That was my reaction, too: why should agents cut their commission well into a deal?? The agents were doing exactly what he wanted: sell his home at a price mutually acceptable to all parties and according to contracts with terms that they'd all signed off on. Then he got weasely and started trying to strongarm people into cutting their salary.

Hi Jeff,
This is not about the money - It is the principle - it is about ethics. These realtors slammed me like a used car salesman. They both knew exactly what I wanted (an extra 3000.00). 1. I did not get what I wanted. The agent presented me with an offer 40,000 less than what she advised me that she could sell it for. Not only this, both agents refused to present the counter offer of 3,000.00 more. Instead they counter backed at the same price and lead me to believe they would lower their commission by 1/2 point. They told me the agent commission would be handled in a separate addendum but the buyers agent disappeared at 5 pm shortly after my counter offer was presented to the buyers. The buyers accepted and there I sat with a contract at 6 percent commission.

As a customer, I felt betrayed. I can't believe the buyer's agent was without a cell phone all weekend. What top agent travels without a cell phone these days? Especially with a large deal ont the table.

All they had to do was be honest. All I expect others reading this to do is say "I wouldn't do that to my client". Please restore my faith in your profession.

I don't treat my clients that way. In fact it felt very sleazy. You can take it or leave it.

This is my time and I am offering you my feedback. I would never go back and trust either agent again.

That doesn't make it ok. Many a shallow person such as yourself has taken that road before you. They are eventually identified, if not by their ignorance then by their IP address.

Well, I wouldn't do to a client what you described, but the whole thing sounds a little squirrely- like there's got to be another side of the story here! First off, agents cannot "refuse" to present an offer, generally speaking. Next, in your earlier description you didn't describe it as them leading you to believe they'd eat a half point, it was that you were insisting that they do and they were resisting it. Let's face it, in an even market or a buyers market the seller is ALWAYS going to be wishing they got more, and the whole point of contractual agreements is so that people don't get neck-deep in a deal and then have one party or the other start to strongarm them! For example, you would have been pretty miffed if the person on the other side had started to insist that you cover his closing costs and demanding that your already-signed deal be amended to say so... right? There's no difference.

The market sets the price of your property, not you, and not your Realtor. Your Realtor did not cost you $40,000. You had the option of not selling. Otherwise, you sell for what the market will bear. In a time of "adjusting" markets things can move pretty fast, and a home's value can be different a few months after a price was mentioned in a listing presentation!

However, at the root of this is someone who came out of a transaction feeling screwed by Realtors, and that's too bad. I'm sorry it happened to you, to whatever extent it actually DID. I don't think it indicts the whole system, though, and I don't think some sort of electronic Realtor getting half the commission solves ANYTHING!

-jeff

[QUOTE]Originally posted by electricbroker:
[qb] [QUOTE]Originally posted by Jeff Olsen:
[qb] Well, I wouldn't do to a client what you described, but the whole thing sounds a little squirrely- like there's got to be another side of the story here!
First off, agents cannot "refuse" to present an offer, generally speaking.

Hi Jeff.

It is hard to believe after all that continuing education that an experienced agent who prides herself in High Ethical Morals would forget the real estate code of ethics.


I will detail what exactly happened.

I told both realtors via speaker phone I would accept the offer *40,000 below the listed price IF the agents would take 1/2 point off their commission.. if not, I wanted to counter back 3000.00 higher, no couch but add a generator. My agent immediately agreed to lower her commission. The buyer's agent told my agent via speaker phone that she would consider lowering of her commmission. She asked what kind of generator it was. My agent described it and then the buyer's agent said hmmm, maybe she would take it for her home in Mexico and drop her commission 1/2 point. She was going to think about it.. she told my agent to remove the generator from the offer. She then told my agent to remove the clause "agents to reduce commissions by 1/2 point. "she said it wasn't the correct format to negotiate the agents commission on the counter offer form. We would do "that" separately. I said alright trusting my agents.

So.. I signed the counter offer and waited for the next step (the commission split). I was told to go home and wait.

I received confirmation at 5 pm my counter offer was accepted. Thr seller's agent came to my home and said let's celebrate and asked for a drink. We had a drink laughed and hugged and celebrated for one hour before she asked me to sign the acceptance to the acceptance and dropped the ball on me by telling me the agent did Not accept the reduction in her commission. Then she went on to beg me for her 1/2 commission back. (She had already agreed to it). She told me she felt she deserved it and then cried poor house for 10 minutes. I felt so betrayed and embarrassed that she was putting me in this position regarding her personal finances. Imagine, spending and hour prior celebrating and laughing and she knew she was going to have to tell me the agent refused to compromise her commission. I was furious, would not sign and told her to get in touch with the agent immediately - but the buyers agent was at a real estate semimar and she would not return the messages or emails. What really gets me is the buyers agent takes out a full page ad in the newspaper every weekend advertising her high moral character and ethical values. Go with the Realtor that You can TRUST!

Regarding paying brokers commissions.. FYI - I have worked on straight commission my entire life and do not mind paying full commissions.

