. Equal pay for the two agents is totally irrelevant. It means nothing in the greater scheme of things, other than perhaps 2 agents' egos getting in the way.
On point 2 I think it’s the buyer that owes the buyer agent? When you bring a buyer to a home don’t you know what the commission is?
Either the BA didn’t push the buyer or the buyer refused to pay. Now instead of a 13k commission and a happy customer you will either do more work or lose a customer. Over 2750?
Listing agent accepted another offer. He’s not out anything other than the long nights of negotiating
Buyer agent nuked the deal over 2750 because his client either didn’t want to pay or he was too scared to ask.
Does the seller not list the commission split for the listing?
The request for the compensation gap was in the offer so the buyer would have known about the request. The BUYER blew the deal over the commission. They kept asking for it and it kept being denied.
The buyer could have picked an agent with a lower minimum compensation offering, but they didn't. They could have tried to get their agent to renegotiate the compensation, but apparently, that didn't happen or the agent said no. Buyers are responsible for their choice of agent. They agreed to a fee and maybe they will think about what they are agreeing to next time.
It will be fine. Buyers will either shell out a ton of money or have to try and get out of buyer agency agreements, but they will find an agent that will give them service for a lower fee. It will just take time. Once they harm themselves enough times, they will make changes.
The request for the compensation gap was in the offer so the buyer would have known about the request. The BUYER blew the deal over the commission. They kept asking for it and it kept being denied.
The buyer could have picked an agent with a lower minimum compensation offering, but they didn't. They could have tried to get their agent to renegotiate the compensation, but apparently, that didn't happen or the agent said no. Buyers are responsible for their choice of agent. They agreed to a fee and maybe they will think about what they are agreeing to next time.
It will be fine. Buyers will either shell out a ton of money or have to try and get out of buyer agency agreements, but they will find an agent that will give them service for a lower fee. It will just take time. Once they harm themselves enough times, they will make changes.
Post didn’t indicate if the buyer was aware or not. Yea. Onto the next house for both
On point 2 I think it’s the buyer that owes the buyer agent? When you bring a buyer to a home don’t you know what the commission is?
Either the BA didn’t push the buyer or the buyer refused to pay. Now instead of a 13k commission and a happy customer you will either do more work or lose a customer. Over 2750?
Listing agent accepted another offer. He’s not out anything other than the long nights of negotiating
Buyer agent nuked the deal over 2750 because his client either didn’t want to pay or he was too scared to ask.
Does the seller not list the commission split for the listing?
Concessions can go either way, to buyer or to seller.
Listing agent may have benefited from a sellers market and another offer. Otherwise, in that particular deal you posted, it appears the listing agent or seller kicked it to the curb over the same amount of money as the buyers agent.
In a softer market, the listing agent may have been less fortunate.
Listings do indicate the amount of cobroke commission, at least in a great many markets for a while yet.
Until that changes, the buyers agent knows the commission amount. That is how the buyers agent and/or buyer knew to request more.
Tangential Fact: Buyer covers the cost of all commissions.
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