Agents commission?

[longsally111]

What is the name of your state? South Carolina

We have had our home up for sale by owner. We got a call today from someone who asked to see the home. We showed it to them. They want to do a contract. Here is the problem.

They proceed to tell me that they saw our home last week!!!! They called an agent to let them in. They tell me that they have not hired the agent, not by verbal or written agreement. I told them that because he let them in to see it last week, he has to get paid. They think not. I dont want a problem and have offered a 3% commission to the person bringing the buyer. If there is no agent, the price of the home goes down. Why they contacted an agent, Ill never know. Does the agent get paid for opening up my door to them last week even though they have nothing in writing?

 

[justalayman]

Does the agent get paid for opening up my door to them last week even though they have nothing in writing?

what they had as a contract doesn't really matter since YOU offered to pay the 3% to the the person that brought the buyer. Since the agent did bring the buyer, you have a committment to pay him.

This situation is outside of the buuyer and any agreement he may or may not have with the agent.

 

[longsally111]

But that is just the point. This person found my home on the for sale by owner web site and instead of calling me, called an agent who then called me to ask for a showing, I said yes and he let them in the house with MY lock box code I gave them. The agent had never seen my home before and wasnt even aware it was up for sale until contacted by these people. The buyers found the home, not the agent and again, they have nothing in writing. Does the agent get a commission?

 

[justalayman]

agent who then called me to ask for a showing, I said yes and he let them in the house with MY lock box code I gave them.

so, as far as you were concerned, the agent did bring the prospective buyer to the table, correct?

The agent had never seen my home before and wasnt even aware it was up for sale until contacted by these people

So, does it alter the fact from your perspective, he brought the buyers? The buyers did not contact you, the agent did, correct?

The buyers found the home, not the agent and again, they have nothing in writing.

You don;t get it. The buyers have nothing to do wih this. It was your offer of 3% to whomever brought you a buyer. Your first contact was with the agent so he is going to argue that he brought the buyer and you will most likely lose if he has to sue you for the commission.

Does the agent get a commission?

Yes unless you intend on reneging on the offer you extended. Then he may sue you and still get the commission.

 

[CLJM]

Longsally111...
My first question to you would be---How did you " offer a 3% commission to the person bringing the buyer" ?
At the time the real estate agent called you and asked to show your home to a buyer---was it as a "client" or a "customer" (there is a big difference) and was that agent representing them as a buyers agent ? If the agent did not have a "buyers agency" with the buyer, the agent was vulnerable to working without getting paid. Did you and the agent discuss any showing or commission arrangements at the time the agent called you ?
My experience as a Realtor in South Carolina is this : A buyers agent must have a signed buyers agency agreement to represent the buyer, if even for a 1 time showing...the buyers then are my "clients" for any home I show them and I am protected for a commission. If they do not wish to be my "client" and only want a 1 time showing, I still protect myself, with a buyers agency representation for that showing. If someone called me out of the "blue" to see a FSBO home, I would contact the FSBO owner on behalf of my client ---and would negotiate the commission arrangements at that time. If a contract followed, my commission due would be written into the contract as due from the seller.
Buyers are famous for going from house to house, Realtor to Realtor-----it is up to the Realtor to protect themselves as well as give the best representation thier clients.
Did you offer the 3% commission to the agent ?
Did the agent have buyers representation agency ?
If so, you owe the commission to the agent as they were the "procuring cause" of the contract. ( the prospective buyers came BACK to your home AFTER first seeing it with an agent)

 

[HomeGuru]

What is the name of your state? South Carolina

We have had our home up for sale by owner. We got a call today from someone who asked to see the home. We showed it to them. They want to do a contract. Here is the problem.

They proceed to tell me that they saw our home last week!!!! They called an agent to let them in. They tell me that they have not hired the agent, not by verbal or written agreement. I told them that because he let them in to see it last week, he has to get paid. They think not. I dont want a problem and have offered a 3% commission to the person bringing the buyer. If there is no agent, the price of the home goes down. Why they contacted an agent, Ill never know. Does the agent get paid for opening up my door to them last week even though they have nothing in writing?

**A: if the deal goes through a commision is due to the agent's broker.

 

[longsally111]