Sounds like you had WEAK agents.I would have told you an immediate NO and that my commission has NOTHING to do with the condition of your house,the price the market is willing to bear,or your personal circumstances wanting to get SO MUCH out of the property.After all you DID NOT have to sell.

It doesn't sound like they agreed to do anything,it sounded like a think it over to me from your agent and a definite NO from the buyers agent.Per the listing agreement if they presented an offer agreed upon in the sales price and you wouldn't sell because they wouldn't reduce there commission they could sue you and win for there full commission because they performed to what was written in the contract.


They could tell you the sky is green verbally,but it's what is written that matters.

Electricbroker,

I do not see anywhere in your post that you actually signed any contract to purchase. Without a signed contract you have nothing as there is no deal. What is said orally means nothing which is why real estate transactions are done in writing. I fail to see what you are complaining about as you had no deal unless you signed a contract and if you did that means you agreed to what was in the written contract.

All I wanted was the opportunity to counter back at $3000.00 more - the agents should have told me Simply ***they would Not negotiate the commission***. Very Simple. I would have made the counter offer at 3000.00 higher and paid the full 6%.

The buyers would have taken the deal -

electricbroker,
Sorry but I find your story highly suspect and would love to hear the rest of the story as Paul harvey use to say!

Asking the listing agent to reduce their commission was wrong on your part, especially for someone that claims to have been a licensed real estate agent in several states over the last 20 years.

You keep saying would have but it comes down to Did Not. It was your decision to either accept, reject or counter not that of either agent involved.

Again it comes down to what is put in writing not what was said over the phone. You failed to answer my question. Did you Sign and accept an offer?

I listed a home last September. The homeowners found a "buyer" the previous June, however the "buyer's" wife didn't want to buy a second home. The homeowners didn't find this out till Sept. The "buyer" hung them up for 3 good summer months. The homeowner complained to me "our atty did NOTHING! He didn't call the guy and try to get him to COMMIT! What a crummy atty!" I explained to him that is the r.e. agents job. At lease in my area attys aren't going to hound the buyer to find out if they really are ready willing and able. They spent 3 mos arguing about a c.o. for an addition, which the homeowner kept telling the "buyer" he was NOT getting a c.o. for, and if he kept insisting he would just TEAR THE ROOM OFF and he could buy it at the same price of course, minus the addition! LOL, and people wonder what real estate agents do.

They negotiated a commission when you listed. You wanted to RE negotiate the commission.

Correct. And that's not the appropriate time to negotiate a commission. That's instead trying to strongarm people when in fact he had no real leverage; they had a legal contract and he needed to sell. Silly.

-jeff

They negotiated a commission when you listed. You wanted to RE negotiate the commission. And that's not the appropriate time to negotiate a commission. That's instead trying to strongarm people when in fact he had no real leverage; they had a legal contract and he needed to sell. Silly.

-jeff

Well Jeff,

When "is" the proper time to negotiate the commission? It seems that I have flat out failed in my responsibility as a seller.

I did ask the realtor several times prior to listing about negotiation of the commission. My realtor told me it could be done in the final stages of the negotiation to make the deal happen. She said "it was done all the time".

ALL the realtors who have read my story and responded have failed to restore my faith in live real estate brokers. In fact, I feel even more isolated and stupid for not knowing the p's and q's of handling realtors.

I am now in the market to buy a house. I guess I will head to the AOL fsbo listings in my area since I am not hitting it off with anyone here.

AOL is launching a new area for FSBO listings:
AOL Bargain FSBO

Electric,

So you are going from working with professionals who are licensed and can be held legally liable for your transaction, to working with the exact opposite with FSBO's?

Maybe you should be asking "what questions do I need to ask a potential Realtor" rather than disparaging an entire profession.

Hi Joel,

Yes, I prefer working with the FSBO instead of licensed professionals who can be held legally liable for my transaction.

Most of the agents (in this forum anyway) are

1. poor listeners
2. not sympathetic to the clients needs
3. Do not honor their word. "Unless it is in writing on the contract, it means ZERO"

In fact, I could be SUUED by the RE Agent!!

I am sorry but.. I wouldn't hire ANY OF YOU to be my agent -- well maybe Broker - Read his comments on MLS.

Beware of what you say in a public forum!

Next time try these lines:

"I understand how you feel, others have felt the same way and don't forget to "listen, listen, listen" - read comments and before opening your mouth.... Put yourself in the clients shoes -- otherwise you might end up with the big shoe in your mouth!

I STILL believe THE Electronic brokerage works BEST!!!!!!!!!!


1. It keeps Agents and Homeowners Honest

2. Everything is documented in writing - all communication.

3. It eliminates all the bull**** Or FAT in the DEal

4. It Saves Time by Cutting out the verbal BS!


TIME IS MONEY! TIME IS MONEY! -- HAVE A GREAT 2007!

Thanks Broker - see below


broker
Veteran Member
Member # 5377

posted 06-19-2006 06:21 AM
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This is all about the MLS. If consumers were given access to the MLS to place properties and view sales data then it would be a whole different ballgame. That's what's it working toward. Information control is key and the NAR knows it.... and so do thier opponents.