Real estate agent fees

[fscrig75]

So I'm getting ready to sell my house.....

We were going to list it at 110,950. On the first day a family came and looked at the house and really liked it. Their agent thought they would make an offer but asked us to raise the price of the house $5000. He wanted this so that he could get a $4000 bonus on top of the 3% my agent would give to him and we would get $1000 over what we were going to ask for the house.

Does this sound shady? I'm don't think it's illegal but maybe unethical.

Any agents out there have opinions about this?

 

[5-90]

Illegal? Probably not. Shady? Certainly. Ethical? This is a real estate agent you're talking about, and they can usually be classed with attorneys and insurance salesmen WRT ethics.

Perhaps have your agent talk directly with the other side? I can't see adding to a mortgage so the agent will benefit...

EDIT - as far as what to tell the other agent, I see a couple of choices:

1) "Ain't it nice to want?"

2) "I want a date with Samantha Fox and a million dollars, but I don't see that happening either."

 

[fscrig75]

Yea I figured it's not illegal but when I dropped the ethical word on him he started to get all tongue tied, my agent that is. Basically their agent just wanted some extra cash and by increase my asking price he was getting his clients to pay him more without them knowing. Man I hate dealing with these people you never know if they are working for you or for their friends.

Anyway I called my guy back and told him the other agent doesn't get a dime from us, we'll accept their offer but not their agents offer.

 

[trd_xj42]

If that was my agent as a buyer I would be pissed and want to know. That's really not representing the buyer's best interest.

 

[fscrig75]

And thats what I'm worried about. Karma is a MOFO.

 

[Matthew Currie]

If the buyers have an agent, the agent is supposed to be acting on their behalf, just as the seller's agent acts on yours. I agree with TRD on this one. Whatever becomes of the offer and the deal, the buyers should know their agent is bent, so that they don't recommend him to their friends.

 

[x2elite]

I don't see how he would actually get that $4000 more unless you actually sold the buyers your house for $5k more. So I would definately say that there is something very shady going on.

 

[fscrig75]

I don't see how he would actually get that $4000 more unless you actually sold the buyers your house for $5k more. So I would definately say that there is something very shady going on.

That's exactly what he wanted us to do. We wanted to list at 110,000 and he asked us to list at 115,000.

 

[Ray H]

If "their" agent is truely a buyers agent, what he asked is not only unethical but it IS illegal as well.

 

[heyhar]

I had a PA Real Estate Sales License since 1979, and unless the laws have changed, ALL the agents, buyer and seller, work for the best interest of the seller. The seller is the one paying the commission, and all the professionals involved work for the seller.
fscrig75, did you already have a listing contract with an agent? If so, you've already settled upon a selling price. Any salesperson can show your property, but a prospective buyer should know the price before they knock on your door. The only time I've seen a price rise is in a bidding war, which you haven't indicated. Yeah, all parties involved (except the buyer) would like to see the house sell for the highest figure. But the first priority is to see the property sell at all, at an agreed-upon price. Many times, the seller ends up lowering the price, depending on how badly you need to get out. You've possibly discussed a lowest figure with your lister.
Bottom line, I'd like to hear the conversation with the selling agent and their customer.

 

[Darky]

If they've signed a contract with him to have him represent them, then he is supposed to act in their best interest. If he doesn't then he is definitely a d-bag, and might be a criminal. We were having a lot of problems with our agent when we bought this house. She refused to ask the seller's to cover certain costs (like heaters in the house, paint on the eaves and fascia, etc) that were required in order to sell the house. I almost walked out on the deal.

 

[fscrig75]

We are with an agent now from ERA. I'm using the USAA Movers Advantage program.

If anyone is not familiar with USAA, its a credit union that only has clients that are service memebers. I think they have opened up a little and are allowing more people to join, but some how you have to be connected with the military. Anyways...

USAA certifies some agents to represent them in buying and selling homes for account holders. It's a pretty good program they, USAA, give you lots of credits towards closing and you only have to deal with one company for mortgage/insurance/agent.

The buyer's agent is definitely a d-bag. Damn and so close to selling quickly, well lets see where this hole takes us.

 

[IslanderOffRoad]

Tell him sure.

If he splits the 4k with you.

 

[heyhar]

How close to losing a sale will raising the price cause you to come? You'd have a court case if they were solid, motivated buyers, and they found out the price scheme, then backed out. The whole deal just smells wrong. The only time a selling agent can comment about price is when a little reduction could help him or her push the buyerover the edge. And then, talk ONLY to your agent, the listing agent, who then approaches you, to 'suggest' a new strategy. The whole procedure is set up to insulate the seller from any grief from the buyer, or anyone representing them.

 

[kastein]

Illegal? Probably not. Shady? Certainly. Ethical? This is a real estate agent you're talking about, and they can usually be classed with attorneys and insurance salesmen WRT ethics.

Perhaps have your agent talk directly with the other side? I can't see adding to a mortgage so the agent will benefit...

EDIT - as far as what to tell the other agent, I see a couple of choices:

1) "Ain't it nice to want?"

2) "I want a date with Samantha Fox and a million dollars, but I don't see that happening either."

:roflmao:

OP - definitely a slimebag, possibly illegal. My agent I *know* is working on my behalf because she's told me that I'm crazy to offer what I offered on a few of the places I looked at, and has even told me not to offer on some of them... mostly because she isn't all that handy and is horrified by fixer-uppers as a result.

Unless it's illegal, I say have your agent talk directly with the prospective buyers, tell them what their agent tried to pull over them, and say you'd rather deal with a different agent or directly with them.

As far as I know, at least in MA, a buyer's agent is supposed to be on their side. The seller's agent is on the seller's side.

 

[heyhar]

:roflmao:


As far as I know, at least in MA, a buyer's agent is supposed to be on their side. The seller's agent is on the seller's side.

There's the problem with a 'buyers' agent- they don't represent the seller, who is the one that is traditionally served, as the seller is the one paying the commissions. Even on a $5k price increase, the selling agent would only see a $75.00 bump in commission, assuming a 6% commission from the seller, at 1.5% to the buyer's agent, of course discounting his 'bonus'. Where is this bonus coming from? Like I said, the seller pays the freight.

 

[fscrig75]

Well I told my agent that the price isn't changing and if those people want our house they need to find a new agent. These two agents work in the same office.
They got a new agent and I've got a contract to sell my house.

Thanks for all the advise guys. Kind of surprising its been on the market for less then 5 days.