Longsally111...
My first question to you would be---How did you " offer a 3% commission to the person bringing the buyer" ?
At the time the real estate agent called you and asked to show your home to a buyer---was it as a "client" or a "customer" (there is a big difference) and was that agent representing them as a buyers agent ? If the agent did not have a "buyers agency" with the buyer, the agent was vulnerable to working without getting paid. Did you and the agent discuss any showing or commission arrangements at the time the agent called you ?
My experience as a Realtor in South Carolina is this : A buyers agent must have a signed buyers agency agreement to represent the buyer, if even for a 1 time showing...the buyers then are my "clients" for any home I show them and I am protected for a commission. If they do not wish to be my "client" and only want a 1 time showing, I still protect myself, with a buyers agency representation for that showing. If someone called me out of the "blue" to see a FSBO home, I would contact the FSBO owner on behalf of my client ---and would negotiate the commission arrangements at that time. If a contract followed, my commission due would be written into the contract as due from the seller.
Buyers are famous for going from house to house, Realtor to Realtor-----it is up to the Realtor to protect themselves as well as give the best representation thier clients.
Did you offer the 3% commission to the agent ?
Did the agent have buyers representation agency ?
If so, you owe the commission to the agent as they were the "procuring cause" of the contract. ( the prospective buyers came BACK to your home AFTER first seeing it with an agent)

You are correct. I spoke with the South Carolina real estate commission today to make sure I was not breaking any laws. This is what I was told and how it went down. On the FSBO site, I added at the bottom, 3% buyers commission. When this agent called me, he had NOT gotten anything signed, nor did he discuss with me any commission arrangements or get any agreement verbally or written from the people he showed the house. In other words, they were customers, not clients. There was NO buyers agent agreement. Per the South Carolina real estate commission, I do not owe this agent anything!!! Thank you all for the advice!!!!

 

[CLJM]

Longsally111....

You are correct. I spoke with the South Carolina real estate commission today to make sure I was not breaking any laws. This is what I was told and how it went down. On the FSBO site, I added at the bottom, 3% buyers commission. When this agent called me, he had NOT gotten anything signed, nor did he discuss with me any commission arrangements or get any agreement verbally or written from the people he showed the house. In other words, they were customers, not clients. There was NO buyers agent agreement. Per the South Carolina real estate commission, I do not owe this agent anything!!! Thank you all for the advice!!!!

The SC State commission agency law, which as you found out, requires that prior to showing property, an agent must have a buyers agency disclosure signed. A "customer" service does not require a written agreement, therefore a buyer is not committed to that agent or company in any way.
While I was a practicing Realtor in SC, I always wondered why a Realtor would show a property and put forth effort without protecting themselves, but of course, be the first to complain if they "lost" a commission. I daresay, when and if this agent follows up with the buyers and find they have put in a contract he will probably expect to receive commission due as being the "procuring cause" (as I said in my first post) however, he will then find out that he left himself vulnerable because he not only doesn't have the "buyers agency" agreement to back it up, he didn't have an agreement with you. And, really, all he had to do was talk to the buyers to find out how they came to know of your home, get an agency agreement for a one time address showing, get the FSBO site copy of your 3% commission offer and disclose all this to you at the time of the showing.
As a former member of my local Board of Realtors arbitration council in SC, I have seen this lesson learned time and again. Tough to learn but bet he doesn't forget that disclosure again. Good luck to you.

 

[longsally111]

Thanks for the response. May I just say that I paid to run the ad on the FSBO site, I wrote it, put up the sign, made the flyers, showed these people my home, answered their questions, negotiated the contract and basically did all the work. I was really appalled at the though of paying someone over 6,000.00 just for opening my front door and letting these people into my home. Has I been told that I legally owed the money, I would pay it but I feel like I did the work. BTW, these people found the home on their own on the FSBO site. Why they called an agent instead of me in the first place, who knows!!!!!!

 

[CLJM]

Longsally111...

Why they called an agent instead of me in the first place, who knows!!!!!!

I am of the firm belief that all buyers need Buyers Representation and should have a Realtor--- it's "what's best for them" !

"As a client you are entitled to full confidentiality as with a client/attorney fiduciary relationship, benefit of the agent’s negotiation expertise, full disclosure of all material and non material facts which may affect the value of the property, property showings of all listings including for sale by owners and MLS listings which disallow sub-agency. As a client you have hired the real estate agent to represent you. The real estate fee is paid by the listing firm when the transaction closes. You have no obligation to purchase property but do have an obligation to utilize your buyer agent in the transaction. Your real estate agent is obligated to work 100% in your best interests and commit to serving your best interests only."
"A customer is entitled to honesty and full disclosure of all material facts. As a customer your agent can provide you with information about real estate listings, showings of those properties you select to view, and preparation of contract forms to be submitted as offers. As a customer your agent can not make suggestions about property values, can not negotiate on your behalf, is not obligated to disclose or point out “non material” facts, can not disclose information about the sales history of the property or the seller’s personal situation, can not provide you with confidentiality, or interpret a detailed market analysis showing subject property history in the neighborhood you’re buying into. As a customer your real estate agent is working for the seller and his best interests."

They called that agent instead of you directly, because they wanted professional advice----once they received it, they most likely thought they would get a better deal if they kicked him to the curb and contracted with you themselves. Their decision may or may not turn out to be the "better deal". Being in the business as long as I have been, the buyers may start out thinking it is ( especially if they USE a Realtor to get all the information, but as they go thru the contract negotiations, inspections, contingency and financing etc, more often than not, they find it wasn't such a "better deal" after all.
Again, good luck to you.

 

[justalayman]

Oh, I see. Now you change the information.

Good luck. Hopefully the agent was an idiot and things are as you say. If this agent is half smart, he knows what he was doing and the neccessary disclosures actually were provided and he will be contacting you for the commission.

I do have to ask: you complain about putting in the ad, making flyers etc. yet you offered a 3% commission and now you gripe about it. Why did you offer the 3% to begin with. With a FSBO, you do what you did. That is the way it is.


What did you expect a buyers agent to do for the 3%?

 

[longsally111]

Oh, I see. Now you change the information.

No I didnt change ANY information. Please go back and reread my post.

Good luck. Hopefully the agent was an idiot and things are as you say. If this agent is half smart, he knows what he was doing and the neccessary disclosures actually were provided and he will be contacting you for the commission.

again, he did not have these people sign anything nor did he discuss anything with me. BY LAW, he does not get the commission.

I do have to ask: you complain about putting in the ad, making flyers etc. yet you offered a 3% commission and now you gripe about it. Why did you offer the 3% to begin with. With a FSBO, you do what you did. That is the way it is.

Honey, I am not griping or complaining. I did it by my free will because I did not want to pay someone a 3% commission to put my house on the internet, place a sign in my yard and make flyers, something I am capable of doing.

What did you expect a buyers agent to do for the 3%?

Find my home for them with a search, show my home, advise the clients, negotiate the contract but above all, he should know his job and what is legally necessary to do it. HE DID NOT!!!

Not only did I list my home on the FSBO site, for which I paid 140.00, I also listed my home with Iggy's house. This company lists your home for free on the internet and charges no commission!!!!!!! That is one of the reasons why home prices are SO ridiculous!!!!! To have to list your home 12 to 14,000 more than you need to pay people for the dance is ridiculous. That is why more and more people use Iggy and FSBO. That is why I did it.

 

[OnceUponATime]

[/B]

Not only did I list my home on the FSBO site, for which I paid 140.00, I also listed my home with Iggy's house. This company lists your home for free on the internet and charges no commission!!!!!!! That is one of the reasons why home prices are SO ridiculous!!!!! To have to list your home 12 to 14,000 more than you need to pay people for the dance is ridiculous. That is why more and more people use Iggy and FSBO. That is why I did it.

Obviously you don't understand the value of a real estate agent. If you believe all an agent does is what you have done, then anyone could be a successful agent. Good luck and I hope you have a smooth transaction with no hidden surprises.

CLJM----excellent posts!

 

[longsally111]

believe me, I do understand the value of a real estate agent but the one that I hired to sell my home and had my listing for one year put us on the mls, placed a sign in the yard and that was all. I demanded flyers 6 months later and when they ran out, no more ever came. We had several possibles that she let slip through.

example. one family saw our home and loved it but had a house to sell. When our listing was over 1 year old, I asked her to take it off the market for 5 days and relist it with a new mls. She did but it was off the market for 10 days. She calls me up and tells me that during those 10 days, the people sold their home and bought another one beccause they thought ours was no longer available and the loss of the sale was my fault. I then asked her, since we knew they wanted the home, did she call or e-mail their agent to tell them what we were doing and why? Did she tell them we were adding blinds to the home? Did she tell them we dropped our price? Did she tell them the home would still be available to them if they wanted it? No, she did none of the above. Everytime a sale went bad, she blamed it on us and our home, not on her lack of ability and motivation. She was a passive realtor and had it not been for her, we would have sold a long time ago.

That is my experience!!!1 We also had to list 14,000 higher to pay for the realtors.

 

[CLJM]

Longsally111...
I believe you may be confused between hiring a "friend" and hiring a good Realtor. Business is business and friendship is friendship. I surmise you might have hired your friend thinking YOU might get a "better deal".
One doesn't hire and sign a listing agreement and THEN tell the professional how to do their job---one interviews several agents and then makes a choice which is the best match up. Those that try to "slide on the side" usually end up doing just that. Any "blame" that you speak of was yours---your choice whom you hired and apparently, you got just what you hired for.

Everytime a sale went bad, she blamed it on us and our home, not on her lack of ability and motivation.

Also Longsally111, as I am sure you are aware...many people negate Realtors as doing no work and making alot of money, but be assured, every person whether selling by owner or buying without an agent has, in fact, USED those same people's expertise, skills and tools of the trade to gather their information and then "go it alone". But, it isn't "going it alone", it's USING and then discarding without paying for that expertise.
I also hope you do not find yourself in a situation where you have a ratified contract and THEN the agent shows up with his written disclosure signed by the buyers. Afterall, that IS the name of the game, isn't it ( the dance as you call it) ?

We also had to list 14,000 higher to pay for the realtors

That is just simply not how it works.